Dana Holding Corp (DAN): 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

Dana ( DAN) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day up 1.7%. By the end of trading, Dana fell $0.46 (-2.7%) to $16.84 on heavy volume. Throughout the day, 8,547,910 shares of Dana exchanged hands as compared to its average daily volume of 1,836,800 shares. The stock ranged in price between $16.19-$16.91 after having opened the day at $16.28 as compared to the previous trading day's close of $17.30. Other companies within the Automotive industry that declined today were: Supreme Industries ( STS), down 4.7%, Remy International ( REMY), down 4.1%, Hyster-Yale Materials Handling ( HY), down 3.4% and Spartan Motors ( SPAR), down 2.2%.
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Dana Holding Corporation engages in the design, manufacture, and supply of driveline products, technologies, and service parts for vehicle manufacturers worldwide. Dana has a market cap of $2.5 billion and is part of the consumer goods sector. The company has a P/E ratio of 11.9, below the S&P 500 P/E ratio of 17.7. Shares are up 10.9% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Dana as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Federal-Mogul ( FDML), down 21.5%, Winnebago Industries ( WGO), down 7.0%, Lear Corporation ( LEA), down 6.4% and LKQ Corporation ( LKQ), down 6.3% , were all gainers within the automotive industry with Toyota Motor ( TM) 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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