Johnson Controls Inc (JCI): Automotive's Highlighted Dud Of The Day

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 3.9%. By the end of trading, Johnson Controls fell $1.03 (-3%) to $33.04 on average volume. Throughout the day, five million shares of Johnson Controls exchanged hands as compared to its average daily volume of 5.2 million shares. The stock ranged in price between $32.98-$33.85 after having opened the day at $33.77 as compared to the previous trading day's close of $34.07. Other companies within the Automotive industry that declined today were: Fuel Systems Solutions ( FSYS), down 8.3%, Navistar International ( NAV), down 7.4%, Wabash National Corporation ( WNC), down 7.2%, and Allison Transmission Holdings ( ALSN), down 6.8%.
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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 $23.25 billion and is part of the consumer goods sector. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Friday. Currently there are seven analysts that rate Johnson Controls a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Johnson Controls as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. 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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