U.S. Markets closed

Auto Stock Roundup: THO & NAV's Earnings, F's Maverick Trucklet and More

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

May auto sales data for China — the world’s largest car market — was released last week. Per the China Association of Automobile Manufacturers, vehicle sales in the country dipped 3% year over year to 2.13 million units, snapping a 13-month winning streak. While the global chip crunch and soaring commodity costs hit the automakers, electric vehicles managed to sustain momentum, with sales of new energy vehicles surging a whopping 160% year over year to 217,000 units in May.

On the earnings front, recreational vehicle maker Thor Industries THO and trucking giant Navistar International NAV reported quarterly results. Meanwhile, U.S. auto giant Ford F grabbed eyeballs as it unveiled Maverick, which is set to be the smallest pickup in the firm’s truck lineup.

Last Week’s Top Stories

Lithia Motors LAD announced the acquisition of two luxury dealerships in Van Nuys, CA, being BMW of Sherman Oaks and Acura of Sherman Oaks. Both the stores serve the greater Los Angeles area. The transaction expanded Lithia’s footprint to Southern California as the BMW store is Lithia’s first store in Southern California. Moreover, the buyout is anticipated to add $185 million in combined annualized revenues. The deal has been financed through the existing on-balance sheet capacity.

Thor reported third-quarter fiscal 2021 (ended Apr 30, 2021) adjusted earnings of $3.29 per share, which beat the Zacks Consensus Estimate of $2.36 and skyrocketed 665.1% year over year. The Zacks Rank #2 (Buy) company registered revenues of $3,459.3 million for the quarter under review, topping the Zacks Consensus Estimate of $3,020 million and surging 105.7% year over year. As of Apr 30, 2021, Thor had cash and cash equivalents of $297.5 million and a long-term debt of $1,718.1 million. Consolidated backlog totaled $14.32 billion at quarter-end, representing a 550% jump from the year-ago period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Navistar reported second-quarter fiscal 2021 adjusted earnings of 72 cents per share, beating the Zacks Consensus Estimate of 38 cents and comparing favorably with the year-ago loss of 10 cents. The truck maker posted total revenues of $2,162 million, missing the consensus mark of $2,296 million. However, the top line increased from the year-ago level of $1,925 million. As of Apr 30, 2021, Navistar had cash and cash equivalents of $1,233 million and a long-term debt of $4,624 million. The company remains on track to close the merger with TRATON by mid-2021.

Ford unveiled its newest and most affordable compact pickup truck, 2022 Ford Maverick, a dream truck for customers. The Maverick starts at $21,490 ($19,995 MSRP plus $1,495 for destination) for the base model. With the 2022 Maverick, Ford is providing an undefeatable solution to satisfy customer demand for small trucks. This vehicle is designed to appeal to small-car buyers, people who never knew they wanted a pick-up in the first place. The Maverick will hit the market later this fall and customers can place an order for the same on Ford’s website. (Here's All You Need to Know About Ford's 2022 Maverick Trucklet)

Goodyear Tire & Rubber GT announced the conclusion of the impending acquisition of Cooper Tire & Rubber Company. The buyout will bring an array of tire brands under a single roof, including Goodyear’s Dunlop and Kelly brands, and Cooper’s Mastercraft and Mickey Thompson brands. The merged entity will bank on Goodyear’s dominance in original equipment and premium replacement tires, and combine it with Cooper’s forte in the light truck and SUV segments, thus providing a more complete offering to customers. The historic deal marks the collaboration of two of the biggest American tire companies.

Price Performance

The following table shows the price movement of some of the major auto players over the past week and six-month period.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

In the past six months, all stocks but Tesla have increased, with Ford being the maximum gainer. Over the past week, share price movement has been mixed, with Advance Auto Parts registering the maximum gain, while Ford losing the most.

What’s Next in the Auto Space?

Industry watchers will track the passenger car registrations data in European Union for May 2021, which is likely to be released by European Automobile Manufacturers Association later this week.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ford Motor Company (F) : Free Stock Analysis Report

Thor Industries, Inc. (THO) : Free Stock Analysis Report

Navistar International Corporation (NAV) : Free Stock Analysis Report

The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report

Lithia Motors, Inc. (LAD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research