|Bid||13.88 x 3200|
|Ask||14.13 x 3100|
|Day's Range||13.85 - 14.07|
|52 Week Range||12.11 - 18.50|
|Beta (3Y Monthly)||1.70|
|PE Ratio (TTM)||5.99|
|Forward Dividend & Yield||0.73 (5.29%)|
|1y Target Est||18.32|
AUBURN HILLS, Mich. , Sept. 13, 2019 /PRNewswire/ -- Refreshed Jeep® Cherokee midsize SUV earns Top Safety Pick rating from Insurance Institute for Highway Safety (IIHS) Cherokee, the most capable SUV ...
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Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
News last week that the United States and China would resume negotiations next month sent stocks sharply higher. Astute investors may grow tired from watching markets go up or down on hope alone. Even without any solid trade terms, anticipation of a resolution is powerful enough to move stocks. The automotive sector is a beneficiary of the two countries backing down from tariffs. Currently, China is imposing tariffs on the U.S. with Ford (NYSE:F) most likely to feel the impact.Yet the trade war is not the only reason for investors to buy automotive stocks. Valuations are compelling and some of these companies reward investors with rich dividends.There are seven automotive stocks that investors should buy.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Automotive Stocks to Buy: Ford (F)Source: FotograFFF / Shutterstock.com Since peaking at $10.50 in July, Ford stock fell steadily and recently found a bottom at around $8.75. The company reported a weak quarter but the stock's drop increased its dividend yield to 6.3%. Ford is not without issues. It is recalling 482,520 vehicles in the U.S. because the mechanism that controls how seat backs recline may have been improperly assembled. This news is not a setback: The company is acknowledging a problem and fixing it.In July, the decline in automotive sales in China fell by just 4.3%. But with Ford still losing money in the region, the slowing decline is welcome news. In Q2, Ford said that it saw signs of stability in its business in China. Overall earnings before interest and taxes increased by 19%, supported by a broad-based improvement in market factors led by China, North America and Europe. In China, consolidated revenue grew 48% year-over-year driven by higher volumes of Ford's Lincoln model. Additional initiatives that enhanced capabilities and stronger ties with joint venture partners will lead to stronger performance in the region. * 10 Stocks to Sell in Market-Cursed September Ford stock is worth over $11 if, using a five-year revenue exit model, investors assume revenue growing 1%-3% annually. Similarly, analysts have an average price target of $11.36. This target is achievable if Ford's revenue rebounds in the quarters ahead. General Motors (GM)Source: Linda Parton / Shutterstock.com General Motors (NYSE:GM) shares may have bottomed recently below $36, as it trades currently in the $39 range. Investors flocked to the stock when trade tensions eased. The company reported Q2 results Aug. 1 and included a reaffirmed full-year earnings per share guidance of $6.50-$7.00 for the year. In the period, North American year-over-year results improved, led by growing truck sales. Average transaction prices and crossover delivers rose. Later this quarter, the start of the deliveries of the Silverado with an optional all-new Duramax turbo-diesel engine opens a new chapter in good fuel economy. And the unveiling of the 2020 Corvette Stingray to an audience of 300,000 should excite sports car enthusiasts.GM's Cadillac is in high demand, too. It sold more than 111,000 vehicles globally in the last quarter. It launched a new XT6 seven-passenger model in China and the U.S., giving it an edge over its competition in the high-growth, luxury SUV segment.To align its workforce to demand, GM has jobs for every employee affected by the restructuring. So far, around 1,700 of the 2,800 employees accepted a transfer to plants that support the company's growth segments. So, as the economic slowdown in China gets resolved, GM is in a good position to capture more market share while operating more profitably.GM shares trade at fair value but the stock has a dividend yielding 3.9%. Honda (HMC)Source: Jonathan Weiss / Shutterstock.com Honda (NYSE:HMC) shares bottomed at $23 in August and traded recently at $24.85. Valuations for HMC are even more compelling than for either F or GM stock. HMC stock has a dividend yielding 3.3% and a price-to-earnings ratio of 8.9. Last month, sales were at levels not seen in the company's history. It also set multiple all-time monthly records. Truck sales and passenger car sales lifted total sales to 173,993, up 17.6% year-over-year. All segments performed well, including the CR-V, Passport, Accord and Civic. Even sales of the tiny-but-gas-efficient Fit grew 58% year-over-year.In the first quarter, Honda reported a 0.7% drop year-over-year in revenue. Profits fell due to higher selling, general and administrative costs. Despite the weak quarter, higher research and development spending along with renewed demand should drive sales higher in the quarters ahead. On the balance sheet, higher operating margins from the motorcycle, financial services and automobile business should ensure that Honda meets full-year guidance. * 7 Safe Dividend Stocks for Investors to Buy Right Now Honda shares have a modest upside but also pays a 3.3% dividend yield that will keep investors happy. Cost reductions and favorable raw material pricing will also help the company meet its full-year 2020 targets. Fiat Chrysler (FCAU)Source: