HPT vs. HCP: Which Stock Should Value Investors Buy Now?
The first-quarter reporting cycle for the auto sector is now in full swing. Some important companies such as Genuine Parts Company GPC, PACCAR Inc. PCAR, Harley-Davidson Inc. HOG and Ford Motor Company F reported their quarterly numbers. While Ford, Harley-Davidson and PACCAR delivered an earnings beat, Genuine Parts Company missed on earnings.
Auto companies scheduled to report first-quarter 2018 earnings results on Apr 27 are Tenneco Inc. TEN, Autoliv, Inc. ALV and CNH Industrial N.V. CNHI.
Per the latest Earnings Trends, as of Apr 25, 154 companies from the S&P 500 category already announced results. The earnings and revenue beat ratio for these companies is 80.5% and 72.1%, respectively.
First-quarter 2018 earnings and revenue growth for auto companies are expected to be in the negative territory. Auto stocks are expected to register a 7.9% and 3.2% year-over-year decline in earnings and revenues, respectively. However, during the first quarter, the S&P 500 companies are anticipated to record 20% and 8% year-over-year growth in earnings and revenues, respectively.
In fact, the auto sector, which grappled with several problems, reported good sales in March 2018. After a slow start in 2018, major automakers reported robust sales in March. A strong job market and tax reforms drove consumer demand, which in turn aided sales.
In Europe, automakers are witnessing a decline in vehicle sales. Per European Automobile Manufacturers’ Association, vehicle registrations edged down 0.6% in first-quarter 2018. This decline is majorly due to slowing economic growth and uncertain trading regulations.
That said, let’s take a look at the three auto companies, which are scheduled to announce their results tomorrow.
We relied on the Zacks methodology, combining a favorable Zacks Rank — #1 (Strong Buy), 2 (Buy) or 3 (Hold) — and a positive Earnings ESP to predict chances of a beat this quarter.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Per our proprietary methodology, Earnings ESP shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Our research shows that with an ideal combination of the two key ingredients — Zacks Rank and ESP — chances of a positive surprise are as high as 70% for the stocks, which are lined up for an earnings release.
Lake Forest, IL-based Tenneco IL is a leading designer, manufacturer and supplier of emission control and ride control systems. Currently, it has an Earnings ESP of +0.40% and a Zacks Rank #3. It is likely to report a positive earnings surprise in tomorrow’s results.
Tenneco Inc. Price and EPS Surprise
Tenneco Inc. Price and EPS Surprise | Tenneco Inc. Quote
Stockholm, Sweden-based Autoliv develops, manufactures and supplies automotive safety system. Our model does not conclusively predict that the company is likely to deliver a positive surprise as it has an Earnings ESP of -1.11% and a Zacks Rank #3.
Autoliv, Inc. Price and EPS Surprise
Autoliv, Inc. Price and EPS Surprise | Autoliv, Inc. Quote
Amsterdam, Netherlands-based CNH Industrial is engaged in designing, producing and selling trucks, commercial vehicles, buses etc. Currently, it has an Earnings ESP of +19.05% and a Zacks Rank #3. It is likely to report a positive earnings surprise in tomorrow’s results.
CNH Industrial N.V. Price and EPS Surprise
CNH Industrial N.V. Price and EPS Surprise | CNH Industrial N.V. Quote
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Ford Motor Company (F) : Free Stock Analysis Report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
CNH Industrial N.V. (CNHI) : Free Stock Analysis Report
Autoliv, Inc. (ALV) : Free Stock Analysis Report
Tenneco Inc. (TEN) : Free Stock Analysis Report
Genuine Parts Company (GPC) : Free Stock Analysis Report
Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report
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