3 Stocks Pushing The Electronics Industry Lower

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The Electronics industry as a whole closed the day down 1.8% versus the S&P 500, which was down 1.6%. Laggards within the Electronics industry included Altair Nanotechnologies ( ALTI), down 21.1%, Electro-Sensors ( ELSE), down 2.2%, Wells-Gardner Electronic ( WGA), down 2.4%, Aetrium ( ATRM), down 3.1% and Data I/O ( DAIO), down 1.6%.

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

Data I/O ( DAIO) is one of the companies that pushed the Electronics industry lower today. Data I/O was down $0.05 (1.6%) to $3.02 on average volume. Throughout the day, 18,542 shares of Data I/O exchanged hands as compared to its average daily volume of 13,900 shares. The stock ranged in price between $2.75-$3.12 after having opened the day at $3.01 as compared to the previous trading day's close of $3.07.

Data I/O Corporation designs, manufactures, and sells programming systems for electronic device manufacturers worldwide. The company's programming system products are used to program integrated circuits (ICs) with the specific data necessary for the ICs. Data I/O has a market cap of $24.9 million and is part of the health care sector. Shares are up 23.7% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Data I/O as a hold. 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 and solid stock price performance. 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 DAIO go as follows:

  • DAIO's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 6.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DAIO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, DAIO has a quick ratio of 2.37, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for DATA I/O CORP is rather high; currently it is at 56.83%. Regardless of DAIO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DAIO's net profit margin of 7.98% compares favorably to 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. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, DATA I/O 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 $0.02 million or 94.58% 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: Data I/O Ratings Report

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At the close, Aetrium ( ATRM) was down $0.14 (3.1%) to $4.32 on light volume. Throughout the day, 1,640 shares of Aetrium exchanged hands as compared to its average daily volume of 6,800 shares. The stock ranged in price between $4.30-$4.32 after having opened the day at $4.32 as compared to the previous trading day's close of $4.46.

Aetrium Incorporated designs, manufactures, and markets various electromechanical equipment used in handling and testing integrated circuits (ICs). Aetrium has a market cap of $4.8 million and is part of the health care sector. Shares are down 33.2% year-to-date as of the close of trading on Wednesday.

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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

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Altair Nanotechnologies ( ALTI) was another company that pushed the Electronics industry lower today. Altair Nanotechnologies was down $0.20 (21.1%) to $0.75 on heavy volume. Throughout the day, 87,152 shares of Altair Nanotechnologies exchanged hands as compared to its average daily volume of 15,800 shares. The stock ranged in price between $0.75-$1.05 after having opened the day at $0.90 as compared to the previous trading day's close of $0.95.

Altair Nanotechnologies Inc. develops, manufactures, and sells nano lithium titanate batteries and energy storage systems primarily in the United States and China. Altair Nanotechnologies has a market cap of $49.8 million and is part of the health care sector. Shares are down 75.8% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Altair Nanotechnologies as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

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Highlights from TheStreet Ratings analysis on ALTI go as follows:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electrical Equipment industry and the overall market, ALTAIR NANOTECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.93 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has increased to -$3.15 million or 36.28% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.06%.
  • Investors have driven up the company's shares by 85.34% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in ALTI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • ALTAIR NANOTECHNOLOGIES INC has improved earnings per share by 23.8% 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, ALTAIR NANOTECHNOLOGIES INC continued to lose money by earning -$1.57 versus -$2.94 in the prior year.

You can view the full analysis from the report here: Altair Nanotechnologies 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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