3 Stocks Pushing The Automotive Industry Lower

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The Automotive industry as a whole closed the day up 0.1% versus the S&P 500, which was down 0.2%. Laggards within the Automotive industry included Marine Products ( MPX), down 1.8% and VOXX International ( VOXX), down 3.4%.

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

Drew Industries ( DW) is one of the companies that pushed the Automotive industry lower today. Drew Industries was down $0.79 (1.7%) to $46.80 on light volume. Throughout the day, 52,249 shares of Drew Industries exchanged hands as compared to its average daily volume of 114,100 shares. The stock ranged in price between $46.52-$47.51 after having opened the day at $47.31 as compared to the previous trading day's close of $47.59.

Drew Industries Incorporated, through its subsidiaries, manufactures and sells components for recreational vehicles and manufactured homes in the United States. It operates through two segments, Recreational Vehicle (RV) Products and Manufactured Housing (MH) Products. Drew Industries has a market cap of $1.1 billion and is part of the consumer goods sector. Shares are down 8.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Drew Industries as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on DW go as follows:

  • DW's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 13.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DREW INDUSTRIES INC reported significant earnings per share improvement 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 two years. We feel that this trend should continue. During the past fiscal year, DREW INDUSTRIES INC increased its bottom line by earning $2.11 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($2.79 versus $2.11).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 93.1% when compared to the same quarter one year prior, rising from $8.37 million to $16.16 million.
  • Net operating cash flow has significantly increased by 2696.00% to $27.31 million when compared to the same quarter last year. In addition, DREW INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of 31.83%.
  • 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.

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

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At the close, VOXX International ( VOXX) was down $0.33 (3.4%) to $9.35 on light volume. Throughout the day, 129,394 shares of VOXX International exchanged hands as compared to its average daily volume of 249,200 shares. The stock ranged in price between $9.35-$9.69 after having opened the day at $9.55 as compared to the previous trading day's close of $9.68.

Voxx International Corporation, together with its subsidiaries, operates as a manufacturer and distributor in the automotive, premium audio, and consumer accessories industries in the United States and internationally. VOXX International has a market cap of $215.7 million and is part of the consumer goods sector. Shares are down 42.0% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate VOXX International a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates VOXX International as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on VOXX go as follows:

  • VOXX's debt-to-equity ratio is very low at 0.23 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 1.04, which illustrates the ability to avoid short-term cash problems.
  • VOXX, with its decline in revenue, underperformed when compared the industry average of 13.8%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • VOXX INTERNATIONAL CORP 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, VOXX INTERNATIONAL CORP swung to a loss, reporting -$1.09 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($0.76 versus -$1.09).
  • 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 Distributors industry. The net income has significantly decreased by 77.2% when compared to the same quarter one year ago, falling from $2.14 million to $0.49 million.
  • 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. Compared to other companies in the Distributors industry and the overall market, VOXX INTERNATIONAL CORP'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: VOXX International Ratings Report

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Marine Products ( MPX) was another company that pushed the Automotive industry lower today. Marine Products was down $0.14 (1.8%) to $7.69 on average volume. Throughout the day, 14,787 shares of Marine Products exchanged hands as compared to its average daily volume of 19,400 shares. The stock ranged in price between $7.61-$7.84 after having opened the day at $7.70 as compared to the previous trading day's close of $7.83.

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 $301.1 million and is part of the consumer goods sector. Shares are down 23.3% 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.

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 has had lackluster performance in the stock itself.

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Highlights from TheStreet Ratings analysis on MPX go as follows:

  • MPX's revenue growth has slightly outpaced the industry average of 1.5%. 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 significantly exceeded that of the S&P 500 and the Leisure Equipment & Products industry. 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 of 38.89%, MARINE PRODUCTS CORP is still growing at a significantly lower rate than the industry average of 706.71%.

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.

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