3 Stocks Raising The Automotive 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 78.22 points (-0.4%) at 17,774 as of Tuesday, Dec. 9, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,227 issues advancing vs. 1,763 declining with 144 unchanged.

The Automotive industry as a whole closed the day up 1.1% versus the S&P 500, which was down 0.2%. Top gainers within the Automotive industry included Marine Products ( MPX), up 4.1%, Miller Industries ( MLR), up 8.3%, Quantum Fuel Systems Technologies Worldwide ( QTWW), up 1.9%, Shiloh Industries ( SHLO), up 3.3% and Accuride ( ACW), up 2.8%.

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

Quantum Fuel Systems Technologies Worldwide ( QTWW) is one of the companies that pushed the Automotive industry higher today. Quantum Fuel Systems Technologies Worldwide was up $0.04 (1.9%) to $2.12 on average volume. Throughout the day, 231,098 shares of Quantum Fuel Systems Technologies Worldwide exchanged hands as compared to its average daily volume of 221,400 shares. The stock ranged in a price between $2.06-$2.19 after having opened the day at $2.11 as compared to the previous trading day's close of $2.08.

Quantum Fuel Systems Technologies Worldwide, Inc. develops, produces, and sells natural gas fuel storage systems; and integrates vehicle system technologies in the United States, Germany, Canada, India, Spain, and Taiwan. Quantum Fuel Systems Technologies Worldwide has a market cap of $59.6 million and is part of the consumer goods sector. Shares are down 73.3% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Quantum Fuel Systems Technologies Worldwide a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Quantum Fuel Systems Technologies Worldwide as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on QTWW go as follows:

  • The gross profit margin for QUANTUM FUEL SYS TECH WORLDW is currently extremely low, coming in at 3.58%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -78.57% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$5.04 million or 89.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • QTWW'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 59.92%, 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.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Auto Components industry average, but is greater than that of the S&P 500. The net income increased by 6.0% when compared to the same quarter one year prior, going from -$5.53 million to -$5.20 million.
  • 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, QUANTUM FUEL SYS TECH WORLDW'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: Quantum Fuel Systems Technologies Worldwide 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, Miller Industries ( MLR) was up $1.50 (8.3%) to $19.68 on heavy volume. Throughout the day, 82,851 shares of Miller Industries exchanged hands as compared to its average daily volume of 22,900 shares. The stock ranged in a price between $18.04-$19.96 after having opened the day at $18.05 as compared to the previous trading day's close of $18.17.

Miller Industries, Inc. manufactures and sells vehicle towing and recovery equipment. Miller Industries has a market cap of $209.9 million and is part of the consumer goods sector. Shares are down 2.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Miller Industries 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 Miller 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, compelling growth in net income, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on MLR go as follows:

  • MLR's revenue growth has slightly outpaced the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 12.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MLR 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. To add to this, MLR has a quick ratio of 1.63, 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 significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 33.3% when compared to the same quarter one year prior, rising from $2.62 million to $3.49 million.
  • Net operating cash flow has significantly increased by 248.33% to $1.16 million when compared to the same quarter last year. In addition, MILLER INDUSTRIES INC/TN has also vastly surpassed the industry average cash flow growth rate of -16.69%.
  • MILLER INDUSTRIES INC/TN has improved earnings per share by 34.8% in the most recent quarter compared to the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, MILLER INDUSTRIES INC/TN's EPS of $0.82 remained unchanged from the prior years' EPS of $0.82.

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

Marine Products ( MPX) was another company that pushed the Automotive industry higher today. Marine Products was up $0.27 (4.1%) to $6.72 on light volume. Throughout the day, 5,487 shares of Marine Products exchanged hands as compared to its average daily volume of 19,100 shares. The stock ranged in a price between $6.30-$6.79 after having opened the day at $6.30 as compared to the previous trading day's close of $6.45.

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 $241.2 million and is part of the consumer goods sector. Shares are down 35.8% 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 largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • 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 1.30, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has slightly increased to $4.20 million or 3.68% when compared to the same quarter last year. Despite an increase in cash flow, MARINE PRODUCTS CORP's cash flow growth rate is still lower than the industry average growth rate of 15.00%.
  • MARINE PRODUCTS CORP reported flat earnings per share in the most recent quarter. 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 ($0.26 versus $0.19).
  • MPX, with its decline in revenue, underperformed when compared the industry average of 4.8%. Since the same quarter one year prior, revenues slightly dropped by 9.7%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Leisure Equipment & Products industry and the overall market, MARINE PRODUCTS CORP'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: 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.

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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