3 Stocks Pushing The Electronics Industry Lower

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The Electronics industry as a whole closed the day down 0.8% versus the S&P 500, which was unchanged. Laggards within the Electronics industry included Aetrium ( ATRM), down 2.1%, Aehr Test Systems ( AEHR), down 2.0%, Trio-Tech International ( TRT), down 3.3%, Sypris Solutions ( SYPR), down 2.1% and GigOptix ( GIG), down 4.0%.

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

Sypris Solutions ( SYPR) is one of the companies that pushed the Electronics industry lower today. Sypris Solutions was down $0.06 (2.1%) to $2.62 on light volume. Throughout the day, 22,532 shares of Sypris Solutions exchanged hands as compared to its average daily volume of 30,500 shares. The stock ranged in price between $2.61-$2.88 after having opened the day at $2.65 as compared to the previous trading day's close of $2.68.

Sypris Solutions, Inc. provides outsourced services and specialty products primarily in the United States, Mexico, Denmark, and the United Kingdom. Sypris Solutions has a market cap of $56.8 million and is part of the technology sector. Shares are down 12.4% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Sypris Solutions a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Sypris Solutions as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on SYPR go as follows:

  • Compared to its price level of one year ago, SYPR is up 5.86% to its most recent closing price of 3.07. Looking ahead, our view is that this company's fundamentals should not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The revenue growth came in higher than the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 13.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SYPRIS SOLUTIONS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SYPRIS SOLUTIONS INC swung to a loss, reporting -$0.52 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus -$0.52).
  • 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 Auto Components industry and the overall market, SYPRIS SOLUTIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SYPRIS SOLUTIONS INC is currently extremely low, coming in at 14.51%. Regardless of SYPR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.39% trails the industry average.

You can view the full analysis from the report here: Sypris Solutions Ratings Report

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At the close, Aehr Test Systems ( AEHR) was down $0.05 (2.0%) to $2.46 on light volume. Throughout the day, 2,450 shares of Aehr Test Systems exchanged hands as compared to its average daily volume of 15,800 shares. The stock ranged in price between $2.37-$2.49 after having opened the day at $2.48 as compared to the previous trading day's close of $2.51.

Aehr Test Systems designs, engineers, develops, manufactures, and sells test and burn-in equipment used in the semiconductor industry worldwide. Aehr Test Systems has a market cap of $29.3 million and is part of the technology sector. Shares are down 17.7% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Aehr Test Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on AEHR go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 446.4% when compared to the same quarter one year ago, falling from -$0.17 million to -$0.91 million.
  • Net operating cash flow has significantly decreased to -$0.22 million or 226.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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, AEHR TEST SYSTEMS's return on equity significantly trails that of both the industry average and the S&P 500.
  • 46.07% is the gross profit margin for AEHR TEST SYSTEMS which we consider to be strong. Regardless of AEHR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AEHR's net profit margin of -25.49% significantly underperformed when compared to the industry average.
  • AEHR, with its decline in revenue, underperformed when compared the industry average of 18.4%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Aehr Test Systems Ratings Report

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Aetrium ( ATRM) was another company that pushed the Electronics industry lower today. Aetrium was down $0.08 (2.1%) to $3.81 on light volume. Throughout the day, 2,021 shares of Aetrium exchanged hands as compared to its average daily volume of 4,000 shares. The stock ranged in price between $3.63-$3.86 after having opened the day at $3.63 as compared to the previous trading day's close of $3.89.

Aetrium has a market cap of $4.5 million and is part of the technology sector. Shares are down 43.5% year-to-date as of the close of trading on Wednesday.

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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