|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||102.56 - 104.27|
|52 Week Range||87.89 - 109.34|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
A big battle is brewing to replace Paul Ryan as House Speaker. Yahoo Finance’s Alexis Christoforous and Greg Valliere, Chief Global Strategist at Horizon Investments, discuss how Ryan’s announcement will impact the midterm elections.
Here’s a quick wrap up of other headlines making news today.
The Congressional Budget Office says the tax cuts and explosion in federal spending will drive the deficit past $1 trillion by 2020. Yahoo Finance’s Alexis Christoforous, Julia La Roche, and Melody Hahm discuss the economic impact.
According to Reuters, of the 24 analysts covering Fiat Chrysler (FCAU) on April 18, 2018, 46% recommended “buy,” 42% recommended “hold,” and 12% recommended “sell.” As of April 18, Fiat Chrysler had a market capitalization of ~$24 billion, which was much lower than General Motors‘ (GM), Ford‘s (F), and Tesla’s (TSLA) market caps of $53 billion, $43 billion, and $50 billion, respectively. Analysts’ 12-month target price for Fiat Chrysler was $32.43, ~33.5% higher than its market price of $24.29.
On April 17, 2018, Ford (F) stock was trading at $11.38. Since posting a 52-week low of $10.14 on March 2, 2018, the company’s stock has recovered ~12.2%. Ford stock stayed below a downward sloping trendline for two years until September 2017, when it violated the trendline, reflecting a gradual positive shift. Let’s look at some key support and resistance areas in Ford stock ahead of its 1Q18 earnings event.
In February 2018, Ford gave dismal guidance for fiscal 2018, forecasting adjusted EPS (earnings per share) of $1.45–$1.70, lower than its adjusted EPS of $1.78 in 2017. Ford expects its 2018 revenue to be flat or moderately higher than its 2017 revenue, and its operating cash flow to be positive but lower than its 2017 cash flow. This guidance was based on US auto sales being expected to decline in 2018. However, as US light-vehicle sales rose 1.9% YoY (year-over-year) in 1Q18, we can’t deny the possibility of Ford revising its guidance upward.
Sigman sees an "absolute and relative opportunity" to buy into the sector as we move through the spring season, which should see comparable-store sales improve incrementally. His picks to play this trend are Advanced Auto Parts (AAP) and AutoZone (AZO). AutoZone is down 1% to $603 this morning, while Advance Auto is down 0.2% to $107.17.
Thanks a lot, Big Blue. IBM drags on the Dow while the S&P and Nasdaq maintain gains as earnings season rolls on. Plus, a market warning sign is flashing red for the first time since 2007. And, Roku gets slammed as Amazon and Best Buy team up, but is the sell off overdone for the streaming device maker? Plus, ‘metal fatigue’ is blamed for yesterday’s Southwest mid-air accident. Are GE and Boeing set for blame? Catch The Final Round at 3:55 ET p.m., with Jen Rogers and Yahoo Finance markets correspondent Myles Udland and editor-in-chief Andy Serwer.
According to Reuters, of the analysts covering AutoZone (AZO), O’Reilly Automotive (ORLY), and Advance Auto Parts (AAP) on April 11, 2018, ~44%, ~68%, and ~44% recommended “buy,” respectively, and 52%, 44%, and 32% recommended “hold.” Interestingly, 4% and 12% of analysts recommended “sell” for AZO and AAP, and there were no “sell” recommendations for O’Reilly.
With the US-China trade war tensions easing, last week was positive overall for the sectors in the S&P 500. The S&P 500 Index (SPY) was up ~2.0%. All the sectors in the S&P 500 rose with the exception of the utility sector, which saw a slight slide.
According to Reuters, of the analysts covering Harley-Davidson (HOG) stock, most (71%) have recommended “hold.” Approximately 24% have recommended “buy” and 5% have maintained a bearish view, recommending “sell.” On April 11, analysts’ target price for Harley-Davidson was $49.71 for the next 12 months, reflecting an 18.2% upside potential based on its market price of $42.05. Analysts’ target price for HOG stock has fallen over the last three months, from $51.86.
Chipotle Mexican Grill (CMG) is scheduled to post its 1Q18 earnings after the market closes on April 25. As of April 13, Chipotle was trading at $318.36, which represents growth of 4.6% since the announcement of its 4Q17 earnings on February 6, 2018.
According to Reuters, of the 26 analysts covering Tesla (TSLA) stock on April 11, 2018, ~35% recommended “buy,” 35% recommended “hold,” and 30% recommended “sell.” Analysts’ 12-month target price for Tesla stock was $320.17, reflecting an upside potential of ~6.4% based on its closing price of $320.17 on April 11.
In March 2018, US light vehicle sales rose ~6.3% YoY (year-over-year) after falling ~2.4% YoY in February. Despite weakness in passenger car sales, stronger demand for pickup trucks and SUVs (sports utility vehicles) continued to support US automakers. According to Autodata., US truck sales rose 16.3%, while passenger car sales fell 9.2% YoY in March. In 1Q18, US light vehicle sales stayed in positive territory, rising 1.9% YoY.
US-China trade war tensions continued to affect the consumer sector last week. The S&P 500 (SPY) fell 1.4%, with all of its sectors being affected by the technology sector slide as well. However, the retail sector gained last week.
In March 2018, Fiat Chrysler Automobiles (FCAU) sold 2,576 car units of its luxury brand, Alfa Romeo, in the US market compared to the 555 car units it sold in March 2017. This sharp increase in Alfa Romeo sales can be attributed to solid demand for the company’s recent launches, the Stelvio SUV (sport-utility vehicle) and Giulia models.
Previously in this series, we looked at how investors reacted to Tesla’s (TSLA) 1Q18 vehicle deliveries and production data. Investors’ high expectations for the company could be one of the reasons for these gains after the company revealed that Model 3 production increased by 303% quarter-over-quarter in 1Q18. Now, let’s move on by looking at some key factors that could drive Tesla’s valuation multiples in the coming months.