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.

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 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

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 Stocks Pushing The Automotive Industry Lower

3 Stocks Pushing The Automotive Industry Lower