3 Electronics Stocks Nudging The Industry Higher

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 263 points (1.6%) at 16,380 as of Friday, Oct. 17, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,043 issues advancing vs. 1,068 declining with 100 unchanged.

The Electronics industry as a whole closed the day up 0.1% versus the S&P 500, which was up 1.3%. Top gainers within the Electronics industry included Electro-Sensors ( ELSE), up 24.4%, Bel Fuse ( BELFA), up 3.6%, Aetrium ( ATRM), up 8.8%, Nortech Systems ( NSYS), up 3.2% and Advanced Photonix ( API), up 4.2%.

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 $0.02 (4.2%) to $0.50 on light volume. Throughout the day, 15,814 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 80,900 shares. The stock ranged in a price between $0.46-$0.51 after having opened the day at $0.50 as compared to the previous trading day's close of $0.48.

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 $17.6 million and is part of the industrial goods sector. Shares are down 31.9% year-to-date as of the close of trading on Thursday. 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:

  • API has underperformed the S&P 500 Index, declining 16.13% 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 -23.23%.
  • 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 $0.34 (8.8%) to $4.20 on light volume. Throughout the day, 103 shares of Aetrium exchanged hands as compared to its average daily volume of 6,600 shares. The stock ranged in a price between $4.20-$4.20 after having opened the day at $4.20 as compared to the previous trading day's close of $3.86.

Aetrium has a market cap of $4.2 million and is part of the industrial goods sector. Shares are down 42.2% year-to-date as of the close of trading on Thursday.

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

Bel Fuse ( BELFA) was another company that pushed the Electronics industry higher today. Bel Fuse was up $0.77 (3.6%) to $21.99 on light volume. Throughout the day, 511 shares of Bel Fuse exchanged hands as compared to its average daily volume of 1,000 shares. The stock ranged in a price between $21.99-$23.29 after having opened the day at $22.75 as compared to the previous trading day's close of $21.22.

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 $46.2 million and is part of the industrial goods sector. Shares are up 9.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Bel Fuse a buy, no analysts rate it a sell, and none rate it a hold.

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 4.1%. 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.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over 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.

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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