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.

The Electronics industry as a whole closed the day down 1.6% versus the S&P 500, which was down 0.8%. Laggards within the Electronics industry included

Qualstar

(

QBAK

), down 1.6%,

Bio-Rad Laboratories

(

BIO.B

), down 3.5%,

Electro-Sensors

(

ELSE

), down 3.2%,

Forward Industries

(

FORD

), down 3.6% and

SemiLEDs

(

LEDS

), down 3.4%.

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

STMicroelectronics

(

STM

) is one of the companies that pushed the Electronics industry lower today. STMicroelectronics was down $0.28 (3.5%) to $7.55 on heavy volume. Throughout the day, 1,306,562 shares of STMicroelectronics exchanged hands as compared to its average daily volume of 712,900 shares. The stock ranged in price between $7.50-$7.62 after having opened the day at $7.62 as compared to the previous trading day's close of $7.82.

STMicroelectronics N.V. designs, develops, manufactures, and markets various semiconductor integrated circuits and discrete devices worldwide. STMicroelectronics has a market cap of $7.4 billion and is part of the technology sector. Shares are down 1.1% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate STMicroelectronics a buy, 1 analyst rates it a sell, and 3 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

STMicroelectronics

as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on STM go as follows:

  • STMICROELECTRONICS NV 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, STMICROELECTRONICS NV continued to lose money by earning -$0.56 versus -$1.31 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus -$0.56).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 125.2% when compared to the same quarter one year prior, rising from -$151.00 million to $38.00 million.
  • 45.17% is the gross profit margin for STMICROELECTRONICS NV which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, STM's net profit margin of 2.03% significantly trails the industry average.
  • 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, STMICROELECTRONICS NV's return on equity significantly trails that of both the industry average and the S&P 500.
  • STM has underperformed the S&P 500 Index, declining 13.47% 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.

You can view the full analysis from the report here:

STMicroelectronics Ratings Report

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At the close,

SemiLEDs

(

LEDS

) was down $0.02 (3.4%) to $0.47 on average volume. Throughout the day, 129,862 shares of SemiLEDs exchanged hands as compared to its average daily volume of 109,900 shares. The stock ranged in price between $0.45-$0.50 after having opened the day at $0.47 as compared to the previous trading day's close of $0.49.

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips and LED components. SemiLEDs has a market cap of $14.2 million and is part of the technology sector. Shares are down 47.7% year-to-date as of the close of trading on Friday.

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

SemiLEDs

as a

sell

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

Highlights from TheStreet Ratings analysis on LEDS 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 Semiconductors & Semiconductor Equipment industry and the overall market, SEMILEDS 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 -$4.14 million or 78.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LEDS'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 46.81%, 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.
  • SEMILEDS CORP has improved earnings per share by 42.5% 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, SEMILEDS CORP continued to lose money by earning -$1.58 versus -$1.80 in the prior year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 41.5% when compared to the same quarter one year prior, rising from -$10.95 million to -$6.41 million.

You can view the full analysis from the report here:

SemiLEDs 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.

Qualstar

(

QBAK

) was another company that pushed the Electronics industry lower today. Qualstar was down $0.02 (1.6%) to $1.25 on average volume. Throughout the day, 11,635 shares of Qualstar exchanged hands as compared to its average daily volume of 9,200 shares. The stock ranged in price between $1.22-$1.38 after having opened the day at $1.29 as compared to the previous trading day's close of $1.27.

Qualstar Corporation designs, develops, manufactures, and sells power supplies and data storage systems worldwide. The company operates in two segments, Power Supplies and Tape Libraries. Qualstar has a market cap of $14.7 million and is part of the technology sector. Shares are up 12.4% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates

Qualstar

as a

sell

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

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 QBAK 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 Computers & Peripherals industry and the overall market, QUALSTAR 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 -$2.61 million or 191.49% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • QBAK has underperformed the S&P 500 Index, declining 16.67% 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.
  • QUALSTAR CORP has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, QUALSTAR CORP reported poor results of -$0.85 versus -$0.35 in the prior year.
  • The revenue fell significantly faster than the industry average of 9.3%. Since the same quarter one year prior, revenues fell by 24.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here:

Qualstar 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.