China Automotive Systems (CAAS) Stock Sinks As Market Gains: What You Should Know
China Automotive Systems (CAAS) closed the most recent trading day at $7.43, moving -1.46% from the previous trading session. This move lagged the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 5.2%.
Coming into today, shares of the auto parts supplier had gained 1.89% in the past month. In that same time, the Auto-Tires-Trucks sector gained 19.83%, while the S&P 500 gained 0.67%.
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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $138.46 million, down 0.24% from the year-ago period.
Investors might also notice recent changes to analyst estimates for China Automotive Systems. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that China Automotive Systems has a Forward P/E ratio of 15.71 right now. For comparison, its industry has an average Forward P/E of 12.73, 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 177, which puts it in the bottom 30% 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
