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China Automotive Systems (CAAS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, China Automotive Systems (CAAS - Free Report) closed at $5.83, marking a -0.17% move from the previous day. This change lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 1.35%.
Prior to today's trading, shares of the auto parts supplier had lost 21.4% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 5.84% and the S&P 500's loss of 1.48% in that time.
Investors will be hoping for strength from China Automotive Systems as it approaches its next earnings release, which is expected to be March 30, 2023. Our most recent consensus estimate is calling for quarterly revenue 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 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. China Automotive Systems currently has a Zacks Rank of #3 (Hold).
Investors should also note China Automotive Systems's current valuation metrics, including its Forward P/E ratio of 12.17. This represents a discount compared to its industry's average Forward P/E of 13.86.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 20% 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.