China Automotive Systems (CAAS) closed the most recent trading day at $8.24, moving -1.32% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 1.38%. At the same time, the Dow lost 1.26%, and the tech-heavy Nasdaq lost 5.67%.
Prior to today’s trading, shares of the auto parts supplier had gained 28.86% over the past month. This has lagged the Auto-Tires-Trucks sector’s gain of 28.96% and outpaced the S&P 500’s gain of 3.87% in that time.
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%. Our most recent consensus estimate is calling for quarterly revenue of $138.46 million, down 0.24% from the year-ago period.
Any recent changes to analyst estimates for China Automotive Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. China Automotive Systems is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note China Automotive Systems’s current valuation metrics, including its Forward P/E ratio of 17.4. Its industry sports an average Forward P/E of 12.75, so we one might conclude that China Automotive Systems is trading at a premium comparatively.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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.
To follow CAAS in the coming trading sessions, be sure to utilize Zacks.com.
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