3 Stocks Boosting The Electronics 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.

One out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 25.91 points (-0.1%) at 17,627 as of Friday, Nov. 14, 2014, 1:25 PM ET. The NYSE advances/declines ratio sits at 1,592 issues advancing vs. 1,405 declining with 178 unchanged.

The Electronics industry as a whole closed the day up 0.8% versus the S&P 500, which was unchanged. Top gainers within the Electronics industry included Tel Instrument Electronics ( TIK), up 2.0%, Aetrium ( ATRM), up 7.6%, Data I/O ( DAIO), up 2.3%, BTU International ( BTUI), up 2.5% and Sypris Solutions ( SYPR), up 4.7%.

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

BTU International ( BTUI) is one of the companies that pushed the Electronics industry higher today. BTU International was up $0.08 (2.5%) to $3.23 on light volume. Throughout the day, 4,300 shares of BTU International exchanged hands as compared to its average daily volume of 23,500 shares. The stock ranged in a price between $3.15-$3.23 after having opened the day at $3.15 as compared to the previous trading day's close of $3.15.

BTU International, Inc. designs, manufactures, sells, and services thermal processing equipment and related process controls for use in the electronics, alternative energy, automotive, and other industries worldwide. BTU International has a market cap of $30.3 million and is part of the technology sector. Shares are up 5.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate BTU International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates BTU International as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on BTUI go as follows:

  • In its most recent trading session, BTUI 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. 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.
  • 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, BTU INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • BTU INTERNATIONAL INC reported significant earnings per share improvement 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, BTU INTERNATIONAL INC reported poor results of -$1.21 versus -$1.16 in the prior year.
  • 38.18% is the gross profit margin for BTU INTERNATIONAL INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BTUI's net profit margin of 0.00% significantly trails the industry average.
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, BTUI has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.

You can view the full analysis from the report here: BTU International Ratings Report

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At the close, Data I/O ( DAIO) was up $0.07 (2.3%) to $3.25 on average volume. Throughout the day, 19,976 shares of Data I/O exchanged hands as compared to its average daily volume of 14,500 shares. The stock ranged in a price between $3.15-$3.33 after having opened the day at $3.15 as compared to the previous trading day's close of $3.18.

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 $24.7 million and is part of the technology sector. Shares are up 22.7% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Data I/O 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 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 increase in stock price during the past year. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on DAIO go as follows:

  • The revenue growth came in higher than the industry average of 3.7%. Since the same quarter one year prior, revenues rose by 15.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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. Along with this, the company maintains a quick ratio of 2.58, which clearly demonstrates the ability to cover short-term cash needs.
  • DATA I/O CORP 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 year. During the past fiscal year, DATA I/O CORP continued to lose money by earning -$0.33 versus -$0.80 in the prior year.
  • 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.

You can view the full analysis from the report here: Data I/O 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.

Aetrium ( ATRM) was another company that pushed the Electronics industry higher today. Aetrium was up $0.29 (7.6%) to $4.10 on average volume. Throughout the day, 5,076 shares of Aetrium exchanged hands as compared to its average daily volume of 3,900 shares. The stock ranged in a price between $3.65-$4.10 after having opened the day at $3.65 as compared to the previous trading day's close of $3.81.

Aetrium has a market cap of $4.6 million and is part of the technology sector. Shares are down 41.8% year-to-date as of the close of trading on Thursday.

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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