3 Stocks Pushing The Electronics Industry Lower

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The Electronics industry as a whole closed the day down 1.6% versus the S&P 500, which was down 0.7%. Laggards within the Electronics industry included Wells-Gardner Electronic ( WGA), down 3.0%, LightPath Technologies ( LPTH), down 5.2%, CBD Energy ( CBDE), down 4.5%, LGL Group ( LGL), down 2.7% and BTU International ( BTUI), down 6.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

BTU International ( BTUI) is one of the companies that pushed the Electronics industry lower today. BTU International was down $0.22 (6.2%) to $3.34 on heavy volume. Throughout the day, 24,882 shares of BTU International exchanged hands as compared to its average daily volume of 9,700 shares. The stock ranged in price between $3.25-$3.56 after having opened the day at $3.56 as compared to the previous trading day's close of $3.56.

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 $37.4 million and is part of the technology sector. Shares are up 29.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates BTU International as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

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.
  • Net operating cash flow has significantly decreased to -$2.70 million or 56.59% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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.
  • 38.34% 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

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At the close, LGL Group ( LGL) was down $0.14 (2.7%) to $5.00 on heavy volume. Throughout the day, 33,603 shares of LGL Group exchanged hands as compared to its average daily volume of 6,000 shares. The stock ranged in price between $4.89-$5.18 after having opened the day at $5.18 as compared to the previous trading day's close of $5.14.

The LGL Group, Inc., through its subsidiaries, designs, manufactures, and markets standard and custom-engineered electronic components in the United States and internationally. LGL Group has a market cap of $13.4 million and is part of the technology sector. Shares are down 4.2% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates LGL Group as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LGL go as follows:

  • LGL GROUP 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. During the past fiscal year, LGL GROUP INC reported poor results of -$3.16 versus -$0.51 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 874.7% when compared to the same quarter one year ago, falling from -$0.08 million to -$0.81 million.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, LGL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LGL GROUP INC is currently lower than what is desirable, coming in at 29.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.19% is significantly below that of the industry average.
  • The share price of LGL GROUP INC has not done very well: it is down 22.58% 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.

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

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LightPath Technologies ( LPTH) was another company that pushed the Electronics industry lower today. LightPath Technologies was down $0.07 (5.2%) to $1.27 on light volume. Throughout the day, 7,320 shares of LightPath Technologies exchanged hands as compared to its average daily volume of 18,200 shares. The stock ranged in price between $1.27-$1.34 after having opened the day at $1.33 as compared to the previous trading day's close of $1.34.

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. LightPath Technologies has a market cap of $18.9 million and is part of the technology sector. Shares are down 1.5% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates LightPath Technologies a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates LightPath Technologies as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on LPTH go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • LPTH's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LPTH has a quick ratio of 2.10, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for LIGHTPATH TECHNOLOGIES INC is rather high; currently it is at 52.55%. Regardless of LPTH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LPTH's net profit margin of -4.45% significantly underperformed when compared to the industry average.
  • 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 161.8% when compared to the same quarter one year ago, falling from $0.22 million to -$0.13 million.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, LIGHTPATH TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.

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

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