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American Axle (AXL) Up 30% in 3 Months: What's Driving it?
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Shares of American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) have gained around 30.2% over the last three months. This Detroit, MI-based manufacturer and designer of driveline and drivetrain systems has also outperformed its industry’s gain of 11.7% in the same time frame.
American Axle has a market cap of roughly $2 billion. Currently, the stock sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. VGM is constructed by taking into consideration the value, growth and momentum aspect of a stock. Also, the stock has seen the Zacks Consensus Estimate for current-quarter earnings per share being revised 7% upward to 76 cents over the last 30 days.
Let’s take a look into the factors that are driving this stock of late.
Driving Factors
In early November, American Axle reported third-quarter fiscal 2017 (ended Sep 30, 2017) adjusted earnings per share of 86 cents, beating the Zacks Consensus Estimate of 64 cents. Also, quarterly revenues surpassed the Zacks Consensus Estimate. According to its Chairman & Chief Executive Officer, David C. Dauch, “third quarter performance was highlighted by continued sales growth, business diversification and cash flow generation as a result of our recent strategic actions and the realization of our new and incremental business backlog.”
Moreover, for fiscal 2017, the company anticipates sales to be in the range of $6.2-$6.25 billion compared with the previous projection of around $6.1 billion. The sales projection is also higher than $3.95 billion recorded last year. The guidance is based on the introduction of programs in the company’s new and incremental business backlog.
Currently, the company has a historical EPS growth rate (three to five years) of 36.1%, whereas the growth rate for the industry and the S&P 500 index are 11.2% and 6.8%, respectively.
Cummins has an expected long-term growth rate of 12.2%. The stock has seen the Zacks Consensus Estimate for current-quarter earnings per share being revised 2.4% upward to $2.60 over the last 30 days.
Volvo has an expected long-term growth rate of 15%. Year to date, shares of the company have gained 64.7%.
Wabco Holdings has an expected long-term growth rate of 15%. Its shares have rallied 38.6%, year to date.
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.
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American Axle (AXL) Up 30% in 3 Months: What's Driving it?
Shares of American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) have gained around 30.2% over the last three months. This Detroit, MI-based manufacturer and designer of driveline and drivetrain systems has also outperformed its industry’s gain of 11.7% in the same time frame.
American Axle has a market cap of roughly $2 billion. Currently, the stock sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. VGM is constructed by taking into consideration the value, growth and momentum aspect of a stock. Also, the stock has seen the Zacks Consensus Estimate for current-quarter earnings per share being revised 7% upward to 76 cents over the last 30 days.
Let’s take a look into the factors that are driving this stock of late.
Driving Factors
In early November, American Axle reported third-quarter fiscal 2017 (ended Sep 30, 2017) adjusted earnings per share of 86 cents, beating the Zacks Consensus Estimate of 64 cents. Also, quarterly revenues surpassed the Zacks Consensus Estimate. According to its Chairman & Chief Executive Officer, David C. Dauch, “third quarter performance was highlighted by continued sales growth, business diversification and cash flow generation as a result of our recent strategic actions and the realization of our new and incremental business backlog.”
Moreover, for fiscal 2017, the company anticipates sales to be in the range of $6.2-$6.25 billion compared with the previous projection of around $6.1 billion. The sales projection is also higher than $3.95 billion recorded last year. The guidance is based on the introduction of programs in the company’s new and incremental business backlog.
Currently, the company has a historical EPS growth rate (three to five years) of 36.1%, whereas the growth rate for the industry and the S&P 500 index are 11.2% and 6.8%, respectively.
Other Stocks to Consider
Other top-ranked stocks in the auto space include Cummins Inc. (CMI - Free Report) , AB Volvo (VLVLY - Free Report) and Wabco Holdings Inc. . While Cummins and Volvo sport a Zacks Rank #1, Wabco Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cummins has an expected long-term growth rate of 12.2%. The stock has seen the Zacks Consensus Estimate for current-quarter earnings per share being revised 2.4% upward to $2.60 over the last 30 days.
Volvo has an expected long-term growth rate of 15%. Year to date, shares of the company have gained 64.7%.
Wabco Holdings has an expected long-term growth rate of 15%. Its shares have rallied 38.6%, year to date.
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>>