PACCAR Inc (PCAR): Today's Featured Automotive Winner

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 higher today making it today's featured automotive winner. The industry as a whole closed the day up 1.2%. By the end of trading, PACCAR rose $0.82 (1.7%) to $48.20 on average volume. Throughout the day, 1,782,228 shares of PACCAR exchanged hands as compared to its average daily volume of 2,028,100 shares. The stock ranged in a price between $47.24-$48.42 after having opened the day at $47.29 as compared to the previous trading day's close of $47.38. Other companies within the Automotive industry that increased today were: Quantum Fuel Systems Technologies Worldwide ( QTWW), up 5.7%, Stoneridge ( SRI), up 4.4%, Dorman Products ( DORM), up 4.3% and American Axle & Mfg Holdings ( AXL), up 3.9%.
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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 $16.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are up 5.2% year to date as of the close of trading on Thursday.

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 negative front, SORL Auto Parts ( SORL), down 4.6%, Motorcar Parts of America ( MPAA), down 4.0%, Orbital Corporation ( OBT), down 3.5% and Accuride ( ACW), down 2.9% , were all laggards within the automotive industry with Navistar International ( NAV) being today's automotive industry laggard.

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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