bondvit / Shutterstock.com Fiat Chrysler (NYSE:FCAU) shares may not have the same quality levels as a Ford or Honda, but investors are happy with the company's prospects. The stock bottomed close to $12, trading recently just below $14. With a trailing P/E of 6, this stock is among the cheapest. If investors decide the stock is worth a valuation closer to its peers, then the stock might even get to the Wall Street average price target of $19.73.FCAU stock is still enjoying a rally fueled by speculation the company is holding talks with Renault to merge. On paper, merging the two firms makes sense because a bigger company could compete more effectively. It could share costs and technology with Renault. Electric vehicle and autonomous vehicle development between the two firms would prevent the two from falling behind. Fundamentally, neither firm should be kept independent in the name of being a national asset. Both auto firms need a bigger resource pool to compete as global players. A merger should result in a better return on capital.On the charts, FCAU stock is at the cusp of breaking out of a year-long downtrend. A definitive merger would send the stock back to yearly highs. Toyota (TM)Source: josefkubes / Shutterstock.com Close to a 52-week high, Toyota (NYSE:TM) is not an ideal deep-value play. But at a trailing P/E of 8 and with a dividend yielding 3.3%, TM stock may still reward patient investors. In August, the company reported strong 12.3% growth on a volume basis, posting sales of 218,403 units. This is the best-ever August. Hybrid sales increased 68.3% in the Toyota division and 44.2% for the Lexus division, suggesting that investors benefit from the company's diversification from gas-powered vehicles.As the popularity of cars falls, Toyota is bucking the trend by reporting a 15.2% increase in Corolla sales. Highlander sales rose 21.7% while RAV4 sales were up 17.2%.Just as Ford paired with Volkswagen in a joint venture and Fiat may merge with Renault, Toyota and Suzuki invested in each other. Toyota is buying a 5% stake in Suzuki while Suzuki will buy $453 million of TM stock. The companies will share costs related to the development of new technologies, and primarily, self-driving cars. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off In its first-quarter earnings call, Toyota said it will address staff redundancies in the U.S. It will also reduce redundancy in accounting. To increase profit margin above the 8% level by the fiscal year 2021, it will increase the SUV/truck ratio. So long as customers demand such vehicle types, Toyota will adjust its product mix to meet their needs. Navistar (NAV)Source: Casimiro PT / Shutterstock.com Navistar (NYSE:NAV) is not technically a car company. As a truck supplier, its strong Q3 report and analyst price target that is 22% above the recent $25.35 closing price are two reasons to consider this stock.Navistar reported revenue growing 17% year-over-year, led by a 25% increase in truck revenue. Adjusted earnings before interest, taxes, debt and amortization rose 22% to $266 million. The adjusted EBITDA margin rose 8.7%, up from 8.4% last year. The company provided volume guidance for 2019 and 2020. While Class 6/7 and Class 8 units are both up in 2019, it will drop in 2020. Still, the company reaffirmed revenue of $11.3 billion -$11.8 billion.Importantly, Navistar's days sales inventory on-hand is on the decline. The normal range, established since 2014, is 80 days - 120 days. In July, it was at 85 days. The balance sheet remains strong, with manufacturing cash balance at $1.12 billion. It faces no debt maturities until the year 2025 when $1.6 billion is due.NAV stock does not offer a dividend but Wall Street forecasts upside through the three recent "hold" ratings and one "buy" posted by analysts. Similarly, investors may input assumptions in a five-year discounted cash flow growth exit model to arrive at a higher fair value target. Ferrari (RACE)Source: Kharchenko Olena / Shutterstock.com With a market capitalization of $37 billion, Ferrari (NYSE:RACE) is similarly sized to Ford but almost half the size of GM. Although the stock does not pay a dividend,it is growing at a healthy pace.In the second quarter, Ferrari reported total shipments growing 8.4% year-over-year to 2,671 units. Revenue rose 6.8%, adjusted EBITDA was up 8.7% to $346 million and the EBITDA margin was 32%. The company benefited from an increase in V8 models shipped, offset by a drop in V12 models falling by a few units. Geographically, sales to China rose due to a decision to speed up client deliveries ahead of new emission regulations.Ferrari confirmed its guidance will approach the high end of the range on all metrics. Volume increase for the 488 Pista and 488 Pista Spider, Portofino and the 812 Superfast is driving demand for cars and spare parts. Higher sponsorship levels from Formula 1 racing activities is likely contributing favorably to the full-year results.Ferrari does not need a dividend to increase shareholder value. It has a $1.65 billion multi-year share buyback program and will buy back $220.1 million in the second half of 2019. In the first half of the year, it bought back $165.5 million worth of shares.RACE stock is the most expensive of the stocks discussed, with a P/E of 34 times. But it earned that valuation. Its clientele is buying more units, driving revenue higher.As of this writing, Chris Lau held shares of F. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 7 Automotive Stocks to Buy Now appeared first on InvestorPlace.
