3 Stocks Pushing The Electronics Industry Lower

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.

The Electronics industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.2%. Laggards within the Electronics industry included Qualstar ( QBAK), down 4.7%, CPS Technologies ( CPSH), down 1.5%, ATRM Holdings ( ATRM), down 5.9%, Sypris Solutions ( SYPR), down 4.5% and Data I/O ( DAIO), down 2.7%.

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

Sypris Solutions ( SYPR) is one of the companies that pushed the Electronics industry lower today. Sypris Solutions was down $0.06 (4.5%) to $1.27 on light volume. Throughout the day, 8,029 shares of Sypris Solutions exchanged hands as compared to its average daily volume of 23,300 shares. The stock ranged in price between $1.26-$1.37 after having opened the day at $1.26 as compared to the previous trading day's close of $1.33.

Sypris Solutions, Inc. offers outsourced services and specialty products in the United States, Mexico, Denmark, and the United Kingdom. Sypris Solutions has a market cap of $27.0 million and is part of the technology sector. Shares are down 50.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Sypris Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Sypris Solutions as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on SYPR 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 Auto Components industry. The net income has significantly decreased by 888.9% when compared to the same quarter one year ago, falling from $1.65 million to -$13.03 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 Auto Components industry and the overall market, SYPRIS SOLUTIONS INC'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 -$5.32 million or 312.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 72.75%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 925.00% compared to the year-earlier 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.
  • SYPRIS SOLUTIONS 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 reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SYPRIS SOLUTIONS INC continued to lose money by earning -$0.07 versus -$0.52 in the prior year. For the next year, the market is expecting a contraction of 1614.3% in earnings (-$1.20 versus -$0.07).

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

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At the close, ATRM Holdings ( ATRM) was down $0.20 (5.9%) to $3.20 on average volume. Throughout the day, 5,874 shares of ATRM Holdings exchanged hands as compared to its average daily volume of 6,000 shares. The stock ranged in price between $3.10-$3.39 after having opened the day at $3.39 as compared to the previous trading day's close of $3.40.

ATRM Holdings, Inc., through its subsidiary, KBS Builders, Inc., manufactures, sells, and distributes modular buildings for commercial and residential applications in the New England states. ATRM Holdings has a market cap of $3.8 million and is part of the technology sector. Shares are up 16.8% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates ATRM Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ATRM go as follows:

  • ATRM HOLDINGS 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ATRM HOLDINGS INC reported poor results of -$8.33 versus -$1.99 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 657.6% when compared to the same quarter one year ago, falling from -$0.20 million to -$1.49 million.
  • Net operating cash flow has significantly decreased to -$3.02 million or 575.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.40%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 160.41% compared to the year-earlier 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.

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

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Qualstar ( QBAK) was another company that pushed the Electronics industry lower today. Qualstar was down $0.05 (4.7%) to $1.04 on light volume. Throughout the day, 790 shares of Qualstar exchanged hands as compared to its average daily volume of 1,800 shares. The stock ranged in price between $1.04-$1.04 after having opened the day at $1.04 as compared to the previous trading day's close of $1.09.

Qualstar Corporation designs, develops, manufactures, and sells power supplies and data storage systems worldwide. It operates through two segments, Power Supplies and Tape Libraries. Qualstar has a market cap of $12.5 million and is part of the technology sector. Shares are down 17.4% year-to-date as of the close of trading on Monday.

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

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Highlights from TheStreet Ratings analysis on QBAK go as follows:

  • The gross profit margin for QUALSTAR CORP is currently lower than what is desirable, coming in at 34.97%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, QBAK's net profit margin of -17.36% significantly underperformed when compared to the industry average.
  • QBAK has underperformed the S&P 500 Index, declining 22.97% from its price level of one year ago. 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 Computers & Peripherals industry and the overall market, QUALSTAR CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • QUALSTAR 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, QUALSTAR CORP continued to lose money by earning -$0.47 versus -$0.85 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 77.5% when compared to the same quarter one year prior, rising from -$2.17 million to -$0.49 million.

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

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