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11300.0
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2018-11-08 00:00:00 UTC
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Johnson Controls (JCI) Q4 Earnings In Line, Improve Y/Y
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AAP
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https://www.nasdaq.com/articles/johnson-controls-jci-q4-earnings-in-line-improve-y-y-2018-11-08
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nan
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nan
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Johnson Controls International plcJCI reported adjusted earnings per share of 93 cents in fourth-quarter fiscal 2018, in line with the Zacks Consensus Estimate. Earnings increased 7% from 87 cents recorded in fourth-quarter fiscal 2017. The reported quarter saw solid organic revenue growth and free cash flow conversion.
For fiscal 2018, adjusted earnings per share were $2.83, higher than the fiscal 2017 figure of $2.60.
Johnson Controls International plc Price, Consensus and EPS Surprise
Johnson Controls International plc Price, Consensus and EPS Surprise | Johnson Controls International plc Quote
Operational Update
During the quarter under review, Johnson Controls reported revenues of $8.37 billion, surpassing the Zacks Consensus Estimate of $8.28 billion. Revenues increased 3% year over year. For fiscal 2018, revenues were $31.4 billion, up from the fiscal 2017 figure of $30.1 billion.
In the quarter under review, the cost of sales increased to $5.85 billion from $5.62 billion in the year-ago quarter. Gross profit rose to $2.52 billion from $2.51 billion in the year-ago quarter.
Selling, general and administrative expenses in the fiscal fourth quarter totaled $1.48 billion, up from the prior-year quarter figure of $1.25 billion.
Segment Results
Building Technologies & Solutions : This segment's adjusted revenues were $6.18 billion, increasing from the year-ago quarter figure of $6 billion. The segment's EBITA increased to $939 million from $904 million in fourth-quarter fiscal 2017.
Power Solutions : Adjusted revenues in this segment rose to $2.19 billion from $2.13 billion a year ago. Segment EBITA was $424 million, down from fourth-quarter fiscal 2017 level of $431 million.
Financial Position
Johnson Controls had cash and cash equivalents of $200 million as of Sep 30, 2018, down from $321 million as of Sep 30, 2017. Long-term debt declined to $9.64 billion in the quarter under review from $12 billion as of Sep 30, 2017.
In the reported quarter, the company repurchased 1.2 million shares for $45 million. Further, the company announced additional repurchase authorization of $1 billion.
Guidance
Johnson Controls anticipates EPS guidance for fiscal 2019 to be $2.90-$3.05.
Zacks Rank & Key Picks
Johnson Controls currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . While Allison Transmission sports a Zacks Rank #1 (Strong Buy), both Advance Auto Parts and AutoZone carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 11.8%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have risen 44.5%.
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have risen 20%.
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AutoZone, Inc. (AZO): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
Johnson Controls International plc (JCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Johnson Controls International plc (JCI): Free Stock Analysis Report To read this article on Zacks.com click here. Johnson Controls International plcJCI reported adjusted earnings per share of 93 cents in fourth-quarter fiscal 2018, in line with the Zacks Consensus Estimate.
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Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Johnson Controls International plc (JCI): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Johnson Controls International plc Price, Consensus and EPS Surprise Johnson Controls International plc Price, Consensus and EPS Surprise | Johnson Controls International plc Quote Operational Update During the quarter under review, Johnson Controls reported revenues of $8.37 billion, surpassing the Zacks Consensus Estimate of $8.28 billion.
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Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Johnson Controls International plc (JCI): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Johnson Controls International plc Price, Consensus and EPS Surprise Johnson Controls International plc Price, Consensus and EPS Surprise | Johnson Controls International plc Quote Operational Update During the quarter under review, Johnson Controls reported revenues of $8.37 billion, surpassing the Zacks Consensus Estimate of $8.28 billion.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Johnson Controls International plc (JCI): Free Stock Analysis Report To read this article on Zacks.com click here. For fiscal 2018, revenues were $31.4 billion, up from the fiscal 2017 figure of $30.1 billion.
