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Ford (F) & General Motors (GM) Announce Series of Recalls

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Two auto giants, Ford Motor (F - Free Report) and General Motors (GM - Free Report) , have decided to recall some of their models on complaints and issues related to damaged parts or certain features that compromise the safety of other drivers on the roads.

Ford has announced that it is recalling nearly 215,000 pickup trucks and large sports utility vehicles (SUVs) in the United States and Canada on issues of brake fluid leak that can cause longer stopping distances. The U.S. National Highway Traffic Safety Administration said that fluid could leak from the brake master cylinder of the vehicle. Ford has confirmed four low-speed crashes, but there aren’t any injuries yet.

The recall covers the F-150 pickup models from 2016 through 2018, as well as Ford Expedition and Lincoln Navigator SUVs from 2016 and 2017.

Per official documents, dealers will restore the master cylinder and front brake booster if needed. Vehicle owners will be notified by letters, beginning Apr 25. The present recall marks Ford's third for the same problem, the previous ones being in 2016 and 2020.

Meanwhile, Ford’s closest peer, General Motors, also recently announced that it will recall an estimated 740,000 SUVs because the headlights are too bright and have been a cause of concern for other vehicles on the road. According to reports, certain models of GMC Terrain SUVs from 2010 through 2017 are impacted.

The National Highway Traffic Safety Administration has said that headlight glares reduce visibility for other drivers and increase the chances of a crash. The company is yet to come to a mitigating measure for the problem. Affected customers will be notified via letters starting Apr 23.

Zacks Rank & Key Picks

Both F and GM currently have a Zacks Rank #3 (Hold).

Better-ranked players in the auto space include LCI Industries (LCII - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Tesla (TSLA - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

LCI Industries has an expected earnings growth rate of 27.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 16% upward in the past 60 days.

LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the other one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 13% over the past year.

Tesla has an expected earnings growth rate of 41.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 11.1% upward in the past 60 days.

Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.26%, on average. The stock has risen 56% over the past year.

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