Trade-Ideas: Delphi Automotive (DLPH) Is Today's New Lifetime High Stock
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.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Delphi Automotive as such a stock due to the following factors:
- DLPH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $116.9 million.
- DLPH has traded 11,880 shares today.
- DLPH is trading at a new lifetime high.
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More details on DLPH:
Delphi Automotive PLC, together with its subsidiaries, manufacturers vehicle components; and provides electrical and electronic, powertrain, safety, and thermal technology solutions to the automotive and commercial vehicle markets worldwide. The stock currently has a dividend yield of 1.3%. DLPH has a PE ratio of 17.6. Currently there are 11 analysts that rate Delphi Automotive a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Delphi Automotive has been 1.9 million shares per day over the past 30 days. Delphi Automotive has a market cap of $22.9 billion and is part of the consumer goods sector and automotive industry. Shares are up 10.2% year-to-date as of the close of trading on Monday.
Analysis:
rates Delphi Automotive as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- DELPHI AUTOMOTIVE PLC has improved earnings per share by 19.6% 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 two years. We feel that this trend should continue. During the past fiscal year, DELPHI AUTOMOTIVE PLC increased its bottom line by earning $4.48 versus $3.89 in the prior year. This year, the market expects an improvement in earnings ($5.50 versus $4.48).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Auto Components industry average. The net income increased by 15.4% when compared to the same quarter one year prior, going from $298.00 million to $344.00 million.
- 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 Auto Components industry and the overall market, DELPHI AUTOMOTIVE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $873.00 million or 28.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.37%.
- You can view the full Delphi Automotive Ratings Report.
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