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The Electronics industry as a whole closed the day down 1.2% versus the S&P 500, which was down 1.9%. Laggards within the Electronics industry included

LGL Group

(

LGL

), down 3.9%,

Schmitt Industries

(

SMIT

), down 6.8%,

Nortech Systems

(

NSYS

), down 2.5%,

Aehr Test Systems

(

AEHR

), down 2.2% and

SMTC

(

SMTX

), down 2.9%.

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

SMTC

(

SMTX

) is one of the companies that pushed the Electronics industry lower today. SMTC was down $0.05 (2.9%) to $1.70 on average volume. Throughout the day, 20,664 shares of SMTC exchanged hands as compared to its average daily volume of 26,500 shares. The stock ranged in price between $1.67-$1.78 after having opened the day at $1.67 as compared to the previous trading day's close of $1.75.

SMTC Corporation provides advanced electronics manufacturing services worldwide. SMTC has a market cap of $29.1 million and is part of the industrial goods sector. Shares are down 1.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

SMTC

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally high debt management risk.

Highlights from TheStreet Ratings analysis on SMTX go as follows:

  • SMTC CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, SMTC CORP swung to a loss, reporting -$0.73 versus $0.46 in the prior year.
  • 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 195.0% when compared to the same quarter one year ago, falling from $0.62 million to -$0.59 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, SMTC CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SMTC CORP is currently extremely low, coming in at 10.38%. 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, SMTX's net profit margin of -1.05% significantly underperformed when compared to the industry average.
  • The share price of SMTC CORP has not done very well: it is down 22.67% 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.

You can view the full analysis from the report here:

SMTC Ratings Report

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At the close,

Aehr Test Systems

(

AEHR

) was down $0.06 (2.2%) to $2.69 on light volume. Throughout the day, 10,358 shares of Aehr Test Systems exchanged hands as compared to its average daily volume of 15,200 shares. The stock ranged in price between $2.60-$2.75 after having opened the day at $2.70 as compared to the previous trading day's close of $2.75.

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 $29.3 million and is part of the industrial goods sector. Shares are unchanged 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

Aehr Test Systems

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

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 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.
  • In its most recent trading session, AEHR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • AEHR TEST SYSTEMS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, AEHR TEST SYSTEMS turned its bottom line around by earning $0.03 versus -$0.36 in the prior year.

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.

LGL Group

(

LGL

) was another company that pushed the Electronics industry lower today. LGL Group was down $0.16 (3.9%) to $3.78 on average volume. Throughout the day, 5,198 shares of LGL Group exchanged hands as compared to its average daily volume of 3,700 shares. The stock ranged in price between $3.53-$3.98 after having opened the day at $3.98 as compared to the previous trading day's close of $3.93.

The LGL Group, Inc., through its subsidiaries, designs, manufactures, and markets standard and custom-engineered electronic components in the United States and internationally. LGL Group has a market cap of $9.3 million and is part of the industrial goods sector. Shares are unchanged year-to-date as of the close of trading on Friday.

TheStreet Ratings rates

LGL Group

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its 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 LGL go as follows:

  • Net operating cash flow has significantly decreased to -$0.52 million or 316.73% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LGL'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 37.86%, 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 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, LGL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • LGL GROUP INC reported significant earnings per share improvement 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, LGL GROUP INC reported poor results of -$3.16 versus -$0.51 in the prior year.
  • LGL, with its decline in revenue, underperformed when compared the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 8.5%. 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:

LGL Group 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.