Visteon Corp. (VC): 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

Visteon ( VC) pushed the Automotive industry higher today making it today's featured automotive winner. The industry as a whole closed the day down 0.4%. By the end of trading, Visteon rose $0.66 (1.0%) to $64.10 on average volume. Throughout the day, 499,244 shares of Visteon exchanged hands as compared to its average daily volume of 512,900 shares. The stock ranged in a price between $63.33-$64.79 after having opened the day at $63.41 as compared to the previous trading day's close of $63.44. Other companies within the Automotive industry that increased today were: Tesla Motors ( TSLA), up 8.7%, Supreme Industries ( STS), up 6.0%, Hyster-Yale Materials Handling ( HY), up 3.6% and Stoneridge ( SRI), up 2.1%.
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Visteon Corporation designs, develops, manufactures, supplies, and supports climate, electronic and interior systems, modules, and components to automotive original equipment manufacturers worldwide. It operates in three segments: Climate, Electronics, and Interiors. Visteon has a market cap of $3.1 billion and is part of the consumer goods sector. The company has a P/E ratio of 16.3, below the S&P 500 P/E ratio of 17.7. Shares are up 17.9% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Visteon a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Visteon as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.

On the negative front, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 3.4%, Arctic Cat ( ACAT), down 3.3%, Shiloh Industries ( SHLO), down 3.2% and Oshkosh Corporation ( OSK), down 3.0% , were all laggards within the automotive industry with Toyota Motor ( TM) 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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