|Bid||103.19 x 2200|
|Ask||107.78 x 3000|
|Day's Range||104.39 - 105.83|
|52 Week Range||97.10 - 118.13|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.07|
|Expense Ratio (net)||0.13%|
In November 2018, Ford Motor Company’s (F) F-Series truck US sales were at 72,102 units, a 0.9% sales decline on a YoY basis. In October, 70,438 units of F-Series trucks were sold in the US, down 7.3% YoY. Moreover, the company’s F-Series sales have tanked by 5.8% YoY in the last three months combined in its home market. Until August 2018, F-Series US sales rose for 16 consecutive months on a YoY basis. August 2018 was also the best August for F-Series sales since 2005.
Ford Motor Company (F) sold 196,303 vehicle units in the US market in November 2018, a 6.9% decrease from its US sales of 210,771 units in the same month of 2017. In October, the company also reported a 3.9% YoY drop to 192,616 units. Nonetheless, Ford’s November sales were higher than Japanese automaker Toyota’s (TM) US sales of 190,423 units and Fiat Chrysler’s (FCAU) sales of 181,310 units.
Ford Motor Company’s (F) stock ended October on a positive note with 3.2% gains despite a 6.9% drop in the S&P 500 Index. This equation reversed in November when Ford lost 1.5%, and the S&P 500 rose by 1.8%. The stock witnessed a sharp recovery after its third-quarter earnings event on October 24. The company’s third-quarter adjusted earnings fell by ~33.0% YoY to $0.29 per share, but earnings were marginally better than Wall Street analysts’ estimates of $0.28. Ford reported about a 3.0% YoY rise in its revenue for the quarter, while its profitability deteriorated. ...
Tesla’s exponentially rising Model 3 production rate has also made Tesla short-sellers lose money. In a recent interview with CNBC, billionaire investor Paul Tudor Jones didn’t seem very happy with Tesla. Jones, while answering a question about automakers (XLY) and focusing on Tesla, said, “They don’t do a great job on worker pay and treatment.
As of December 10, Chipotle Mexican Grill (CMG) was trading at $475.15, which represents a rise of 12.1% since the announcement of its third-quarter earnings on October 25. Chipotle’s stock price was driven by investors’ optimism surrounding its implementation of digital advancements and customer’s positive response to its “For Real” marketing campaign, which started in late September. In the third quarter, which ended on September 30, Chipotle posted an adjusted EPS of $2.16, which beat analysts’ expectation of $2.0.
Since President Donald Trump began his presidential campaign, he has been targeting auto companies (XLY) for cutting jobs and making US auto workers suffer. On many occasions, he has openly spoken out against large auto companies, including General Motors (GM), Ford Motor Company (F), and Toyota Motors (TM), for selling foreign-made vehicles in the US market.
Let’s see where Tesla stock might be headed this time. On December 7, Jefferies upgraded its “hold” rating on Tesla to “buy,” according to a CNBC report. Jefferies also raised its target price for Tesla stock to $450 from $360.
On Vale Day on December 4, 2018, Vale (VALE) said it is getting ready for the coming electric vehicle revolution. Previously, the company had cut back on its volumes in base metals to better align production with market conditions. Nickel, cobalt, and lithium are used in rechargeable batteries in electric vehicles.
In the week that ended on December 7, the broader market turned negative again after seeing a recovery in the final week of November.
On December 7, Tesla (TSLA) posted a daily high of $379.44, not far from its all-time high of $389.61. The last time Tesla was hovering near this level was in August following Tesla CEO Elon Musk’s tweet that said, “Considering taking Tesla private at $420. It’s been some time now since Musk publically slammed Tesla short-sellers.
In the first quarter of fiscal 2019, AutoZone’s gross profit was $1.42 billion, ~3.8% higher than $1.36 billion in the first quarter of 2018. With this, the company’s gross margin came in at 53.7%, higher than 52.8% a year ago and 53.6% in the fourth quarter of fiscal 2018. AutoZone’s fiscal 2019 first-quarter adjusted net profit stood at $351 million, up 25.1% YoY (year-over-year), with a strong net profit margin of 13.3%.
In the previous article, we looked at how AutoZone (AZO) launched next-day delivery in 80 markets in the United States. In the first quarter of fiscal 2019, AutoZone had commercial programs in 4,766 stores in its home market, reflecting a 3.1% rise from 4,622 in the first quarter of fiscal 2018. The company opened 149 new commercial programs in fiscal 2018, slightly lower than AutoZone’s original plan to open ~150 new programs.
