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Cooper-Standard (CPS) Rides on New Business & Innovations

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On Jun 22, we issued a research report on Cooper-Standard Holdings Inc. (CPS - Free Report) .

Novi, MI-based Cooper-Standard is engaged in designing, manufacturing and selling of sealing, fuel and brake delivery along with fluid transfer and anti-vibration systems.

Cooper Standard’s strong sales growth has been aided by favorable exchange rate movements, positive volume and mix along with net of customer price reductions. Recently introduced business and continuing demand for SUVs, and light trucks resulted into a solid volume and mix improvement. This trend is likely to continue in the future.

New contract awards for the company’s recent product innovations, including both new and replacement businesses, are aiding its sales growth. Moreover, higher operational efficiencies, cost-saving measures, along with lower selling, general, administrative and engineering (SGA&E) expenses, are positives for the company. However, macroeconomic uncertainties, commodity cost inflation and pricing pressures are headwinds before Cooper Standard.

In the past three months, shares of Cooper-Standard have outperformed the industry it belongs to. During the period, its stock has grown 14.6% in comparison with the industry’s increase of 5.1%. The company’s Zacks Consensus Estimate for the current-year earnings have moved upward over the past 30 days.



Cooper-Standard currently carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Ferrari N.V. (RACE - Free Report) . While both Oshkosh and Allison Transmission Holdings sport a Zacks Rank #1 (Strong Buy), Ferrari carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 5.6% over the past year.

Allison Transmission Holdings has an expected long-term growth rate of 10%. Over the past year, shares of the company have gained 11%.

Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 66.4%.

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