3 Electronics Stocks Pushing The Industry Higher

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 112 points (0.7%) at 16,695 as of Monday, May 12, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,429 issues advancing vs. 632 declining with 133 unchanged.

The Electronics industry as a whole closed the day up 2.5% versus the S&P 500, which was up 1.0%. Top gainers within the Electronics industry included Schmitt Industries ( SMIT), up 5.8%, Giga-tronics ( GIGA), up 2.5%, BTU International ( BTUI), up 5.6%, Advanced Photonix ( API), up 4.9% and Planar Systems ( PLNR), up 4.4%.

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

Planar Systems ( PLNR) is one of the companies that pushed the Electronics industry higher today. Planar Systems was up $0.10 (4.4%) to $2.30 on heavy volume. Throughout the day, 105,699 shares of Planar Systems exchanged hands as compared to its average daily volume of 33,700 shares. The stock ranged in a price between $2.28-$2.35 after having opened the day at $2.31 as compared to the previous trading day's close of $2.20.

Planar Systems, Inc., together with its subsidiaries, develops, manufactures, and markets electronic display products and systems. Planar Systems has a market cap of $44.7 million and is part of the industrial goods sector. Shares are down 13.4% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Planar Systems a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Planar Systems as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on PLNR go as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • PLANAR SYSTEMS INC 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, PLANAR SYSTEMS INC continued to lose money by earning -$0.31 versus -$0.80 in the prior year. This year, the market expects an improvement in earnings ($0.16 versus -$0.31).
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, PLANAR SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PLANAR SYSTEMS INC is rather low; currently it is at 24.59%. Regardless of PLNR'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 0.55% trails the industry average.

You can view the full analysis from the report here: Planar Systems Ratings Report

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At the close, Advanced Photonix ( API) was up $0.02 (4.9%) to $0.52 on light volume. Throughout the day, 11,962 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 54,200 shares. The stock ranged in a price between $0.51-$0.53 after having opened the day at $0.51 as compared to the previous trading day's close of $0.50.

Advanced Photonix, Inc. engages in the development, manufacture, and sale of optoelectronic devices, and sub-systems and systems to various original equipment manufacturers primarily in North America, Asia, Europe, and Australia. Advanced Photonix has a market cap of $14.7 million and is part of the industrial goods sector. Shares are down 31.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Advanced Photonix a buy, no analysts rate it a sell, and 1 rates 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 unimpressive growth in net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on API 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 57.9% when compared to the same quarter one year ago, falling from -$1.03 million to -$1.62 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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.
  • In its most recent trading session, API 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. 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.
  • ADVANCED PHOTONIX INC 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. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ADVANCED PHOTONIX INC reported poor results of -$0.13 versus -$0.07 in the prior year. This year, the market expects an improvement in earnings (-$0.05 versus -$0.13).
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that API's debt-to-equity ratio is low, the quick ratio, which is currently 0.62, displays a potential problem in covering short-term cash needs.

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.

BTU International ( BTUI) was another company that pushed the Electronics industry higher today. BTU International was up $0.14 (5.6%) to $2.64 on average volume. Throughout the day, 10,382 shares of BTU International exchanged hands as compared to its average daily volume of 9,300 shares. The stock ranged in a price between $2.50-$2.65 after having opened the day at $2.50 as compared to the previous trading day's close of $2.50.

BTU International, Inc. designs, manufactures, sells, and services thermal processing equipment and related process controls for use in the electronics, alternative energy, automotive, and other industries worldwide. BTU International has a market cap of $23.0 million and is part of the industrial goods sector. Shares are down 16.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate BTU International a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates BTU International as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from TheStreet Ratings analysis on BTUI 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, BTU INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • BTU INTERNATIONAL INC has improved earnings per share by 42.4% 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, BTU INTERNATIONAL INC reported poor results of -$1.21 versus -$1.16 in the prior year.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
  • Despite currently having a low debt-to-equity ratio of 0.44, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that BTUI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.72 is high and demonstrates strong liquidity.
  • 35.59% is the gross profit margin for BTU INTERNATIONAL INC 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 -15.28% is in-line with the industry average.

You can view the full analysis from the report here: BTU International 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.

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