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Sorl Auto Parts, Inc. (SORL) Stock Pops 22% as Buzz Grows

SORL stock bulls haven't been shy in recent weeks

It’s fairly unusual for a publication to move a stock, unless the publication posts a take-down piece exposing some horrid misdeed. For Sorl Auto Parts, Inc. (NASDAQ:SORL), it was simply a profile boost, as the $170 million stock gained 22% after next to no news.

Other than a recent Zacks feature, SORL stock was already up 60% in wake of a boffo earnings report on May 15 where it more than doubled the analyst consensus for earnings (granted, there was only one analyst).

Still, Sorl Auto Parts reported a noteworthy jump of 1,700% in per-share earnings (36 cents per share vs. 2 cents per share) year-over-year.

Zacks pointed out that the Chinese auto parts manufacturer and distributor has posted positive earnings surprises of 94.5% over the past four quarters, adding SORL stock to its “Top 5 Bargain Stocks with Amazingly Low EV/EBITDA Ratios” screener, which might’ve helped legitimize SORL stock to investors whose radar it was still flying under.

Sorl CEO Xiaping Zhang had this to say about the first-quarter results:

“We are pleased to announce another quarter of robust performance as we posted growth in all lines of our business and achieved margin expansions from top to bottom. Since the Chinese government introduced rigorous regulations on overloading in the truck market to reduce emissions and improve safety, we have been gaining market share with our advanced new products and superior performance. On the cost side, we continued to exceed our goals due to significantly improved economy of scale, strengthened receivables collections and better-than-expected cost control results.”

For the uninitiated, Sorl Auto Parts is a Chinese-based automotive parts store that develops and distributes brakes and other safety parts for sale locally and internationally. While its prospects are encouraging (going by its most recent quarterly report), it’s already well past its 12-month price target.

At this point, I’d be too afraid to jump into SORL stock for fear the bridge may give.

Article printed from InvestorPlace Media, https://investorplace.com/2017/05/sorl-auto-parts-inc-sorl-stock-pops-22-as-buzz-grows/.

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