3 Electronics Stocks Moving The Industry Upward

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 242 points (1.4%) at 17,615 as of Monday, Aug. 10, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,351 issues advancing vs. 737 declining with 111 unchanged.

The Electronics industry as a whole closed the day up 1.6% versus the S&P 500, which was up 1.3%. Top gainers within the Electronics industry included Nortech Systems ( NSYS), up 6.4%, ATRM Holdings ( ATRM), up 3.2%, Data I/O ( DAIO), up 4.1%, API Technologies ( ATNY), up 5.7% and Anadigics ( ANAD), up 10.6%.

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

API Technologies ( ATNY) is one of the companies that pushed the Electronics industry higher today. API Technologies was up $0.13 (5.7%) to $2.40 on heavy volume. Throughout the day, 28,870 shares of API Technologies exchanged hands as compared to its average daily volume of 17,100 shares. The stock ranged in a price between $2.27-$2.41 after having opened the day at $2.28 as compared to the previous trading day's close of $2.27.

API Technologies Corp., together with its subsidiaries, designs, develops, and manufactures systems, subsystems, modules, and components for radio frequency (RF) microwave, millimeterwave, electromagnetic, power, and security applications. API Technologies has a market cap of $132.5 million and is part of the industrial goods sector. Shares are up 6.6% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates API Technologies a buy, no analysts rate it a sell, and none rate it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates API Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.

Highlights from TheStreet Ratings analysis on ATNY go as follows:

  • The debt-to-equity ratio of 1.18 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, ATNY maintains a poor quick ratio of 0.84, which illustrates the inability to avoid short-term cash problems.
  • The gross profit margin for API TECHNOLOGIES CORP is currently lower than what is desirable, coming in at 26.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.20% is significantly below that of the industry average.
  • 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 Aerospace & Defense industry and the overall market, API TECHNOLOGIES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • ATNY, with its decline in revenue, slightly underperformed the industry average of 4.4%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly increased by 85800.00% to $2.58 million when compared to the same quarter last year. In addition, API TECHNOLOGIES CORP has also vastly surpassed the industry average cash flow growth rate of 23.51%.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

If you liked this article you might like

3 Stocks Pushing The Electronics Industry Lower

8 Small-Cap Aerospace and Defense Stocks to Sell Now

3 Stocks Advancing The Electronics Industry

Why API Technologies (ATNY) Stock Is Climbing Today