Honda Motor Co Ltd (HMC): Today's Featured Automotive Laggard

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.

Honda Motor ( HMC) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Honda Motor fell $0.35 (-1.1%) to $32.68 on average volume. Throughout the day, 1,173,452 shares of Honda Motor exchanged hands as compared to its average daily volume of 796,100 shares. The stock ranged in price between $32.42-$32.73 after having opened the day at $32.61 as compared to the previous trading day's close of $33.03. Other companies within the Automotive industry that declined today were: Supreme Industries ( STS), down 15.1%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 7.6%, Motorcar Parts of America ( MPAA), down 4.4% and SORL Auto Parts ( SORL), down 3.9%.

Honda Motor Co., Ltd. engages in the manufacture and sale of motorcycles, automobiles, and power products. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. Honda Motor has a market cap of $60.7 billion and is part of the consumer goods sector. The company has a P/E ratio of 9.9, below the S&P 500 P/E ratio of 17.7. Shares are down 20.1% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate Honda Motor a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Honda Motor as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins.

On the positive front, Accuride ( ACW), up 4.0%, Lydall ( LDL), up 3.1%, Spartan Motors ( SPAR), up 2.8% and LKQ ( LKQ), up 2.1%.

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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