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11301.0
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2018-11-07 00:00:00 UTC
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Cooper Standard (CPS) to Divest AVS Business to Continental
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AAP
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https://www.nasdaq.com/articles/cooper-standard-cps-to-divest-avs-business-to-continental-2018-11-07
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nan
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nan
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Cooper-Standard Holdings Inc.CPS announced that it has reached an agreement to divest its anti-vibration systems ("AVS") business to the German automotive manufacturing company, Continental AG. The aim of Cooper-Standard is to become a leading global manufacturer across its core product lines.
Continental AG has made a binding offer to purchase considerably all of Novi, MI-based Cooper-Standard's anti-vibration business in France and its interest in the joint venture in India. The agreement is likely to be signed in the next few weeks. The closing of the divestiture is however subject to necessary approvals of the antitrust authorities and others.
Cooper-Standard is engaged in designing, manufacturing and selling of sealing, fuel, and brake delivery along with fluid transfer and anti-vibration systems.
In third-quarter 2018, Cooper-Standard reported adjusted earnings per share of $1.05, missing the Zacks Consensus Estimate of $2.50. Further, the bottom-line figure was lower than the year-ago quarter's figure of $2.11 per share.
Results in the reported quarter were impacted by challenging market conditions in Asia and Europe, and rising commodity costs.
The AVS business of Cooper Standard has around 1,000 employees. It offers a comprehensive portfolio of anti-vibration systems, technologies and products to automotive OEMs that mitigate vehicle noise, vibration and harshness, and enhance ride and handling.
Cooper-Standard belongs to the Auto sector. A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Allison Transmission, Advance Auto Parts and AutoZone have expected long-term growth rates of 10%, 12.3%, and 12.2%, respectively.
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AutoZone, Inc. (AZO): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report To read this article on Zacks.com click here. Cooper-Standard Holdings Inc.CPS announced that it has reached an agreement to divest its anti-vibration systems ("AVS") business to the German automotive manufacturing company, Continental AG.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report To read this article on Zacks.com click here. Cooper-Standard Holdings Inc.CPS announced that it has reached an agreement to divest its anti-vibration systems ("AVS") business to the German automotive manufacturing company, Continental AG.
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Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report To read this article on Zacks.com click here. A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Cooper-Standard Holdings Inc.CPS announced that it has reached an agreement to divest its anti-vibration systems ("AVS") business to the German automotive manufacturing company, Continental AG.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report To read this article on Zacks.com click here. Cooper-Standard Holdings Inc.CPS announced that it has reached an agreement to divest its anti-vibration systems ("AVS") business to the German automotive manufacturing company, Continental AG.
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11302.0
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2018-11-07 00:00:00 UTC
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Notable Wednesday Option Activity: AAP, TTWO, APC
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AAP
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-aap-ttwo-apc-2018-11-07
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 6,350 contracts has been traded thus far today, a contract volume which is representative of approximately 635,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.5% of AAP's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $155 strike put option expiring November 16, 2018 , with 2,004 contracts trading so far today, representing approximately 200,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $155 strike highlighted in orange:
Take-Two Interactive Software, Inc. (Symbol: TTWO) options are showing a volume of 12,859 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 49.4% of TTWO's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $106 strike put option expiring November 09, 2018 , with 1,265 contracts trading so far today, representing approximately 126,500 underlying shares of TTWO. Below is a chart showing TTWO's trailing twelve month trading history, with the $106 strike highlighted in orange:
And Anadarko Petroleum Corp (Symbol: APC) options are showing a volume of 24,077 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 46.6% of APC's average daily trading volume over the past month, of 5.2 million shares. Particularly high volume was seen for the $65 strike call option expiring January 18, 2019 , with 5,026 contracts trading so far today, representing approximately 502,600 underlying shares of APC. Below is a chart showing APC's trailing twelve month trading history, with the $65 strike highlighted in orange:
For the various different available expirations for AAP options , TTWO options , or APC options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $155 strike put option expiring November 16, 2018 , with 2,004 contracts trading so far today, representing approximately 200,400 underlying shares of AAP. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 6,350 contracts has been traded thus far today, a contract volume which is representative of approximately 635,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.5% of AAP's average daily trading volume over the past month, of 1.3 million shares.
