We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Auto Stock Roundup: GM-SolidEnergy Deal, ADNT's Yanfeng JV Update & More
Read MoreHide Full Article
February auto sales data for China—the world’s largest car market—released last week. Per China Passenger Car Association, retail sales of passenger cars witnessed more than fourfold surge on a year-over-year basis thanks to the stabilization of the coronavirus pandemic and supportive government policies. As we know, China auto market was severely hit in February 2020 due to shutdown of factories and dealerships amid lockdown restrictions. Last month, retail sales of passenger cars totaled 1.18 million units. Meanwhile, sales of electric vehicles (EVs) saw more than sevenfold jump year over year to 97,000 units.
On the earnings front, few auto players including Thor Industries (THO - Free Report) , Navistar International and Commercial Vehicle Group unveiled their quarterly numbers. Recreational vehicle maker Thor’s second-quarter fiscal 2021 (ended Jan 31, 2021) adjusted earnings of $2.38 per sharebeat the Zacks Consensus Estimate of $1.60 andjumped a whopping 357.6% from the year-ago profit of 52 cents per share. Truck giant Navistar’s fiscal 2021 adjusted earnings of 5 cents per sharetopped the Zacks Consensus Estimate of break-even profit and compared favorably with the year-ago quarter’s loss of 33 cents. Meanwhile, Commercial Vehicle posted a quarterly loss of 5 cents per share againstthe Zacks Consensus Estimate of earnings 4 cents. However, the loss narrowed from 24 cents per share incurred a year ago.
Last Week’s Top Stories
General Motors (GM - Free Report) entered into a partnership with SolidEnergy Systems in a bid to enhance range, reduce costs, and improve energy density of its battery technology. The two companies plan to jointly develop a manufacturing prototyping line in Woburn, MA with the target of producing a high-capacity, pre-production battery by 2023.With the latest partnership with SolidEnergy, General Motors aspires to achieve a once-in-a-generation improvement in energy density and cost of its battery technology and believes the new system could give vehicles a range of up to 450 miles on one charge. General Motors currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adient (ADNT - Free Report) announced that it has entered into definitive agreements with its joint venture(JV) partner Yanfeng Automotive Trim Systems Ltd. (YF) to terminate its Yanfeng Adient Seating Co (YFAS) JV in China. Per the agreement, Adient will sell 49.99% interest in YFAS to YF for $1.5 billion in cash in order to pursue its endeavors in China independently.The deal upon closure will allow Adient to drive its strategy in China independently, which is expected to result in multiple benefits for the automotive seating company. Additionally, proceeds from the transactions will provide immediate value to its stakeholders.
Ford (F - Free Report) recently announced two safety recalls in North America. The first recall consists of about 2.6 million cars, SUVs, and trucks in the Unites States and its territories, 274,737 in Canada and 46,078 in Mexico to replace driver-side Takata airbags.The reference number for this recall is 21S12. The second safety recall has been issued by Ford to fix faulty tires. This recall affects 15,769 vehicles in the United States and federal territories, 3,082 in Canada, and 138 in Mexico.The Ford reference number for this recall is 21S10.
Canoo Inc. (GOEV - Free Report) unveiled its fully-electric pickup truck, which will be the third vehicle based on Canoo’s proprietary multi-purpose platform. The California-based EV firm will be taking pre-orders in second-quarter 2021 and the electric truck is expected to arrive by 2023.Canoo’s pickup truck includes dual or rear motor configurations. With the dual motor option, the pickup will offer 600 horsepower and 550 ft-lb of torque. It will have a payload capacity of about 1,800 lbs. The company is currently promising 200+ miles of range on a single charge.
Standard Motor Products (SMP - Free Report) announced the acquisition of Stoneridge’s sensor business. Notably, Stoneridge’s particulate matter sensor business generates annual revenues of $12-14 million with manufacturing facilities in Lexington, OH and Tallin in Estonia.The buyout of the particulate matter sensor product line from Stoneridge gives Standard Motor access to advanced emissions control technology used in commercial vehicles. Notably, this technology is a perfect fit for Standard Motor’s strategy of expansion into the original equipment heavy duty market.
Price Performance
The following table shows the stock movement of a few major auto players over the past week and six-month period.
In the past six months, all stocks have increased with Ford being the highest gainer. In the last week as well, all stocks witnessed share price gains with Tesla being the best performer.
What’s Next in the Auto Space?
