3 Stocks Pushing The Electronics Industry Lower

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The Electronics industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.5%. Laggards within the Electronics industry included Advanced Photonix ( API), down 2.1%, LightPath Technologies ( LPTH), down 3.2%, Aetrium ( ATRM), down 2.6%, Luna Innovations ( LUNA), down 2.2% and SemiLEDs ( LEDS), down 3.7%.

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

Aetrium ( ATRM) is one of the companies that pushed the Electronics industry lower today. Aetrium was down $0.14 (2.6%) to $5.20 on light volume. Throughout the day, 1,933 shares of Aetrium exchanged hands as compared to its average daily volume of 7,800 shares. The stock ranged in price between $5.15-$5.20 after having opened the day at $5.20 as compared to the previous trading day's close of $5.34.

Aetrium Incorporated designs, manufactures, and markets various electromechanical equipment used in handling and testing integrated circuits (ICs). Aetrium has a market cap of $5.7 million and is part of the technology sector. Shares are down 20.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Aetrium as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from TheStreet Ratings analysis on ATRM go as follows:

  • 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 Semiconductors & Semiconductor Equipment industry and the overall market, AETRIUM INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 40.64% is the gross profit margin for AETRIUM INC which we consider to be strong. Regardless of ATRM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ATRM's net profit margin of -9.08% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly increased by 150.03% to $0.64 million when compared to the same quarter last year. In addition, AETRIUM INC has also vastly surpassed the industry average cash flow growth rate of -8.94%.
  • ATRM's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.34, which clearly demonstrates the ability to cover short-term cash needs.
  • This stock has increased by 54.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in ATRM do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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

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At the close, LightPath Technologies ( LPTH) was down $0.04 (3.2%) to $1.23 on light volume. Throughout the day, 4,400 shares of LightPath Technologies exchanged hands as compared to its average daily volume of 26,200 shares. The stock ranged in price between $1.22-$1.25 after having opened the day at $1.25 as compared to the previous trading day's close of $1.27.

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. LightPath Technologies has a market cap of $17.6 million and is part of the technology sector. Shares are down 6.6% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates LightPath Technologies a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on LPTH go as follows:

  • 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.
  • The share price of LIGHTPATH TECHNOLOGIES INC has not done very well: it is down 18.00% 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.
  • LIGHTPATH TECHNOLOGIES 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LIGHTPATH TECHNOLOGIES INC turned its bottom line around by earning $0.02 versus -$0.09 in the prior year. For the next year, the market is expecting a contraction of 250.0% in earnings (-$0.03 versus $0.02).
  • 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.

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

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Advanced Photonix ( API) was another company that pushed the Electronics industry lower today. Advanced Photonix was down $0.01 (2.1%) to $0.50 on light volume. Throughout the day, 29,712 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 59,500 shares. The stock ranged in price between $0.50-$0.52 after having opened the day at $0.51 as compared to the previous trading day's close of $0.51.

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 $19.1 million and is part of the technology sector. Shares are down 25.7% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Advanced Photonix a buy, no analysts rate it a sell, and none rate it a hold.

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.

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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 16.38% 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.

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