8.70 0.00 (0.00%)
After hours: 7:35PM EDT
|Bid||8.70 x 1400|
|Ask||8.71 x 47300|
|Day's Range||8.61 - 8.87|
|52 Week Range||7.41 - 12.15|
|Beta (3Y Monthly)||0.81|
|PE Ratio (TTM)||9.46|
|Earnings Date||Apr 25, 2019|
|Forward Dividend & Yield||0.60 (7.12%)|
|1y Target Est||9.27|
Tigress Financial Partners CIO Ivan Feinseth and FoxNews.com Automotive Editor Gary Gastelu on the state of the auto industry.
Trade war stocks have varied across industries. As the China-U.S. trade war intensified, the attention fell on four sectors: semiconductors, autos, aerospace, and grains. Stocks such as Micron (NASDAQ:MU), Ford (NYSE:F), Boeing (NYSE:BA), and Archer-Daniels-Midland (NYSE:ADM) suffered as China had become a significant source of revenue.However, trade wars often lead to higher prices and job cuts as the price of goods increases. This means virtually all Americans will feel the effects of import duties even if they do not own trade war stocks themselves. * Top 7 Service Sector Stocks That Will Pay You to Own Them Hence, the focus on specific sectors tends to leave out lesser-known companies which could potentially become the best stocks to buy. These four under-the-radar trade-war stocks stand as examples:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dollar Tree (DLTR)Source: Shutterstock Wall Street tends to ignore equities such as Dollar Tree (NASDAQ:DLTR) when talking about trade war stocks. Most of the focus within retail tends to settle on Walmart (NYSE:WMT) and other large retailers, especially when they develop a reputation for relying on imported goods.But here's the thing.Walmart can raise prices if it must. Dollar Tree commits itself to sell its products at $1 price point or less. This makes it more difficult to find items that people want to buy and which can sell profitably for $1. It also means that some popular items could become unavailable (instead of merely more expensive) as the cost of goods sold rises.This has become even more critical to DLTR as they shutter stores in the Family Dollar division which sell products for more than $1. Dollar Tree management explicitly cited tariffs as a reason for these closures. USA Today reported that Dollar Tree imports about 42% of its goods, while Family Dollar brings in around 23% of its goods from overseas.Moreover, Dollar Tree sustained losses over the last year that its closest peer Dollar General (NYSE:DG) did not. Still, DLTR stock trades at about 16.5 times forward earnings. DG stock has a forward P/E ratio of about 17.8.For now, Wall Street forecasts a 31.7% predicted profit increase for DG vs. -0.2% for DLTR stock. However, an end to the trade war should bring higher-quality goods -- and higher profits- to Dollar Tree. For next year, analysts expect an earnings increase of 13.8% for DLTR, slightly exceeding that of Dollar General. This along with plans to revitalize Family Dollar should bring bargain hunters back to DLTR stock. Cheniere (LNG)Source: Roy Luck via Flickr (Modified)The industry which Cheniere (NYSEAMERICAN:LNG) pioneered ensures its rapid growth. Thanks to the Cheniere's export terminals, exporters can now transport liquefied natural gas (LNG) across oceans, something that was not possible in previous decades.The U.S. produces more natural gas than any other country. Also, natural gas sells for around $2.90 per 1000 BTUs in the U.S. compared with about $5.60 per 1000 BTUs in China. Although it fetches more in Europe and Japan, China's 1.386 billion population still makes it an important market.Cheniere already operates a terminal in Sabine Pass, Louisiana. Recently, the government also gave approval to Cheniere to begin operations at its Corpus Christi, Texas terminal. With two-thirds of the country's available export capacity, Cheniere will dominate this industry for the foreseeable future.This dominance will bolster profits of LNG stock. Wall Street forecasts 32.1% increases in profit this year and 27.9% the next. Given that growth potential, the forward P/E of 20.7 appears reasonable. * 5 Chip Stocks on the Rise Admittedly, the potential business from Europe and Japan alone almost ensures the success of LNG stock. However, if it can also fuel the growth of the emerging Asian markets, particularly China, that could make LNG one of the more critical trade war stocks. Las Vegas Sands (LVS)Source: Shutterstock Despite the company's name, Las Vegas Sands (NYSE:LVS) joins the list of trade war stocks by virtue of its holdings. Six of the 12 properties owned by the company are located in the Chinese gambling mecca of Macau. This compares to only four properties in its hometown of Las Vegas. With a casino in Singapore and attempts to move into the Japanese