Johnson Controls Inc (JCI): 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.

Johnson Controls ( JCI) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Johnson Controls fell 36 cents (-1.4%) to $25.87 on average volume. Throughout the day, 7.6 million shares of Johnson Controls exchanged hands as compared to its average daily volume of 5.5 million shares. The stock ranged in price between $25.75-$26.37 after having opened the day at $26.31 as compared to the previous trading day's close of $26.23. Other companies within the Automotive industry that declined today were: Hyster-Yale Materials Handling ( HY), down 7.6%, Enova Systems ( ENA), down 7.2%, Accuride ( ACW), down 6.3%, and Winnebago Industries ( WGO), down 5.5%.
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Johnson Controls, Inc. engages in building efficiency, automotive experience, and power solutions businesses worldwide. Johnson Controls has a market cap of $17.83 billion and is part of the consumer goods sector. The company has a P/E ratio of 10.4, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 16.1% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Johnson Controls a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Johnson Controls as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and relatively poor performance when compared with the S&P 500 during the past year.

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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