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 16 points (0.1%) at 16,738 as of Wednesday, June 4, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,467 issues advancing vs. 1,547 declining with 149 unchanged.

The Electronics industry as a whole closed the day up 0.4% versus the S&P 500, which was up 0.2%. Top gainers within the Electronics industry included BTU International ( BTUI), up 8.4%, Eltek ( ELTK), up 1.6%, Data I/O ( DAIO), up 3.0%, AXT ( AXTI), up 1.9% and SMTC ( SMTX), up 1.7%.

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

AXT ( AXTI) is one of the companies that pushed the Electronics industry higher today. AXT was up $0.04 (1.9%) to $2.20 on light volume. Throughout the day, 36,090 shares of AXT exchanged hands as compared to its average daily volume of 49,100 shares. The stock ranged in a price between $2.14-$2.22 after having opened the day at $2.15 as compared to the previous trading day's close of $2.16.

AXT, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes compound and single element semiconductor substrates primarily used in wireless communications, lighting display applications, and fiber optic communications. AXT has a market cap of $71.4 million and is part of the technology sector. Shares are down 16.1% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates AXT a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates AXT as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on AXTI go as follows:

  • 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 Semiconductors & Semiconductor Equipment industry and the overall market, AXT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AXT INC is currently extremely low, coming in at 14.05%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -10.54% is significantly below that of the industry average.
  • AXTI has underperformed the S&P 500 Index, declining 22.50% from its price level of one year ago. 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.
  • AXTI, with its decline in revenue, underperformed when compared the industry average of 3.1%. Since the same quarter one year prior, revenues fell by 13.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • AXT INC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AXT INC swung to a loss, reporting -$0.25 versus $0.10 in the prior year. This year, the market expects an improvement in earnings (-$0.19 versus -$0.25).

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

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At the close, Data I/O ( DAIO) was up $0.08 (3.0%) to $2.71 on light volume. Throughout the day, 900 shares of Data I/O exchanged hands as compared to its average daily volume of 31,000 shares. The stock ranged in a price between $2.68-$2.71 after having opened the day at $2.70 as compared to the previous trading day's close of $2.63.

Data I/O Corporation designs, manufactures, and sells programming systems for electronic device manufacturers worldwide. The company's programming system products are used to program integrated circuits (ICs) with the specific data necessary for the ICs. Data I/O has a market cap of $20.5 million and is part of the technology sector. Shares are up 2.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Data I/O a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Data I/O as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from TheStreet Ratings analysis on DAIO go as follows:

  • 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, DATA I/O CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DATA I/O CORP is rather high; currently it is at 55.09%. Regardless of DAIO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DAIO's net profit margin of -7.11% significantly underperformed when compared to the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the Electronic Equipment, Instruments & Components industry average, but is less than that of the S&P 500. The net income increased by 25.3% when compared to the same quarter one year prior, rising from -$0.46 million to -$0.34 million.
  • DATA I/O CORP has improved earnings per share by 33.3% 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. During the past fiscal year, DATA I/O CORP continued to lose money by earning -$0.33 versus -$0.80 in the prior year.
  • This stock has increased by 34.84% 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 DAIO 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: Data I/O 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 $0.24 (8.4%) to $3.10 on light volume. Throughout the day, 1,536 shares of BTU International exchanged hands as compared to its average daily volume of 5,200 shares. The stock ranged in a price between $2.87-$3.11 after having opened the day at $2.89 as compared to the previous trading day's close of $2.86.

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 $25.9 million and is part of the technology sector. Shares are down 10.0% year-to-date as of the close of trading on Tuesday. 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.
  • 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.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, and has traded in line with 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.

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.