AutoZone (AZO) generates revenue by selling auto parts and accessories primarily in the US market, Puerto Rico, Mexico, and Brazil. In the last three years, US auto companies (XLY), including General Motors (GM) and Ford Motor Company (F), have benefited from strong US demand for utility vehicles and trucks.
Tesla (TSLA) started December on a positive note. As of December 4, the stock had risen 2.6% despite 2.2% losses in the S&P 500 index. Today, TSLA is extending these gains. It was trading with 0.9% gains at 2:22 PM EST against 1.5% losses in the S&P 500 index. At the same time, Tesla’s Chinese peer NIO (NIO) was up 2.3%. However, NIO has lost 8.2% in December so far.
McDonald’s (MCD) stock rose 6.6% in November on investor optimism surrounding the company’s initiative to modernize its restaurants, which included the implementation of self-order kiosks, the remodeling of its restaurants, and the expansion of its deployment of the Experience of the Future initiative. The company’s stock price was also positively affected by Morgan Stanley’s upgrade on November 29. The upgrade led MCD to hit a 52-week high of $190.88 on the day.
O’Reilly Automotive (ORLY) stock has risen 11.9% month-to-date, while AutoZone (AZO) has risen 13.7% and Advance Auto Parts (AAP) has risen ~12.0%. Meanwhile, the S&P 500 has fallen 1.1%. A broader market sell-off took a toll on auto part stocks in October, with O’Reilly, AutoZone, and Advance Auto Parts falling 7.7%, 5.4%, and 2.6%, respectively.
In the week that ended on November 30, Ford Motor Company (F) stock settled at $9.41, a 3.1% rise from the previous week’s closing price.
America’s top auto parts retailer (XLY) by store count, AutoZone (AZO), has released its results for the first quarter of fiscal 2019 (the 12 weeks ended November 17, 2018). The company’s first-quarter adjusted earnings jumped 34.7% YoY (year-over-year) to $13.47 per share—better than analysts’ estimates of $12.21 per share. After the earnings release, the stock rallied. At 10:55 AM EST, AZO was up 7.3%. At the same time, O’Reilly Automotive (ORLY), Advance Auto Parts (AAP), and General Motors (GM) were trading up 1.7%, up 1.2%, and down 2.3%, respectively from their closing prices yesterday.
This year, Harley-Davidson (HOG) stock has fallen ~15.9%. The stock fell 15.6% in October alone, but has recovered by 12.0% this month. In comparison, auto stocks (XLY) Honda (HMC), Ford (F), and Ferrari (RACE) have fallen 1.6%, 1.5%, and 7.5% month-to-date, respectively. In 2017, HOG held the largest share of the US heavyweight motorcycle market, but underperformed other auto stocks and fell ~12.8%.
Ferrari stock (RACE) has fallen ~7.5% this month after falling 14.5% in October. The fourth-quarter broader market sell-off has affected the Italian luxury carmaker the most among automakers. RACE has outperformed legacy auto companies and the broader market for the last two years. In 2016 and 2017, the stock rose ~21% and 80.3%, respectively, attracting auto investors’ attention. In comparison (XLY), Tesla (TSLA), General Motors (GM), and Ford (F) rose 45.7%, 17.7%, and 3.0%, respectively, in 2017.
In the next 90 days, the Trump administration is expected to continue negotiating to reach an agreement with China. Now, let’s take a look at Trump’s recent tweet about China reducing tariffs. Should automakers celebrate?
Of Reuters-surveyed analysts, about 50%, 71%, and 55% recommend “buy” for AutoZone (AZO), O’Reilly Automotive (ORLY), and Advance Auto Parts (AAP) stock, respectively, while 45%, 29%, and 45% recommend “hold.” Only AutoZone received “sell” recommendations, from 5% of analysts.
In the previous part of this series, we looked at a key development in the US-China trade war. On Saturday, December 1, US president Donald Trump and his Chinese counterpart Xi Jinping met during their visit to Argentina to participate in the G20 summit. Both leaders agreed not to escalate the trade tensions for the next 90 days.
Stocks fell dramatically Monday morning only to claw their way back. Yahoo Finance's Adam Shapiro, Seana Smith and Andy Serwer talk to Jimmy Lee, CEO of Wealth Consulting Group.