3 Electronics Stocks Pushing Industry Growth

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 69 points (0.4%) at 16,675 as of Tuesday, May 27, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,940 issues advancing vs. 1,055 declining with 160 unchanged.

The Electronics industry as a whole closed the day up 1.5% versus the S&P 500, which was up 0.6%. Top gainers within the Electronics industry included Giga-tronics ( GIGA), up 1.9%, Qualstar ( QBAK), up 6.5%, LGL Group ( LGL), up 3.9%, Sutron ( STRN), up 10.8% and Advanced Photonix ( API), up 9.1%.

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

Sutron ( STRN) is one of the companies that pushed the Electronics industry higher today. Sutron was up $0.50 (10.8%) to $5.15 on heavy volume. Throughout the day, 22,175 shares of Sutron exchanged hands as compared to its average daily volume of 5,600 shares. The stock ranged in a price between $4.65-$5.19 after having opened the day at $4.65 as compared to the previous trading day's close of $4.65.

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 $23.6 million and is part of the technology sector. Shares are down 9.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Sutron a buy, no analysts rate it a sell, and none rate it a hold.

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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, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

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 2.71, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 105.48% to $0.11 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 74.82%.
  • The revenue fell significantly faster than the industry average of 6.1%. Since the same quarter one year prior, revenues fell by 24.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • SUTRON 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, SUTRON CORP reported lower earnings of $0.16 versus $0.23 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 2056.7% when compared to the same quarter one year ago, falling from $0.03 million to -$0.59 million.

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

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