3 Automotive Stocks Driving The Industry Higher

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 55 points (0.3%) at 16,707 as of Thursday, Aug. 14, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,989 issues advancing vs. 996 declining with 174 unchanged.

The Automotive industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.4%. Top gainers within the Automotive industry included SORL Auto Parts ( SORL), up 7.8%, UQM Technologies ( UQM), up 1.9%, Remy International ( REMY), up 2.0%, China Automotive Systems ( CAAS), up 2.6% and Spartan Motors ( SPAR), up 2.6%.

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

Remy International ( REMY) is one of the companies that pushed the Automotive industry higher today. Remy International was up $0.41 (2.0%) to $21.30 on heavy volume. Throughout the day, 98,881 shares of Remy International exchanged hands as compared to its average daily volume of 35,000 shares. The stock ranged in a price between $20.74-$21.53 after having opened the day at $20.88 as compared to the previous trading day's close of $20.89.

Remy International, Inc. designs, manufactures, remanufactures, markets, and distributes rotating electrical components for automobiles, light trucks, heavy-duty trucks, and other vehicles primarily in North America, Europe, Latin America, and the Asia-Pacific. Remy International has a market cap of $678.9 million and is part of the consumer goods sector. Shares are down 10.4% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Remy International 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 Remy International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on REMY go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.2%. Since the same quarter one year prior, revenues slightly increased by 6.0%. 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.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Auto Components industry average. The net income has decreased by 12.4% when compared to the same quarter one year ago, dropping from $11.37 million to $9.96 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. In comparison to the other companies in the Auto Components industry and the overall market, REMY INTERNATIONAL INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: Remy International 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, UQM Technologies ( UQM) was up $0.03 (1.9%) to $1.59 on light volume. Throughout the day, 70,758 shares of UQM Technologies exchanged hands as compared to its average daily volume of 252,800 shares. The stock ranged in a price between $1.57-$1.61 after having opened the day at $1.61 as compared to the previous trading day's close of $1.56.

UQM Technologies, Inc. develops, manufactures, and sells electric motors, generators, and power electronic controllers in the United States and internationally. UQM Technologies has a market cap of $64.7 million and is part of the consumer goods sector. Shares are down 27.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate UQM Technologies 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 UQM Technologies as a sell. The area that we feel has been the company's primary weakness has been its declining revenues.

Highlights from TheStreet Ratings analysis on UQM go as follows:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Auto Components industry and the overall market, UQM TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The revenue fell significantly faster than the industry average of 10.2%. Since the same quarter one year prior, revenues fell by 23.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for UQM TECHNOLOGIES INC is currently very high, coming in at 80.67%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -66.76% is in-line with the industry average.
  • Net operating cash flow has slightly increased to -$1.20 million or 4.30% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.25%.
  • UQM 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 this, the company maintains a quick ratio of 6.00, which clearly demonstrates the ability to cover short-term cash needs.

You can view the full analysis from the report here: UQM Technologies 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.

SORL Auto Parts ( SORL) was another company that pushed the Automotive industry higher today. SORL Auto Parts was up $0.28 (7.8%) to $3.85 on heavy volume. Throughout the day, 94,330 shares of SORL Auto Parts exchanged hands as compared to its average daily volume of 34,500 shares. The stock ranged in a price between $3.59-$3.92 after having opened the day at $3.59 as compared to the previous trading day's close of $3.57.

SORL Auto Parts, Inc. develops, manufactures, and distributes automotive brake systems and other safety related auto parts. It operates in two segments, Commercial Vehicles Brake Systems, etc.; and Passenger Vehicles Brake Systems, etc. SORL Auto Parts has a market cap of $70.5 million and is part of the consumer goods sector. Shares are down 10.3% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates SORL Auto Parts a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates SORL Auto Parts 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 attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on SORL go as follows:

  • The revenue growth came in higher than the industry average of 10.2%. Since the same quarter one year prior, revenues rose by 21.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SORL's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SORL has a quick ratio of 2.19, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SORL AUTO PARTS 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, SORL AUTO PARTS INC reported lower earnings of $0.49 versus $0.66 in the prior year. This year, the market expects an improvement in earnings ($0.65 versus $0.49).
  • Net operating cash flow has significantly decreased to -$0.81 million or 128.07% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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. In comparison to the other companies in the Auto Components industry and the overall market, SORL AUTO PARTS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: SORL Auto Parts 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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