3 Electronics Stocks Pushing 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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 55 points (0.3%) at 16,707 as of Thursday, Aug. 14, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,989 issues advancing vs. 996 declining with 174 unchanged.

The Electronics industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.4%. Top gainers within the Electronics industry included Electro-Sensors ( ELSE), up 4.1%, Sutron ( STRN), up 4.8%, Forward Industries ( FORD), up 6.6%, Advanced Photonix ( API), up 5.8% and Luna Innovations ( LUNA), up 4.0%.

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

Luna Innovations ( LUNA) is one of the companies that pushed the Electronics industry higher today. Luna Innovations was up $0.05 (4.0%) to $1.31 on light volume. Throughout the day, 7,024 shares of Luna Innovations exchanged hands as compared to its average daily volume of 39,100 shares. The stock ranged in a price between $1.26-$1.31 after having opened the day at $1.26 as compared to the previous trading day's close of $1.26.

Luna Innovations Incorporated develops, manufactures, and markets fiber optic test and measurement, sensing, and instrumentation products to measure, monitor, protect, and enhance the processes in the telecommunications, aerospace, automotive, energy, and defense industries worldwide. Luna Innovations has a market cap of $18.3 million and is part of the technology sector. Shares are down 10.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Luna Innovations a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Luna Innovations as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LUNA go as follows:

  • Net operating cash flow has significantly decreased to -$1.68 million or 61.32% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, LUNA has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Professional Services industry and the overall market, LUNA INNOVATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • LUNA INNOVATIONS INC has improved earnings per share by 42.9% 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, LUNA INNOVATIONS INC reported poor results of -$0.31 versus -$0.19 in the prior year.
  • 38.04% is the gross profit margin for LUNA INNOVATIONS 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 -17.49% is in-line with the industry average.

You can view the full analysis from the report here: Luna Innovations 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, Advanced Photonix ( API) was up $0.03 (5.8%) to $0.55 on light volume. Throughout the day, 12,965 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 65,700 shares. The stock ranged in a price between $0.52-$0.55 after having opened the day at $0.52 as compared to the previous trading day's close of $0.52.

Advanced Photonix, Inc. develops, manufactures, and sells optoelectronic devices, and value-added sub-systems and systems to various original equipment manufacturers primarily in North America, Asia, Europe, and Australia. Advanced Photonix has a market cap of $19.4 million and is part of the technology sector. Shares are down 24.6% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Advanced Photonix 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 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, poor profit margins, generally high debt management risk and generally disappointing historical performance in the stock itself.

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 underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry average. The net income has decreased by 5.6% when compared to the same quarter one year ago, dropping from -$1.08 million to -$1.14 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, ADVANCED PHOTONIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ADVANCED PHOTONIX INC is currently lower than what is desirable, coming in at 31.47%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -16.38% is significantly below that of the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.45, 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 API's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.60 is low and demonstrates weak liquidity.
  • The share price of ADVANCED PHOTONIX INC has not done very well: it is down 17.79% 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: 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.

Sutron ( STRN) was another company that pushed the Electronics industry higher today. Sutron was up $0.24 (4.8%) to $5.30 on heavy volume. Throughout the day, 5,508 shares of Sutron exchanged hands as compared to its average daily volume of 3,000 shares. The stock ranged in a price between $5.10-$5.60 after having opened the day at $5.10 as compared to the previous trading day's close of $5.06.

Sutron Corporation provides real-time data collection and control products, systems and applications software, and professional services for the hydrological, meteorological, and oceanic monitoring markets. Sutron has a market cap of $25.8 million and is part of the technology sector. Shares are down 1.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Sutron a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Sutron 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, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on STRN go as follows:

  • STRN 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 2.71, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 105.48% to $0.11 million when compared to the same quarter last year. In addition, SUTRON CORP has also vastly surpassed the industry average cash flow growth rate of -1.87%.
  • The revenue fell significantly faster than the industry average of 8.9%. Since the same quarter one year prior, revenues fell by 24.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • SUTRON CORP 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, SUTRON CORP reported lower earnings of $0.16 versus $0.23 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 2056.7% when compared to the same quarter one year ago, falling from $0.03 million to -$0.59 million.

You can view the full analysis from the report here: Sutron 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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