3 Stocks Advancing The Automotive Industry

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 115 points (0.7%) at 16,699 as of Monday, May 12, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,399 issues advancing vs. 608 declining with 135 unchanged.

The Automotive industry as a whole closed the day up 2.5% versus the S&P 500, which was up 1.0%. Top gainers within the Automotive industry included Sypris Solutions ( SYPR), up 5.8%, Marine Products ( MPX), up 5.5%, Miller Industries ( MLR), up 3.4%, Spartan Motors ( SPAR), up 6.3% and China Automotive Systems ( CAAS), up 3.2%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Miller Industries ( MLR) is one of the companies that pushed the Automotive industry higher today. Miller Industries was up $0.65 (3.4%) to $20.00 on heavy volume. Throughout the day, 43,666 shares of Miller Industries exchanged hands as compared to its average daily volume of 22,300 shares. The stock ranged in a price between $19.21-$20.05 after having opened the day at $19.40 as compared to the previous trading day's close of $19.35.

Miller Industries, Inc. manufactures and sells vehicle towing and recovery equipment. Miller Industries has a market cap of $211.2 million and is part of the consumer goods sector. Shares are up 3.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Miller Industries a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates Miller Industries as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on MLR go as follows:

  • The revenue growth greatly exceeded the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 31.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MLR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, MLR has a quick ratio of 1.96, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Machinery industry average. The net income increased by 41.9% when compared to the same quarter one year prior, rising from $1.68 million to $2.38 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • MILLER INDUSTRIES INC/TN has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, MILLER INDUSTRIES INC/TN's EPS of $0.82 remained unchanged from the prior years' EPS of $0.82.

You can view the full analysis from the report here: Miller Industries Ratings Report

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

At the close, Marine Products ( MPX) was up $0.39 (5.5%) to $7.43 on light volume. Throughout the day, 10,726 shares of Marine Products exchanged hands as compared to its average daily volume of 23,500 shares. The stock ranged in a price between $7.16-$7.45 after having opened the day at $7.16 as compared to the previous trading day's close of $7.04.

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats in the sportboat, deckboat, cruiser, sport yacht, and sport fishing markets worldwide. Marine Products has a market cap of $261.7 million and is part of the consumer goods sector. Shares are down 29.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Marine Products a buy, no analysts rate it a sell, and 2 rate it a hold.

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

TheStreet Ratings rates Marine Products as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • MPX's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MPX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.07, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Leisure Equipment & Products industry average. The net income increased by 36.5% when compared to the same quarter one year prior, rising from $1.45 million to $1.98 million.
  • MARINE PRODUCTS CORP has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. We anticipate the company beginning to experience more growth in the coming year. During the past fiscal year, MARINE PRODUCTS CORP's EPS of $0.19 remained unchanged from the prior years' EPS of $0.19. This year, the market expects an improvement in earnings ($0.22 versus $0.19).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Leisure Equipment & Products industry and the overall market, MARINE PRODUCTS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: Marine Products Ratings Report

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

Sypris Solutions ( SYPR) was another company that pushed the Automotive industry higher today. Sypris Solutions was up $0.22 (5.8%) to $3.97 on heavy volume. Throughout the day, 509,940 shares of Sypris Solutions exchanged hands as compared to its average daily volume of 27,800 shares. The stock ranged in a price between $3.75-$4.19 after having opened the day at $3.75 as compared to the previous trading day's close of $3.75.

Sypris Solutions, Inc. provides outsourced services and specialty products primarily in the United States, Mexico, Denmark, and the United Kingdom. Sypris Solutions has a market cap of $79.6 million and is part of the consumer goods sector. Shares are up 22.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Sypris Solutions a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Sypris Solutions as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on SYPR go as follows:

  • SYPR's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 7.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 125.6% when compared to the same quarter one year prior, rising from -$6.46 million to $1.65 million.
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • The gross profit margin for SYPRIS SOLUTIONS INC is rather low; currently it is at 15.76%. Regardless of SYPR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.96% trails the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Aerospace & Defense industry and the overall market, SYPRIS SOLUTIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Sypris Solutions Ratings Report

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

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.

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