3 Stocks Moving The Electronics Industry Upward
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 or Stephanie Link.All three major indices are trading down today with the Dow Jones Industrial Average (^DJI) trading down 127.73 points (-0.8%) at 16,384 as of Tuesday, May 20, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 774 issues advancing vs. 2,216 declining with 147 unchanged.The Electronics industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.5%. Top gainers within the Electronics industry included Schmitt Industries (SMIT), up 1.9%, Advanced Photonix (API), up 6.7%, BTU International (BTUI), up 4.5%, Tel Instrument Electronics (TIK), up 3.2% and Planar Systems (PLNR), up 2.4%.TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:Planar Systems (PLNR) is one of the companies that pushed the Electronics industry higher today. Planar Systems was up $0.05 (2.4%) to $2.23 on light volume. Throughout the day, 18,806 shares of Planar Systems exchanged hands as compared to its average daily volume of 35,600 shares. The stock ranged in a price between $2.19-$2.29 after having opened the day at $2.20 as compared to the previous trading day's close of $2.18. Planar Systems, Inc., together with its subsidiaries, develops, manufactures, and markets electronic display products and systems. Planar Systems has a market cap of $48.0 million and is part of the technology sector. Shares are down 14.2% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Planar Systems 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 Planar Systems 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 profit margins have been poor overall.Highlights from TheStreet Ratings analysis on PLNR go as follows:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- PLANAR 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PLANAR SYSTEMS INC continued to lose money by earning -$0.31 versus -$0.80 in the prior year. This year, the market expects an improvement in earnings ($0.17 versus -$0.31).
- 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 Electronic Equipment, Instruments & Components industry and the overall market, PLANAR SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for PLANAR SYSTEMS INC is rather low; currently it is at 24.59%. Regardless of PLNR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.55% trails the industry average.
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