3 Stocks Pushing The Electronics Industry Lower

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The Electronics industry as a whole closed the day up 0.8% versus the S&P 500, which was unchanged. Laggards within the Electronics industry included Electro-Sensors ( ELSE), down 2.9%, Eltek ( ELTK), down 2.8%, eMagin ( EMAN), down 7.0%, Espey Manufacturing & Electronics ( ESP), down 3.0% and Anadigics ( ANAD), down 4.7%.

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

Anadigics ( ANAD) is one of the companies that pushed the Electronics industry lower today. Anadigics was down $0.04 (4.7%) to $0.82 on light volume. Throughout the day, 254,911 shares of Anadigics exchanged hands as compared to its average daily volume of 385,600 shares. The stock ranged in price between $0.80-$0.86 after having opened the day at $0.86 as compared to the previous trading day's close of $0.86.

ANADIGICS, Inc. designs and manufactures radio frequency (RF) semiconductor solutions for cellular, WiFi, wireless infrastructure, and cable television (CATV) applications. Anadigics has a market cap of $68.4 million and is part of the technology sector. Shares are down 53.3% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Anadigics a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Anadigics as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ANAD go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ANADIGICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ANADIGICS INC is rather low; currently it is at 15.01%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -35.33% is significantly below that of the industry average.
  • ANAD's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 58.52%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The revenue fell significantly faster than the industry average of 18.4%. Since the same quarter one year prior, revenues fell by 49.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ANAD's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, ANAD has a quick ratio of 1.55, which demonstrates the ability of the company to cover short-term liquidity needs.

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

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At the close, Espey Manufacturing & Electronics ( ESP) was down $0.68 (3.0%) to $21.82 on light volume. Throughout the day, 1,400 shares of Espey Manufacturing & Electronics exchanged hands as compared to its average daily volume of 5,700 shares. The stock ranged in price between $21.74-$22.42 after having opened the day at $21.74 as compared to the previous trading day's close of $22.51.

Espey Mfg. & Electronics Corp., a power electronics design and original equipment manufacturing company, designs, manufactures, and tests electronic equipment primarily for use in military and industrial applications in the United States. Espey Manufacturing & Electronics has a market cap of $54.9 million and is part of the technology sector. Shares are down 28.7% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Espey Manufacturing & Electronics as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on ESP go as follows:

  • ESP 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 7.54, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $1.97 million or 33.74% when compared to the same quarter last year. In addition, ESPEY MFG & ELECTRONICS CORP has also vastly surpassed the industry average cash flow growth rate of -24.97%.
  • ESP, with its decline in revenue, underperformed when compared the industry average of 11.3%. Since the same quarter one year prior, revenues fell by 38.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ESPEY MFG & ELECTRONICS CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ESPEY MFG & ELECTRONICS CORP reported lower earnings of $0.51 versus $2.48 in the prior year.
  • 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 Electrical Equipment industry. The net income has significantly decreased by 130.4% when compared to the same quarter one year ago, falling from $2.29 million to -$0.70 million.

You can view the full analysis from the report here: Espey Manufacturing & Electronics 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.

eMagin ( EMAN) was another company that pushed the Electronics industry lower today. eMagin was down $0.19 (7.0%) to $2.54 on heavy volume. Throughout the day, 71,789 shares of eMagin exchanged hands as compared to its average daily volume of 41,900 shares. The stock ranged in price between $2.50-$2.70 after having opened the day at $2.60 as compared to the previous trading day's close of $2.73.

eMagin Corporation manufactures microdisplays using organic light emitting diode (OLED) technology. It designs, develops, manufactures, and markets OLED on silicon microdisplays; virtual imaging products, which utilize OLED microdisplays; and related products. eMagin has a market cap of $65.7 million and is part of the technology sector. Shares are down 7.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate eMagin a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates eMagin as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

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

Highlights from TheStreet Ratings analysis on EMAN go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Electronic Equipment, Instruments & Components industry average. The net income has decreased by 3.8% when compared to the same quarter one year ago, dropping from -$1.01 million to -$1.05 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, EMAGIN CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for EMAGIN CORP is currently lower than what is desirable, coming in at 34.92%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -14.91% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$3.53 million or 304.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, EMAN 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

You can view the full analysis from the report here: eMagin 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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