Autoliv Inc. (ALV): 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.

Autoliv ( ALV) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 1.9%. By the end of trading, Autoliv fell $1.30 (-2%) to $62.36 on average volume. Throughout the day, 573,037 shares of Autoliv exchanged hands as compared to its average daily volume of 572,000 shares. The stock ranged in price between $61.98-$63.62 after having opened the day at $63.45 as compared to the previous trading day's close of $63.66. Other companies within the Automotive industry that declined today were: Enova Systems ( ENA), down 19.8%, Hyster-Yale Materials Handling ( HY), down 10.9%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 6.3%, and BorgWarner ( BWA), down 4.3%.
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Autoliv, Inc., through its subsidiaries, engages in the development, manufacture, and supply of automotive safety systems to the automotive industry. Autoliv has a market cap of $6.13 billion and is part of the consumer goods sector. The company has a P/E ratio of 11.5, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 20.2% year to date as of the close of trading on Monday. Currently there are three analysts that rate Autoliv a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Autoliv 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, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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