Lear Corporation (LEA): Today's Featured Automotive Loser

The automotive industry closed the day up 0.9%. Tenneco Inc ( TEN), Superior Industries International ( SUP), Supreme Industries Inc ( STS), and Strattec Security Corporation ( STRT) were all decliners today within the automotive industry with Lear Corporation ( LEA) being today's featured automotive loser. Lear Corporation fell $2.09 (-4.2%) to $47.60 on heavy volume. Throughout the day, 3.6 million shares of Lear Corporation exchanged hands as compared to its average daily volume of 1.3 million shares.

Lear Corporation designs, manufactures, assembles, and supplies automotive seat systems, electrical distribution systems, and related components. The company operates in two segments, Seating and Electrical Power Management Systems (EPMS). Lear Corporation has a market cap of $5 billion and is part of the consumer goods sector. The company has a P/E ratio of 9.5, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Lear as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

On the positive front, Kandi Technologies Corporation ( KNDI), Accuride ( ACW), Visteon ( VC), and Titan International Inc ( TWI) were all gainers within the automotive industry with Honda Motor ( HMC) being today's featured automotive industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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