3 Automotive Stocks Pushing Industry Growth

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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 60.59 points (-0.3%) at 17,824 as of Friday, Feb. 6, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,145 issues advancing vs. 1,963 declining with 115 unchanged.

The Automotive industry as a whole closed the day up 0.6% versus the S&P 500, which was down 0.3%. Top gainers within the Automotive industry included Sypris Solutions ( SYPR), up 1.9%, Quantum Fuel Systems Technologies Worldwide ( QTWW), up 3.7%, VOXX International ( VOXX), up 2.0%, Modine Manufacturing ( MOD), up 2.9% and Federal-Mogul Holdings ( FDML), up 1.8%.

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

VOXX International ( VOXX) is one of the companies that pushed the Automotive industry higher today. VOXX International was up $0.17 (2.0%) to $8.75 on average volume. Throughout the day, 173,215 shares of VOXX International exchanged hands as compared to its average daily volume of 207,400 shares. The stock ranged in a price between $8.45-$8.96 after having opened the day at $8.61 as compared to the previous trading day's close of $8.58.

Voxx International Corporation, together with its subsidiaries, operates as a manufacturer and distributor in the automotive, premium audio, and consumer accessories industries in the United States and internationally. VOXX International has a market cap of $188.0 million and is part of the consumer goods sector. Shares are down 2.0% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates VOXX International a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates VOXX International as a hold. 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 growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on VOXX go as follows:

  • VOXX's debt-to-equity ratio is very low at 0.24 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 1.01, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 335.85% to $6.57 million when compared to the same quarter last year. In addition, VOXX INTERNATIONAL CORP has also vastly surpassed the industry average cash flow growth rate of -34.39%.
  • VOXX INTERNATIONAL CORP's earnings per share improvement from the most recent quarter was slightly positive. 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, VOXX INTERNATIONAL CORP swung to a loss, reporting -$1.09 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($0.55 versus -$1.09).
  • VOXX'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 38.24%, 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.
  • 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. Compared to other companies in the Distributors industry and the overall market, VOXX INTERNATIONAL CORP'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: VOXX 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, Quantum Fuel Systems Technologies Worldwide ( QTWW) was up $0.10 (3.7%) to $2.79 on light volume. Throughout the day, 158,392 shares of Quantum Fuel Systems Technologies Worldwide exchanged hands as compared to its average daily volume of 228,400 shares. The stock ranged in a price between $2.65-$2.80 after having opened the day at $2.65 as compared to the previous trading day's close of $2.69.

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 $60.3 million and is part of the consumer goods sector. Shares are up 23.9% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Quantum Fuel Systems Technologies Worldwide a buy, no analysts rate it a sell, and 1 rates 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 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 71.33%, 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 underperformed when compared to that of the S&P 500 and the Auto Components industry average. 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.

Sypris Solutions ( SYPR) was another company that pushed the Automotive industry higher today. Sypris Solutions was up $0.04 (1.9%) to $2.42 on light volume. Throughout the day, 5,651 shares of Sypris Solutions exchanged hands as compared to its average daily volume of 22,600 shares. The stock ranged in a price between $2.37-$2.45 after having opened the day at $2.40 as compared to the previous trading day's close of $2.37.

Sypris Solutions, Inc. provides outsourced services and specialty products primarily in the United States, Mexico, Denmark, and the United Kingdom. Sypris Solutions has a market cap of $48.8 million and is part of the consumer goods sector. Shares are down 10.9% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Sypris Solutions a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Sypris Solutions as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations. 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 SYPR go as follows:

  • The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 18.3%. 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 Auto Components industry. The net income increased by 41.9% when compared to the same quarter one year prior, rising from -$2.00 million to -$1.16 million.
  • SYPRIS SOLUTIONS INC has improved earnings per share by 40.0% 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, SYPRIS SOLUTIONS INC swung to a loss, reporting -$0.52 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus -$0.52).
  • The gross profit margin for SYPRIS SOLUTIONS INC is currently extremely low, coming in at 11.97%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.28% trails that of the industry average.
  • SYPR has underperformed the S&P 500 Index, declining 19.67% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

You can view the full analysis from the report here: Sypris Solutions 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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