Honda Motor Co Ltd (HMC): Today's Featured Automotive Loser

Honda Motor ( HMC) pushed the Automotive industry lower today making it today's featured Automotive loser. The industry as a whole closed the day up 0.3%. By the end of trading, Honda Motor fell 76 cents (-2.1%) to $35.28 on average volume. Throughout the day, 648,181 shares of Honda Motor exchanged hands as compared to its average daily volume of 498,700 shares. The stock ranged in price between $35.01-$35.38 after having opened the day at $35.07 as compared to the previous trading day's close of $36.04. Other company's within the Automotive industry that declined today were: China Automotive Systems ( CAAS), down 4.1%, Wabash National Corporation ( WNC), down 3.6%, Monro Muffler/Brake ( MNRO), down 3.4%, and ATC Venture Group ( ATC), down 3.3%.

Honda Motor Co., Ltd., together with its subsidiaries, engages in the development, manufacture, and distribution of motorcycles, automobiles, and power products primarily in North America, Europe, and Asia. Honda Motor has a market cap of $65.84 billion and is part of the consumer goods sector. The company has a P/E ratio of 10.3, below the average automotive industry P/E ratio of 29.8 and below the S&P 500 P/E ratio of 17.7. Shares are up 19.6% year to date as of the close of trading on Monday. Currently there is one analyst that rates Honda Motor a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Honda Motor as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Spartan Motors ( SPAR), up 13.1%, Stoneridge ( SRI), up 8.3%, Tenneco ( TEN), up 5.6%, and Motorcar Parts of America ( MPAA), up 3.8%, were all gainers within the automotive industry with Navistar International ( NAV) 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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