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China Automotive Systems (CAAS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, China Automotive Systems (CAAS - Free Report) closed at $7.54, marking a -1.18% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 1.58%.
Prior to today's trading, shares of the auto parts supplier had gained 2.14% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 18.85% and outpaced the S&P 500's gain of 0.84% in that time.
Wall Street will be looking for positivity from China Automotive Systems as it approaches its next earnings report date. The company is expected to report EPS of $0.07, down 56.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $138.46 million, down 0.24% from the year-ago period.
Investors should also note any recent changes to analyst estimates for China Automotive Systems. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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).
Digging into valuation, China Automotive Systems currently has a Forward P/E ratio of 15.9. This represents a premium compared to its industry's average Forward P/E of 12.59.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.