FCA US, a member of Fiat Chrysler Automobiles N.V. (FCAU - Free Report) family of companies, has made the announcement of investing more than $30 million at its Chelsea Proving Grounds (“CPG”) in southeast Michigan. The aim of the company is to go ahead with the development and testing of autonomous vehicles, and safety technologies.
Through this enhancement of advanced safety technologies, FCA US will be able to offer various features required by the customers across its brand portfolio in a better way. This will also aid the company in effectively rolling out the five-year strategy spelt out by the company early this year.
This new facility, which is likely to start testing programs this month only, includes an autonomous highway-speed track, safety-feature evaluation area of 35 acre and a high-tech command center. Notably, the command center contains over 6,500 square feet and features computer equipment, crucial to GPS capability and test vehicle communication. The new facility will aid in testing various levels of autonomy and equip the company to assess FCA vehicles, using test protocols from third parties.
Over the past three months, shares of Fiat Chrysler have underperformed the industry it belongs to. Over this time frame, shares of the company have decreased 20.7%, whereas the industry decreased by 12.4%. Further, the Zacks Consensus Estimate for both the current quarter and current year earnings has decreased over the past two months.
Zacks Rank & Key Picks
Fiat Chrysler currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Fox Factory Holding Corp. (FOXF - Free Report) , AB Volvo (VLVLY - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) . While Fox Factory and Volvo sport a Zacks Rank #1 (Strong Buy), Honda carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have gained 74.1%.
AB Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have grown 51.2%.
Honda has an expected long-term growth rate of 3%. Shares of the company have risen 1.6% in the past year.
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