General Motors Company (GM - Free Report) has shared details of its investment in Brazil. Per a Reuters report, the company has invested $603 million (1.9 billion reais) in its Joinville factory in southern Brazil. The company also announced capital spending of 1.2 billion reais in its plant on the outskirts of Sao Paulo.
Notably, General Motors is raising capacity investment in emerging markets to enhance its global sales. The company expects half of the global sales growth by 2030 to come from emerging markets. The company is trying to gain from growth in emerging countries through product launches and the new plants.
Together with a recent announcement related to the southern Gravatai plant, the investments total 4.5 billion reais and a capital spending sums up to 13 billion reais between 2014 and 2020.
In second-quarter 2017, General Motors reported adjusted earnings of $1.89 per share, surpassing the Zacks Consensus Estimate of $1.72. Earnings increased 5.6% from $1.79 per share in the second quarter of 2016. During the quarter, GM South America (GMSA) generated net sales and revenues of $2.3 billion, increasing from $1.6 billion in the year-ago quarter.
Shares of General Motors outperformed the industry it belongs to in the last three months. The company shares have returned 7.7%, while the industry gained 4%
General Motors currently carries a Zacks Rank #3 (Hold).
A few better-ranked automobile stocks are Continental AG (CTTAY - Free Report) , Cummins Inc. (CMI - Free Report) and Fox Continental Holding Corp. (FOXF - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Continental has a long-term growth rate of 7.9%.
Cummins has an expected long-term earnings growth rate of 12%.
Fox Factory has a long-term growth rate of 14%.
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