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 153.49 points (-0.9%) at 16,461 as of Wednesday, Oct. 22, 2014, 4:35 PM ET. The NYSE advances/declines ratio sits at 2,410 issues advancing vs. 704 declining with 100 unchanged.

The Electronics industry as a whole closed the day up 1.7% versus the S&P 500, which was down 0.7%. Top gainers within the Electronics industry included

Tel Instrument Electronics

(

TIK

), up 1.5%,

Nortech Systems

(

NSYS

), up 1.8%,

Aehr Test Systems

(

AEHR

), up 6.3%,

Advanced Photonix

(

API

), up 2.5% and

SMTC

(

SMTX

), up 3.0%.

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

SMTC

(

SMTX

) is one of the companies that pushed the Electronics industry higher today. SMTC was up $0.05 (3.0%) to $1.73 on average volume. Throughout the day, 33,805 shares of SMTC exchanged hands as compared to its average daily volume of 25,900 shares. The stock ranged in a price between $1.67-$1.73 after having opened the day at $1.73 as compared to the previous trading day's close of $1.68.

SMTC Corporation provides advanced electronics manufacturing services worldwide. SMTC has a market cap of $28.1 million and is part of the technology sector. Shares are down 27.2% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate SMTC a buy, no analysts rate it a sell, and none rate 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 SMTC as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself, generally high debt management risk and poor profit margins.

Highlights from TheStreet Ratings analysis on SMTX go as follows:

  • 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, SMTC CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.07 million or 111.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • SMTX has underperformed the S&P 500 Index, declining 17.09% 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.
  • SMTX's debt-to-equity ratio of 0.81 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that SMTX's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.53 is low and demonstrates weak liquidity.
  • The gross profit margin for SMTC CORP is currently extremely low, coming in at 11.65%. Regardless of SMTX'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 0.05% trails the industry average.

You can view the full analysis from the report here:

SMTC 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,

Advanced Photonix

(

API

) was up $0.01 (2.5%) to $0.48 on light volume. Throughout the day, 21,976 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 76,500 shares. The stock ranged in a price between $0.46-$0.51 after having opened the day at $0.49 as compared to the previous trading day's close of $0.47.

Advanced Photonix, Inc. develops, manufactures, and sells optoelectronic devices, and value-added sub-systems and systems to various original equipment manufacturers primarily in North America, Asia, Europe, and Australia. Advanced Photonix has a market cap of $19.1 million and is part of the technology sector. Shares are down 26.1% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Advanced Photonix a buy, no analysts rate it a sell, and none rate 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 Advanced Photonix 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.

Highlights from TheStreet Ratings analysis on API go as follows:

  • API has underperformed the S&P 500 Index, declining 21.32% 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.
  • Net operating cash flow has decreased to -$0.51 million or 10.36% when compared to the same quarter last year. Despite a decrease in cash flow ADVANCED PHOTONIX INC is still fairing well by exceeding its industry average cash flow growth rate of -24.29%.
  • 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. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ADVANCED PHOTONIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ADVANCED PHOTONIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, ADVANCED PHOTONIX INC reported poor results of -$0.14 versus -$0.13 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.14).
  • 40.36% is the gross profit margin for ADVANCED PHOTONIX INC which we consider to be strong. Regardless of API's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -3.49% trails the industry average.

You can view the full analysis from the report here:

Advanced Photonix 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.

Aehr Test Systems

(

AEHR

) was another company that pushed the Electronics industry higher today. Aehr Test Systems was up $0.13 (6.3%) to $2.17 on average volume. Throughout the day, 20,357 shares of Aehr Test Systems exchanged hands as compared to its average daily volume of 16,300 shares. The stock ranged in a price between $2.08-$2.18 after having opened the day at $2.08 as compared to the previous trading day's close of $2.04.

Aehr Test Systems designs, engineers, develops, manufactures, and sells test and burn-in equipment used in the semiconductor industry worldwide. Aehr Test Systems has a market cap of $23.7 million and is part of the technology sector. Shares are down 33.2% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Aehr Test Systems a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Aehr Test Systems as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on AEHR 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 446.4% when compared to the same quarter one year ago, falling from -$0.17 million to -$0.91 million.
  • Net operating cash flow has significantly decreased to -$0.22 million or 226.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.26%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 300.00% compared to the year-earlier 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 Semiconductors & Semiconductor Equipment industry and the overall market, AEHR TEST SYSTEMS's return on equity significantly trails that of both the industry average and the S&P 500.
  • 46.07% is the gross profit margin for AEHR TEST SYSTEMS which we consider to be strong. Regardless of AEHR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AEHR's net profit margin of -25.49% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here:

Aehr Test Systems 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.

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.