China Automotive Systems (CAAS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, China Automotive Systems (CAAS) closed at $7.42, marking a -0.4% move from the previous day. This move lagged the S&P 500's daily gain of 0.76%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq lost 0.98%.
Coming into today, shares of the auto parts supplier had lost 13.87% in the past month. In that same time, the Auto-Tires-Trucks sector gained 1.79%, while the S&P 500 lost 3.91%.
Investors will be hoping for strength from China Automotive Systems as it approaches its next earnings release. On that day, China Automotive Systems is projected to report earnings of $0.07 per share, which would represent a year-over-year decline of 56.25%. Our most recent consensus estimate is calling for quarterly revenue of $138.46 million, down 0.24% from the year-ago period.
Any recent changes to analyst estimates for China Automotive Systems should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. China Automotive Systems currently has a Zacks Rank of #3 (Hold).
Digging into valuation, China Automotive Systems currently has a Forward P/E ratio of 15.52. For comparison, its industry has an average Forward P/E of 14.43, which means China Automotive Systems is trading at a premium to the group.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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China Automotive Systems, Inc. (CAAS) : Free Stock Analysis Report
