In the latest trading session, China Automotive Systems (CAAS) closed at $4.06, marking a +0.74% move from the previous day. This move lagged the S&P 500's daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.24%.
Coming into today, shares of the auto parts supplier had lost 8.62% in the past month. In that same time, the Auto-Tires-Trucks sector lost 6.75%, while the S&P 500 lost 9.93%.
Wall Street will be looking for positivity from China Automotive Systems as it approaches its next earnings report date. On that day, China Automotive Systems is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 500%. Meanwhile, our latest consensus estimate is calling for revenue of $120.56 million, up 11.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.40 per share and revenue of $515.59 million, which would represent changes of +11.11% and +3.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for China Automotive Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. China Automotive Systems is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, China Automotive Systems is currently trading at a Forward P/E ratio of 10.07. This valuation marks a discount compared to its industry's average Forward P/E of 10.65.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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China Automotive Systems, Inc. (CAAS) : Free Stock Analysis Report
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