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Below is a chart showing AAP's trailing twelve month trading history, with the $155 strike highlighted in orange: Take-Two Interactive Software, Inc. (Symbol: TTWO) options are showing a volume of 12,859 contracts thus far today. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 6,350 contracts has been traded thus far today, a contract volume which is representative of approximately 635,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.5% of AAP's average daily trading volume over the past month, of 1.3 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 6,350 contracts has been traded thus far today, a contract volume which is representative of approximately 635,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.5% of AAP's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $155 strike put option expiring November 16, 2018 , with 2,004 contracts trading so far today, representing approximately 200,400 underlying shares of AAP.
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Below is a chart showing APC's trailing twelve month trading history, with the $65 strike highlighted in orange: For the various different available expirations for AAP options , TTWO options , or APC options , visit StockOptionsChannel.com. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 6,350 contracts has been traded thus far today, a contract volume which is representative of approximately 635,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.5% of AAP's average daily trading volume over the past month, of 1.3 million shares.
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11303.0
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2018-11-06 00:00:00 UTC
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Advance Auto Parts (AAP) Earnings Expected to Grow: Should You Buy?
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-earnings-expected-to-grow%3A-should-you-buy-2018-11-06
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nan
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nan
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Wall Street expects a year-over-year increase in earnings on higher revenues when Advance Auto Parts (AAP) reports results for the quarter ended September 2018. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 13. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This auto parts retailer is expected to post quarterly earnings of $1.76 per share in its upcoming report, which represents a year-over-year change of +23.1%.
Revenues are expected to be $2.23 billion, up 2.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.48% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is subject to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time , and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Advance Auto Parts?
For Advance Auto Parts, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.94%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Advance Auto Parts will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Advance Auto Parts would post earnings of $1.85 per share when it actually produced earnings of $1.97, delivering a surprise of +6.49%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Advance Auto Parts appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street expects a year-over-year increase in earnings on higher revenues when Advance Auto Parts (AAP) reports results for the quarter ended September 2018. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
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Wall Street expects a year-over-year increase in earnings on higher revenues when Advance Auto Parts (AAP) reports results for the quarter ended September 2018. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out.
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Wall Street expects a year-over-year increase in earnings on higher revenues when Advance Auto Parts (AAP) reports results for the quarter ended September 2018. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is subject to change.
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Wall Street expects a year-over-year increase in earnings on higher revenues when Advance Auto Parts (AAP) reports results for the quarter ended September 2018. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out.
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11304.0
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2018-11-06 00:00:00 UTC
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Verso (VRS) to Report Q3 Earnings: What's in the Offing?
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AAP
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https://www.nasdaq.com/articles/verso-vrs-to-report-q3-earnings%3A-whats-in-the-offing-2018-11-06
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nan
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nan
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Verso CorporationVRS is scheduled to release third-quarter 2018 financial numbers before the opening bell on Nov 7.
Over the trailing four quarters, Verso surpassed the Zacks Consensus Estimate in one occasion, missed in the other two and met in another, the average negative beat being 24.62%.
Factors to Affect Q3 Results
Verso's third-quarter results will benefit from structural changes in the Graphic Papers segment. The U.S. graphic industry operating rate was up significantly in first-half 2018 versus first-half 2017. Further, unbleached pulp demand has expanded worldwide due to growth in containerboard.
Verso Corporation Price and EPS Surprise
Verso Corporation Price and EPS Surprise | Verso Corporation Quote
However, inflation and freight costs will likely continue to impact the company's performance. Notably, net raw material input costs were up $8 million and freight costs are up $7 million, respectively, in second-quarter 2018, versus second-quarter 2017.
For the third quarter, Verso expects net sales of $700-720 million and pricing will remain favorable compared to second-quarter 2018. Capital expenditures are expected to be approximately $20-25 million, including residual investment for the No. 3 paper machine startup project at the Androscoggin Mill.
