On Aug 19, we issued an updated research report on Honda Motor Co., Ltd. (HMC - Free Report) .
The company is a leading manufacturer of automobiles and the largest producer of motorcycles in the world. It is recognized internationally for its wide variety of products, ranging from small general-purpose engines to specialty sports cars, which incorporate its efficient internal combustion engine technologies.
In first-quarter fiscal 2020, the company reported operating profit of ¥252.4 billion, down 15.7% from the year-ago period. The decline can be attributed to high selling, general and administrative expenses; adverse impacts of foreign currency; and lowered sales revenues. The negative factors were partly offset by continuous cost-reduction efforts.
In fact, the company has been facing higher operating costs and expenses recently, thanks to rising research and development costs. Also, Honda has been embroiled into several recall crises lately. In fact, it is the largest customer of the faulty Takata airbags that can explode and shoot out metal fragments after a crash.
However, through the company’s Vision 2030 strategy, it is focusing on strategies to boost coordination between research and development as well as procurement and manufacturing of products. Further, it is undertaking frequent collaborations to expand business. Moreover, the company boasts strong financial position.
In the past three months, shares of Honda have underperformed the industry it belongs to. Shares of the company have lost 9.4% against the industry’s growth of 1.8%.
Zacks Rank & Stocks to Consider
Currently, Honda carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Fox Factory Holding Corp (FOXF - Free Report) , CarMax, Inc. (KMX - Free Report) and Gentex Corporation (GNTX - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has an expected long-term growth rate of 16.7%. In the past six months, shares of the company have rallied 23.2%.
CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have risen 37.8%.
Gentex has an expected long-term growth rate of 5%. In the past six months, shares of the company have returned 30.2%.
Legalizing THIS Could Be Even Bigger than Marijuana
Americans spend an estimated $150 billion in this industry every year… more than twice as much as they spend on marijuana.
Now that 8 states have fully-legalized it (with several more states following close behind), Zacks has identified 5 stocks that could soar in response to the powerful demand. One industry insider described the future as “mind-blowing” – and early investors can still get in ahead of the surge.
See these 5 “sin stocks” now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Aug 19, we issued an updated research report on Honda Motor Co., Ltd. (HMC - Free Report) .
The company is a leading manufacturer of automobiles and the largest producer of motorcycles in the world. It is recognized internationally for its wide variety of products, ranging from small general-purpose engines to specialty sports cars, which incorporate its efficient internal combustion engine technologies.
In first-quarter fiscal 2020, the company reported operating profit of ¥252.4 billion, down 15.7% from the year-ago period. The decline can be attributed to high selling, general and administrative expenses; adverse impacts of foreign currency; and lowered sales revenues. The negative factors were partly offset by continuous cost-reduction efforts.
In fact, the company has been facing higher operating costs and expenses recently, thanks to rising research and development costs. Also, Honda has been embroiled into several recall crises lately. In fact, it is the largest customer of the faulty Takata airbags that can explode and shoot out metal fragments after a crash.
However, through the company’s Vision 2030 strategy, it is focusing on strategies to boost coordination between research and development as well as procurement and manufacturing of products. Further, it is undertaking frequent collaborations to expand business. Moreover, the company boasts strong financial position.
In the past three months, shares of Honda have underperformed the industry it belongs to. Shares of the company have lost 9.4% against the industry’s growth of 1.8%.
Zacks Rank & Stocks to Consider
Currently, Honda carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Fox Factory Holding Corp (FOXF - Free Report) , CarMax, Inc. (KMX - Free Report) and Gentex Corporation (GNTX - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has an expected long-term growth rate of 16.7%. In the past six months, shares of the company have rallied 23.2%.
CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have risen 37.8%.
Gentex has an expected long-term growth rate of 5%. In the past six months, shares of the company have returned 30.2%.
Legalizing THIS Could Be Even Bigger than Marijuana
Americans spend an estimated $150 billion in this industry every year… more than twice as much as they spend on marijuana.
Now that 8 states have fully-legalized it (with several more states following close behind), Zacks has identified 5 stocks that could soar in response to the powerful demand. One industry insider described the future as “mind-blowing” – and early investors can still get in ahead of the surge.
See these 5 “sin stocks” now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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