3 Stocks Pushing The Automotive Industry Lower

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.

The Automotive industry as a whole closed the day down 1.3% versus the S&P 500, which was down 0.7%. Laggards within the Automotive industry included Marine Products ( MPX), down 7.0%, SORL Auto Parts ( SORL), down 2.2%, UQM Technologies ( UQM), down 2.0%, Shiloh Industries ( SHLO), down 3.0% and Spartan Motors ( SPAR), down 3.4%.

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

UQM Technologies ( UQM) is one of the companies that pushed the Automotive industry lower today. UQM Technologies was down $0.03 (2.0%) to $1.50 on light volume. Throughout the day, 63,582 shares of UQM Technologies exchanged hands as compared to its average daily volume of 182,300 shares. The stock ranged in price between $1.50-$1.55 after having opened the day at $1.53 as compared to the previous trading day's close of $1.53.

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 25.2% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates UQM Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on UQM go as follows:

  • 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 43.0% when compared to the same quarter one year ago, falling from -$0.92 million to -$1.31 million.
  • Net operating cash flow has significantly decreased to -$0.89 million or 63.77% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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 8.9%. Since the same quarter one year prior, revenues fell by 36.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • UQM TECHNOLOGIES INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, UQM TECHNOLOGIES INC continued to lose money by earning -$0.07 versus -$0.29 in the prior year. This year, the market expects earnings to be in line with last year (-$0.07 versus -$0.07).

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

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At the close, SORL Auto Parts ( SORL) was down $0.09 (2.2%) to $4.01 on average volume. Throughout the day, 58,578 shares of SORL Auto Parts exchanged hands as compared to its average daily volume of 50,000 shares. The stock ranged in price between $4.01-$4.13 after having opened the day at $4.13 as compared to the previous trading day's close of $4.10.

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 $80.1 million and is part of the consumer goods sector. Shares are up 4.3% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates SORL Auto Parts a buy, no analysts rate it a sell, and none rate it a hold.

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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:

  • SORL's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • SORL's debt-to-equity ratio is very low at 0.11 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 2.15, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Auto Components industry average. The net income increased by 2.4% when compared to the same quarter one year prior, going from $4.04 million to $4.13 million.
  • Net operating cash flow has significantly decreased to -$3.57 million or 90.86% 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

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Marine Products ( MPX) was another company that pushed the Automotive industry lower today. Marine Products was down $0.58 (7.0%) to $7.65 on average volume. Throughout the day, 21,375 shares of Marine Products exchanged hands as compared to its average daily volume of 15,300 shares. The stock ranged in price between $7.64-$8.11 after having opened the day at $8.02 as compared to the previous trading day's close of $8.23.

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 $311.8 million and is part of the consumer goods sector. Shares are down 18.1% year-to-date as of the close of trading on Monday. 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, compelling growth in net income, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures 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 6.4%. Since the same quarter one year prior, revenues rose by 13.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 55.7% when compared to the same quarter one year prior, rising from $1.94 million to $3.01 million.
  • MARINE PRODUCTS CORP reported significant earnings per share improvement 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 ($0.28 versus $0.19).
  • Net operating cash flow has significantly increased by 68.14% to -$0.38 million when compared to the same quarter last year. Despite an increase in cash flow of 68.14%, MARINE PRODUCTS CORP is still growing at a significantly lower rate than the industry average of 161.90%.
  • 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.97 is somewhat weak and could be cause for future problems.

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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