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

Lear Corporation ( LEA) pushed the Automotive industry higher today making it today's featured automotive winner. The industry as a whole closed the day down 2.4%. By the end of trading, Lear Corporation rose 68 cents (1.7%) to $41.65 on heavy volume. Throughout the day, 2.6 million shares of Lear Corporation exchanged hands as compared to its average daily volume of 966,200 shares. The stock ranged in a price between $41.43-$43 after having opened the day at $42.98 as compared to the previous trading day's close of $40.97. Other companies within the Automotive industry that increased today were: Enova Systems ( ENA), up 5.5% and Dorman Products ( DORM), up 1.5%.

Lear Corporation designs, manufactures, assembles, and supplies automotive seat systems, electrical distribution systems, and related components primarily to automotive original equipment manufacturers. It operates in two segments, Seating and Electrical Power Management Systems (EPMS). Lear Corporation has a market cap of $4.09 billion and is part of the consumer goods sector. The company has a P/E ratio of 8.2, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 2.9% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate Lear Corporation a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Lear Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Fuel Systems Solutions ( FSYS), down 18.5%, Thor Industries ( THO), down 14.2%, Standard Motor Products ( SMP), down 9.9%, and Meritor ( MTOR), down 7.2%, were all losers within the automotive industry with BorgWarner ( BWA) being today's automotive industry loser.

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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