Meanwhile, industry watchers will also track passenger car registrations data in European Union for February 2021, which is likely to be released by European Automobile Manufacturers Association later this week. Investors will also track quarterly numbers of auto equipment supplier Westport Fuel Systems, which is set to report its fourth-quarter 2020 results today after the closing bell.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Auto Stock Roundup: GM-SolidEnergy Deal, ADNT's Yanfeng JV Update & More
February auto sales data for China—the world’s largest car market—released last week. Per China Passenger Car Association, retail sales of passenger cars witnessed more than fourfold surge on a year-over-year basis thanks to the stabilization of the coronavirus pandemic and supportive government policies. As we know, China auto market was severely hit in February 2020 due to shutdown of factories and dealerships amid lockdown restrictions. Last month, retail sales of passenger cars totaled 1.18 million units. Meanwhile, sales of electric vehicles (EVs) saw more than sevenfold jump year over year to 97,000 units.
On the earnings front, few auto players including Thor Industries (THO - Free Report) , Navistar International and Commercial Vehicle Group unveiled their quarterly numbers. Recreational vehicle maker Thor’s second-quarter fiscal 2021 (ended Jan 31, 2021) adjusted earnings of $2.38 per sharebeat the Zacks Consensus Estimate of $1.60 andjumped a whopping 357.6% from the year-ago profit of 52 cents per share. Truck giant Navistar’s fiscal 2021 adjusted earnings of 5 cents per sharetopped the Zacks Consensus Estimate of break-even profit and compared favorably with the year-ago quarter’s loss of 33 cents. Meanwhile, Commercial Vehicle posted a quarterly loss of 5 cents per share againstthe Zacks Consensus Estimate of earnings 4 cents. However, the loss narrowed from 24 cents per share incurred a year ago.
Last Week’s Top Stories
General Motors (GM - Free Report) entered into a partnership with SolidEnergy Systems in a bid to enhance range, reduce costs, and improve energy density of its battery technology. The two companies plan to jointly develop a manufacturing prototyping line in Woburn, MA with the target of producing a high-capacity, pre-production battery by 2023.With the latest partnership with SolidEnergy, General Motors aspires to achieve a once-in-a-generation improvement in energy density and cost of its battery technology and believes the new system could give vehicles a range of up to 450 miles on one charge. General Motors currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adient (ADNT - Free Report) announced that it has entered into definitive agreements with its joint venture(JV) partner Yanfeng Automotive Trim Systems Ltd. (YF) to terminate its Yanfeng Adient Seating Co (YFAS) JV in China. Per the agreement, Adient will sell 49.99% interest in YFAS to YF for $1.5 billion in cash in order to pursue its endeavors in China independently.The deal upon closure will allow Adient to drive its strategy in China independently, which is expected to result in multiple benefits for the automotive seating company. Additionally, proceeds from the transactions will provide immediate value to its stakeholders.
Ford (F - Free Report) recently announced two safety recalls in North America. The first recall consists of about 2.6 million cars, SUVs, and trucks in the Unites States and its territories, 274,737 in Canada and 46,078 in Mexico to replace driver-side Takata airbags.The reference number for this recall is 21S12. The second safety recall has been issued by Ford to fix faulty tires. This recall affects 15,769 vehicles in the United States and federal territories, 3,082 in Canada, and 138 in Mexico.The Ford reference number for this recall is 21S10.
Canoo Inc. (GOEV - Free Report) unveiled its fully-electric pickup truck, which will be the third vehicle based on Canoo’s proprietary multi-purpose platform. The California-based EV firm will be taking pre-orders in second-quarter 2021 and the electric truck is expected to arrive by 2023.Canoo’s pickup truck includes dual or rear motor configurations. With the dual motor option, the pickup will offer 600 horsepower and 550 ft-lb of torque. It will have a payload capacity of about 1,800 lbs. The company is currently promising 200+ miles of range on a single charge.
Standard Motor Products (SMP - Free Report) announced the acquisition of Stoneridge’s sensor business. Notably, Stoneridge’s particulate matter sensor business generates annual revenues of $12-14 million with manufacturing facilities in Lexington, OH and Tallin in Estonia.The buyout of the particulate matter sensor product line from Stoneridge gives Standard Motor access to advanced emissions control technology used in commercial vehicles. Notably, this technology is a perfect fit for Standard Motor’s strategy of expansion into the original equipment heavy duty market.
Price Performance
The following table shows the stock movement of a few major auto players over the past week and six-month period.
In the past six months, all stocks have increased with Ford being the highest gainer. In the last week as well, all stocks witnessed share price gains with Tesla being the best performer.
What’s Next in the Auto Space?
Meanwhile, industry watchers will also track passenger car registrations data in European Union for February 2021, which is likely to be released by European Automobile Manufacturers Association later this week. Investors will also track quarterly numbers of auto equipment supplier Westport Fuel Systems, which is set to report its fourth-quarter 2020 results today after the closing bell.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>