3 Electronics Stocks Moving The Industry Upward

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 9 points (0.1%) at 17,695 as of Thursday, Nov. 20, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,959 issues advancing vs. 1,061 declining with 155 unchanged.

The Electronics industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.1%. Top gainers within the Electronics industry included Aetrium ( ATRM), up 4.2%, Advanced Photonix ( API), up 1.9%, SemiLEDs ( LEDS), up 3.5%, Dynasil Corp of America ( DYSL), up 3.5% and BTU International ( BTUI), up 2.5%.

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

SemiLEDs ( LEDS) is one of the companies that pushed the Electronics industry higher today. SemiLEDs was up $0.01 (3.5%) to $0.44 on light volume. Throughout the day, 77,276 shares of SemiLEDs exchanged hands as compared to its average daily volume of 122,800 shares. The stock ranged in a price between $0.41-$0.44 after having opened the day at $0.42 as compared to the previous trading day's close of $0.42.

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips and LED components. SemiLEDs has a market cap of $12.5 million and is part of the technology sector. Shares are down 55.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate SemiLEDs 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 SemiLEDs as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LEDS 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, SEMILEDS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$4.14 million or 78.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LEDS'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 59.14%, 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.
  • SEMILEDS CORP has improved earnings per share by 42.5% 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, SEMILEDS CORP continued to lose money by earning -$1.58 versus -$1.80 in the prior year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 41.5% when compared to the same quarter one year prior, rising from -$10.95 million to -$6.41 million.

You can view the full analysis from the report here: SemiLEDs 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, Advanced Photonix ( API) was up $0.01 (1.9%) to $0.45 on light volume. Throughout the day, 10,739 shares of Advanced Photonix exchanged hands as compared to its average daily volume of 75,500 shares. The stock ranged in a price between $0.42-$0.48 after having opened the day at $0.47 as compared to the previous trading day's close of $0.44.

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 $16.6 million and is part of the technology sector. Shares are down 35.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Advanced Photonix 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 Advanced Photonix as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on API go as follows:

  • Net operating cash flow has decreased to -$0.51 million or 10.36% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • API'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 30.77%, 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 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.
  • 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, API's net profit margin of -3.49% significantly underperformed when compared to the industry average.
  • 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).

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.

Aetrium ( ATRM) was another company that pushed the Electronics industry higher today. Aetrium was up $0.14 (4.2%) to $3.51 on average volume. Throughout the day, 5,132 shares of Aetrium exchanged hands as compared to its average daily volume of 4,000 shares. The stock ranged in a price between $3.49-$3.99 after having opened the day at $3.49 as compared to the previous trading day's close of $3.37.

Aetrium has a market cap of $4.2 million and is part of the technology sector. Shares are down 47.3% year-to-date as of the close of trading on Wednesday.

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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