Automobiles

  • The Biggest Auto Parts Retailer Is Also The Best Investment

    By Matthew Frankel - February 20, 2013 | Tickers: AAP, AZO, ORLY, WMT

    AutoZone (NYSE: AZO) is the leading specialty retailer of automotive parts and accessories, with about 5,000 stores throughout the United States and Mexico and about a 19.6% market share.  Investors in AutoZone have done very well; thanks to steadily increasing revenues (see below), better margins, and one of the best share repurchase programs I have seen in the entire market. 

    AutoZone actually flourished during the latest recession, as more »

  • Great Valuation, But Investors Are Taking A Chance

    By Matthew Frankel - February 6, 2013 | Tickers: F, GM, TM

    General Motors (NYSE: GM), the world’s largest auto manufacturer, has certainly gotten itself into better shape than it was in a few years ago.  Going bankrupt in 2009 may have been the best thing for the company, as it allowed GM to shed a lot of debt and start fresh.  If analysts’ estimates are correct for the future of GM, it may be worth taking a gamble on.

    Now more »

  • How High is Up?

    By David Glenn Cox - January 29, 2013 | Tickers: BBY, FB, F

    How High is Up?

    By David Glenn Cox

     

    There are only two constants in the market: either the market will rise or the market will fall. So as the market nears the markets record highs of 2008, we must ask ourselves, why? Why is the market so high, with our domestic politics in disarray, our consumer economy in a shambles, and big box retailers in full decline?

    First it was more »

  • An Indirect Way To Play The Automarket

    By Rupert Hargreaves - January 28, 2013 | Tickers: KMX, CTB, MGDDF, GT

    The economic recovery is under way across the US and China is also starting to recover.

    I believe one of the best ways to play the recovery is through the demand for new cars which is already starting to pick up. However, in my opinion the auto stocks such as Ford and GM are too risky, with much more cyclical exposure than I would like. The alternative to auto manufactures more »

  • China’s Hold on Auto Industry Tightens

    By Howard Rothman - January 16, 2013 | Tickers: F, GM, HMC, TM

    As if China wasn’t already important enough in the global auto market, the country now sells more cars than all of Europe combined. After overtaking the U.S. in 2009, the China Passenger Car Association reported last week that 2012 sales rose nearly 7% from the year before to hit 14.68 million compared to 14.5 million in the U.S., which recorded its strongest sales growth in more »

  • Ford Looks Cheap Now, But Will They Meet Expectations?

    By Matthew Frankel - January 15, 2013 | Tickers: F, GM, TTM

    Ford (NYSE: F), the second largest U.S. automaker, has done very well since the world seemed to be crashing down around the auto industry in 2008.  Since hitting a low of $1.21 late that year, the stock is up 1,047%, one of the most incredible post-crisis rebounds of any stock I’ve looked at.  The low coincided with General Motors’ (NYSE: GM) bankruptcy, and I clearly remember more »

  • 3 Stocks to Rev Your Portfolio in 2013

    By Justin Carley - January 11, 2013 | Tickers: BWA, HAR, JCI

    Investors looking to rev up their portfolios in 2013 should strongly consider adding exposure to the auto part manufacturers.  This sub-industry was on many buy lists heading into 2012 due to strong improvement in auto sales following the depths of the Global Financial Crisis.  These recommendations were likely a year early and 2013 is poised to be the breakout year.  The Russell 1000 Auto Parts Index finished 2012 with a total return of 14.8% versus 16% for the S&P 500.  But it was a tale of two halves.  Through the first seven months of the year, the auto suppliers trailed the S&P 500 by a resounding 16%!  In the final five months they soared 22% against a modest 4% advance for the S&P 500.  This relative performance gap is in its early innings and substantial upside still lies ahead thanks to robust fundamentals and attractive relative valuation.  Below are three reasons why auto part manufacturers will outperform in 2013 and a couple accompanying investment recommendations. 

  • 3 Winners and 1 Loser in the US Auto Industry

    By Masam Abbas - January 10, 2013 | Tickers: FORD, GM, HMC, NSANY.PK, TM, VLKAY

    More bounce-back and replacement sales from Superstorm Sandy, a strengthening auto market, and aggressive marketing helped the US light vehicle seasonally adjusted sales rate to achieve a five-year high. The US SAAR ended up 15.31 million. Though it dipped below the forecasted 15.6 million mark, it was still a strong finish for the year.

    December's actual monthly sales of 1.35 million rose 13.4% YoY. Many more »

  • Auto Industry Will Drive Ahead in 2013

    By Tony Daltorio - January 7, 2013 | Tickers: FIATY.PK, F, FUJHY, GM

    It looks as if happy days are here again for the U.S. automotive industry. Car sales drove ahead by more than 13% in 2012 with U.S. light vehicle sales rising to 14.5 million units. That is the fastest growth rate in more than two decades. It is also the third straight annual gain of at least 10%. Such a streak has not happened since 1973! 

    This is more »

  • Automakers: Should You Buy American?

    By Matthew Frankel - January 4, 2013 | Tickers: F, GM, HMC, TM

    The U.S. automakers sure have recovered nicely from the crisis they found themselves in just a few years ago.  They have taken steps to become more financially sound, as well as offer products that are considered to be at the same level of quality or better than that of their foreign competitors.  However, investors may be wondering if these companies have become good long-term investments, or if one of more »

  • Is This Carmaker a Good Stock After a $1 Billion Settlement?

