3 Stocks Pushing The Electronics Industry Lower

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.

The Electronics industry as a whole was unchanged today versus the S&P 500, which was down 0.2%. Laggards within the Electronics industry included Electro-Sensors ( ELSE), down 2.9%, LGL Group ( LGL), down 2.3%, Pulse Electronics ( PULS), down 2.7%, LightPath Technologies ( LPTH), down 6.1% and Trio-Tech International ( TRT), down 2.0%.

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

LightPath Technologies ( LPTH) is one of the companies that pushed the Electronics industry lower today. LightPath Technologies was down $0.08 (6.1%) to $1.23 on heavy volume. Throughout the day, 42,531 shares of LightPath Technologies exchanged hands as compared to its average daily volume of 25,300 shares. The stock ranged in price between $1.22-$1.40 after having opened the day at $1.31 as compared to the previous trading day's close of $1.31.

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. LightPath Technologies has a market cap of $17.4 million and is part of the technology sector. Shares are down 3.7% year-to-date as of the close of trading on Wednesday. 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 11.27% 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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At the close, Pulse Electronics ( PULS) was down $0.06 (2.7%) to $2.05 on average volume. Throughout the day, 19,992 shares of Pulse Electronics exchanged hands as compared to its average daily volume of 15,400 shares. The stock ranged in price between $2.02-$2.50 after having opened the day at $2.50 as compared to the previous trading day's close of $2.11.

Pulse Electronics Corporation produces and sells precision-engineered electronic components and modules. It operates in three segments: Network, Power, and Wireless. Pulse Electronics has a market cap of $36.4 million and is part of the technology sector. Shares are down 27.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Pulse Electronics as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on PULS 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 49.3% when compared to the same quarter one year ago, falling from -$5.23 million to -$7.81 million.
  • The gross profit margin for PULSE ELECTRONICS CORP is rather low; currently it is at 23.05%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.34% is significantly below that of the industry average.
  • PULS'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 44.46%, 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.
  • PULSE ELECTRONICS CORP has improved earnings per share by 30.8% 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 two years. During the past fiscal year, PULSE ELECTRONICS CORP continued to lose money by earning -$3.39 versus -$6.60 in the prior year.
  • Net operating cash flow has significantly increased by 187.37% to $6.65 million when compared to the same quarter last year. In addition, PULSE ELECTRONICS CORP has also vastly surpassed the industry average cash flow growth rate of -20.80%.

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

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LGL Group ( LGL) was another company that pushed the Electronics industry lower today. LGL Group was down $0.10 (2.3%) to $4.28 on light volume. Throughout the day, 2,749 shares of LGL Group exchanged hands as compared to its average daily volume of 7,200 shares. The stock ranged in price between $4.15-$4.35 after having opened the day at $4.32 as compared to the previous trading day's close of $4.38.

The LGL Group, Inc., through its subsidiaries, designs, manufactures, and markets standard and custom-engineered electronic components in the United States and internationally. LGL Group has a market cap of $11.3 million and is part of the technology sector. Shares are down 19.0% year-to-date as of the close of trading on Wednesday.

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

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Highlights from TheStreet Ratings analysis on LGL go as follows:

  • LGL GROUP 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, LGL GROUP INC reported poor results of -$3.16 versus -$0.51 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 874.7% when compared to the same quarter one year ago, falling from -$0.08 million to -$0.81 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, LGL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LGL GROUP INC is currently lower than what is desirable, coming in at 29.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.19% is significantly below that of the industry average.
  • The share price of LGL GROUP INC has not done very well: it is down 24.18% 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: LGL Group 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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