3 Stocks Pushing The Electronics Industry Lower - TheStreet

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The Electronics industry as a whole closed the day down 0.2% versus the S&P 500, which was down 0.1%. Laggards within the Electronics industry included

Qualstar

(

QBAK

), down 1.6%,

Wells-Gardner Electronic

(

WGA

), down 1.6%,

Advanced Photonix

(

API

), down 2.1%,

Forward Industries

(

FORD

), down 1.6% and

Aehr Test Systems

(

AEHR

), down 2.5%.

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

Aehr Test Systems

(

AEHR

) is one of the companies that pushed the Electronics industry lower today. Aehr Test Systems was down $0.06 (2.5%) to $2.57 on light volume. Throughout the day, 1,640 shares of Aehr Test Systems exchanged hands as compared to its average daily volume of 17,100 shares. The stock ranged in price between $2.55-$2.57 after having opened the day at $2.55 as compared to the previous trading day's close of $2.64.

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 $29.9 million and is part of the technology sector. Shares are down 14.7% year-to-date as of the close of trading on Tuesday.

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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.
  • The share price of AEHR TEST SYSTEMS has not done very well: it is down 17.18% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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 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

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At the close,

Advanced Photonix

(

API

) was down $0.01 (2.1%) to $0.47 on light volume. Throughout the day, 7,640 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 77,300 shares. The stock ranged in price between $0.47-$0.51 after having opened the day at $0.51 as compared to the previous trading day's close of $0.48.

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 $18.7 million and is part of the technology sector. Shares are down 30.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Advanced Photonix a buy, no analysts rate it a sell, and none rate it a hold.

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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'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 26.16%, 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.
  • 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 of 10.36%, ADVANCED PHOTONIX INC is in line with the industry average cash flow growth rate of -15.19%.
  • 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

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Qualstar

(

QBAK

) was another company that pushed the Electronics industry lower today. Qualstar was down $0.02 (1.6%) to $1.20 on light volume. Throughout the day, 2,510 shares of Qualstar exchanged hands as compared to its average daily volume of 14,700 shares. The stock ranged in price between $1.19-$1.23 after having opened the day at $1.23 as compared to the previous trading day's close of $1.22.

Qualstar Corporation designs, develops, manufactures, and sells power supplies and data storage systems worldwide. It operates through two segments, Power Supplies and Tape Libraries. Qualstar has a market cap of $14.8 million and is part of the technology sector. Shares are up 8.0% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

Qualstar

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on QBAK go as follows:

  • The gross profit margin for QUALSTAR CORP is currently lower than what is desirable, coming in at 31.58%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, QBAK's net profit margin of -24.62% significantly underperformed when compared to the industry average.
  • QBAK has underperformed the S&P 500 Index, declining 6.93% 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
  • QBAK, with its decline in revenue, underperformed when compared the industry average of 13.8%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • QUALSTAR CORP 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, QUALSTAR CORP continued to lose money by earning -$0.47 versus -$0.85 in the prior year.

You can view the full analysis from the report here:

Qualstar Ratings Report

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