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Auto Stock Roundup: U.S. Auto Sales Drop, Ford Recalls, Honda to Wheel Out New Model
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Per an Autodata Corp. release, U.S. auto sales declined 3% in June on a year-over- year basis. Interestingly, this happened at a time when unemployment is down, gas prices and interest rates are low and consumer confidence is up.
In June, General Motors Company (GM - Free Report) and Ford Motor Company (F - Free Report) reported a decline in sales. The U.S. sales for Japanese automakers Toyota Motor Corporation (TM - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) too declined in June.
Consumers in the U.S. continued preferring larger pickup trucks and SUVs to passenger cars. Also, a glut of nearly new used vehicles raised competition in new vehicle sales. Consequently, automakers have relied on discounts and relaxed lending terms.
1. Per Autodata, U.S. light-vehicle sales dropped 3% year over year to 1.47 million units in June. Total sales on a seasonally adjusted annualized rate (SAAR)-basis declined to 16.50 million units in Jun 2017 from 16.80 million units in Jun 2016 and 16.66 million units in May 2017.
Product segments wise, passenger car saw a steep year-over-year decline of 13.2% in June. However, in the light trucks category, the month saw a rise of 4.2%.
2. Ford is issuing one safety recall and two safety compliance recalls for its Ford Transit van/bus vehicles in North America.
Roughly, 402,462 Ford van/bus vehicles with medium, long and extended wheelbases and chassis cab/cutaways with medium wheelbases are going to be replaced with driveshaft flexible coupling.
3. Honda has recently updated the third generation five-door subcompact Honda Fit in its 2018 model year. Apart from changes in the model’s outer experience, substantial upgrade has been done in its technology and features.
All Fit models already offer driver-assistive and safety features. A few are Honda sensing suite of advanced safety and driver assistive technologies including Collision Mitigation Braking (CMBS) and Road Departure Mitigation (RDM). This makes Fit the only car in America to acquire such state-of-the-art features under this segment (read more: Honda to Wheel Out Brand New 2018 Honda Fit Shortly).
Currently, Honda has a Zacks Rank # 3.
4. Tesla Inc. (TSLA - Free Report) reported total sale of 22,000 Model S and Model X sport-utility vehicles in the second quarter, an increase of 53% from the year-ago period. However, the figure missed the average quarter target of 23,655 deliveries. Despite that, the company met its target to deliver 47,000 to 50,000 vehicles in the first-half of the year, with 47,100 vehicle deliveries.
Tesla’s sales were curbed by the production deficit of battery packs, which till late June led to a production shortfall of approximately 40%, which was below the demand. Once this production shortfall was resolved, June deliveries were strong, making it as one of the best in the company’s history (read more: Tesla Reveals Quarterly Vehicle Sales & Delivery).
Tesla also carries a Zacks Rank # 3.
5. General Motors reported June U.S. retail sales of 202,908 vehicles, a decline of 3% from the year-ago quarter. However, the company’s crossover retail sales segment of U.S. pegged up 23%, from the year-ago period. The increase was mainly due to Chevrolet Equinox unit volume, which was up 36% in June. Buick’s U.S. retail sales were up 6%.
General Motors carries a Zacks Rank # 3.
Performance
Among these stocks, Tesla recorded steepest decline in the last one week. However, in the last six months, Tesla reported highest increase. Biggest increase was recorded by Toyota in the last one week.
In the last six months, AutoZone, Inc. (AZO - Free Report) recorded the steepest decline.
Company
Last 1-Week Period
Last 6 Months
GM
1.2%
-2.8%
F
1.9%
-10.5%
TSLA
-11.9%
41.5%
TM
3.1%
-9.4%
HMC
1.1%
-8.7%
HOG
-1.4%
-7.2%
AAP
-9.9%
-37.9%
AZO
-9.2%
-34.6%
What’s Next in the Auto Space?
A few automakers will report their Europe sales data for June and first-half 2016 in the coming weeks.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Auto Stock Roundup: U.S. Auto Sales Drop, Ford Recalls, Honda to Wheel Out New Model
Per an Autodata Corp. release, U.S. auto sales declined 3% in June on a year-over- year basis. Interestingly, this happened at a time when unemployment is down, gas prices and interest rates are low and consumer confidence is up.