market, LVS sees Asia as its future.Furthermore, Macau's casinos may have more of a perception problem than an actual slowdown. Gambling revenue did not stop increasing in 2018, but a slowdown in growth did occur after the trade war began. Nonetheless, LVS stock declined by more than 25% as the tariffs and a generalized decline in Chinese equities weighed on the stock. Profits for the company fell by 1.8%. The declining health of its founder and current chairman Sheldon Adelson has also brought added uncertainty to LVS.However, analysts see improvement as they expect profits to rebound to a predicted 8% increase this year. Moreover, the declines have taken its forward P/E ratio to 17.1, slightly below company averages.The lower price has also boosted the dividend yield for new buyers. Current shareholders will receive $3.08 per share in dividends this year. This brings the yield to about 5.1%. Furthermore, since the dividend has increased for six straight years, annual increases will more than likely continue. Given a China gambling market that remains robust amid tariffs, an end to a trade war should bring more gamblers and ultimately, more winnings to holders of LVS stock. VanEck Vectors Steel ETF (SLX)Source: Shutterstock Admittedly, VanEck Vectors Steel ETF (NYSEARCA:SLX) sounds like a strange choice. After all, the Trump Administration imposed tariffs on Chinese goods in large part because China had dumped cheap steel on the market. This hurt U.S. Steel (NYSE:X) and Nucor (NYSE:NUE). However, in the year since the tariffs took effect, both U.S. Steel and Nucor have hired workers and restarted steel mills.Despite these signs of improvement, the dirty secret about the steel tariffs is that industries which use steel contribute more to the economy than steel producers. Hence, the industry can sell more steel if companies such as Ford build more cars. Investors should look more closely at the behavior of these actual stocks. SLX stock dropped over the last 12 months. However, even more shockingly, X stock and NUE stock, which logically should have increased due to the tariffs, also dropped in value. The ETF holds both X and NUE stock, though Rio Tinto (NYSE:RIO) and Vale (NYSE:VALE) remain the fund's largest holdings.The one trade-war-related benefit derives for SLX comes from dividends. In 2017, before the trade war began, SLX stock paid almost $1.12 per share in dividends. Payout levels in 2018 rose to just over $2.18 per share. A trade agreement could send that falling back. * 7 Financial Stocks to Invest In Today However, what shareholders may lose in lower dividends they should earn back in gains. Since tariffs began, SLX has fallen by more than $13.50 per share, a loss of about 26% of its value. An agreement will likely reverse the drop in SLX's core holdings, and by extension, in SLX stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post 4 Unexpected Trade War Stocks That Will Benefit From an End to Tariffs appeared first on InvestorPlace.
Wall Street gained ground on Tuesday, with investors expecting the U.S. Federal Reserve to reaffirm its dovish stance as it began its two-day monetary policy meeting. The Dow was set to post its fifth straight gain and the benchmark S&P 500 was about 3 percent away from its all-time high set last September. As the Fed convened its two-day policy meeting, investors expected little change in its measured approach to interest rate hikes.
Ford Motor Co. said Tuesday it will shift 550 jobs to its Kentucky Truck Plant to boost production of its Expedition and Lincoln Navigator vehicles to meet growing demand for its large SUVs.
Ford’s plan invest more in trucks is in line with industry trends, and the company could also get a boost from its investment in electric vehicles.
Ford (F) plans to cut more than 5,000 jobs in Germany and slash workforce in the U.K. to reduce costs and revive the business in Europe.
Investing.com - The car industry was full of chatter on Tuesday as French carmaker Peugeot’s president pointed toward a potential merger with Fiat Chrysler.
Ford Motor Co said it will boost U.S. production of its largest sport utility vehicles in a move to grab profits in a market where consumers favor larger, more comfortable vehicles. Ford's Kentucky Truck plant in Louisville will increase the production rate for Ford Expedition and Lincoln Navigator sport utility vehicles by 20 percent in July - the second 20 percent increase in a year for both models, executives said during a media briefing on Monday. The Trump administration, however, has proposed freezing U.S. fuel efficiency standards - a decision that would make it easier for automakers to sell large SUVs and pickup trucks.