Although automakers’ stocks posted mixed performance figures in July, they slumped in August. So far in September, they have been recovering.
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For almost a year, Hiroto Saikawa defied gravity. Against expectations, Nissan’s chief executive survived the ousting of Carlos Ghosn, a damning corporate governance probe, accusations that he signed ...
DETROIT, Sept. 9, 2019 /PRNewswire/ -- The FCA Foundation, the charitable foundation of Fiat Chrysler Automobiles, will sponsor free general admission to the Michigan Science Center (MiSci) Saturday, September 21 in recognition of Smithsonian Museum Day, an annual celebration of boundless curiosity hosted by museums across America. Free general admission from 10 a.m. to 5 p.m. includes access to 250+ hands-on exhibits, live shows, Spark!Lab from the Smithsonian, Kids Town, STEM Playground, Space gallery and more.
(Bloomberg Opinion) -- The resignation of Hiroto Saikawa, chief executive of Nissan Motor Co. gives the embattled Japanese carmaker a much needed opportunity to clean decks and move on.Ever since the shock arrest of the company’s chairman Carlos Ghosn almost a year ago, the Japanese auto giant has been in permanent crisis mode and ties with its French alliance partner Renault SA have frayed. To steer it through that period Nissan needed a leader with deft political skills who embodied a clean break with the Ghosn era. Saikawa – a Ghosn appointee – wasn’t it.The report that Nissan published concurrently on Monday, detailing allegations of financial misconduct by Ghosn, makes for grim reading (Ghosn denies wrongdoing). Yet Saikawa could never distance himself fully from an era during which Nissan paid lip service to principles of good corporate governance.Revelations that Saikawa too was overpaid improperly were an unacceptable reminder of the allegations that led to Ghosn’s downfall, even if the amounts were smaller and Saikawa says he was unaware of the payments. He isn’t accused of misconduct.That the Nissan CEO seemed to revel in Ghosn’s ousting – so much so that it sparked claims of a palace coup – made it much harder to restore a basis of trust with Renault. In fairness, Renault didn’t help by pushing subsequently for a full-blown merger with Nissan that was unwanted by the Japanese, and then secretly discussed a tie-up with Italy’s Fiat Chrysler Automobiles NV.Meanwhile, Nissan’s recent financial performance under Saikawa has been nothing short of disastrous. Profit is in free fall, the company has lost ground in the vital U.S. market and it has been forced to slash production and jobs.His departure will spark hopes that Nissan can finally mend ties with Renault and do something about the destruction of shareholder value at both companies in recent months. In time perhaps the French side will be able to revive merger talks with Fiat; that deal has strategic and financial merit even if it remains dicey politically. Renault agreeing to cut its 43% Nissan stake might be a good place to start. Nissan holds only 15% of Renault, an imbalance that has fueled the tensions between them. First things first, though. Saikawa’s successor, whose identity Renault will have a say in, must put Nissan’s own house in order. That’s a sentiment Renault chairman Jean-Dominique Senard appears to share.At a time of unprecedented upheaval in the car industry, Nissan can’t afford to be distracted by in-house politics. If change at the top lets executives focus on the business of making and selling cars, so much the better.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
AUBURN HILLS, Mich. , Sept. 9, 2019 /PRNewswire/ -- 2019 Alfa Romeo Stelvio Quadrifoglio named "Northwest Most Fun SUV" Winning accolade courtesy of the Northwest Automotive Press Association ...
Today, GM's CEO is set to meet with President Trump. Let’s see what's transpired in the last few days that has investors looking forward to this meeting.
