Johnson Controls Inc (JCI): 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

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 0.8%. By the end of trading, Johnson Controls fell $0.80 (-2.1%) to $36.69 on average volume. Throughout the day, 3,880,247 shares of Johnson Controls exchanged hands as compared to its average daily volume of 3,928,600 shares. The stock ranged in price between $36.68-$37.58 after having opened the day at $37.46 as compared to the previous trading day's close of $37.49. Other companies within the Automotive industry that declined today were: China Zenix Auto International Ltd ADR ( ZX), down 4.4%, Supreme Industries ( STS), down 4.4%, Orbital Corporation ( OBT), down 4.2% and Federal Signal ( FSS), down 3.4%.
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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 $25.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 28.1, above the S&P 500 P/E ratio of 17.7. Shares are up 22.2% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Johnson Controls a buy, no analysts rate it a sell, and 10 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 solid stock price performance 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.

On the positive front, Motorcar Parts of America ( MPAA), down 11.8%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 4.8%, China Automotive Systems ( CAAS), down 2.0% and Arctic Cat ( ACAT), down 1.7%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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