3 Stocks Pushing The Automotive Industry Lower

The Automotive industry as a whole was unchanged today versus the S&P 500, which was down 0.8%. Laggards within the Automotive industry included Sypris Solutions ( SYPR), down 4.2%, UQM Technologies ( UQM), down 6.3%, SORL Auto Parts ( SORL), down 7.1%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 1.6% and Fuel Systems Solutions ( FSYS), down 5.7%.

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

SORL Auto Parts ( SORL) is one of the companies that pushed the Automotive industry lower today. SORL Auto Parts was down $0.19 (7.1%) to $2.49 on average volume. Throughout the day, 30,039 shares of SORL Auto Parts exchanged hands as compared to its average daily volume of 24,400 shares. The stock ranged in price between $2.45-$2.70 after having opened the day at $2.65 as compared to the previous trading day's close of $2.68.

SORL Auto Parts, Inc. develops, manufactures, and distributes automotive brake systems and other safety related auto parts. It operates in two segments, Commercial Vehicle Brake Systems and Passenger Vehicle Brake Systems. SORL Auto Parts has a market cap of $53.5 million and is part of the conglomerates sector. Shares are down 27.4% 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.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates SORL Auto Parts 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, growth in earnings per share, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on SORL go as follows:

  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 4.4%. 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 0.10 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 2.25, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SORL AUTO PARTS INC has improved earnings per share by 14.3% 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, SORL AUTO PARTS INC increased its bottom line by earning $0.70 versus $0.49 in the prior year. This year, the market expects an improvement in earnings ($0.75 versus $0.70).
  • Net operating cash flow has increased to -$0.49 million or 39.70% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -1.54%.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

If you liked this article you might like

Shark Bites: Not Much Reason to Buy in This Environment

Shark Bites: Not Much Reason to Buy in This Environment

Sorl Auto Parts (SORL) Stock Soars on Q2 Earnings Beat

3 Automotive Stocks Moving The Industry Upward

3 Stocks Pushing The Automotive Industry Lower