Trade-Ideas: Delphi Automotive (DLPH) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Delphi Automotive ( DLPH) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Delphi Automotive as such a stock due to the following factors:

  • DLPH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $93.4 million.
  • DLPH has traded 2.1 million shares today.
  • DLPH is trading at a new lifetime high.

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More details on DLPH:

Delphi Automotive PLC, together with its subsidiaries, manufactures vehicle components; and provides electrical and electronic, powertrain, safety, and thermal technology solutions for the automotive and commercial vehicle markets worldwide. The stock currently has a dividend yield of 1.2%. DLPH has a PE ratio of 17.4. Currently there are 9 analysts that rate Delphi Automotive a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Delphi Automotive has been 1.7 million shares per day over the past 30 days. Delphi Automotive has a market cap of $18.0 billion and is part of the consumer goods sector and automotive industry. Shares are up 51.6% year to date as of the close of trading on Friday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Delphi Automotive as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 86.24% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Auto Components industry average. The net income increased by 11.2% when compared to the same quarter one year prior, going from $330.00 million to $367.00 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Auto Components industry and the overall market, DELPHI AUTOMOTIVE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for DELPHI AUTOMOTIVE PLC is rather low; currently it is at 20.87%. Regardless of DLPH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DLPH's net profit margin of 8.65% compares favorably to the industry average.

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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