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CNH Industrial's (CNHI) decision to hive off the Iveco brand and powertrain business into a separate company is part of its new 2020-2024 business plan.
Fiat Chrysler will invest almost one billion euros ($1.1 billion) to start production of the new Alfa Romeo compact SUV Tonale and of the light hybrid version of its Panda small car at its Pomigliano plant, unions said on Wednesday. The investment is part of a FCA's plan announced last year to spend 5 billion euros in Italy up to 2021 to help the group launch its first electric and hybrid models and to fill capacity utilization at its Italian plants. FCA will start building the new production line for the Tonale at the start of next year, metal mechanic unions FIM, UILM, FISMIC, UGLM and AQCF said in a statement after meeting FCA.
Jeep is adding two special editions to its Wrangler lineup for the 2020 model year, including one that’s already familiar to brand enthusiasts.
Members of the United Auto Workers union overwhelmingly voted to give their leaders authorization to strike, if necessary, as the union negotiates this year with the "Big 3" American automakers: ...
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. A key U.S. factory gauge unexpectedly contracted for the first time since 2016, sending stocks and bond yields lower and boosting expectations for interest-rate cuts as global manufacturing woes deepen.The Institute for Supply Management’s purchasing managers index fell to 49.1 in August, weaker than all forecasts in a Bloomberg survey of economists, data released Tuesday showed. Figures below 50 indicate the manufacturing economy is generally shrinking. The group’s gauge of new orders dropped to a more than seven-year low, while the production index hit the lowest since late 2015.The data add to concern a broader U.S. recession is coming and may complicate the re-election chances of President Donald Trump, whose pledges to revive manufacturing have been a signature issue. At the same time, Trump’s escalating tariffs on imports from China have been a major reason behind factory weakness that threatens to spread to consumer spending, which accounts for about two-thirds of the world’s largest economy.In the U.S. stock market, the ISM numbers torpedoed a morning rebound and left the S&P 500 poised for its worst loss in seven sessions, down as much as 1.2% to erase almost half of last week’s rally. The 10-year Treasury yield and the dollar fell.Traders of fed funds futures boosted the amount of easing they expect from the U.S. central bank this year, following a July 31 quarter-point cut that was the first since 2008. For the next Fed decision on Sept. 18, investors increased bets on a half-point reduction but continued to lean toward a quarter-point cut.“This piece of data is part of the puzzle that helps to push us into recession,” said Quincy Krosby, chief market strategist at Prudential Financial Inc. “The ramifications of the trade war show up in the euro zone, in Asia and now in the U.S. If the deterioration in the U.S. continues, it’s going to feed into the overall labor market.”What Bloomberg’s Economists Say“To be sure, economic anxiety related to tariffs and increasing trade tensions is extracting a significant toll on business confidence. However, there was limited direct evidence of tariffs creating upward price pressures or materials shortages in the details of the report. As such, the second-order impacts from the tariffs (i.e. confidence effects and currency appreciation) appear to be having the more substantial impact.”-- Carl Riccadonna, chief U.S. economistAlthough manufacturing only makes up about 11% of the U.S. economy, there are concerns that entrenched weakness -- and any layoffs that may result -- could filter through to the rest of the economy and endanger the record-long expansion.Transportation equipment was one of seven industries in the ISM report to report shrinking business activity last month. Automakers, which report their August sales on Wednesday, account for some of the slowdown. General Motors Co. has ceased production this year at a car plant in Ohio and transmission factory in Michigan, two of the four U.S. sites that it has said aren’t being allocated future product. Other automakers are reducing production shifts, including Nissan Motor Co., Fiat Chrysler Automobiles NV and Honda Motor Co.Weakness in the automotive and electronics markets is also impacting 3M Co.’s bottom line. Sales and profit at the diversified manufacturer fell in the second quarter even as earnings topped expectations. At Caterpillar Inc., a slowdown in crude extraction from the Permian Basin, the largest U.S. oil patch, is reducing demand for machinery. What’s more, the equipment maker’s worldwide machine sales in June and July were up 4%, the slowest in two years.Manufacturing is technically already in a recession in the U.S. with a Fed measure of output declining in two consecutive quarters. The malaise is consistent with developments in the sector around the world. By one measure, global factory activity has contracted for four straight months.The ISM’s measure of new orders, which are tracked by some as a leading indicator of a downturn, declined to 47.2. It was the first time since December 2015 that the gauge fell below 50. ISM’s production gauge also sank below that mark, to 49.5 in August from 50.8.The slump in demand and output spilled over into the labor market as the ISM’s gauge of factory employment fell to 47.4, the lowest level since March 2016. That suggests this Friday’s employment report will show weakness in August manufacturing payrolls, which were surprisingly solid the previous two months.