Ford is hiring 550 workers at its Kentucky truck plant and relocating 500 others there. The automaker is boosting production of its Ford Expedition and Lincoln Navigator by 20 percent. The news comes as Ford plans cuts to international operations and U.S. salaried workers.
Ford Motor Co. is planning to boost production of the Louisville-made Ford Expedition and Lincoln Navigator this summer as consumer demand for the vehicles has grown. The company will add 550 jobs at the Kentucky Truck Plant in Louisville to accommodate the production increase, but these won't be new positions. Instead the company is moving 550 workers from its other local facility, the Louisville Assembly Plant, as we previously reported.
Does Trump’s America Have Space for 'Great' Companies?President Donald Trump Over the last couple of days, President Donald Trump has severely criticized the largest US automaker, General Motors (GM). In a series of tweets, Trump asked GM to either
Will GM Listen to President Trump and ‘Do Something Quickly'?The US auto industry For the last couple of years, US new light vehicle sales (XLY) have weakened since peaking in 2016. According to data compiled by MarkLines, US auto sales fell to
Ford's (F) aim to offer customer-focused products is likely to drive growth. However, frequent vehicle recalls due to safety issues is a concern.
Happy St. Patrick's Day, Autoblog readers! To celebrate, we've got about the most appropriate video we can think of. It comes to us from Ford Performance and features Vaughn Gittin Jr. drifting a Ford Mustang. Aside from the St. Patrick's day theme, we love this video because it's a bit of car enthusiast wish fulfillment.
The Ford Mustang became sort of the Fat Elvis of pony cars during the early 1970s, scaling in at 500 pounds more than its svelte mid-1960s predecessors. Then came the Mustang II, which was much lighter but had the misfortune of being based on the Pinto. Finally, for the 1979 model year, Ford put the Mustang on the new, modern Fox platform, and power levels went up for many years after that.
Co. plans to cut more than 5,000 jobs in Germany and another undetermined number of employees in the U.K., a company spokeswoman said Friday, as part of a broader effort to redefine its struggling European business laid out earlier this year. “The goal is to significantly decrease structural costs, reduce bureaucracy, empower leaders and managers and eliminate less value-added work,” a Ford spokeswoman said. to restore profitability to its money-losing operations and boost the company’s sagging stock price.
HAMBURG/BERLIN (Reuters) - Luxury carmaker BMW and Germany's Varta have both applied for state funding aimed at supporting battery cell production for electric vehicles, they said on Friday, hitting a deadline set by the German government. Germany has earmarked 1 billion euros (850.97 million pounds) to support a consortium looking to produce electric car battery cells and plans to fund a research facility to develop next-generation solid-state batteries. BMW is seeking funds for research and development in the field of battery cells, a spokesman for the group said on Friday, adding this does not mean the company aims to produce them itself.
When investing, it is important not to be fooled by low valuations. That is to say, just because a stock has a cheap valuation relative to the market or its peers, that doesn't mean that the stock is a good buy. Instead, a cheap valuation is often reflective of weak fundamentals. If the fundamentals stay weak forever, then the stock can likewise stay weak forever, too.As such, blindly buying all single-digit P/E stocks is not a good investment strategy. Most stocks with low valuations simply aren't worth the risk.Having said that, there are a handful of low P/E stocks that are worth the risk. These are the class of cheaply valued stocks that have an opportunity meaningful improve operations over the next several quarters or years, and as such, will rise sharply as favorable fundamentals converge on a discounted valuation.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Small-Cap Stocks That Make the Grade Which stocks belong in this category? Not many. But, here's a list of seven such single-digit P/E stocks that have visibility for big upside potential in the foreseeable future. LGI Homes (LGIH)Source: Shutterstock Forward P/E Multiple: 8.4First on this list is LGI Homes (NYSE:LGIH), a really beaten-up housing stock that should rise sharply in 2019 as fundamentals stabilize and improve within the U.S. housing market.LGIH stock dropped sharply in 2018 on signs that the housing market was slowing. The Fed was tightening, so mortgage rates were rising. The economy was slowing, so housing starts were dropping. Inventory was big relative to demand. Home prices were starting to flatten out.All those