3 Automotive Stocks Moving The Industry Upward

Two out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 22 points (0.1%) at 17,430 as of Friday, Aug. 14, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,691 issues advancing vs. 1,250 declining with 211 unchanged.

The Automotive industry as a whole closed the day up 1.0% versus the S&P 500, which was up 0.2%. Top gainers within the Automotive industry included Sypris Solutions ( SYPR), up 11.0%, UQM Technologies ( UQM), up 3.5%, SORL Auto Parts ( SORL), up 3.7%, Marine Products ( MPX), up 2.7% and Quantum Fuel Systems Technologies Worldwide ( QTWW), up 2.6%.

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

SORL Auto Parts ( SORL) is one of the companies that pushed the Automotive industry higher today. SORL Auto Parts was up $0.07 (3.7%) to $2.02 on heavy volume. Throughout the day, 118,869 shares of SORL Auto Parts exchanged hands as compared to its average daily volume of 26,600 shares. The stock ranged in a price between $1.96-$2.50 after having opened the day at $2.45 as compared to the previous trading day's close of $1.95.

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 $37.3 million and is part of the consumer goods sector. Shares are down 47.1% year-to-date as of the close of trading on Thursday. 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 growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on SORL go as follows:

  • SORL's revenue growth has slightly outpaced the industry average of 5.4%. 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'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 38.21%, 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 gross profit margin for SORL AUTO PARTS INC is currently lower than what is desirable, coming in at 30.02%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.84% trails that of the industry average.

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

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At the close, UQM Technologies ( UQM) was up $0.02 (3.5%) to $0.59 on light volume. Throughout the day, 40,521 shares of UQM Technologies exchanged hands as compared to its average daily volume of 62,000 shares. The stock ranged in a price between $0.57-$0.62 after having opened the day at $0.57 as compared to the previous trading day's close of $0.57.

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 $26.4 million and is part of the consumer goods sector. Shares are down 27.0% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates UQM Technologies a buy, no analysts rate it a sell, and none rate it a hold.

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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 disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on UQM go as follows:

  • 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 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'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 62.27%, 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 4.4% when compared to the same quarter one year prior, going from -$1.38 million to -$1.32 million.
  • The revenue fell significantly faster than the industry average of 4.4%. Since the same quarter one year prior, revenues fell by 45.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 43.55% is the gross profit margin for UQM TECHNOLOGIES INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, UQM's net profit margin of -116.34% significantly underperformed when compared to the industry average.

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

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Sypris Solutions ( SYPR) was another company that pushed the Automotive industry higher today. Sypris Solutions was up $0.13 (11.0%) to $1.31 on heavy volume. Throughout the day, 62,112 shares of Sypris Solutions exchanged hands as compared to its average daily volume of 26,000 shares. The stock ranged in a price between $1.10-$1.44 after having opened the day at $1.10 as compared to the previous trading day's close of $1.18.

Sypris Solutions, Inc. offers outsourced services and specialty products in the United States, Mexico, Denmark, and the United Kingdom. Sypris Solutions has a market cap of $25.8 million and is part of the consumer goods sector. Shares are down 55.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Sypris Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Sypris Solutions as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on SYPR 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 888.9% when compared to the same quarter one year ago, falling from $1.65 million to -$13.03 million.
  • 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 Auto Components industry and the overall market, SYPRIS SOLUTIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$5.32 million or 312.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 72.29%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 925.00% compared to the year-earlier 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.
  • SYPRIS SOLUTIONS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, SYPRIS SOLUTIONS INC continued to lose money by earning -$0.07 versus -$0.52 in the prior year. For the next year, the market is expecting a contraction of 1614.3% in earnings (-$1.20 versus -$0.07).

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

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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.

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