3 Electronics Stocks Pushing Industry Growth

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 100 points (0.6%) at 16,838 as of Thursday, June 5, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,349 issues advancing vs. 623 declining with 153 unchanged.

The Electronics industry as a whole closed the day up 1.6% versus the S&P 500, which was up 0.6%. Top gainers within the Electronics industry included Trio-Tech International ( TRT), up 2.6%, Advanced Photonix ( API), up 7.3%, Eltek ( ELTK), up 2.4%, Bel Fuse ( BELFA), up 3.2% and Planar Systems ( PLNR), up 1.8%.

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 $0.04 (1.8%) to $2.28 on light volume. Throughout the day, 15,746 shares of Planar Systems exchanged hands as compared to its average daily volume of 31,400 shares. The stock ranged in a price between $2.21-$2.28 after having opened the day at $2.21 as compared to the previous trading day's close of $2.24.

Planar Systems, Inc., together with its subsidiaries, develops, manufactures, and markets electronic display products and systems. Planar Systems has a market cap of $49.0 million and is part of the technology sector. Shares are down 11.8% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Planar Systems 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 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:

  • Powered by its strong earnings growth of 116.66% and other important driving factors, this stock has surged by 25.58% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • 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

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, Bel Fuse ( BELFA) was up $0.78 (3.2%) to $25.32 on light volume. Throughout the day, 940 shares of Bel Fuse exchanged hands as compared to its average daily volume of 2,300 shares. The stock ranged in a price between $24.80-$25.58 after having opened the day at $24.80 as compared to the previous trading day's close of $24.54.

Bel Fuse has a market cap of $55.1 million and is part of the technology sector. Shares are up 30.4% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on BELFA go as follows:

You can view the full analysis from the report here: Bel Fuse 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 $0.04 (7.3%) to $0.59 on light volume. Throughout the day, 20,775 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 53,800 shares. The stock ranged in a price between $0.53-$0.59 after having opened the day at $0.59 as compared to the previous trading day's close of $0.55.

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 $17.5 million and is part of the technology sector. Shares are down 18.8% year-to-date as of the close of trading on Wednesday. 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.

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%