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 closed the day down 1.9% versus the S&P 500, which was down 0.1%. Laggards within the Electronics industry included Bio-Rad Laboratories ( BIO.B), down 2.1%, Electro-Sensors ( ELSE), down 3.1%, Wells-Gardner Electronic ( WGA), down 14.5%, Aetrium ( ATRM), down 3.1% and Advanced Photonix ( API), down 1.7%.

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

Trimble Navigation ( TRMB) is one of the companies that pushed the Electronics industry lower today. Trimble Navigation was down $0.63 (1.9%) to $32.00 on light volume. Throughout the day, 676,214 shares of Trimble Navigation exchanged hands as compared to its average daily volume of 1,638,900 shares. The stock ranged in price between $31.85-$32.60 after having opened the day at $32.60 as compared to the previous trading day's close of $32.63.

Trimble Navigation Limited designs and distributes positioning products and applications enabled by global positioning system (GPS), optical, laser, and wireless communications technology. Trimble Navigation has a market cap of $8.6 billion and is part of the technology sector. Shares are down 6.0% year-to-date as of the close of trading on Friday. Currently there are 9 analysts who rate Trimble Navigation a buy, no analysts rate it a sell, and 3 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 Trimble Navigation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on TRMB go as follows:

  • TRMB's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 11.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TRMB's debt-to-equity ratio is very low at 0.27 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 1.20, which illustrates the ability to avoid short-term cash problems.
  • TRIMBLE NAVIGATION LTD has improved earnings per share by 38.1% 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. We feel that this trend should continue. During the past fiscal year, TRIMBLE NAVIGATION LTD increased its bottom line by earning $0.84 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus $0.84).
  • 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 42.6% when compared to the same quarter one year prior, rising from $54.58 million to $77.83 million.
  • The gross profit margin for TRIMBLE NAVIGATION LTD is rather high; currently it is at 59.62%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.11% is above that of the industry average.

You can view the full analysis from the report here: Trimble Navigation 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 down $0.01 (1.7%) to $0.57 on heavy volume. Throughout the day, 201,564 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 75,400 shares. The stock ranged in price between $0.56-$0.65 after having opened the day at $0.62 as compared to the previous trading day's close of $0.58.

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 $21.2 million and is part of the technology sector. Shares are down 15.9% 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.

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 generally disappointing historical performance in the stock itself and weak operating cash flow.

Highlights from TheStreet Ratings analysis on API go as follows:

  • API has underperformed the S&P 500 Index, declining 18.06% 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.
  • Net operating cash flow has decreased to -$0.51 million or 10.36% when compared to the same quarter last year. Despite a decrease in cash flow ADVANCED PHOTONIX INC is still fairing well by exceeding its industry average cash flow growth rate of -20.62%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.
  • ADVANCED PHOTONIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, ADVANCED PHOTONIX INC reported poor results of -$0.14 versus -$0.13 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.14).
  • 40.36% is the gross profit margin for ADVANCED PHOTONIX INC which we consider to be strong. Regardless of API'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 -3.49% trails the industry average.

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.

Aetrium ( ATRM) was another company that pushed the Electronics industry lower today. Aetrium was down $0.15 (3.1%) to $4.65 on light volume. Throughout the day, 6,222 shares of Aetrium exchanged hands as compared to its average daily volume of 8,300 shares. The stock ranged in price between $4.63-$4.82 after having opened the day at $4.82 as compared to the previous trading day's close of $4.80.

Aetrium Incorporated designs, manufactures, and markets various electromechanical equipment used in handling and testing integrated circuits (ICs). Aetrium has a market cap of $5.2 million and is part of the technology sector. Shares are down 28.1% year-to-date as of the close of trading on Friday.

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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 7.77%.
  • 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 56.06% 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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

Dow Tumbles, Stocks Slide on Renewed Trade War Concerns

Dow Tumbles, Stocks Slide on Renewed Trade War Concerns

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern