U.S. Markets close in 1 hr 16 mins

The Zacks Analyst Blog Highlights: Tesla, Autoliv, General Motors and Cummins

Zacks Equity Research
Companies In The News Are: TMUS, S, LM, SATS, DISH, GOOGL

For Immediate Release

Chicago, IL –February 6, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tesla, Inc. TSLA, Autoliv, Inc. ALV, General Motors Company GM and Cummins Inc. CMI.

Here are highlights from Tuesday’s Analyst Blog:

Key Predictions on Earnings for February 6th

In the past week, two Auto giants — Tesla, Inc. and Autoliv, Inc. — announced their numbers for fourth-quarter 2018. The companies reported an earnings miss.

Per the latest Earnings Preview, on a year-over-year basis, the auto sector’s earnings are expected to decline 15.3%, while revenues are likely to decrease 1.7%.

In fourth-quarter 2018, rise in employment rate, sturdy consumer confidence, and rise in income and wages boosted auto demand. Majority of the automakers witnessed rise in demand for roomier and comfortable pickup trucks, sports utility vehicles (SUVs) and crossovers. However, this rise was partially offset by continued decline in demand for traditional passenger cars.

Further, declining demand in China, unresolved trade and tariff spats, rising interest rates, and higher vehicle prices are hurting sales for the auto sector. Further, over the past few months, many automakers have recalled vehicles in large numbers from across the world.

Let’s take a look at the two auto companies, which are scheduled to announce results tomorrow.

Our research shows that with the combination of the two key ingredients, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP, raises chances of a positive surprise to as high as 70%. Per our proprietary methodology, Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Here are two stocks lined up for reporting fourth-quarter 2018 earnings results on Feb 6.

Detroit, MI-based General Motors Company is a leading global automotive company. It is engaged in designing, building, and selling of cars, trucks, crossovers and automobile parts worldwide. General Motors has a long-term earnings growth rate of 8.5%. In the last reported quarter, the company pulled off a positive surprise. Further, it surpassed estimates in three of the trailing four quarters, the average beat being 21.8%.

Our proven model predicts an earnings beat for General Motors. This is because it has an Earnings ESP of +11.39% and a Zacks Rank #2. (Read more: Is a Beat in Store for General Motors in Q4 Earnings?)

You can see the complete list of today’s Zacks #1 Rank stocks here.

Columbus, IN-based Cummins Inc. is a leading global designer, manufacturer and distributor of diesel and natural gas engines, electric power generation systems, and engine-related components, fuel systems, controls and air handling systems. Cummins has a long-term earnings growth rate of 12%. In the last reported quarter, the company pulled off a positive surprise. Further, it surpassed estimates in all the trailing four quarters, the average beat being 12.1%.

Our proven model does not conclusively predict an earnings beat for Cummins. This is because it has an Earnings ESP of +5.90% and a Zacks Rank #4 (Sell).

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                      

https://www.zacks.com                                                   

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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
 
General Motors Company (GM) : Free Stock Analysis Report
 
Cummins Inc. (CMI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research