3 Stocks Improving Performance Of 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 100 points (0.6%) at 16,838 as of Thursday, June 5, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,349 issues advancing vs. 623 declining with 153 unchanged.

The Automotive industry as a whole closed the day up 1.8% versus the S&P 500, which was up 0.6%. Top gainers within the Automotive industry included Marine Products ( MPX), up 1.6%, Sypris Solutions ( SYPR), up 6.8%, Spartan Motors ( SPAR), up 4.3%, Strattec Security ( STRT), up 5.3% and UQM Technologies ( UQM), up 5.1%.

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

Spartan Motors ( SPAR) is one of the companies that pushed the Automotive industry higher today. Spartan Motors was up $0.21 (4.3%) to $5.05 on light volume. Throughout the day, 50,262 shares of Spartan Motors exchanged hands as compared to its average daily volume of 96,600 shares. The stock ranged in a price between $4.81-$5.10 after having opened the day at $4.84 as compared to the previous trading day's close of $4.84.

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 $165.4 million and is part of the consumer goods sector. Shares are down 27.8% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Spartan Motors a buy, no analysts rate it a sell, and 3 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 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.

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 15.06% 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.

At the close, Sypris Solutions ( SYPR) was up $0.39 (6.8%) to $6.09 on heavy volume. Throughout the day, 454,240 shares of Sypris Solutions exchanged hands as compared to its average daily volume of 69,300 shares. The stock ranged in a price between $5.75-$6.19 after having opened the day at $5.87 as compared to the previous trading day's close of $5.70.

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 $106.5 million and is part of the consumer goods sector. Shares are up 86.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Sypris Solutions 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 Sypris Solutions as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth 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 SYPR go as follows:

  • SYPR's revenue growth has slightly outpaced the industry average of 3.3%. 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.
  • Powered by its strong earnings growth of 123.52% and other important driving factors, this stock has surged by 39.27% 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.
  • SYPRIS SOLUTIONS 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, SYPRIS SOLUTIONS INC swung to a loss, reporting -$0.52 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus -$0.52).
  • 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.

Marine Products ( MPX) was another company that pushed the Automotive industry higher today. Marine Products was up $0.12 (1.6%) to $7.68 on light volume. Throughout the day, 2,076 shares of Marine Products exchanged hands as compared to its average daily volume of 23,500 shares. The stock ranged in a price between $7.59-$7.80 after having opened the day at $7.59 as compared to the previous trading day's close of $7.56.

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 $288.8 million and is part of the consumer goods sector. Shares are down 24.8% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Marine Products a buy, no analysts rate it a sell, and 2 rate it a hold.

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 good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • MPX's revenue growth has slightly outpaced the industry average of 5.5%. 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 ($0.25 versus $0.19).
  • Net operating cash flow has increased to $9.33 million or 38.89% when compared to the same quarter last year. Despite an increase in cash flow, MARINE PRODUCTS CORP's cash flow growth rate is still lower than the industry average growth rate of 58.58%.

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.

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.

If you liked this article you might like

Weak On High Volume: Spartan Motors (SPAR)

Weak On High Volume: Spartan Motors (SPAR)

Insider Trading Alert - ANAC, SPAR And HLF Traded By Insiders

Insider Trading Alert - ANAC, SPAR And HLF Traded By Insiders

Insider Trading Alert - SPAR, CST And MTGE Traded By Insiders

Insider Trading Alert - SPAR, CST And MTGE Traded By Insiders

Insider Trading Alert - SPAR, AR And KW Traded By Insiders

Insider Trading Alert - SPAR, AR And KW Traded By Insiders

Insider Trading Alert - KW, AVB And SPAR Traded By Insiders

Insider Trading Alert - KW, AVB And SPAR Traded By Insiders