3 Stocks Improving Performance Of The Electronics Industry

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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 129.91 points (-0.8%) at 16,954 as of Friday, July 25, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 978 issues advancing vs. 1,990 declining with 153 unchanged.

The Electronics industry as a whole closed the day down 1.3% versus the S&P 500, which was down 0.6%. Top gainers within the Electronics industry included Electro-Sensors ( ELSE), up 2.0%, Pulse Electronics ( PULS), up 2.5%, BTU International ( BTUI), up 6.9%, Dynasil Corp of America ( DYSL), up 2.4% and AXT ( AXTI), up 4.9%.

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

Dynasil Corp of America ( DYSL) is one of the companies that pushed the Electronics industry higher today. Dynasil Corp of America was up $0.04 (2.4%) to $1.69 on light volume. Throughout the day, 5,200 shares of Dynasil Corp of America exchanged hands as compared to its average daily volume of 36,500 shares. The stock ranged in a price between $1.65-$1.69 after having opened the day at $1.65 as compared to the previous trading day's close of $1.65.

Dynasil Corporation of America develops, manufactures, and markets detection, sensing, and analysis technology products for medical, industrial, and homeland security/defense sectors in the United States and internationally. Dynasil Corp of America has a market cap of $25.8 million and is part of the technology sector. Shares are up 42.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Dynasil Corp of America a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Dynasil Corp of America as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from TheStreet Ratings analysis on DYSL go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 103.7% when compared to the same quarter one year prior, rising from -$7.24 million to $0.27 million.
  • Net operating cash flow has significantly increased by 35925.00% to $1.44 million when compared to the same quarter last year. In addition, DYNASIL CORP OF AMERICA has also vastly surpassed the industry average cash flow growth rate of 66.63%.
  • 44.47% is the gross profit margin for DYNASIL CORP OF AMERICA which we consider to be strong. Regardless of DYSL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.60% trails the industry average.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, DYNASIL CORP OF AMERICA's return on equity is below that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 104.08% and other important driving factors, this stock has surged by 149.12% 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.

You can view the full analysis from the report here: Dynasil Corp of America 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, BTU International ( BTUI) was up $0.21 (6.9%) to $3.25 on light volume. Throughout the day, 800 shares of BTU International exchanged hands as compared to its average daily volume of 12,900 shares. The stock ranged in a price between $3.20-$3.25 after having opened the day at $3.20 as compared to the previous trading day's close of $3.04.

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 $29.4 million and is part of the technology sector. Shares are up 1.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate BTU International a buy, no analysts rate it a sell, and none rate 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 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 the cash generation rate to the industry average, the firm's growth is significantly 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

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

Pulse Electronics ( PULS) was another company that pushed the Electronics industry higher today. Pulse Electronics was up $0.06 (2.5%) to $2.51 on heavy volume. Throughout the day, 36,948 shares of Pulse Electronics exchanged hands as compared to its average daily volume of 13,200 shares. The stock ranged in a price between $2.36-$2.55 after having opened the day at $2.36 as compared to the previous trading day's close of $2.45.

Pulse Electronics has a market cap of $42.4 million and is part of the technology sector. Shares are down 15.2% year-to-date as of the close of trading on Thursday.

Highlights from TheStreet Ratings analysis on PULS go as follows:

You can view the full analysis from the report here: Pulse Electronics 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.

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