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CNH Industrial (CNHI) Outpaces Stock Market Gains: What You Should Know
CNH Industrial (CNHI - Free Report) closed at $16.51 in the latest trading session, marking a +0.43% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Prior to today's trading, shares of the truck, tractor and bus maker had gained 2.11% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 3.69% and the S&P 500's loss of 4.07% in that time.
Investors will be hoping for strength from CNH Industrial as it approaches its next earnings release. On that day, CNH Industrial is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 17.86%. Meanwhile, our latest consensus estimate is calling for revenue of $5.31 billion, up 14.27% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.70 per share and revenue of $25.97 billion, which would represent changes of +16.44% and +10.27%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CNH Industrial. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CNH Industrial is currently a Zacks Rank #2 (Buy).
Looking at its valuation, CNH Industrial is holding a Forward P/E ratio of 9.65. This valuation marks a premium compared to its industry's average Forward P/E of 7.71.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.