3 Stocks Pushing The Electronics Industry Lower

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The Electronics industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.7%. Laggards within the Electronics industry included Electro-Sensors ( ELSE), down 2.5%, Aehr Test Systems ( AEHR), down 4.3%, Eltek ( ELTK), down 3.1%, Dynasil Corp of America ( DYSL), down 7.3% and SemiLEDs ( LEDS), down 3.5%.

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

SemiLEDs ( LEDS) is one of the companies that pushed the Electronics industry lower today. SemiLEDs was down $0.03 (3.5%) to $0.75 on light volume. Throughout the day, 18,045 shares of SemiLEDs exchanged hands as compared to its average daily volume of 95,500 shares. The stock ranged in price between $0.75-$0.78 after having opened the day at $0.78 as compared to the previous trading day's close of $0.78.

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips and LED components. SemiLEDs has a market cap of $22.2 million and is part of the technology sector. Shares are down 16.8% year-to-date as of the close of trading on Monday.

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

Highlights from TheStreet Ratings analysis on LEDS 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, SEMILEDS CORP'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 -$4.14 million or 78.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LEDS has underperformed the S&P 500 Index, declining 11.76% from its price level of one year ago. 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.
  • SEMILEDS CORP has improved earnings per share by 42.5% 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. During the past fiscal year, SEMILEDS CORP continued to lose money by earning -$1.58 versus -$1.80 in the prior year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 41.5% when compared to the same quarter one year prior, rising from -$10.95 million to -$6.41 million.

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

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At the close, Dynasil Corp of America ( DYSL) was down $0.13 (7.3%) to $1.65 on heavy volume. Throughout the day, 104,393 shares of Dynasil Corp of America exchanged hands as compared to its average daily volume of 39,800 shares. The stock ranged in price between $1.59-$1.73 after having opened the day at $1.59 as compared to the previous trading day's close of $1.78.

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 $24.7 million and is part of the technology sector. Shares are up 30.2% year-to-date as of the close of trading on Monday.

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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, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

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 120.2% when compared to the same quarter one year prior, rising from -$0.37 million to $0.07 million.
  • 39.30% 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 0.69% trails the industry average.
  • DYNASIL CORP OF AMERICA 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, DYNASIL CORP OF AMERICA reported poor results of -$0.59 versus -$0.29 in the prior year.
  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 134.58% 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.
  • Net operating cash flow has significantly decreased to -$0.48 million or 135.77% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Dynasil Corp of America Ratings Report

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Aehr Test Systems ( AEHR) was another company that pushed the Electronics industry lower today. Aehr Test Systems was down $0.11 (4.3%) to $2.44 on light volume. Throughout the day, 5,215 shares of Aehr Test Systems exchanged hands as compared to its average daily volume of 24,600 shares. The stock ranged in price between $2.43-$2.57 after having opened the day at $2.57 as compared to the previous trading day's close of $2.55.

Aehr Test Systems designs, engineers, develops, manufactures, and sells test and burn-in equipment used in the semiconductor industry worldwide. Aehr Test Systems has a market cap of $29.7 million and is part of the technology sector. Shares are down 16.2% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Aehr Test Systems as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

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Highlights from TheStreet Ratings analysis on AEHR go as follows:

  • AEHR's very impressive revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues leaped by 64.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AEHR's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for AEHR TEST SYSTEMS is rather high; currently it is at 54.26%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, AEHR's net profit margin of 4.45% significantly trails the industry average.
  • Powered by its strong earnings growth of 125.00% and other important driving factors, this stock has surged by 59.50% 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.
  • 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. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, AEHR TEST SYSTEMS's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: Aehr Test 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.

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