Back to top

Image: Bigstock

Fiat Chrysler to Sell Comau to Focus More on Core Business

Read MoreHide Full Article

Per Bloomberg, Fiat Chrysler Automobiles N.V. is mulling over selling its robotics arm, Comau, for $1.7 billion to $2.3 billion. Notably, the sale of its non-core business will allow it to concentrate more on manufacturing and selling of vehicles. Given the present problems faced by automakers due to trade face-offs, waning vehicle sales in China and stringent regulations, the company is reorienting its business.

Fiat Chrysler is engaged in designing, engineering, manufacturing, distributing and selling of vehicles and components production systems. In order to become fully compliant with emissions regulations, this seventh largest automaker in the world chalked out a plan in June to invest €9 billion (£7.88 billion) in electric and hybrid vehicles over the next five years.

However, the final decision has not been taken yet on the sale of the unit that manufactures automated systems and industrial robots. People familiar with the development stated that the sale process could start in early 2019 and it could attract bidders from China.

In the past year, Fiat Chrysler has outperformed the industry it belongs to. The company’s shares have declined 1.9% over this period, whereas the industry plunged 23.9%.



Zacks Rank & Key Picks

Currently, Fiat Chrysler has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and AutoZone, Inc. (AZO - Free Report) . While Allison Transmission and Fox Factory sport a Zacks Rank #1 (Strong Buy), AutoZone carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 11.3%.

Fox Factory has an expected long-term growth rate of 17.2%. Over the past six months, shares of the company have risen 67.7%.

AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have risen 29.4 %.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>
 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AutoZone, Inc. (AZO) - free report >>

Allison Transmission Holdings, Inc. (ALSN) - free report >>

Fox Factory Holding Corp. (FOXF) - free report >>

Published in