3 Electronics Stocks Nudging 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 82 points (0.5%) at 17,801 as of Friday, Nov. 21, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 2,057 issues advancing vs. 968 declining with 155 unchanged.

The Electronics industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.4%. Top gainers within the Electronics industry included Bio-Rad Laboratories ( BIO.B), up 2.3%, Aetrium ( ATRM), up 10.8%, Sutron ( STRN), up 2.0%, MRV Communications ( MRVC), up 2.8% and Trio-Tech International ( TRT), up 3.6%.

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

MRV Communications ( MRVC) is one of the companies that pushed the Electronics industry higher today. MRV Communications was up $0.27 (2.8%) to $10.05 on heavy volume. Throughout the day, 13,374 shares of MRV Communications exchanged hands as compared to its average daily volume of 3,800 shares. The stock ranged in a price between $9.26-$10.05 after having opened the day at $9.66 as compared to the previous trading day's close of $9.78.

MRV Communications, Inc. MRV Communications has a market cap of $75.5 million and is part of the technology sector. Shares are unchanged year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate MRV Communications a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates MRV Communications as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on MRVC 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 Communications Equipment industry. The net income has significantly decreased by 128.3% when compared to the same quarter one year ago, falling from -$0.99 million to -$2.27 million.
  • In its most recent trading session, MRVC 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 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 Communications Equipment industry and the overall market, MRV COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 35.45% is the gross profit margin for MRV COMMUNICATIONS INC which we consider to be strong. Regardless of MRVC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MRVC's net profit margin of -5.25% significantly underperformed when compared to the industry average.
  • MRV COMMUNICATIONS INC 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. 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, MRV COMMUNICATIONS INC continued to lose money by earning -$0.91 versus -$0.94 in the prior year.

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

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At the close, Sutron ( STRN) was up $0.10 (2.0%) to $5.12 on heavy volume. Throughout the day, 10,501 shares of Sutron exchanged hands as compared to its average daily volume of 5,100 shares. The stock ranged in a price between $5.09-$5.12 after having opened the day at $5.10 as compared to the previous trading day's close of $5.02.

Sutron Corporation provides real-time data collection and control products, systems and applications software, and professional services for the hydrological, meteorological, and oceanic monitoring markets. Sutron has a market cap of $25.5 million and is part of the technology sector. Shares are down 2.3% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Sutron 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 Sutron 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 net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on STRN go as follows:

  • The revenue growth came in higher than the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 20.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • STRN 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. To add to this, STRN has a quick ratio of 2.44, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, SUTRON 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 -$0.17 million or 107.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Sutron 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 $0.38 (10.8%) to $3.89 on heavy volume. Throughout the day, 8,031 shares of Aetrium exchanged hands as compared to its average daily volume of 4,000 shares. The stock ranged in a price between $3.80-$3.89 after having opened the day at $3.80 as compared to the previous trading day's close of $3.51.

Aetrium has a market cap of $4.0 million and is part of the technology sector. Shares are down 49.5% 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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