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CNH Industrial (CNHI) Gains But Lags Market: What You Should Know

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CNH Industrial (CNHI - Free Report) closed at $17.44 in the latest trading session, marking a +0.4% move from the prior day. This move lagged the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 6.59%.

Coming into today, shares of the truck, tractor and bus maker had gained 8.77% in the past month. In that same time, the Auto-Tires-Trucks sector gained 8.65%, while the S&P 500 gained 4.58%.

Investors will be hoping for strength from CNH Industrial as it approaches its next earnings release, which is expected to be February 2, 2023. The company is expected to report EPS of $0.36, up 44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.31 billion, down 30.47% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for CNH Industrial. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. CNH Industrial is currently a Zacks Rank #3 (Hold).

Digging into valuation, CNH Industrial currently has a Forward P/E ratio of 10.69. For comparison, its industry has an average Forward P/E of 7.23, which means CNH Industrial is trading at a premium to the group.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CNHI in the coming trading sessions, be sure to utilize Zacks.com.


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