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China Automotive Systems (CAAS) Stock Sinks As Market Gains: What You Should Know
China Automotive Systems (CAAS - Free Report) closed the most recent trading day at $6.14, moving -1.13% from the previous trading session. This change lagged the S&P 500's 1.76% gain on the day. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.
Prior to today's trading, shares of the auto parts supplier had lost 25.63% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 12.73% and the S&P 500's loss of 5.94% in that time.
Wall Street will be looking for positivity from China Automotive Systems as it approaches its next earnings report date. Meanwhile, our latest consensus estimate is calling for revenue of $138.46 million, down 0.24% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for China Automotive Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. China Automotive Systems currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, China Automotive Systems is holding a Forward P/E ratio of 12.94. This represents a discount compared to its industry's average Forward P/E of 13.07.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 193, putting 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.