3 Stocks Pushing The Automotive Industry Lower - TheStreet

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The Automotive industry as a whole closed the day down 0.3% versus the S&P 500, which was unchanged. Laggards within the Automotive industry included

UQM Technologies

(

UQM

), down 3.7%,

Quantum Fuel Systems Technologies Worldwide

(

QTWW

), down 3.2%,

Accuride

(

ACW

), down 3.8%,

Stoneridge

(

SRI

), down 1.7% and

Federal-Mogul Holdings

(

FDML

), down 2.2%.

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

Accuride

(

ACW

) is one of the companies that pushed the Automotive industry lower today. Accuride was down $0.19 (3.8%) to $4.80 on light volume. Throughout the day, 110,502 shares of Accuride exchanged hands as compared to its average daily volume of 185,500 shares. The stock ranged in price between $4.76-$5.00 after having opened the day at $5.00 as compared to the previous trading day's close of $4.99.

Accuride Corporation, together with its subsidiaries, designs, manufactures, and distributes commercial vehicle components in North America. Its products include commercial vehicle wheels, wheel-end components and assemblies, and ductile and gray iron castings. Accuride has a market cap of $231.4 million and is part of the consumer goods sector. Shares are up 33.8% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Accuride a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

Accuride

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 ACW go as follows:

  • The debt-to-equity ratio is very high at 4.93 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, ACW's quick ratio is somewhat strong at 1.02, demonstrating the ability to handle short-term liquidity needs.
  • The gross profit margin for ACCURIDE CORP is rather low; currently it is at 15.41%. Regardless of ACW's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.59% trails 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. In comparison to the other companies in the Machinery industry and the overall market, ACCURIDE CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • This stock has increased by 45.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • ACCURIDE 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ACCURIDE CORP continued to lose money by earning -$0.56 versus -$3.65 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.56).

You can view the full analysis from the report here:

Accuride Ratings Report

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At the close,

Quantum Fuel Systems Technologies Worldwide

(

QTWW

) was down $0.11 (3.2%) to $3.33 on light volume. Throughout the day, 80,940 shares of Quantum Fuel Systems Technologies Worldwide exchanged hands as compared to its average daily volume of 224,000 shares. The stock ranged in price between $3.32-$3.46 after having opened the day at $3.40 as compared to the previous trading day's close of $3.44.

Quantum Fuel Systems Technologies Worldwide, Inc. develops, produces, and sells natural gas fuel storage systems; and integrates vehicle system technologies in the United States, Germany, Canada, India, Spain, and Taiwan. Quantum Fuel Systems Technologies Worldwide has a market cap of $80.8 million and is part of the consumer goods sector. Shares are down 55.5% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Quantum Fuel Systems Technologies Worldwide a buy, no analysts rate it a sell, and 1 rates 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

Quantum Fuel Systems Technologies Worldwide

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 QTWW go as follows:

  • Net operating cash flow has significantly decreased to -$5.04 million or 89.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • QTWW'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 43.29%, 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 company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Auto Components industry average, but is greater than that of the S&P 500. The net income increased by 6.0% when compared to the same quarter one year prior, going from -$5.53 million to -$5.20 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, QUANTUM FUEL SYS TECH WORLDW's return on equity significantly trails that of both the industry average and the S&P 500.
  • QTWW, with its decline in revenue, underperformed when compared the industry average of 2.9%. Since the same quarter one year prior, revenues fell by 23.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here:

Quantum Fuel Systems Technologies Worldwide 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.

UQM Technologies

(

UQM

) was another company that pushed the Automotive industry lower today. UQM Technologies was down $0.04 (3.7%) to $1.05 on light volume. Throughout the day, 27,997 shares of UQM Technologies exchanged hands as compared to its average daily volume of 146,100 shares. The stock ranged in price between $1.03-$1.09 after having opened the day at $1.07 as compared to the previous trading day's close of $1.09.

UQM Technologies, Inc. develops, manufactures, and sells electric motors, generators, and power electronic controllers in the United States and internationally. UQM Technologies has a market cap of $42.5 million and is part of the consumer goods sector. Shares are down 50.9% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates UQM Technologies a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates

UQM Technologies

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on UQM 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 43.0% when compared to the same quarter one year ago, falling from -$0.92 million to -$1.31 million.
  • Net operating cash flow has significantly decreased to -$0.89 million or 63.77% 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 51.50%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 50.00% 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.
  • UQM TECHNOLOGIES INC's earnings per share declined by 50.0% in the most recent quarter compared to 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, UQM TECHNOLOGIES INC continued to lose money by earning -$0.07 versus -$0.29 in the prior year. For the next year, the market is expecting a contraction of 100.0% in earnings (-$0.14 versus -$0.07).
  • 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, UQM TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

UQM Technologies 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.