Nevertheless, the Zacks Consensus Estimate for earnings per share for the Sep-end quarter is pegged at $1.73, reflecting significant year-over-year growth of around 621%. The Zacks Consensus Estimate for total sales of $714 million also indicates 15% growth from the prior-year quarter.
Verso's shares have outperformed the industry 's performance in the past year. The stock has surged around 290%, while the industry recorded a loss of 5% during the same time frame.
Earnings Whispers
Our proven model does not conclusively show that Verso is likely to beat estimates this quarter. This is because a stock must have the right combination of the two main ingredients - a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen. But that is not the case here as you can see below.
Earnings ESP: Verso has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.73. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter .
Zacks Rank: Verso currently sports a Zacks Rank #1.
Stocks Poised to Beat Earnings Estimates
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Advance Auto Parts, Inc. AAP has an Earnings ESP of +1.94% and a Zacks Rank #2. Its shares have surged 108% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here .
Adobe Systems Incorporated ADBE has an Earnings ESP of +0.19% and a Zacks Rank #2. The stock has gained 33% in a year's time.
American Eagle Outfitters, Inc. AEO has an Earnings ESP of +2.95% and a Zacks Rank #2. The company's shares have rallied 76% during the past year.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Adobe Systems Incorporated (ADBE): Free Stock Analysis Report
Verso Corporation (VRS): Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks Poised to Beat Earnings Estimates Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Advance Auto Parts, Inc. AAP has an Earnings ESP of +1.94% and a Zacks Rank #2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report To read this article on Zacks.com click here. Over the trailing four quarters, Verso surpassed the Zacks Consensus Estimate in one occasion, missed in the other two and met in another, the average negative beat being 24.62%.
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Stocks Poised to Beat Earnings Estimates Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Advance Auto Parts, Inc. AAP has an Earnings ESP of +1.94% and a Zacks Rank #2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report To read this article on Zacks.com click here. Verso Corporation Price and EPS Surprise Verso Corporation Price and EPS Surprise | Verso Corporation Quote However, inflation and freight costs will likely continue to impact the company's performance.
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Stocks Poised to Beat Earnings Estimates Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Advance Auto Parts, Inc. AAP has an Earnings ESP of +1.94% and a Zacks Rank #2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings ESP: Verso has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.73.
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Stocks Poised to Beat Earnings Estimates Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Advance Auto Parts, Inc. AAP has an Earnings ESP of +1.94% and a Zacks Rank #2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report To read this article on Zacks.com click here. Verso's shares have outperformed the industry 's performance in the past year.
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11305.0
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2018-11-06 00:00:00 UTC
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Is Advance Auto Parts (AAP) Outperforming Other Retail-Wholesale Stocks This Year?
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AAP
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https://www.nasdaq.com/articles/is-advance-auto-parts-aap-outperforming-other-retail-wholesale-stocks-this-year-2018-11-06
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Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Is Advance Auto Parts (AAP) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Advance Auto Parts is one of 228 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. AAP is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AAP's full-year earnings has moved 2.54% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, AAP has gained about 65.62% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of 6.91% on a year-to-date basis. This means that Advance Auto Parts is performing better than its sector in terms of year-to-date returns.
Looking more specifically, AAP belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual stocks and currently sits at #9 in the Zacks Industry Rank. On average, this group has gained an average of 24.61% so far this year, meaning that AAP is performing better in terms of year-to-date returns.
Investors with an interest in Retail-Wholesale stocks should continue to track AAP. The stock will be looking to continue its solid performance.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Within the past quarter, the Zacks Consensus Estimate for AAP's full-year earnings has moved 2.54% higher. Is Advance Auto Parts (AAP) one of those stocks right now? AAP is currently sporting a Zacks Rank of #2 (Buy).
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Is Advance Auto Parts (AAP) one of those stocks right now? AAP is currently sporting a Zacks Rank of #2 (Buy).
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Looking more specifically, AAP belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual stocks and currently sits at #9 in the Zacks Industry Rank. Is Advance Auto Parts (AAP) one of those stocks right now? AAP is currently sporting a Zacks Rank of #2 (Buy).