In June, General Motors Company (GM - Free Report) and Ford Motor Company (F - Free Report) reported a decline in sales. The U.S. sales for Japanese automakers Toyota Motor Corporation (TM - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) too declined in June.
Consumers in the U.S. continued preferring larger pickup trucks and SUVs to passenger cars. Also, a glut of nearly new used vehicles raised competition in new vehicle sales. Consequently, automakers have relied on discounts and relaxed lending terms.
(Read: Auto Stock Roundup for the week ending Jun 29, 2017)
Recap of the Week’s Most Important Stories
1. Per Autodata, U.S. light-vehicle sales dropped 3% year over year to 1.47 million units in June. Total sales on a seasonally adjusted annualized rate (SAAR)-basis declined to 16.50 million units in Jun 2017 from 16.80 million units in Jun 2016 and 16.66 million units in May 2017.
Product segments wise, passenger car saw a steep year-over-year decline of 13.2% in June. However, in the light trucks category, the month saw a rise of 4.2%.
2. Ford is issuing one safety recall and two safety compliance recalls for its Ford Transit van/bus vehicles in North America.
Roughly, 402,462 Ford van/bus vehicles with medium, long and extended wheelbases and chassis cab/cutaways with medium wheelbases are going to be replaced with driveshaft flexible coupling.
Of the total recalls in North America, 370,630 are of U.S., 2,361 of federalized territories, 3,217 of Mexico and 26,254 of Canada (read more : Ford to Recall Models for Safety Issues in North America).
Ford carries a Zacks Rank # 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3. Honda has recently updated the third generation five-door subcompact Honda Fit in its 2018 model year. Apart from changes in the model’s outer experience, substantial upgrade has been done in its technology and features.
All Fit models already offer driver-assistive and safety features. A few are Honda sensing suite of advanced safety and driver assistive technologies including Collision Mitigation Braking (CMBS) and Road Departure Mitigation (RDM). This makes Fit the only car in America to acquire such state-of-the-art features under this segment (read more: Honda to Wheel Out Brand New 2018 Honda Fit Shortly).
Currently, Honda has a Zacks Rank # 3.
4. Tesla Inc. (TSLA - Free Report) reported total sale of 22,000 Model S and Model X sport-utility vehicles in the second quarter, an increase of 53% from the year-ago period. However, the figure missed the average quarter target of 23,655 deliveries. Despite that, the company met its target to deliver 47,000 to 50,000 vehicles in the first-half of the year, with 47,100 vehicle deliveries.
Tesla’s sales were curbed by the production deficit of battery packs, which till late June led to a production shortfall of approximately 40%, which was below the demand. Once this production shortfall was resolved, June deliveries were strong, making it as one of the best in the company’s history (read more: Tesla Reveals Quarterly Vehicle Sales & Delivery).
Tesla also carries a Zacks Rank # 3.
5. General Motors reported June U.S. retail sales of 202,908 vehicles, a decline of 3% from the year-ago quarter. However, the company’s crossover retail sales segment of U.S. pegged up 23%, from the year-ago period. The increase was mainly due to Chevrolet Equinox unit volume, which was up 36% in June. Buick’s U.S. retail sales were up 6%.
General Motors carries a Zacks Rank # 3.
Performance
Among these stocks, Tesla recorded steepest decline in the last one week. However, in the last six months, Tesla reported highest increase. Biggest increase was recorded by Toyota in the last one week.
In the last six months, AutoZone, Inc. (AZO - Free Report) recorded the steepest decline.
Company
Last 1-Week Period
Last 6 Months
GM
1.2%
-2.8%
F
1.9%
-10.5%
TSLA
-11.9%
41.5%
TM
3.1%
-9.4%
HMC
1.1%
-8.7%
HOG
-1.4%
-7.2%
AAP
-9.9%
-37.9%
AZO
-9.2%
-34.6%
What’s Next in the Auto Space?
A few automakers will report their Europe sales data for June and first-half 2016 in the coming weeks.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>