3 Computer Software & Services Stocks Pushing Industry Growth

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 121 points (0.7%) at 17,751 as of Wednesday, July 29, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,248 issues advancing vs. 830 declining with 135 unchanged.

The Computer Software & Services industry as a whole was unchanged today versus the S&P 500, which was up 0.7%. Top gainers within the Computer Software & Services industry included GRAVITY ( GRVY), up 1.6%, Intellicheck Mobilisa ( IDN), up 2.8%, GSE Systems ( GVP), up 3.4%, CollabRx ( CLRX), up 3.1% and CSP ( CSPI), up 4.3%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

CollabRx ( CLRX) is one of the companies that pushed the Computer Software & Services industry higher today. CollabRx was up $0.02 (3.1%) to $0.54 on light volume. Throughout the day, 26,277 shares of CollabRx exchanged hands as compared to its average daily volume of 97,500 shares. The stock ranged in a price between $0.51-$0.60 after having opened the day at $0.51 as compared to the previous trading day's close of $0.52.

CollabRx, Inc. provides cloud-based expert systems to inform healthcare decision-making in the United States and internationally. The company develops and markets medical information and clinical decision support products and services. CollabRx has a market cap of $5.8 million and is part of the services sector. Shares are down 16.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate CollabRx a buy, no analysts rate it a sell, and 1 rates it a hold.

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

Highlights from TheStreet Ratings analysis on CLRX go as follows:

  • 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 Health Care Technology industry. The net income has significantly decreased by 86.8% when compared to the same quarter one year ago, falling from -$0.95 million to -$1.78 million.
  • Net operating cash flow has declined marginally to -$0.98 million or 4.05% 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.
  • CLRX'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 63.59%, 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. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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 Health Care Technology industry and the overall market, COLLABRX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CLRX's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 9.05, which clearly demonstrates the ability to cover short-term cash needs.

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

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At the close, GSE Systems ( GVP) was up $0.05 (3.4%) to $1.54 on light volume. Throughout the day, 971 shares of GSE Systems exchanged hands as compared to its average daily volume of 26,900 shares. The stock ranged in a price between $1.50-$1.59 after having opened the day at $1.59 as compared to the previous trading day's close of $1.49.

GSE Systems, Inc. provides simulation, engineering, and training solutions and services to the nuclear and fossil power generation, oil and gas, refining, chemicals, petrochemicals, industrial gas, manufacturing, transportation, and plant utilities markets worldwide. GSE Systems has a market cap of $26.7 million and is part of the services sector. Shares are down 6.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate GSE Systems a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates GSE Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on GVP go as follows:

  • The gross profit margin for GSE SYSTEMS INC is rather low; currently it is at 23.66%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to -$0.47 million or 108.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • GVP has underperformed the S&P 500 Index, declining 8.13% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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, GSE SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • GSE SYSTEMS INC reported significant earnings per share improvement 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 year. During the past fiscal year, GSE SYSTEMS INC continued to lose money by earning -$0.38 versus -$0.58 in the prior year.

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

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Intellicheck Mobilisa ( IDN) was another company that pushed the Computer Software & Services industry higher today. Intellicheck Mobilisa was up $0.03 (2.8%) to $0.98 on light volume. Throughout the day, 22,479 shares of Intellicheck Mobilisa exchanged hands as compared to its average daily volume of 37,000 shares. The stock ranged in a price between $0.93-$0.99 after having opened the day at $0.95 as compared to the previous trading day's close of $0.95.

Intellicheck Mobilisa, Inc. develops, integrates, and markets wireless technology and identity systems for mobile and handheld access control and security systems. Intellicheck Mobilisa has a market cap of $9.8 million and is part of the services sector. Shares are down 67.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Intellicheck Mobilisa a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Intellicheck Mobilisa as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IDN go as follows:

  • 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 43.1% when compared to the same quarter one year ago, falling from -$0.91 million to -$1.30 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, INTELLICHECK MOBILISA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • IDN'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 76.44%, 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. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • IDN, with its decline in revenue, slightly underperformed the industry average of 1.9%. Since the same quarter one year prior, revenues slightly dropped by 9.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for INTELLICHECK MOBILISA INC is currently very high, coming in at 79.74%. Regardless of IDN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IDN's net profit margin of -131.91% significantly underperformed when compared to the industry average.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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.

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