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On average, this group has gained an average of 24.61% so far this year, meaning that AAP is performing better in terms of year-to-date returns. Is Advance Auto Parts (AAP) one of those stocks right now? AAP is currently sporting a Zacks Rank of #2 (Buy).
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11306.0
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2018-11-05 00:00:00 UTC
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Cooper-Standard (CPS) Q3 Earnings Miss Estimates, Down Y/Y
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AAP
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https://www.nasdaq.com/articles/cooper-standard-cps-q3-earnings-miss-estimates-down-y-y-2018-11-05
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nan
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Cooper-Standard Holdings Inc.CPS reported third-quarter 2018 adjusted earnings per share of $1.05, missing the Zacks Consensus Estimate of $2.50. Further, the bottom-line figure was lower than the year-ago quarter figure of $2.11 per share. Results in the reported quarter were impacted by challenging market conditions in Asia and Europe, and rising commodity costs.
Revenues decreased 0.8% year over year to $861.7 million. The decline in sales was primarily owing to unfavorable exchange rate fluctuations, unfavorable volume and mix in Asia and Europe, and customer price reductions, which were partly offset by favorable volume and mix in North America.
During the reported quarter, adjusted net income was $19.1 million, down from the prior-year quarter figure of $39.5 million. The company launched 51 customer programs and grabbed net new business awards, totaling $91 million. Adjusted EBITDA declined 27.6% to $26.5 million compared with the third quarter of 2017.
Cooper-Standard Holdings Inc. Price, Consensus and EPS Surprise
Cooper-Standard Holdings Inc. Price, Consensus and EPS Surprise | Cooper-Standard Holdings Inc. Quote
Segment Performance
Sales in the North America segment increased 7.8% to $471.6 million. The year-over-year rise in sales was mainly due to favorable volume and mix, and incremental sales related to acquisitions.
Sales in the Europe segment were $228.3 million in the third quarter compared with $254.4 million in third-quarter 2017. The decline was mainly due to unfavorable foreign exchange, and volume and mix.
The Asia Pacific segment reported sales of $136.2 million in the reported quarter, down from $148.5 million in third-quarter 2017. The year-over-year decrease was mainly due to unfavorable volume and mix, and unfavorable foreign exchange.
The company's South America segment reported sales of $25.6 million during the reported quarter, down from $28.7 million in third-quarter 2017. The fall was due to unfavorable foreign exchange.
Financials
Cooper-Standard had $282.4 million of cash and cash equivalents as of Sep 30, 2018, compared with $516 million as of Dec 31, 2017. The company had long-term debt of $727.2 million as of Sep 30, 2018, compared with $723.3 million recorded as of Dec 31, 2017.
2018 Outlook
The company anticipates sales of $3.63-$3.68 billion in 2018. The prior guidance was of $3.60-$3.70 billion. It changed the 2018 adjusted EBITDA margin guidance to 10.5-11.0% from the prior guidance of 12.7-13.0%.
Further, the company expects capital expenditure (as a percent of sales) of 5.9-6.0% in 2018. The prior guidance was of 5.7-5.9%.
Zacks Rank & Key Picks
Cooper-Standard currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . While Allison Transmission sports a Zacks Rank #1 (Strong Buy), both Advance Auto Parts and AutoZone carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 8.8%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have risen 41.4%.
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have risen 17%.
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AutoZone, Inc. (AZO): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Cooper-Standard Holdings Inc.CPS reported third-quarter 2018 adjusted earnings per share of $1.05, missing the Zacks Consensus Estimate of $2.50.
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Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Cooper-Standard Holdings Inc. Price, Consensus and EPS Surprise Cooper-Standard Holdings Inc. Price, Consensus and EPS Surprise | Cooper-Standard Holdings Inc. Quote Segment Performance Sales in the North America segment increased 7.8% to $471.6 million.
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Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . The Asia Pacific segment reported sales of $136.2 million in the reported quarter, down from $148.5 million in third-quarter 2017.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. During the reported quarter, adjusted net income was $19.1 million, down from the prior-year quarter figure of $39.5 million.
