The sharp bounce off the lows for the market have caused many stocks to rally. The dramatic shift to the new “stay-home” economy will leave some companies behind, while others will thrive. It may feel impossible to figure out which is which. One of the best tools an investor can use is the Zacks Rank. Stocks with unfavorable Zacks Ranks have seen analysts cutting their earnings estimates. If analysts all over Wall Street are dropping their numbers, there is probably a negative trend beginning to develop on the earnings front with that stock. Knowing that is coming, investors can then decide if that’s a trend they’d like to wait out or avoid altogether. This way, you can let the analysts all over Wall Street do the research while you just follow the money.
Today’s Bear of the Day is a stock that’s currently a Zacks Rank #5 (Strong Sell), Daimler (DDAIF - Free Report) . Daimler AG, together its subsidiaries, develops and manufactures passenger cars, trucks, vans, and buses in Germany and internationally. It operates through Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Mobility divisions.
Cars are costly items people tend to buy when they feel good about their personal economic situation. Most cars are financed over several years and take up a solid chunk of someone’s daily budget. If you’re under quarantine right now, you are probably not gassing up and using your car all that much. For many unfortunate folks, job losses are causing economic pain as well. Those are two of a multitude of negative factors facing the automotive industry right now.
Analysts have taken note, cutting their earnings estimates for Daimler. Over the last 60 days, three analysts have cut their estimates for the current year while two have done so for next year. The collective bearishness has cut the Zacks Consensus Estimates for each period considerably. Current year consensus was $6.45 ninety days ago. Now that number has been slashed to $2.44. Next year’s numbers are dropping as well, coming down from $6.76 to $4.93.
The Automotive – Foreign industry is in the Bottom 17% of our Zacks Industry Rank. That doesn’t mean that all stocks in the industry are in the bad graces of the Zacks Rank. There are three stocks in the same industry which are Zacks Rank #2 (Buy) stocks currently. Among them are ElectraMeccanica and NIO .
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