3 Stocks Pushing The Technology Sector Lower

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

The Technology sector as a whole closed the day down 0.7% versus the S&P 500, which was down 0.5%. Laggards within the Technology sector included Cover-All Technologies ( COVR), down 2.4%, Sutron ( STRN), down 1.9%, Forward Industries ( FORD), down 6.4%, Otelco ( OTEL), down 5.5% and TigerLogic ( TIGR), down 7.1%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

China Unicom (Hong Kong ( CHU) is one of the companies that pushed the Technology sector lower today. China Unicom (Hong Kong was down $0.78 (4.7%) to $15.67 on average volume. Throughout the day, 550,875 shares of China Unicom (Hong Kong exchanged hands as compared to its average daily volume of 409,300 shares. The stock ranged in price between $15.53-$15.99 after having opened the day at $15.92 as compared to the previous trading day's close of $16.45.

China Unicom (Hong Kong) Limited, an investment holding company, provides cellular and fixed-line voice, broadband and other Internet-related, information communications technology, and business and data communications services in China. China Unicom (Hong Kong has a market cap of $40.2 billion and is part of the telecommunications industry. Shares are up 22.3% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate China Unicom (Hong Kong a buy, no analysts rate it a sell, and 1 rates it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates China Unicom (Hong Kong as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's revenue growth has not been good.

Highlights from TheStreet Ratings analysis on CHU go as follows:

  • Powered by its strong earnings growth of 30.00% and other important driving factors, this stock has surged by 27.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although CHU had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • CHINA UNICOM (HONG KONG) LTD has improved earnings per share by 30.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CHINA UNICOM (HONG KONG) LTD increased its bottom line by earning $0.71 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.71).
  • CHU, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues fell by 11.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Diversified Telecommunication Services industry and the overall market, CHINA UNICOM (HONG KONG) LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: China Unicom (Hong Kong Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, Sutron ( STRN) was down $0.10 (1.9%) to $5.15 on average volume. Throughout the day, 4,450 shares of Sutron exchanged hands as compared to its average daily volume of 3,900 shares. The stock ranged in price between $5.15-$5.26 after having opened the day at $5.26 as compared to the previous trading day's close of $5.25.

Sutron Corporation provides real-time data collection and control products, systems and applications software, and professional services for the hydrological, meteorological, and oceanic monitoring markets. Sutron has a market cap of $26.7 million and is part of the telecommunications industry. Shares are up 5.0% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Sutron as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on STRN go as follows:

  • STRN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.55, which clearly demonstrates the ability to cover short-term cash needs.
  • 45.15% is the gross profit margin for SUTRON CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.79% trails the industry average.
  • Compared to its price level of one year ago, STRN is down 3.08% to its most recent closing price of 5.35. Looking ahead, our view is that this company's fundamentals will not have much impact either way, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 75.8% when compared to the same quarter one year ago, falling from $0.49 million to $0.12 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, SUTRON CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Sutron Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Cover-All Technologies ( COVR) was another company that pushed the Technology sector lower today. Cover-All Technologies was down $0.03 (2.4%) to $1.03 on light volume. Throughout the day, 6,700 shares of Cover-All Technologies exchanged hands as compared to its average daily volume of 10,900 shares. The stock ranged in price between $1.00-$1.06 after having opened the day at $1.06 as compared to the previous trading day's close of $1.06.

Cover-All Technologies Inc., through its subsidiary, Cover-All Systems, Inc., licenses and maintains software products for the property/casualty insurance industry in the United States and Puerto Rico. Cover-All Technologies has a market cap of $29.3 million and is part of the telecommunications industry. Shares are down 15.2% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Cover-All Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on COVR go as follows:

  • COVR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.00%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • Net operating cash flow has decreased to $0.47 million or 37.31% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, COVER-ALL TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • COVR's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • 47.74% is the gross profit margin for COVER-ALL TECHNOLOGIES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -10.65% is in-line with the industry average.

You can view the full analysis from the report here: Cover-All Technologies Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'