TRW Automotive Holdings Corp (TRW): 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

TRW Automotive Holdings ( TRW) pushed the Automotive industry higher today making it today's featured automotive winner. The industry as a whole closed the day up 0.7%. By the end of trading, TRW Automotive Holdings rose $1.18 (2.0%) to $60.07 on heavy volume. Throughout the day, 2,150,855 shares of TRW Automotive Holdings exchanged hands as compared to its average daily volume of 1,141,500 shares. The stock ranged in a price between $59.08-$60.79 after having opened the day at $60.40 as compared to the previous trading day's close of $58.89. Other companies within the Automotive industry that increased today were: Meritor ( MTOR), up 22.1%, Accuride ( ACW), up 4.9%, SORL Auto Parts ( SORL), up 4.0% and Dorman Products ( DORM), up 3.9%.
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TRW Automotive Holdings Corp. supplies automotive systems, modules, and components to automotive original equipment manufacturers (OEMs) and related aftermarkets. The company operates in four segments: Chassis Systems, Occupant Safety Systems, Electronics, and Automotive Components. TRW Automotive Holdings has a market cap of $7.0 billion and is part of the consumer goods sector. The company has a P/E ratio of 7.5, below the S&P 500 P/E ratio of 17.7. Shares are up 9.5% year to date as of the close of trading on Monday.

TheStreet Ratings rates TRW Automotive Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels, 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 somewhat weak growth in earnings per share.

On the negative front, Strattec Security Corporation ( STRT), down 5.9%, Winnebago Industries ( WGO), down 3.7%, Motorcar Parts of America ( MPAA), down 3.1% and Navistar International ( NAV), down 2.6% , were all laggards within the automotive industry with BorgWarner ( BWA) 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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