|Bid||0.00 x 1800|
|Ask||0.00 x 800|
|Day's Range||111.75 - 112.71|
|52 Week Range||87.89 - 114.07|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
Tesla (TSLA) CEO Elon Musk was interviewed by the New York Times on August 16. In the candid interview, Musk answered a variety of questions that have been puzzling Tesla investors since he tweeted on August 7 that he’s “considering taking Tesla private at $420.
Can America Be Great Again without a Strong Auto Industry? In the previous part of this series, we discussed how President Donald Trump has criticized automakers (XLY) for moving their production outside the US. To avoid being on Trump’s hit list, many companies such as Ford (F), General Motors (GM), and Fiat Chrysler (FCAU) have highlighted plans to increase their investments in the US.
According to the latest data compiled by Reuters, 54% of the analysts covering Advance Auto Parts (AAP) recommended a “buy,” 38% recommended a “hold,” and 8% recommended a “sell.”
Since the time Donald Trump began his presidential campaign, he has targeted automakers (XLY) like Ford Motor Company (F) for the decision to move car production to Mexico. Since coming into power, Trump has kept a close eye on automakers to make sure they don’t move their car production out of the US.
Valuation multiples are commonly used in the automotive and auto industry to compare different businesses entities. We can only use valuation multiples to compare companies that are similar in nature in terms of size or financials.
According to the recent data compiled by Reuters, only 18% of analysts covering Ford stock (F) gave it “buy” ratings. By comparison, a much higher percentage of about 57% of analysts covering GM stock gave it “buy” ratings. These ratings were based on the consensus of 22 analysts covering Ford and 21 analysts covering GM as of August 14, 2018.
Can America Be Great Again without a Strong Auto Industry? In 2017, the biggest challenge for automakers was to generate more sales and keep their profitability intact at a time when US auto sales were softening. In the last few years, US passenger car sales have gone down significantly, while stronger truck sales have kept automakers’ hopes alive.
After Morgan Stanley’s upgrade on August 15, Chipotle Mexican Grill’s (CMG) stock price rose 6.6% to close the day at $525.89. Since the beginning of 2018, Chipotle’s stock has returned 82%. The strong performance in the first and second quarter of 2018 and the appointment of Brian Niccol as the company’s CEO in March have led to a rise in the company’s stock price.
In the previous part, we discussed Advance Auto Parts’ (AAP) second-quarter sales. In the second quarter, the company’s revenues and comp sales improved significantly. Now, we’ll discuss Advance Auto Parts’ margins in the second quarter.
In July 2018, Ford Motor Company’s (F) F-Series US truck sales were at 70,949 units, a 2.1% increase in sales on a YoY (year-over-year) basis. In June, the company saw sales of 79,204 units in the US, up 1.7% YoY. July 2018 was the 15th consecutive month that Ford reported YoY gains in its F-Series US sales.
Ford Motor Company (F) sold 194,026 vehicle units in the US market in July 2018, a 3.1% decrease from its US sales in July 2017. In the previous two months, the company reported YoY (year-over-year) gains in its US sales. In June 2018, Ford’s US sales went up by 1.2% to 230,635 vehicle units after witnessing a minor rise of 0.7% YoY in May.
Advance Auto Parts (AAP), the second-largest US auto parts retailer in 2017 by sales, released its second fiscal quarter earnings on August 14. The company’s second-quarter earnings cover the 16 weeks that ended on July 14. Advance Auto Parts’ adjusted EPS for the quarter was $1.97—24.7% higher than the EPS of $1.58 in the same quarter of the previous year.
In the last month, Ford Motor Company (F) stock has largely traded on a negative note. Since it reported its dismal second-quarter results on July 25, the stock has gone down by about 10% as of August 14. The company’s second-quarter adjusted earnings fell by ~52% YoY (year-over-year) to $0.27 per share and missed Wall Street analysts’ estimates of $0.31. The company also reported a 2.5% YoY decline in its revenue for the quarter, and its profitability also deteriorated. Before we explore Ford’s July US sales data in detail, let’s take a quick look at its stock performance.
Consumer discretionary ETFs may find support from strong consumer confidence and a tight labor market that helped fuel Americans' spending in the third quarter. According to the Commerce Department, retail sales - a measure of spending at U.S. stores, websites and restaurants - rose 0.5% in July month-over-month, compared to economists’ forecasts for a 0.1% gain, the Wall Street Journal reports. The growth in retail sales was driven by improved spending at grocery stores, restaurants, department stores and clothing stores.
In a tweet, Tesla’s (TSLA) CEO, Elon Musk, surprised the market by revealing that he’s “considering taking Tesla private at $420. While Musk’s tweet initially fueled a rallied in Tesla stock, the gain didn’t last long. On August 7, after Musk revealed his intention to take Tesla private, Tesla stock reached the highest level since October 2017.
Last week, Ferrari stock (RACE) continued to tank for the fourth consecutive week. On August 10, the stock settled at $120.63 with a fall of ~3.4%.
“We remain conﬁdent in the trajectory of the consumer recovery, as drivers of spending remain solid,” suggests Goldman Sachs consumer analyst Matthew Fassler. At least in Goldman Sachs’ opinion, it’s full speed ahead when it comes to consumer stocks. Goldman Sachs has offered investors 7 consumer stocks, but I’d like to provide alternatives.
Last week, Tesla (TSLA) stock continued to trade on a positive note for the second consecutive week despite continued weakness in other auto stocks. In the week that ended on August 10, TSLA rose 2.1%, extending its previous week’s 17.2% gain. TSLA ended the second quarter in positive territory with a 28.9% rise to become the top gainer among auto stocks in the quarter.
The second-largest auto part retailer by 2017 sales, Advance Auto Parts (AAP) released its fiscal second-quarter earnings earlier today. AAP’s adjusted EPS rose ~25.0% YoY (year-over-year) to $1.97, beating Wall Street’s estimate of $1.86. After its solid quarterly performance, the company raised its 2018 guidance.
ETFs with Home Depot holdings gained as the home improvement retail chain announced positive second-quarter earnings of $30.46.3 billion and an EPS of $3.05–both results beating analyst estimates of $30.03 ...
In the week that ended on August 10, Ford Motor Company (F) stock settled at $9.74, a fall of 3.0%. The stock has witnessed negative movements in eight of the last nine weeks.
As of August 13, the broader market has largely traded on a mixed note month-to-date, and the S&P 500 Index (SPY) has inched up by just 0.2%.