Yahoo Finance China Automotive Systems (CAAS) Gains But Lags Market: What You Should Know
In the latest trading session, China Automotive Systems (CAAS) closed at $8.75, marking a +1.16% move from the previous day. This move lagged the S&P 500's daily gain of 1.47%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 7.94%.
Prior to today's trading, shares of the auto parts supplier had gained 48.63% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 21.22% and the S&P 500's gain of 7.41% in that time.
China Automotive Systems will be looking to display strength as it nears its next earnings release. In that report, analysts expect China Automotive Systems to post earnings of $0.07 per share. This would mark a year-over-year decline of 56.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. China Automotive Systems is currently a Zacks Rank #1 (Strong Buy).
Investors should also note China Automotive Systems's current valuation metrics, including its Forward P/E ratio of 18.02. For comparison, its industry has an average Forward P/E of 11.87, which means China Automotive Systems is trading at a premium to the group.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% 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.
To follow CAAS in the coming trading sessions, be sure to utilize Zacks.com.
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China Automotive Systems, Inc. (CAAS) : Free Stock Analysis Report