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11307.0
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2018-11-05 00:00:00 UTC
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Toyota (TM) Recalls 1M Vehicles Over Faulty Airbag Issue
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AAP
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https://www.nasdaq.com/articles/toyota-tm-recalls-1m-vehicles-over-faulty-airbag-issue-2018-11-05
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nan
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nan
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Per AP, Toyota Motor CompanyTM announced that it issued another massive recall consisting more than one million vehicles, globally. The vehicles have faulty airbags that might inflate without a crash or fail to inflate in case of an accident.
In the United States, the recall consists of around 17,000 Scion xA, a five-door subcompact hatchback offered between 2004 and 2006. In other countries - including Japan and European countries - the recall covers Isis, Avensis, Avensis Wagon, Allex, ist, Wish, Corolla, Corolla Spacio, Corollo Verso, Corolla Fielder, Corolla Runx and Sienta models. All the cars were manufactured between July 2002 and June 2015.
Customers of the affected vehicles will be notified about the airbag control unit replacement in December, which will be replaced by the dealers.
Toyota Motor Corporation Price and Consensus
Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote
A day before, Toyota announced another worldwide recall consisting more than 400,000 vehicles, along with Subaru Corporation, per The Wall Street Journal. The recalled vehicles have defective engines that could stop engine valves from opening while fuel is combusted, which might lead to accidents or severe engine damage. Out of the total, Toyota's vehicle count is 80,000 while the rest are of Subaru. Further, out of Subaru's total count, 100,000 were sold in Japan.
Of late, Toyota has been involved in several vehicle recalls, similar to other automakers across the globe. In the last month, the company announced a massive safety recall of 2.43 million gasoline hybrid vehicles in Japan, the United States and other markets. Notably, the recalled cars include Toyota's Prius and Auris models, which were manufactured between October 2008 and November 2014.
Price Performance
In the past three months, Toyota's stock has lost 10.1%, outperforming 18.8% decrease recorded by the industry it belongs to.
Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Advance Auto Parts, Inc. AAP and Allison Transmission Holdings, Inc. ALSN . AutoZone and Advance Auto currently carry a Zacks Rank #2 (Buy) while Allison Transmission sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 17.2%.
Advance Auto has an expected long-term growth rate of 12.3%. Shares of the company have increased 42.1% over the past six months.
Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have rallied 6.7% over the past six months.
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Toyota Motor Corporation (TM): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Advance Auto Parts, Inc. AAP and Allison Transmission Holdings, Inc. ALSN . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Per AP, Toyota Motor CompanyTM announced that it issued another massive recall consisting more than one million vehicles, globally.
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A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Advance Auto Parts, Inc. AAP and Allison Transmission Holdings, Inc. ALSN . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Toyota Motor Corporation Price and Consensus Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote A day before, Toyota announced another worldwide recall consisting more than 400,000 vehicles, along with Subaru Corporation, per The Wall Street Journal.
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Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Advance Auto Parts, Inc. AAP and Allison Transmission Holdings, Inc. ALSN . Toyota Motor Corporation Price and Consensus Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote A day before, Toyota announced another worldwide recall consisting more than 400,000 vehicles, along with Subaru Corporation, per The Wall Street Journal.
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A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Advance Auto Parts, Inc. AAP and Allison Transmission Holdings, Inc. ALSN . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Toyota Motor Corporation Price and Consensus Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote A day before, Toyota announced another worldwide recall consisting more than 400,000 vehicles, along with Subaru Corporation, per The Wall Street Journal.
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11308.0
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2018-10-30 00:00:00 UTC
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Cummins (CMI) Q3 Earnings Top Estimates, 2018 View Intact
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AAP
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https://www.nasdaq.com/articles/cummins-cmi-q3-earnings-top-estimates-2018-view-intact-2018-10-30
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nan
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Cummins Inc.CMI reported adjusted earnings of $4.05 per share in third-quarter 2018, beating the Zacks Consensus Estimate of $3.75. The company's earnings per share were $2.71 in the year-ago quarter.
During the reported quarter, net income was $692 million compared with $453 million in the prior-year quarter.