“It confirms that the weakness that we’ve been seeing for a number of months now on the global front and on the tariff front is really washing up to the U.S. shores,” said Gregory Daco, chief U.S. economist at Oxford Economics. “What’s important here is that it’s not just the current conditions that have deteriorated quite sharply but also the forward-looking components.”A measure of export orders, a proxy of overseas demand, sank to 43.3, the lowest reading since April 2009 during the depths of the last recession.A separate factory PMI from IHS Markit came in at 50.3 on Tuesday, showing manufacturing was barely expanding. Economists and investors tend to more closely follow the ISM report, which dates to 1931.The “shock effect” of the latest ISM report “adds to recession fears, and the components were also pretty weak,” said Jim Paulsen, chief investment strategist at the Leuthold Group, in an interview. “This does confirm that we’re not bottoming out yet in manufacturing in this country, and that’s significant.”(Adds companies in eighth and ninth paragraphs)\--With assistance from Chris Middleton, Elena Popina, Vildana Hajric and David Welch.To contact the reporter on this story: Reade Pickert in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Scott Lanman at email@example.com, Vince GolleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
General Motors (NYSE:GM) has seen off, for now, the danger of Tesla (NASDAQ:TSLA) overtaking it as America's most valuable car company.But GM stock and the company's financial results have barely budged since Mary Barra became CEO five years ago. The company also faces a host of new problems, including a president who seems determined to hammer it with misinformation.The latest tweets calling GM America's smallest car company, claiming its workforce is smaller than that of Ford Motor (NYSE:F) or Fiat Chrysler (NASDAQ:FCAU), are just wrong. Even journalists who printed the facts misrepresented the reality.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Best Tech Stocks to Buy Right Now That doesn't help as the company enters union contract negotiations. The current contract expires Sept. 14, and the United Auto Workers will be under pressure to be tough, facing their own corruption probe. GM Stock a Presidential Tweet War VictimWhat's clear is that GM is at risk of becoming yet-another victim of the trade war as well as the president's continuing tweet war.China is now GM's largest market. GM has 11 joint ventures in China, two subsidiaries, 58,000 employees and had 3.64 million sales there in 2018. In North America, by contrast, its sales were 3.5 million vehicles. It's not flooding the U.S. market with Chinese-made cars, but it is producing them where they're sold.China is also closer to fast-growing markets in India and Southeast Asia than Detroit is. Situating production near those markets makes financial sense. But it does mean GM now has more total workers in China than it has union workers in the U.S., of which it has about 46,000. Reporting on this fact is almost certain to hurt contract talks, which could easily lead to a strike.This isn't the only area where Trump is getting in GM's way. He's also angry that the industry is going along with California's efforts to rein-in car pollution, ignoring an administration waiver on mileage standards. Growing fleets of hybrid and all-electric cars, like the Chevy Bolt, mean they can meet tougher standards. GM Stock Has Bad FundamentalsEven without Trump's piling-on, General Motors has enough problems to make investors want to shy away from it.Over the last five years GM stock is up only 6.45%, while the average S&P stock is up 47%. It can still afford the 38 cents per share dividend, as it has averaged $1.57 per share of earnings over the last four quarters. The company's operating cash flow remains strong, at over $15 billion in 2018 and over $5 billion in just the last quarter.But the company's debt load has more than doubled under Barra, and while the dividend does yield 4.1% to current investors, at a time when the U.S. 30-year bond trades at under 2%, it has barely budged in five years. The dividend hasn't been raised since the end of 2015.While the price earnings multiple of 5.86 looks attractive, and the yield will make the average retiree smile, GM stock has barely budged since it returned to the public market in 2011. It lives, but it's going nowhere fast. Bottom Line on General Motors StockGM is a dividend stock you buy for income. GM can afford the dividend payout.But General Motors is facing many problems. It faces the turn toward all-electric and self-driving vehicles, a government that is doing it no favors, and a tough labor negotiation.Like other U.S. car makers, GM has practically abandoned the car market in favor of pick-up trucks and sport utility vehicles. It faces a challenging pricing environment and pressure on commodity costs.GM is the kind of great old American company, like General Electric (NYSE:GE), that I like to root for. But it's not the kind of company I like to invest in.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post General Motors Stock Yet Another Victim of Tweet Rampage appeared first on InvestorPlace.