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Dana Holding Corp

by Bill Wilton

October 24, 2011 | Comments : 0 Recommended this article: (0)
DAN

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Dana Holding Corp (DAN - Snapshot Report) is a Zacks #1 Rank (Strong Buy) set to report later this week. Shares are cheap here and a solid announcement could help the stock breakout of the current range.

Company Description

Dana makes driveline products, power technologies, and other parts for light and heavy-duty vehicles. The company is headquartered in Ohio but has customers around the world.

Upcoming Surprise?

The company is set to report earnings results on Oct 27. Estimates are on the rise and Dana raised its guidance in the last earnings release, so there could be a positive surprise on deck.

Full-year estimates for 2011 are averaging $1.67, up 7 cents, in the past 3 months. Next year's Zacks Consensus Estimate s up 2 cents, to $1.96. That puts growth rates at 111% and 18%, respectively.

Shares are Cheap

Thanks to a huge pull back and the rising estimates, the forward P/E is just 8 times right now. The price to sales is under 0.3 times and the stock is trading at 1.75 times book value.

Earnings History

Dana doesn't have an impeccable track record, but has topped the street's expectations in 4 of the past 5 quarters. Back in July the company reported EPS of $0.45, 8 cents better than expected. Sales were up 25% to $1.9 billion.

Comments from management focused on improving markets and strong momentum moving forward. Additionally, Dana raised its guidance, which bodes well for the upcoming earnings release.

The Chart

Shares of DAN have been hitting some resistance at this point, but a nice earnings report could be just what they need to push past this level.

Dana Holding Corp  - ticker DAN>
 
 
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Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

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