China Automotive Systems, Inc. – Momentum – Zacks Rank Buy
Source: http://www.zacks.com/commentary/12745/China+Automotive+Systems%2C+Inc.+-+Momentum+-+Zacks+Rank+BuyPosted on Monday, November 16th, 2009 | In Investing Lessons, Stocks to Watch
China Automotive Systems, Inc. (CAAS) just reported strong third-quarter results that easily beat expectations and raised its 2009 full-year guidance.
Third-Quarter Results
Sales were up 75% from last year to $64.7 million. Earnings also came in strong at 28 cents per share, 12 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 3 quarters by an average of 82%.
The company said noted its cash balance increased 23% from last year to $45.9 million, while its stockholder equity was up 18% to $123.7 million.
Bullish Guidance
We haven’t seen estimates advance yet, but the company did offer bullish guidance, saying it expects sales to increase by 40% for 2009.
The Chart
This Zacks #2 rank stock has been on fire over the last 5 months after bottoming out around $5 in early summer. Shares spiked higher on the earnings surprise but have since pulled back a bit, take a look below.
Last Week’s Momentum Zacks Rank Buy Stocks
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Group 1 Automotive Inc. (GPI) is up more than 200% in the last 8 months, but analysts see more upside, with the next-year estimate projecting 35% earnings growth. Read Full Article.
World Fuel Services Corp. (INT) just reported better than expected Q3 results, making it four out of the last four quarters that the company has beat the Street. Read Full Article.
J. Crew Group Inc. (JCG) is trading higher ahead of its Nov 24 Q3 earnings announcement, keeping the momentum from the company’s strong Q2 results in tact. Read Full Article.
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 About Michael Vodicka (http://www.zacks.com/)
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