Revenues improved 12% year over year to $5.94 billion in the reported quarter. The top line marginally missed the Zacks Consensus Estimate of $5.95 billion. The year-over-year rise was owing to increased demand for trucks, construction and power generation equipment across all markets.
Cummins Inc. Price, Consensus and EPS Surprise
Cummins Inc. Price, Consensus and EPS Surprise | Cummins Inc. Quote
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose $983 million (16.5% of sales) compared with $788 million (14.9% of sales) recorded in the prior-year quarter.
Segmental Performance
Sales at the Engine segment grew 17% to $2.7 billion on the back of an increase of 18% in North America and 14% in international markets. The segment's EBITDA increased to $405 million (14.9% of sales) from $276 million (11.8% of sales) a year ago.
Sales at the Distribution segment increased 10% to $1.9 billion. Revenues benefited from 12% rise in the North American segment and 6% growth in international markets. The segment's EBITDA rose to $155 million (8% of sales) from $120 million (6.8% of sales) a year ago.
Sales at the Components segment surged 14% to $1.8 billion, owing to revenue growth of 25% in North America, in addition with 2% increase in international sales. The segment's EBITDA was $288 million (16.4% of sales) compared with the year-ago tally of $259 million (16.9% of sales).
Sales at the Power Generation segment improved 5% to $1.1 billion, banking on an increased demand in oil and gas, and power generation markets. The segment's EBITDA rose to $163 million (14.7% of sales) in third-quarter 2018 from $111 million (10.5% of sales) in the year-ago quarter.
Sales at the Electrified Power segment were $2 million while the segment witnessed EBITDA loss of $30 million.
Financial Position
Cummins' cash and cash equivalents were $1.2 billion as of Sep 30, 2018, from $1.4 billion as of Dec 31, 2017. Long-term debt totaled $1.56 billion as of Sep 30, 2018, marking a slight decline from $1.59 billion recorded on Dec 31, 2017.
At the end of the first nine months of 2018, Cummins' net operating cash inflow was $1.4 billion compared with $1.5 billion in the same period of 2017. Capital expenditure was $361 million, marking a decline from $147 million in the same time frame.
Capital Deployment
During third-quarter 2018, Cummins returned $682 million to shareholders in forms of dividends and share buybacks. During the quarter under review, the company completed its previously announced share repurchase plan of $500 million.
Year to date, Cummins has returned $1.4 billion to shareholders in forms of dividends and share repurchase. The figure is in sync with the target to return 75% of the company's operating cash flow to shareholders.
On Oct 9, 2018, Cummins' board approved a new share repurchase plan worth $2 billion. Additionally, it announced a quarterly cash dividend of $1.14 per share, payable on Dec 3, 2018.
2018 Guidance
For 2018, Cummins reiterated its revenue growth expectation at 15-17%. Moreover, EBITDA is expected to be 14.8-15.2%, which is unchanged from the previous anticipation.
Zacks Rank and Other Stocks to Consider
Cummins currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are AutoZone, Inc. AZO CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP , each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have moved up 17.6%.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have moved up 10.2%.
Advance Auto has an expected long-term growth rate of 12.3%. Shares of the company have risen 42.4% over the past six months.
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CarMax, Inc. (KMX): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few other top-ranked stocks in the auto space are AutoZone, Inc. AZO CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP , each carrying a Zacks Rank #2. Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. The year-over-year rise was owing to increased demand for trucks, construction and power generation equipment across all markets.
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A few other top-ranked stocks in the auto space are AutoZone, Inc. AZO CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP , each carrying a Zacks Rank #2. Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Cummins Inc. Price, Consensus and EPS Surprise Cummins Inc. Price, Consensus and EPS Surprise | Cummins Inc. Quote Earnings before interest, taxes, depreciation and amortization (EBITDA) rose $983 million (16.5% of sales) compared with $788 million (14.9% of sales) recorded in the prior-year quarter.