headwinds are reversing course in 2019. The Fed isn't tightening anymore. Mortgage rates are falling, while wage growth is at a decade-high, unemployment levels are at record lows, and home ownership rates are way off their highs. The economy is stabilizing, and housing starts are jumping back. Inventory is falling. Demand is coming back. Home prices are showing signs of rising again.If these housing market improvements persist throughout 2019, then LGIH stock should rally in a big way as those fundamental improvements converge on an anemic 8.4 forward multiple. AT&T (T)Source: Shutterstock Forward P/E Multiple: 8.5Next up: AT&T (NYSE:T). The telecom giant has been hammered on debt concerns in today's slowing economy and rising rate environment.Long story short, AT&T acquired Time Warner in 2018, and in doing so, amassed the world's biggest debt load ever seen. Shortly thereafter, rates started moving sharply higher, and economic growth started materially slowing. That combination put significant pressure on AT&T's huge new debt load, and weighed on AT&T stock.Those headwinds are turning around. Rates aren't moving higher anymore. They are actually moving lower. Economic growth is slowing. But, recession fears were overblown, and now the consensus seems to be stable and slower going forward. As such, all that pressure on AT&T's balance sheet should ease in 2019. As it does, T stock should rise. * 7 Best Quantum Computing Stocks Trading Today It also helps that AT&T will get big help from the roll-out of 5G coverage in 2019, while streaming operations should get a nice boost from Time Warner's content assets. That double tailwind, plus favorable macroeconomic trends and a 8.5 forward multiple, should lead to gains for T stock in 2019. Micron (MU)Source: Shutterstock Forward P/E Multiple: 5.3One of the more hated stocks on Wall Street right now is chipmaker Micron (NASDAQ:MU). For the past several months, the stock has traded at a single-digit forward multiple. Yet, during that stretch, MU stock has broadly gone lower, not higher.Why? The valuation is already pricing in peak earnings. In a nutshell, Micron goes as the memory market goes, and the memory market goes based on on supply-demand fundamentals. Those supply-demand fundamentals are notoriously cyclical. Eras of high supply and low demand, are followed by eras of low supply and high demand, and vice versa.Right now, we are going from an era of low supply and high demand (good for Micron), to an era of higher supply and lower demand (bad for Micron). During those transitions, profits drop. But, the magnitude of the drop is an unknown. Investors don't like unknowns. So, they sell MU stock, and prepare for the worst.The worst may not happen this time around. Demand drivers in the memory market are very robust, thanks to things like the cloud, IoT, data, and AI, and should provide cushion for earnings erosion during this down-cycle. If that does happen, and earnings don't fall by that much, then MU stock could soar from today's 5.3 forward earnings base. Ford (F)Source: Shutterstock Forward P/E Multiple: 7.2The big bear thesis in Ford (NYSE:F) stock - which has dragged the stock from $16 to $8 over the past 5 years - has merit. Namely, car ownership rates are dropping in the sharing economy, and project to fall further as the sharing economy grows in popularity. Also, Ford is losing market share to new EV players, like Tesla (NASDAQ:TSLA), and this dynamic should continue for the foreseeable future, too.But, this bear thesis is already fully priced into Ford stock. In the big picture, Ford will be just fine. Sure, the auto market is shrinking and Ford is taking home less share. But, the auto market isn't disappearing, nor will it ever disappear, and Ford will forever remain an important player in that market. As such, sales and profits should remain stable going forward, with potential gains from an EV pivot. * 5 Stocks That Hedge Funds Love At just 7.2-times forward earnings, Ford stock isn't priced for stability, let alone any upside. But, in the long run, investors will get stability, and potentially even some upside. As such, Ford stock could rally big from here in a multi-year window. Signet Jewelers (SIG)Source: Shutterstock Forward P/E Multiple: 8.4Haven't you heard? Millennials are pushing back big life events, like marriage, and consequently, just aren't buying wedding rings. That's largely why Signet Jewelers (NYSE:SIG) has struggled dramatically over the past several years.But, there's more at play here. Young consumers aren't just pushing back big life events. They are valuing experiences over products, and choosing to spend their paycheck on travel, not jewelry. Why? Because an exotic beach is much more "Instagrammable" than a new necklace or ring.This trend isn't reversing course soon. But, consumer demand for