3 Electronics Stocks Moving The Industry Upward

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 25 points (0.1%) at 17,157 as of Wednesday, Sept. 17, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,585 issues advancing vs. 1,500 declining with 127 unchanged.

The Electronics industry as a whole closed the day up 0.6% versus the S&P 500, which was up 0.1%. Top gainers within the Electronics industry included Qualstar ( QBAK), up 1.6%, Electro-Sensors ( ELSE), up 3.8%, Aetrium ( ATRM), up 2.3%, Advanced Photonix ( API), up 5.2% and Wafergen Bio-systems ( WGBS), up 3.3%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Advanced Photonix ( API) is one of the companies that pushed the Electronics industry higher today. Advanced Photonix was up $0.03 (5.2%) to $0.57 on heavy volume. Throughout the day, 125,620 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 81,200 shares. The stock ranged in a price between $0.52-$0.58 after having opened the day at $0.54 as compared to the previous trading day's close of $0.54.

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 $21.3 million and is part of the technology sector. Shares are down 21.7% year-to-date as of the close of trading on Tuesday. 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.

At the close, Aetrium ( ATRM) was up $0.10 (2.3%) to $4.51 on average volume. Throughout the day, 7,264 shares of Aetrium exchanged hands as compared to its average daily volume of 8,000 shares. The stock ranged in a price between $4.50-$4.70 after having opened the day at $4.60 as compared to the previous trading day's close of $4.41.

Aetrium Incorporated designs, manufactures, and markets various electromechanical equipment used in handling and testing integrated circuits (ICs). Aetrium has a market cap of $5.0 million and is part of the technology sector. Shares are down 30.4% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Aetrium 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 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 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.

Qualstar ( QBAK) was another company that pushed the Electronics industry higher today. Qualstar was up $0.02 (1.6%) to $1.23 on light volume. Throughout the day, 2,359 shares of Qualstar exchanged hands as compared to its average daily volume of 9,300 shares. The stock ranged in a price between $1.18-$1.23 after having opened the day at $1.20 as compared to the previous trading day's close of $1.21.

Qualstar Corporation designs, develops, manufactures, and sells power supplies and data storage systems worldwide. The company operates in two segments, Power Supplies and Tape Libraries. Qualstar has a market cap of $14.6 million and is part of the technology sector. Shares are up 7.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Qualstar a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Qualstar 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 QBAK 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 Computers & Peripherals industry and the overall market, QUALSTAR 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 -$2.61 million or 191.49% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • QBAK has underperformed the S&P 500 Index, declining 15.61% 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.
  • QUALSTAR CORP has improved earnings per share by 33.3% 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, QUALSTAR CORP reported poor results of -$0.85 versus -$0.35 in the prior year.
  • The revenue fell significantly faster than the industry average of 9.3%. Since the same quarter one year prior, revenues fell by 24.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: Qualstar 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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