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China Automotive Systems (CAAS) Outpaces Stock Market Gains: What You Should Know

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China Automotive Systems (CAAS - Free Report) closed the most recent trading day at $8.70, moving +0.81% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 6.33%.

Wall Street will be looking for positivity from China Automotive Systems as it approaches its next earnings report date. 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%. 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. 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.

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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. China Automotive Systems currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, China Automotive Systems is currently trading at a Forward P/E ratio of 17.98. This valuation marks a premium compared to its industry's average Forward P/E of 11.82.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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