3 Electronics Stocks Pushing 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.

Two 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 up 18 points (0.1%) at 17,652 as of Monday, Nov. 17, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,424 issues advancing vs. 1,602 declining with 148 unchanged.

The Electronics industry as a whole closed the day down 0.9% versus the S&P 500, which was up 0.1%. Top gainers within the Electronics industry included Aetrium ( ATRM), up 3.6%, Electro-Sensors ( ELSE), up 6.0%, Nortech Systems ( NSYS), up 4.9%, Aehr Test Systems ( AEHR), up 2.9% and LightPath Technologies ( LPTH), up 2.5%.

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

LightPath Technologies ( LPTH) is one of the companies that pushed the Electronics industry higher today. LightPath Technologies was up $0.03 (2.5%) to $1.22 on light volume. Throughout the day, 6,256 shares of LightPath Technologies exchanged hands as compared to its average daily volume of 36,500 shares. The stock ranged in a price between $1.19-$1.22 after having opened the day at $1.19 as compared to the previous trading day's close of $1.19.

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. LightPath Technologies has a market cap of $17.3 million and is part of the technology sector. Shares are down 12.5% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates LightPath Technologies 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 LightPath Technologies as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on LPTH go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 142.2% when compared to the same quarter one year prior, rising from -$0.24 million to $0.10 million.
  • LPTH's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LPTH has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
  • LIGHTPATH TECHNOLOGIES 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, LIGHTPATH TECHNOLOGIES INC swung to a loss, reporting -$0.02 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($0.00 versus -$0.02).
  • Net operating cash flow has significantly decreased to $0.04 million or 93.72% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, LIGHTPATH TECHNOLOGIES INC'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: LightPath Technologies 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, Aehr Test Systems ( AEHR) was up $0.07 (2.9%) to $2.50 on light volume. Throughout the day, 4,600 shares of Aehr Test Systems exchanged hands as compared to its average daily volume of 15,200 shares. The stock ranged in a price between $2.42-$2.50 after having opened the day at $2.42 as compared to the previous trading day's close of $2.43.

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 $28.3 million and is part of the technology sector. Shares are down 20.4% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Aehr Test Systems 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 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 18.6%. 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

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 $0.14 (3.6%) to $3.98 on light volume. Throughout the day, 960 shares of Aetrium exchanged hands as compared to its average daily volume of 3,900 shares. The stock ranged in a price between $3.95-$4.04 after having opened the day at $3.95 as compared to the previous trading day's close of $3.84.

Aetrium has a market cap of $4.5 million and is part of the technology sector. Shares are down 43.0% year-to-date as of the close of trading on Friday.

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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