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.
4 Top-Ranked Foreign Auto Stocks to Add to Your Portfolio
Read MoreHide Full Article
The auto industry had a very strong run over the last two years but sales are now under pressure with a decline in new-vehicle buyers. Last week, the National Automobile Dealers Association (NADA) maintained its forecast of 17.1 million new car and light truck sales in the U.S. for 2017. Meanwhile, a look at the scorecard for the first half of 2017 shows that 8,401,715 new light-vehicles were sold, representing a year-over-year decline of 2.2%.
Major domestic auto carmakers like General Motors (GM - Free Report) reported a decline in U.S. retail sales for the month of Jun 2017 while Ford said that its Jun 2017 U.S. sales declined 5.1% from the year-ago period.
Despite giving hefty discounts and providing easier lending terms, an influx of nearly new used vehicles has resulted in stiff competition for new vehicle sales. This is expected to weigh on new vehicle sales in the coming quarters along with a challenging pricing environment.
In fact, the Zacks-categorized Automotive-Domestic industry is currently among the bottom 9% of the 256 Zacks-ranked industries. Given the challenges being faced by automakers in the U.S. and concerns regarding a decline in domestic sales, it might make sense to look at some top-ranked stocks in the Zacks-categorized Automotive-Foreign industry, which is among the top 6% of the 256 Zacks-ranked industries.
Daimler AG : Germany based Daimler operates through several divisions including Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. The company’s earnings track record is strong with earnings surpassing expectations in three of the last four quarters with an average surprise of 96.5%. Earnings estimates for 2017 are up 11.7% over the last 7 days. Estimated earnings growth for the current year is 15.6%. Earlier this month, the company reported that Mercedes-Benz sales grew 13.7% in the first half of 2017 representing the strongest half-year unit sales in the history of Mercedes-Benz.
In addition to being a Zacks Rank #1 (Strong Buy) stock, Daimler also has a VGM style score of “A”. The VGM style score is a useful tool that allows investors to gain an insight into a stock’s strengths and weaknesses. While “V” stands for Value, “G” stands for Growth and “M” for Momentum -- the score is a weighted combination of these three metrics. Our research shows that stocks with a VGM Score of “A” or “B” when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
Renault SA (RNLSY - Free Report) : French automaker Renault sells and services vehicles all around the world and in each segment. The company’s brands include Renault, Dacia, and Renault Samsung Motors. The company recently reported that its Passenger cars (PC) segment recorded its best half-year in six years with the Dacia brand setting a new sales record. Renault expects to continue benefiting from its renewed PC range in the second half of the year.
2017 earnings estimates are up 37.5% over the last 7 days. Estimated earnings growth for the current year is 25%. Renault is also a Zacks Rank #1 stock with a VGM score of “A”. YTD, Renault has performed better than the industry with shares up 2.2%.
Peugeot SA : Peugeot, another French auto company, is part of the PSA Group which includes the Citreon and DS Automobiles brands. The Zacks Rank #1 stock has been witnessing upward revisions in earnings estimates for 2017 with estimated earnings growth for the current year being 55.1%. Peugeot also holds a VGM score of “A”. Peugeot’s shares are up 28% YTD, outperforming the industry which has declined 6.3% during this period.
Volkswagen AG : Germany based Volkswagen comprises brands like Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. The Group offers a wide range of financial services as well including dealer and customer financing, leasing, banking and insurance activities, and fleet management.
2017 earnings estimates for the Zacks Rank #1 stock are up almost 14% over the last 30 days. Estimated earnings growth for the current year is 122.5%. The Volkswagen brand saw worldwide deliveries increase in June as well as the first half of the year, with strong growth being recorded in China and other key regions. Volkswagen, which has gained 12% YTD, also boasts of a VGM score of “A”.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Top-Ranked Foreign Auto Stocks to Add to Your Portfolio
The auto industry had a very strong run over the last two years but sales are now under pressure with a decline in new-vehicle buyers. Last week, the National Automobile Dealers Association (NADA) maintained its forecast of 17.1 million new car and light truck sales in the U.S. for 2017. Meanwhile, a look at the scorecard for the first half of 2017 shows that 8,401,715 new light-vehicles were sold, representing a year-over-year decline of 2.2%.
Major domestic auto carmakers like General Motors (GM - Free Report) reported a decline in U.S. retail sales for the month of Jun 2017 while Ford said that its Jun 2017 U.S. sales declined 5.1% from the year-ago period.
Despite giving hefty discounts and providing easier lending terms, an influx of nearly new used vehicles has resulted in stiff competition for new vehicle sales. This is expected to weigh on new vehicle sales in the coming quarters along with a challenging pricing environment.
In fact, the Zacks-categorized Automotive-Domestic industry is currently among the bottom 9% of the 256 Zacks-ranked industries. Given the challenges being faced by automakers in the U.S. and concerns regarding a decline in domestic sales, it might make sense to look at some top-ranked stocks in the Zacks-categorized Automotive-Foreign industry, which is among the top 6% of the 256 Zacks-ranked industries.
Daimler AG : Germany based Daimler operates through several divisions including Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. The company’s earnings track record is strong with earnings surpassing expectations in three of the last four quarters with an average surprise of 96.5%. Earnings estimates for 2017 are up 11.7% over the last 7 days. Estimated earnings growth for the current year is 15.6%. Earlier this month, the company reported that Mercedes-Benz sales grew 13.7% in the first half of 2017 representing the strongest half-year unit sales in the history of Mercedes-Benz.
In addition to being a Zacks Rank #1 (Strong Buy) stock, Daimler also has a VGM style score of “A”. The VGM style score is a useful tool that allows investors to gain an insight into a stock’s strengths and weaknesses. While “V” stands for Value, “G” stands for Growth and “M” for Momentum -- the score is a weighted combination of these three metrics. Our research shows that stocks with a VGM Score of “A” or “B” when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
Renault SA (RNLSY - Free Report) : French automaker Renault sells and services vehicles all around the world and in each segment. The company’s brands include Renault, Dacia, and Renault Samsung Motors. The company recently reported that its Passenger cars (PC) segment recorded its best half-year in six years with the Dacia brand setting a new sales record. Renault expects to continue benefiting from its renewed PC range in the second half of the year.
2017 earnings estimates are up 37.5% over the last 7 days. Estimated earnings growth for the current year is 25%. Renault is also a Zacks Rank #1 stock with a VGM score of “A”. YTD, Renault has performed better than the industry with shares up 2.2%.
Peugeot SA : Peugeot, another French auto company, is part of the PSA Group which includes the Citreon and DS Automobiles brands. The Zacks Rank #1 stock has been witnessing upward revisions in earnings estimates for 2017 with estimated earnings growth for the current year being 55.1%. Peugeot also holds a VGM score of “A”. Peugeot’s shares are up 28% YTD, outperforming the industry which has declined 6.3% during this period.
Volkswagen AG : Germany based Volkswagen comprises brands like Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. The Group offers a wide range of financial services as well including dealer and customer financing, leasing, banking and insurance activities, and fleet management.
2017 earnings estimates for the Zacks Rank #1 stock are up almost 14% over the last 30 days. Estimated earnings growth for the current year is 122.5%. The Volkswagen brand saw worldwide deliveries increase in June as well as the first half of the year, with strong growth being recorded in China and other key regions. Volkswagen, which has gained 12% YTD, also boasts of a VGM score of “A”.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>