3 Electronics Stocks Driving The Industry Higher

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 55.93 points (-0.3%) at 16,507 as of Friday, Aug. 1, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,028 issues advancing vs. 2,012 declining with 122 unchanged.

The Electronics industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.1%. Top gainers within the Electronics industry included BTU International ( BTUI), up 4.8%, inTest ( INTT), up 4.7%, CBD Energy ( CBDE), up 54.0%, Sevcon ( SEV), up 1.8% and Planar Systems ( PLNR), up 15.6%.

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 $0.42 (15.6%) to $3.11 on heavy volume. Throughout the day, 659,375 shares of Planar Systems exchanged hands as compared to its average daily volume of 34,900 shares. The stock ranged in a price between $2.74-$3.22 after having opened the day at $2.75 as compared to the previous trading day's close of $2.69.

Planar Systems, Inc., together with its subsidiaries, develops, manufactures, and markets electronic display products and systems. Planar Systems has a market cap of $58.1 million and is part of the technology sector. Shares are up 5.9% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Planar Systems a buy, no analysts rate it a sell, and 1 rates it a hold.

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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 41.53% 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, inTest ( INTT) was up $0.21 (4.7%) to $4.72 on heavy volume. Throughout the day, 494,831 shares of inTest exchanged hands as compared to its average daily volume of 12,800 shares. The stock ranged in a price between $4.39-$5.00 after having opened the day at $4.50 as compared to the previous trading day's close of $4.51.

inTEST Corporation, together with its subsidiaries, designs, manufactures, and sells thermal, mechanical, and electrical products for use by semiconductor manufacturers in conjunction with automatic testing equipment in the testing of integrated circuits (ICs). inTest has a market cap of $44.2 million and is part of the technology sector. Shares are up 18.7% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate inTest 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 inTest as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from TheStreet Ratings analysis on INTT go as follows:

  • INTT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.55, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, INTEST CORP's return on equity is below that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Semiconductors & Semiconductor Equipment industry average. The net income has decreased by 2.0% when compared to the same quarter one year ago, dropping from $0.29 million to $0.29 million.

You can view the full analysis from the report here: inTest 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 $0.16 (4.8%) to $3.46 on light volume. Throughout the day, 2,409 shares of BTU International exchanged hands as compared to its average daily volume of 15,100 shares. The stock ranged in a price between $3.25-$3.46 after having opened the day at $3.40 as compared to the previous trading day's close of $3.30.

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 $31.3 million and is part of the technology sector. Shares are up 9.6% 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.

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. Despite a decrease in cash flow BTU INTERNATIONAL INC is still fairing well by exceeding its industry average cash flow growth rate of -89.41%.
  • 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.

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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