Declines From PACCAR Inc (PCAR) Drive Down Automotive Industry

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.

PACCAR ( PCAR) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.1%. By the end of trading, PACCAR fell 59 cents (-1.2%) to $49.45 on average volume. Throughout the day, two million shares of PACCAR exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $49.18-$50.20 after having opened the day at $50.20 as compared to the previous trading day's close of $50.04. Other companies within the Automotive industry that declined today were: China Zenix Auto International Ltd ADR ( ZX), down 3.2%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 3.1%, China Automotive Systems ( CAAS), down 3.1%, and Gentherm ( THRM), down 2.5%.
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PACCAR Inc, together with its subsidiaries, designs, manufactures, and distributes light, medium, and heavy-duty trucks and related aftermarket parts worldwide. PACCAR has a market cap of $17.68 billion and is part of the consumer goods sector. The company has a P/E ratio of 16, below the S&P 500 P/E ratio of 17.7. Shares are up 9.7% year to date as of the close of trading on Friday. Currently there are seven analysts that rate PACCAR a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates PACCAR as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, SORL Auto Parts ( SORL), up 4.2%, Federal-Mogul ( FDML), up 3.2%, Strattec Security Corporation ( STRT), up 3.2%, and Supreme Industries ( STS), up 2.1%, 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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