3 Stocks Pushing The Automotive Industry Lower

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The Automotive industry as a whole closed the day down 0.2% versus the S&P 500, which was up 0.7%. Laggards within the Automotive industry included Supreme Industries ( STS), down 3.0%, UQM Technologies ( UQM), down 3.5%, China Automotive Systems ( CAAS), down 2.5%, Tata Motors ( TTM), down 2.0% and Delphi Automotive ( DLPH), down 2.7%.

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

China Automotive Systems ( CAAS) is one of the companies that pushed the Automotive industry lower today. China Automotive Systems was down $0.27 (2.5%) to $10.31 on light volume. Throughout the day, 75,353 shares of China Automotive Systems exchanged hands as compared to its average daily volume of 118,700 shares. The stock ranged in price between $10.21-$10.58 after having opened the day at $10.58 as compared to the previous trading day's close of $10.58.

China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China. China Automotive Systems has a market cap of $294.5 million and is part of the consumer goods sector. Shares are up 32.4% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates China Automotive Systems a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates China Automotive Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on CAAS go as follows:

  • CAAS's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 18.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.34, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 116.66% and other important driving factors, this stock has surged by 45.42% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CAAS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CHINA AUTOMOTIVE SYSTEMS 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, CHINA AUTOMOTIVE SYSTEMS INC increased its bottom line by earning $0.95 versus $0.48 in the prior year. This year, the market expects an improvement in earnings ($1.13 versus $0.95).
  • 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 121.0% when compared to the same quarter one year prior, rising from $4.98 million to $11.01 million.

You can view the full analysis from the report here: China Automotive Systems Ratings Report

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At the close, UQM Technologies ( UQM) was down $0.05 (3.5%) to $1.39 on heavy volume. Throughout the day, 285,182 shares of UQM Technologies exchanged hands as compared to its average daily volume of 178,700 shares. The stock ranged in price between $1.36-$1.45 after having opened the day at $1.44 as compared to the previous trading day's close of $1.44.

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 $59.0 million and is part of the consumer goods sector. Shares are down 31.8% 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, weak operating cash flow and generally disappointing historical performance in the stock itself.

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 share price of UQM TECHNOLOGIES INC has not done very well: it is down 18.89% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • 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.
  • 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

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 lower today. Supreme Industries was down $0.23 (3.0%) to $7.55 on light volume. Throughout the day, 12,526 shares of Supreme Industries exchanged hands as compared to its average daily volume of 27,000 shares. The stock ranged in price between $7.51-$7.97 after having opened the day at $7.89 as compared to the previous trading day's close of $7.78.

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 $120.9 million and is part of the consumer goods sector. Shares are up 40.6% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Supreme Industries 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, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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Highlights from TheStreet Ratings analysis on STS go as follows:

  • STS's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • STS's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, STS has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 43.35% 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, STS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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.

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.

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