    By Anh HOANG - January 2, 2013 | Tickers: GM, TM, VLKAY

    Toyota Motor Corporation (NYSE: TM) has agreed to pay $1.1 billion to settle the US class action lawsuit arising from the automobile recalls in 2009-2010, which came about because of the unintended acceleration in Toyota’s vehicles. Around 16 million vehicles with different brands, including Toyota, Lexus, and Scion, got safety updates and payments. Including the 2010 recall costs and decrease in sales, the total cost of this debacle more »

  • A Low Risk Bet for the Long Term

    By Anh HOANG - December 26, 2012 | Tickers: F, GM, TM

    General Motors (NYSE: GM), one of the biggest US corporations, received substantial funding from the government during the crisis in 2009. GM had been quite vulnerable with pension liabilities that were even higher than its total market capitalization before the bailout. At that time, the US Government provided support with as much as $49.5 billion in the bailout package. Recently, the Treasury Department said that it planned for its more »

  • Top Automakers Keep Steering Toward China

    By Howard Rothman - December 22, 2012 | Tickers: F, GM, TM | Editor's Choice

    As 2012 draws to a close, it looks like the battle between the world’s Top 3 automakers will come down to which one is most successful in China. Despite a rough end to the year, Toyota (NYSE: TM) could still reclaim the global crown, with General Motors (NYSE: GM) and Volkswagen duking it out close behind for second place. The difference will be determined by sales in the biggest more »

  • An Analysis of Barron’s 10 Stocks for 2013- Part I

    By Justin Carley - December 19, 2012 | Tickers: AAPL, BKS, BLK, F, GD, JPM, TXT | Editor's Choice

    Barron’s is out with their 10 favorite stocks for 2013.  I highlighted their performance in 2012 and they did a good job with market-beating success.  These lists always elicit plenty of emotions from investors of all varieties, but it helps to put a little context into the picks.  First, I believe Barron’s tilts toward the large-cap space and seeks a group beta roughly in-line with the S&P more »

  • Laser-Like Focus on Market Beating Returns

    By James Fantaci - November 12, 2012 | Tickers: AAPL, COHR, IPGP, RSTI

    As an investor that subscribes to the Peter Lynch philosophy of investing in straightforward, easy to understand businesses, a fiber laser company like IPG Photonics doesn’t leap to mind. However, you don’t need a PhD in Laser Engineering to understand that IPG Photonics (NASDAQ: IPGP) is a disruptive brand. In simple terms, a fiber laser is a precisely focused, intense light beam (photons), approximately the diameter of a more »

  • Bill Gates and Eddie Lampert Sold This Company, Should You?

    By Anh HOANG - November 8, 2012 | Tickers: AN, GPI, SAH

    AutoNation (NYSE: AN) has satiated its shareholders with outstanding performance over the last 5 years. In October 2008, the share price was only $4.43, and it was $48.45 in October, nearly an 11 bagger within this 5-year period. Including the recent decrease in the stock price, AutoNation has delivered a return of more than 150% to its shareholders, whereas the S&P500 has generated a 5% loss. 

    <img src="/media/images/user_14219/screen-shot-2012-11-08-at-80957-pm_large.png" />

    AutoNation more »

  • Is it Time to Cross the "Ford"?

    By Ramesh Malayappan - November 2, 2012 | Tickers: F, GM | Editor's Choice

    Ford Motor Company (NYSE: F) released its results today on Tuesday, October 30 despite Hurricane Sandy shutting down Wall Street.  It was hard to miss the irony - while hurricane Sandy was bringing torrential rain into the eastern seaboard of the USA; FORD’s results were essentially making the case to investors to symbolically “cross the Ford.” The dictionary meaning of FORD is a crossing across a shallow body of water more »

  • How Does Your Favorite Automobile Stock Fare?

    By Shaunak Kar - October 10, 2012 | Tickers: F, HMC, TSLA

    There are certain things that'll give you the perfect kick to start your day off- A cup of strong cappuccino, bright Autumn sunshine and to some the sound of well oiled machinery. The vroom of an engine is music to the ears contrary to the cough and splatter of a junk car. So as Honda recalls almost half a million CR-Vs from their customers, lets take a look at more »

  • US Automakers and Consumers Shifting to Small Cars

    By Tony Daltorio - October 4, 2012 | Tickers: FIATY.PK, F, GM

    The preliminary figures for vehicle sales in September are out and they were not as good as the August numbers. Sales were flat for Ford Motor (NYSE: F) and sales at General Motors (NYSE: GM) were only up 1.5%. Sales at Chrysler, majority-owned by Italy's Fiat S.p.A. ADR (NASDAQOTH: FIATY.PK), motored ahead in September at a 12% rate. 

    The most interesting aspect of the sales more »

  • GM's Chevrolet Volt : The Big Gamble

    By Shaunak Kar - September 24, 2012 | Tickers: GM, NSANY.PK, TM

    General Motors (NYSE: GM) is looking for $8 billion-$10 billion in revolving credit facilities from its lenders. Well last time GM spent billions, it crashed into their research and development for the hybrid Chevrolet Volt which is yet to pay off and was more of a gamble than a measured move. So where do they stand now?

    GM Played Bold:

    General Motors' Chevrolet Volt, rolled out in late '10 more »

  • Page 1 of 4