jewelry has been alive and well for 2,000-plus years. It isn't going away anytime soon because of Instagram. Regardless of how the IG trend plays out, the jewelry industry will be just fine, supported by healthy and secular demand drivers that are far more enduring than pretty much any other trend out there.Because of this, it's only a matter of time before Signet's numbers stabilize. Once they do, SIG stock -- which trades at just 8.4 forward earnings versus a five-year average forward multiple of 14 -- will roar higher. Macy's (M)Source: Mike Mozart via FlickrForward P/E Multiple: 7.7By now, everyone knows the retail apocalypse isn't happening. E-commerce and brick-and-mortar commerce need to exist together, because there is demand and need for both. As the market has realized this over the past year-plus, traditional retail stocks have bounced off their retail apocalypse lows.Macy's (NYSE:M), though, has had a tough time holding onto those gains. The numbers at Macy's have been disappointingly weak, especially relative to department store peers on a comparable sales and margin basis. As such, investors have been unwilling to buy into the Macy's rebound story, and Macy's stock has dropped over the past few quarters.This is all just near term noise. In the big picture, Macy's has created a sustainable niche for itself in the apparel retail world as the happy medium between quality and price. It isn't Walmart (NYSE:WMT), where quality is questionable and prices are great. Nor is it Nordstrom (NYSE:JWN), where quality is great and prices sometimes required a double check. Instead, it's right in the middle of the two, with passable quality at reasonable prices. * 3 Best Restaurant Stocks Morgan Stanley Says to Take a Bite Of That niche has long term staying power since a majority of consumers find themselves in that middle-income band (52% of Americans live in the middle class). To be sure, that doesn't mean the numbers will ever be great again. There's a little company called Amazon (NASDAQ:AMZN) that is also fighting for that middle class. But, the numbers will stabilize, and stability is enough to create a big rally in Macy's stock from today's 7.7-times forward earnings base. International Business Machines (IBM)Source: Shutterstock Forward P/E Multiple: 9.9International Business Machines (NYSE:IBM) has had a tough run over the past several years as new and upcoming tech companies have passed up Old Big Blue in critical growth markets, like cloud and AI. As this has happened, IBM's growth rates have fallen flat. Margins, too. And IBM stock has crashed.But, not all hope is lost. IBM's cloud business is turning the corner, and its business will continue to turn the corner in 2019 as the company integrates high-growth Red Hat hybrid cloud operations into its ecosystem. As this happens, IBM's growth rates will improve. Margins will improve, too. Analysts will upgrade the stock. Investors will get excited.All of those positive catalysts will attract more buyers to the stock. How many more buyers? Quite a few. At under 10-forward earnings, IBM stock is by far the cheapest way to play the cloud revolution. Thus, so long as IBM gets its act together on the cloud front, this stock has plenty of runway ahead through multiple expansion.As of this writing, Luke Lango was long LGIH, T, TSLA, SIG, M and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy Today * 7 ETFs to Buy to Ride the Longevity Economy * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Compare Brokers The post 7 Single-Digit P/E Stocks With Massive Upside appeared first on InvestorPlace.
Ford and GM have current dividend yields of 7.1% and 4.0%, respectively. Both stocks have higher dividend yields than the S&P 500, and Ford is particularly attractive as a high-yield dividend stock. GM stock has fared better than Ford over the past year, but both stocks could reward shareholders with 10%+ annual returns going forward, thanks to their beaten-down valuations and high dividend yields.
The automaker is restructuring its European business. Ford F is cutting 5,000 jobs in Germany and more in the U.K. as part of an effort to reduce costs in Europe, the company said Friday. The automaker offered voluntary separation packages for employees in Germany and the U.K. to help accelerate its plan to improve performance in the region, where Ford has struggled.
U.S. automaker Ford plans to cut more than 5,000 jobs in Germany and will reduce its workforce in Britain as well as it seeks to return to profit in Europe, the company said on Friday. Ford has offered voluntary redundancy programmes for employees in Germany and Britain, it said in a statement. This is part of a turnaround plan announced by the carmaker in January that would involve thousands of job cuts, looking at plant closures and discontinuing loss-making vehicle lines.