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 8.70 points (-0.1%) at 17,070 as of Thursday, Sept. 4, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,021 issues advancing vs. 2,057 declining with 126 unchanged.

The Electronics industry as a whole was unchanged today versus the S&P 500, which was down 0.2%. Top gainers within the Electronics industry included Tel Instrument Electronics ( TIK), up 1.8%, Wafergen Bio-systems ( WGBS), up 1.8%, Luna Innovations ( LUNA), up 3.8%, Dynasil Corp of America ( DYSL), up 5.4% and Altair Nanotechnologies ( ALTI), up 4.4%.

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 $0.08 (5.4%) to $1.56 on heavy volume. Throughout the day, 318,560 shares of Dynasil Corp of America exchanged hands as compared to its average daily volume of 33,400 shares. The stock ranged in a price between $1.40-$1.71 after having opened the day at $1.45 as compared to the previous trading day's close of $1.48.

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 $23.8 million and is part of the technology sector. Shares are up 25.9% year-to-date as of the close of trading on Wednesday. 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 -20.80%.
  • 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 137.87% 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, Luna Innovations ( LUNA) was up $0.05 (3.8%) to $1.36 on heavy volume. Throughout the day, 249,678 shares of Luna Innovations exchanged hands as compared to its average daily volume of 30,100 shares. The stock ranged in a price between $1.33-$1.44 after having opened the day at $1.33 as compared to the previous trading day's close of $1.31.

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 $19.4 million and is part of the technology sector. Shares are down 6.4% 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.

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 Luna Innovations as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

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.
  • 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.
  • 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. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past 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.

Wafergen Bio-systems ( WGBS) was another company that pushed the Electronics industry higher today. Wafergen Bio-systems was up $0.08 (1.8%) to $4.50 on average volume. Throughout the day, 9,773 shares of Wafergen Bio-systems exchanged hands as compared to its average daily volume of 8,600 shares. The stock ranged in a price between $4.40-$4.50 after having opened the day at $4.40 as compared to the previous trading day's close of $4.42.

WaferGen Bio-systems, Inc. develops, manufactures, and sells systems for gene expression quantification, genotyping, and stem cell research for the life sciences and pharmaceutical drug discovery industries in the United States, Canada, Europe, and the Asia Pacific. Wafergen Bio-systems has a market cap of $4.2 million and is part of the technology sector. Shares are down 77.9% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Wafergen Bio-systems a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Wafergen Bio-systems as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from TheStreet Ratings analysis on WGBS go as follows:

  • WGBS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 86.87%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Currently the debt-to-equity ratio of 1.64 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, WGBS has managed to keep a strong quick ratio of 1.68, which demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for WAFERGEN BIO-SYSTEMS INC is rather high; currently it is at 56.26%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, WGBS's net profit margin of -115.00% significantly underperformed when compared to the industry average.
  • WAFERGEN BIO-SYSTEMS INC reported significant earnings per share improvement 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, WAFERGEN BIO-SYSTEMS INC reported poor results of -$278.62 versus -$217.82 in the prior year.
  • Compared to other companies in the Life Sciences Tools & Services industry and the overall market, WAFERGEN BIO-SYSTEMS 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: Wafergen Bio-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.

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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