3 Stocks Moving The Automotive Industry Upward

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 88 points (0.5%) at 16,582 as of Monday, Aug. 4, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,528 issues advancing vs. 1,497 declining with 145 unchanged.

The Automotive industry as a whole closed the day up 1.0% versus the S&P 500, which was up 0.9%. Top gainers within the Automotive industry included Supreme Industries ( STS), up 3.5%, Spartan Motors ( SPAR), up 1.6%, Shiloh Industries ( SHLO), up 2.4%, Stoneridge ( SRI), up 1.8% and Strattec Security ( STRT), up 1.7%.

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

Shiloh Industries ( SHLO) is one of the companies that pushed the Automotive industry higher today. Shiloh Industries was up $0.40 (2.4%) to $17.10 on light volume. Throughout the day, 26,941 shares of Shiloh Industries exchanged hands as compared to its average daily volume of 66,200 shares. The stock ranged in a price between $16.70-$17.24 after having opened the day at $16.70 as compared to the previous trading day's close of $16.70.

Shiloh Industries, Inc., together with its subsidiaries, provides light weighting, as well as noise, vibration, and harshness solutions to automotive, commercial vehicle, and other industrial markets. Shiloh Industries has a market cap of $292.3 million and is part of the conglomerates sector. Shares are down 14.4% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Shiloh Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Shiloh Industries as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on SHLO go as follows:

  • The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 14.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 32.60% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SHLO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SHILOH INDUSTRIES INC has improved earnings per share by 9.3% 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. During the past fiscal year, SHILOH INDUSTRIES INC increased its bottom line by earning $1.27 versus $0.79 in the prior year.
  • 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 Auto Components industry average. The net income increased by 12.1% when compared to the same quarter one year prior, going from $7.25 million to $8.13 million.

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

At the close, Spartan Motors ( SPAR) was up $0.07 (1.6%) to $4.39 on light volume. Throughout the day, 85,966 shares of Spartan Motors exchanged hands as compared to its average daily volume of 171,700 shares. The stock ranged in a price between $4.31-$4.44 after having opened the day at $4.32 as compared to the previous trading day's close of $4.32.

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 $148.2 million and is part of the conglomerates sector. Shares are down 35.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Spartan Motors a buy, no analysts rate it a sell, and 2 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 4.3%. 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's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 29.05%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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.

Supreme Industries ( STS) was another company that pushed the Automotive industry higher today. Supreme Industries was up $0.24 (3.5%) to $7.00 on light volume. Throughout the day, 21,213 shares of Supreme Industries exchanged hands as compared to its average daily volume of 32,400 shares. The stock ranged in a price between $6.38-$7.06 after having opened the day at $6.72 as compared to the previous trading day's close of $6.76.

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 $100.0 million and is part of the conglomerates sector. Shares are up 17.0% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Supreme Industries a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Supreme Industries as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and attractive valuation levels. 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 STS go as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 360.0% when compared to the same quarter one year prior, rising from $0.93 million to $4.26 million.
  • SUPREME INDUSTRIES 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, SUPREME INDUSTRIES INC reported lower earnings of $0.41 versus $0.73 in the prior year. This year, the market expects an improvement in earnings ($0.54 versus $0.41).
  • The gross profit margin for SUPREME INDUSTRIES INC is rather low; currently it is at 20.46%. Regardless of STS'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 5.94% 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. When compared to other companies in the Machinery industry and the overall market, SUPREME INDUSTRIES INC's return on equity is below that of both the industry average and the S&P 500.

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.

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.

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