3 Stocks Pushing The Electronics Industry Lower

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The Electronics industry as a whole closed the day down 1.3% versus the S&P 500, which was up 0.2%. Laggards within the Electronics industry included Schmitt Industries ( SMIT), down 4.7%, LightPath Technologies ( LPTH), down 1.6%, LGL Group ( LGL), down 7.1%, Aehr Test Systems ( AEHR), down 2.4% and Aetrium ( ATRM), down 2.5%.

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

Aehr Test Systems ( AEHR) is one of the companies that pushed the Electronics industry lower today. Aehr Test Systems was down $0.07 (2.4%) to $2.86 on heavy volume. Throughout the day, 62,067 shares of Aehr Test Systems exchanged hands as compared to its average daily volume of 14,000 shares. The stock ranged in price between $2.81-$2.94 after having opened the day at $2.83 as compared to the previous trading day's close of $2.93.

Aehr Test Systems designs, engineers, develops, manufactures, and sells test and burn-in equipment used in the semiconductor industry worldwide. Aehr Test Systems has a market cap of $30.7 million and is part of the technology sector. Shares are down 3.9% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Aehr Test Systems as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on AEHR go as follows:

  • AEHR's very impressive revenue growth greatly exceeded the industry average of 9.7%. Since the same quarter one year prior, revenues leaped by 64.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AEHR's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for AEHR TEST SYSTEMS is rather high; currently it is at 54.26%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, AEHR's net profit margin of 4.45% significantly trails the industry average.
  • Powered by its strong earnings growth of 125.00% and other important driving factors, this stock has surged by 55.74% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • 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. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, AEHR TEST SYSTEMS's return on equity is below that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Aehr Test Systems Ratings Report

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At the close, LGL Group ( LGL) was down $0.35 (7.1%) to $4.60 on light volume. Throughout the day, 400 shares of LGL Group exchanged hands as compared to its average daily volume of 6,900 shares. The stock ranged in price between $4.60-$4.95 after having opened the day at $4.95 as compared to the previous trading day's close of $4.95.

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 $13.3 million and is part of the technology sector. Shares are down 8.5% year-to-date as of the close of trading on Tuesday.

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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 24.48% 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 $0.02 (1.6%) to $1.20 on heavy volume. Throughout the day, 294,776 shares of LightPath Technologies exchanged hands as compared to its average daily volume of 17,700 shares. The stock ranged in price between $1.18-$1.26 after having opened the day at $1.24 as compared to the previous trading day's close of $1.22.

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. LightPath Technologies has a market cap of $17.3 million and is part of the technology sector. Shares are down 10.3% year-to-date as of the close of trading on Tuesday. 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 9.4%. 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

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

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