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.

The Electronics industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.5%. Laggards within the Electronics industry included

Sutron

(

STRN

), down 1.9%,

Forward Industries

(

FORD

), down 6.4%,

Aehr Test Systems

(

AEHR

), down 1.5%,

Trio-Tech International

(

TRT

), down 2.1% and

SMTC

(

SMTX

), down 4.0%.

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 $0.06 (4.0%) to $1.44 on heavy volume. Throughout the day, 105,301 shares of SMTC exchanged hands as compared to its average daily volume of 24,500 shares. The stock ranged in price between $1.40-$1.48 after having opened the day at $1.47 as compared to the previous trading day's close of $1.50.

SMTC Corporation provides advanced electronics manufacturing services worldwide. SMTC has a market cap of $24.6 million and is part of the technology sector. Shares are down 15.3% year-to-date as of the close of trading on Monday.

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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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.82%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% 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.

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,

Aehr Test Systems

(

AEHR

) was down $0.04 (1.5%) to $2.58 on heavy volume. Throughout the day, 15,692 shares of Aehr Test Systems exchanged hands as compared to its average daily volume of 10,200 shares. The stock ranged in price between $2.47-$2.63 after having opened the day at $2.63 as compared to the previous trading day's close of $2.62.

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 $33.5 million and is part of the technology sector. Shares are up 3.5% year-to-date as of the close of trading on Monday.

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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 deteriorating net income, poor profit margins 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 1643.1% when compared to the same quarter one year ago, falling from $0.14 million to -$2.11 million.
  • The gross profit margin for AEHR TEST SYSTEMS is currently lower than what is desirable, coming in at 27.76%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -80.84% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.63 million or 337.64% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 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.

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.

Sutron

(

STRN

) was another company that pushed the Electronics industry lower today. Sutron was down $0.10 (1.9%) to $5.15 on average volume. Throughout the day, 4,450 shares of Sutron exchanged hands as compared to its average daily volume of 3,900 shares. The stock ranged in price between $5.15-$5.26 after having opened the day at $5.26 as compared to the previous trading day's close of $5.25.

Sutron Corporation provides real-time data collection and control products, systems and applications software, and professional services for the hydrological, meteorological, and oceanic monitoring markets. Sutron has a market cap of $26.7 million and is part of the technology sector. Shares are up 5.0% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates

Sutron

as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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Highlights from TheStreet Ratings analysis on STRN go as follows:

  • STRN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.55, which clearly demonstrates the ability to cover short-term cash needs.
  • 45.15% is the gross profit margin for SUTRON CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.79% trails the industry average.
  • Compared to its price level of one year ago, STRN is down 3.08% to its most recent closing price of 5.35. Looking ahead, our view is that this company's fundamentals will not have much impact either way, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • 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 75.8% when compared to the same quarter one year ago, falling from $0.49 million to $0.12 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, SUTRON CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Sutron 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.