Honda Motor Co., Ltd. (HMC - Free Report) announced that it will halt its operations in Britain for six days in April 2019, per Reuters. This Japanese auto giant took this step to counter possible disruptions, arising from the U.K.’s exit from the European Union.
Importantly, in case the U.K. leaves European Union without a trade deal, the production process of automakers will be severely hurt as these companies are heavily dependent on persistent delivery of auto parts for the production process.
In fact, Honda has been evaluating possible ways to deal with logistics and cross-border troubles, generating from the U.K.’s exit from the European Union on Mar 29, 2019. In order to ensure that this automaker is well-positioned to withstand all the possible outcomes, the company will shut U.K. production for six days in April.
Honda currently sports a Zacks Rank #1 (Strong Buy). In the second quarter of fiscal 2019, the company reported consolidated profit of ¥210.7 billion, up 21.2% from the year-ago period.
Honda has outperformed the industry it belongs to in the past six months. The company’s shares have gained 0.4% against 15.3% decrease recorded by the industry.
A few other top-ranked stocks in the auto space are AB Volvo (VLVLY - Free Report) , Advance Auto Parts, Inc. (AAP - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Volvo has an expected long-term growth rate of 15%. Over the past month, shares of the company have gained 6.9%.
Advance Auto Parts has an expected long-term growth rate of 12.1%. Over the past year, shares of the company have increased 37.5%.
Fox Factory has an expected long-term growth rate of 17.9%. Over the past year, shares of the company have risen 59.5%.
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