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 0.2%. By the end of trading, Lear Corporation rose 51 cents (1.3%) to $41.01 on light volume. Throughout the day, 704,391 shares of Lear Corporation exchanged hands as compared to its average daily volume of 957,900 shares. The stock ranged in a price between $40.25-$41.02 after having opened the day at $40.29 as compared to the previous trading day's close of $40.50. Other companies within the Automotive industry that increased today were: Quantum Fuel Systems Technologies Worldwide ( QTWW), up 17.3%, SORL Auto Parts ( SORL), up 4.7%, Swift Transportation ( SWFT), up 3.1%, and Dorman Products ( DORM), up 2.9%.

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 $3.94 billion and is part of the consumer goods sector. The company has a P/E ratio of 8.2, above the average automotive industry P/E ratio of eight and below the S&P 500 P/E ratio of 17.7. Shares are up 1.9% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Lear Corporation a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Lear Corporation as a hold. 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 and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

On the negative front, Supreme Industries ( STS), down 6.5%, Motorcar Parts of America ( MPAA), down 5.8%, ATC Venture Group ( ATC), down 3%, and Allison Transmission Holdings ( ALSN), down 3%, 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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