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The Automotive industry as a whole closed the day down 0.3% versus the S&P 500, which was up 0.1%. Laggards within the Automotive industry included Spartan Motors ( SPAR), down 1.7%, Stoneridge ( SRI), down 3.0%, Fox Factory ( FOXF), down 2.7%, Federal-Mogul Holdings ( FDML), down 1.6% and Standard Motor Products ( SMP), down 2.9%.

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

Fox Factory ( FOXF) is one of the companies that pushed the Automotive industry lower today. Fox Factory was down $0.47 (2.7%) to $17.06 on light volume. Throughout the day, 78,001 shares of Fox Factory exchanged hands as compared to its average daily volume of 118,200 shares. The stock ranged in price between $16.91-$17.46 after having opened the day at $17.42 as compared to the previous trading day's close of $17.53.

Fox Factory has a market cap of $636.9 million and is part of the consumer goods sector. Shares are down 1.2% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts who rate Fox Factory a buy, no analysts rate it a sell, and 1 rates it a hold.

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At the close, Stoneridge ( SRI) was down $0.30 (3.0%) to $9.52 on average volume. Throughout the day, 126,321 shares of Stoneridge exchanged hands as compared to its average daily volume of 135,500 shares. The stock ranged in price between $9.35-$9.78 after having opened the day at $9.72 as compared to the previous trading day's close of $9.82.

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 $288.7 million and is part of the consumer goods sector. Shares are down 23.0% year-to-date as of the close of trading on Tuesday. 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 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 SRI go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.4%. 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.
  • 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 ($0.79 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.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Auto Components industry. The net income has significantly decreased by 64.4% when compared to the same quarter one year ago, falling from $4.12 million to $1.47 million.

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

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Spartan Motors ( SPAR) was another company that pushed the Automotive industry lower today. Spartan Motors was down $0.09 (1.7%) to $5.15 on light volume. Throughout the day, 11,265 shares of Spartan Motors exchanged hands as compared to its average daily volume of 94,700 shares. The stock ranged in price between $5.11-$5.21 after having opened the day at $5.21 as compared to the previous trading day's close of $5.24.

Spartan Motors, Inc, through its subsidiaries, engineers, manufactures, and sells heavy-duty and custom vehicles in the United States, Canada, South America, and Asia. Spartan Motors has a market cap of $176.1 million and is part of the consumer goods sector. Shares are down 23.7% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Spartan Motors a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Spartan Motors as a hold. 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 and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

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Highlights from TheStreet Ratings analysis on SPAR go as follows:

  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 33.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SPAR's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • SPARTAN MOTORS INC reported significant earnings per share improvement in the most recent quarter compared to 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, SPARTAN MOTORS INC reported poor results of -$0.18 versus -$0.07 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus -$0.18).
  • The gross profit margin for SPARTAN MOTORS INC is currently extremely low, coming in at 11.73%. Regardless of SPAR'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 -1.67% trails the industry average.
  • SPAR has underperformed the S&P 500 Index, declining 10.51% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

You can view the full analysis from the report here: Spartan Motors 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.