3 Electronics Stocks Pushing Industry Growth

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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 28.32 points (-0.2%) at 17,043 as of Tuesday, Sept. 30, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,144 issues advancing vs. 1,950 declining with 113 unchanged.

The Electronics industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.3%. Top gainers within the Electronics industry included Electro-Sensors ( ELSE), up 5.3%, Sutron ( STRN), up 1.5%, Tel Instrument Electronics ( TIK), up 2.1%, Bel Fuse ( BELFA), up 1.5% and Advanced Photonix ( API), up 5.7%.

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 (5.7%) to $0.55 on light volume. Throughout the day, 17,772 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 79,500 shares. The stock ranged in a price between $0.51-$0.57 after having opened the day at $0.51 as compared to the previous trading day's close of $0.52.

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 $19.5 million and is part of the technology sector. Shares are down 24.2% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Advanced Photonix a buy, no analysts rate it a sell, and none rate it a hold.

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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:

  • In its most recent trading session, API has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. This company's share value has not moved any higher or lower since its value 12 months ago, and we feel the risks associated with investing in this company will outweigh any potential future gains.
  • 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 -24.33%.
  • 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, Bel Fuse ( BELFA) was up $0.36 (1.5%) to $24.27 on light volume. Throughout the day, 740 shares of Bel Fuse exchanged hands as compared to its average daily volume of 1,100 shares. The stock ranged in a price between $24.27-$24.27 after having opened the day at $24.27 as compared to the previous trading day's close of $23.91.

Bel Fuse Inc. designs, manufactures, and sells products used in the networking, telecommunication, high-speed data transmission, commercial aerospace, military, broadcasting, transportation, and consumer electronic industries worldwide. Bel Fuse has a market cap of $50.8 million and is part of the technology sector. Shares are up 23.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Bel Fuse 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 Bel Fuse as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on BELFA go as follows:

  • BELFA's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 5.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 80.00% and other important driving factors, this stock has surged by 28.97% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • BEL FUSE INC reported significant earnings per share improvement 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, BEL FUSE INC increased its bottom line by earning $1.39 versus $0.19 in the prior year. This year, the market expects an improvement in earnings ($1.54 versus $1.39).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 81.5% when compared to the same quarter one year prior, rising from $1.69 million to $3.07 million.

You can view the full analysis from the report here: Bel Fuse 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.

Sutron ( STRN) was another company that pushed the Electronics industry higher today. Sutron was up $0.08 (1.5%) to $5.09 on light volume. Throughout the day, 150 shares of Sutron exchanged hands as compared to its average daily volume of 3,700 shares. The stock ranged in a price between $5.09-$5.09 after having opened the day at $5.09 as compared to the previous trading day's close of $5.01.

Sutron Corporation provides real-time data collection and control products, systems and applications software, and professional services for the hydrological, meteorological, and oceanic monitoring markets. Sutron has a market cap of $25.4 million and is part of the technology sector. Shares are down 2.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Sutron a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Sutron 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 increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year.

Highlights from TheStreet Ratings analysis on STRN go as follows:

  • The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 20.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • STRN 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, STRN has a quick ratio of 2.44, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 40.53% is the gross profit margin for SUTRON CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.69% trails the industry average.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, SUTRON 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 -$0.17 million or 107.54% 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: Sutron 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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