TRW Automotive Holdings Corp (TRW): Today's Featured Automotive Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

TRW Automotive Holdings ( TRW) pushed the Automotive industry higher today making it today's featured automotive winner. The industry as a whole closed the day up 0.3%. By the end of trading, TRW Automotive Holdings rose $1.13 (2.7%) to $42.63 on average volume. Throughout the day, 880,847 shares of TRW Automotive Holdings exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $41.43-$42.66 after having opened the day at $41.54 as compared to the previous trading day's close of $41.50. Other companies within the Automotive industry that increased today were: Enova Systems ( ENA), up 7.6%, Quantum Fuel Systems Technologies Worldwide ( QTWW), up 3.5%, Delphi Automotive ( DLPH), up 3.3%, and Federal-Mogul ( FDML), up 2.6%.

TRW Automotive Holdings Corp., together with its subsidiaries, designs, manufactures, and sells automotive systems, modules, and components for automotive original equipment manufacturers (OEM) and related aftermarkets. TRW Automotive Holdings has a market cap of $5.1 billion and is part of the consumer goods sector. The company has a P/E ratio of 5.4, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 27.3% year to date as of the close of trading on Monday. Currently there are seven analysts that rate TRW Automotive Holdings a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates TRW Automotive Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Swift Transportation ( SWFT), down 4.1%, Navistar International ( NAV), down 2.4%, Tata Motors ( TTM), down 2.1%, and Strattec Security Corporation ( STRT), down 2%, were all laggards within the automotive industry with General Motors ( GM) being today's automotive industry laggard.

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).
null

If you liked this article you might like

Magna Adds Getrag in $2.7B Deal to Beef Up Transmission Business

Magna Adds Getrag in $2.7B Deal to Beef Up Transmission Business

Strong And Under The Radar Today: TRW Automotive Holdings (TRW)

Strong And Under The Radar Today: TRW Automotive Holdings (TRW)

Trade-Ideas: TRW Automotive Holdings (TRW) Is Today's Strong And Under The Radar Stock

Trade-Ideas: TRW Automotive Holdings (TRW) Is Today's Strong And Under The Radar Stock

Delphi's Shares Heat Up After Deal to Sell Air-Conditioning Business

Delphi's Shares Heat Up After Deal to Sell Air-Conditioning Business

Today's Pre-Market Mover With Heavy Volume: TRW Automotive Holdings (TRW)

Today's Pre-Market Mover With Heavy Volume: TRW Automotive Holdings (TRW)