3 Stocks Moving The Electronics Industry Upward

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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 127.73 points (-0.8%) at 16,384 as of Tuesday, May 20, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 774 issues advancing vs. 2,216 declining with 147 unchanged.

The Electronics industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.5%. Top gainers within the Electronics industry included Schmitt Industries ( SMIT), up 1.9%, Advanced Photonix ( API), up 6.7%, BTU International ( BTUI), up 4.5%, Tel Instrument Electronics ( TIK), up 3.2% and Planar Systems ( PLNR), up 2.4%.

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 $0.05 (2.4%) to $2.23 on light volume. Throughout the day, 18,806 shares of Planar Systems exchanged hands as compared to its average daily volume of 35,600 shares. The stock ranged in a price between $2.19-$2.29 after having opened the day at $2.20 as compared to the previous trading day's close of $2.18.

Planar Systems, Inc., together with its subsidiaries, develops, manufactures, and markets electronic display products and systems. Planar Systems has a market cap of $48.0 million and is part of the technology sector. Shares are down 14.2% year-to-date as of the close of trading on Monday. 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:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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 ($0.17 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, BTU International ( BTUI) was up $0.12 (4.5%) to $2.74 on light volume. Throughout the day, 1,934 shares of BTU International exchanged hands as compared to its average daily volume of 9,400 shares. The stock ranged in a price between $2.70-$2.80 after having opened the day at $2.70 as compared to the previous trading day's close of $2.62.

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 $26.2 million and is part of the technology sector. Shares are down 9.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate BTU International a buy, no analysts rate it a sell, and none 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 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.
  • 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.
  • This stock has increased by 31.10% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in BTUI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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.

Advanced Photonix ( API) was another company that pushed the Electronics industry higher today. Advanced Photonix was up $0.03 (6.7%) to $0.45 on average volume. Throughout the day, 60,744 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 44,000 shares. The stock ranged in a price between $0.43-$0.46 after having opened the day at $0.44 as compared to the previous trading day's close of $0.42.

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 $13.1 million and is part of the technology sector. Shares are down 39.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Advanced Photonix a buy, no analysts rate it a sell, and 1 rates it a hold.

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.
  • The share price of ADVANCED PHOTONIX INC has not done very well: it is down 6.00% 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.
  • 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.

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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