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

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 lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 1.6%. By the end of trading, TRW Automotive Holdings fell $1.29 (-2.7%) to $46.93 on light volume. Throughout the day, 769,005 shares of TRW Automotive Holdings exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $46.63-$48.17 after having opened the day at $47.78 as compared to the previous trading day's close of $48.22. Other companies within the Automotive industry that declined today were: Enova Systems ( ENA), down 18.6%, Tenneco ( TEN), down 6%, Swift Transportation ( SWFT), down 5.7%, and Wabash National Corporation ( WNC), down 4.9%.
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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 $5.71 billion and is part of the consumer goods sector. The company has a P/E ratio of six, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 47.9% year to date as of the close of trading on Friday. 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 positive front, ATC Venture Group ( ATC), up 5.6%, China Automotive Systems ( CAAS), up 4.5%, Supreme Industries ( STS), up 2.9%, and Marine Products Corporation ( MPX), up 1.9%, were all gainers within the automotive industry with Tesla Motors ( TSLA) being today's featured automotive industry leader.

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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