Why Delphi Automotive (DLPH) Stock Is Higher This Afternoon

NEW YORK (TheStreet) -- Shares of Delphi Automotive  (DLPH) are higher by 2.53% to $69.59 as the vehicle components manufacture and General Motors Co. (GM) won a delay of four lawsuits by Texas customers over accidents in recalled cars as a panel of judges granted the companies' emergency requests, Bloomberg reports.

The companies sought to postpone court proceedings until the panel decides whether to combine similar suits into one, saying they anticipate more injury claims being brought and a single judge could handle them more efficiently, Bloomberg said.

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TheStreet Ratings team rates DELPHI AUTOMOTIVE PLC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate DELPHI AUTOMOTIVE PLC (DLPH) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, notable return on equity and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DLPH's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 6.3%. 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 41.75% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • DELPHI AUTOMOTIVE PLC has improved earnings per share by 18.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DELPHI AUTOMOTIVE PLC increased its bottom line by earning $3.89 versus $3.32 in the prior year. This year, the market expects an improvement in earnings ($4.98 versus $3.89).
  • 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. 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 net income growth from the same quarter one year ago has exceeded that of the Auto Components industry average, but is less than that of the S&P 500. The net income increased by 15.9% when compared to the same quarter one year prior, going from $276.00 million to $320.00 million.
  • You can view the full analysis from the report here: DLPH Ratings Report

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