3 Stocks Pushing The Automotive Industry Lower

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The Automotive industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.9%. Laggards within the Automotive industry included Supreme Industries ( STS), down 3.7%, Stoneridge ( SRI), down 3.3%, Remy International ( REMY), down 2.6%, Shiloh Industries ( SHLO), down 3.0% and Westport Innovations ( WPRT), down 2.4%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Remy International ( REMY) is one of the companies that pushed the Automotive industry lower today. Remy International was down $0.63 (2.6%) to $23.27 on average volume. Throughout the day, 64,352 shares of Remy International exchanged hands as compared to its average daily volume of 63,300 shares. The stock ranged in price between $22.90-$23.67 after having opened the day at $23.67 as compared to the previous trading day's close of $23.90.

Remy International, Inc. designs, manufactures, remanufactures, markets, and distributes rotating electrical components for automobiles, light trucks, heavy-duty trucks, and other vehicles primarily in North America, Europe, Latin America, and the Asia-Pacific. Remy International has a market cap of $786.8 million and is part of the consumer goods sector. Shares are up 2.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Remy International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Remy International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. 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 REMY go as follows:

  • REMY's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 6.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 650.00% and other important driving factors, this stock has surged by 35.20% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • Net operating cash flow has increased to -$9.16 million or 43.92% when compared to the same quarter last year. Despite an increase in cash flow of 43.92%, REMY INTERNATIONAL INC is still growing at a significantly lower rate than the industry average of 135.22%.
  • 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. In comparison to the other companies in the Auto Components industry and the overall market, REMY INTERNATIONAL INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for REMY INTERNATIONAL INC is rather low; currently it is at 21.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.15% trails that of the industry average.

You can view the full analysis from the report here: Remy International Ratings Report

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At the close, Stoneridge ( SRI) was down $0.31 (3.3%) to $9.13 on light volume. Throughout the day, 92,409 shares of Stoneridge exchanged hands as compared to its average daily volume of 124,400 shares. The stock ranged in price between $9.04-$9.50 after having opened the day at $9.39 as compared to the previous trading day's close of $9.44.

Stoneridge, Inc. designs and manufactures electrical and electronic components, modules, and systems for the commercial vehicle, automotive, agricultural, motorcycle, and off-highway vehicle markets in North America, South America, and Europe. Stoneridge has a market cap of $285.8 million and is part of the consumer goods sector. Shares are down 26.0% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Stoneridge a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Stoneridge as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on SRI go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, SRI's share price has jumped by 35.87%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • STONERIDGE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STONERIDGE INC increased its bottom line by earning $0.56 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.56).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Auto Components industry and the overall market, STONERIDGE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The debt-to-equity ratio of 1.33 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, SRI's quick ratio is somewhat strong at 1.16, demonstrating the ability to handle short-term liquidity needs.

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

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Supreme Industries ( STS) was another company that pushed the Automotive industry lower today. Supreme Industries was down $0.22 (3.7%) to $5.75 on light volume. Throughout the day, 24,405 shares of Supreme Industries exchanged hands as compared to its average daily volume of 95,900 shares. The stock ranged in price between $5.70-$5.96 after having opened the day at $5.80 as compared to the previous trading day's close of $5.97.

Supreme Industries, Inc. manufactures and sells truck bodies, buses, and armored and specialty vehicles in the Unites States. The company operates in two segments, Specialized Vehicles and Fiberglass Products. Supreme Industries has a market cap of $88.1 million and is part of the consumer goods sector. Shares are up 3.1% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Supreme Industries as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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Highlights from TheStreet Ratings analysis on STS go as follows:

  • STS, with its decline in revenue, slightly underperformed the industry average of 4.3%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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. In comparison to the other companies in the Machinery industry and the overall market, SUPREME INDUSTRIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for SUPREME INDUSTRIES INC is currently extremely low, coming in at 14.78%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.51% is significantly below that of the industry average.

You can view the full analysis from the report here: Supreme 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.

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