103.51 +0.02 (0.02%)
After hours: 4:00PM EST
|Bid||103.74 x 800|
|Ask||103.75 x 800|
|Day's Range||102.74 - 105.26|
|52 Week Range||97.10 - 118.13|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.07|
|Expense Ratio (net)||0.13%|
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.
On December 3, Ford (F) released its November US sales data. The company sold ~196,303 vehicle units in November in its home market—down 6.9% YoY (year-over-year). The company’s US sales in all of the segments by vehicle type fell last month. In November, Ford’s car, truck, and SUV sales fell 19.5%, 2.3%, and 4.9%, respectively. In this part, we’ll discuss how F-Series sales performed in November.
On December 1, President Trump and President Jinping met in Argentina. They’re in Argentina for the G20 summit. The leaders of the world’s two-largest economies discussed trade-related issues and agreed to pause additional tariffs for the next 90 days. The US and China will continue to negotiate the terms to reach an agreement by the end of the 90-day period. On December 2, President Trump’s tweet that “China has agreed to reduce and remove tariffs on cars coming into China from the U.S.” drove the broader market (QQQ), including auto stocks, higher on December 3.
Of the 30 Reuters-surveyed analysts covering Tesla (TSLA), ~30% recommend “buy,”~37% recommend “hold,” and ~33% recommend “sell.” Their consensus target price of $327.67 for Tesla stock is 5.8% lower than its November 28 market price of $347.87. Three months ago, analysts’ target price was $322.38.
Previously, we looked at analysts’ views on Ford (F). The company’s F-Series pickup trucks have been America’s best-selling trucks for over four decades. Despite the company’s increasing focus on electric vehicles (XLY) and autonomous vehicles, Ford stock has underperformed peers this year. In 2017, Ford stock inched up by 3.0% while General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM) rose ~17.7%, 96.4%, and 8.5%, respectively. This year, Ford has fallen 23.8%, while the S&P 500 has risen 0.3%.