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Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the auto space are AutoZone, Inc. AZO CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP , each carrying a Zacks Rank #2. Cummins Inc. Price, Consensus and EPS Surprise Cummins Inc. Price, Consensus and EPS Surprise | Cummins Inc. Quote Earnings before interest, taxes, depreciation and amortization (EBITDA) rose $983 million (16.5% of sales) compared with $788 million (14.9% of sales) recorded in the prior-year quarter.
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A few other top-ranked stocks in the auto space are AutoZone, Inc. AZO CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP , each carrying a Zacks Rank #2. Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues improved 12% year over year to $5.94 billion in the reported quarter.
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11309.0
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2018-10-29 00:00:00 UTC
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Standard Motor (SMP) Q3 Earnings & Revenues Beat, Up Y/Y
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AAP
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https://www.nasdaq.com/articles/standard-motor-smp-q3-earnings-revenues-beat-up-y-y-2018-10-29
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nan
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nan
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Standard Motor Products Inc.SMP reported third-quarter 2018 adjusted earnings of 83 cents per share, beating the Zacks Consensus Estimate of 82 cents. Further, the bottom line was higher than the prior-year quarter figure of 74 cents per share. During the quarter under review, the company witnessed signs of recovery. This trend is likely to continue through the rest of the year.
During the quarter under review, earnings from continuing operations were $19.3 million compared with $17.1 million in the prior-year quarter.
During the reported quarter, total revenues increased to $296.6 million from $281.1 million a year ago. Moreover, the top line surpassed the Zacks Consensus Estimate of $291 million.
Gross profit increased to $87.3 million from $82.5 million in the year-ago quarter. Operating income also increased to $27.2 million from $26.8 million in the year-ago quarter.
Standard Motor Products, Inc. Price, Consensus and EPS Surprise
Standard Motor Products, Inc. Price, Consensus and EPS Surprise | Standard Motor Products, Inc. Quote
Segmental Results
During the reported quarter, revenues in the Engine Management segment increased to $197.6 million from $196.8 million a year ago.
Operating income was $21.6 million (11% of sales) compared with $23.5 million (12% of sales) in the prior-year quarter.
Revenues at the Temperature Control segment increased to $96.1 million from $81.2 million a year ago. The segment recorded operating income of $8.6 million (8.9% of sales) compared with $8.1 million (9.9% of sales) in the third quarter of 2017.
Revenues at the All Other segment decreased to $3 million from $3.1 million a year ago. The segment registered an operating loss of $3 million, lower than the loss of $4 million in the third quarter of 2017.
Financial Position
Standard Motor had cash and cash equivalents of $27.3 million as of Sep 30, 2018, compared with $25.4 million as of Sep 30, 2017. Other long-term debt was $26,000 as of Sep 30, 2018, compared with $79,000 as of Dec 31, 2017.
Dividend Update
The company's board of directors approved a quarterly dividend of 21 cents per common share. The dividend will be paid on Dec 3, 2018, to stockholders of record as of Nov 15, 2018.
Zacks Rank & Key Picks
Currently, Standard Motor has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . While Allison Transmission sports a Zacks Rank #1 (Strong Buy), both Advance Auto Parts and AutoZone carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 12.7%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have risen 43.7%.
AutoZone has an expected long-term growth rate of 12.2%. Over the past two years, shares of the company have risen 19%.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
Standard Motor Products, Inc. (SMP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report To read this article on Zacks.com click here. Further, the bottom line was higher than the prior-year quarter figure of 74 cents per share.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report To read this article on Zacks.com click here. Standard Motor Products, Inc. Price, Consensus and EPS Surprise Standard Motor Products, Inc. Price, Consensus and EPS Surprise | Standard Motor Products, Inc. Quote Segmental Results During the reported quarter, revenues in the Engine Management segment increased to $197.6 million from $196.8 million a year ago.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . During the reported quarter, total revenues increased to $296.6 million from $281.1 million a year ago.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report To read this article on Zacks.com click here. During the quarter under review, earnings from continuing operations were $19.3 million compared with $17.1 million in the prior-year quarter.
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11310.0
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2018-10-29 00:00:00 UTC
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Autoliv (ALV) Q3 Earnings Miss Estimates, 2018 View Cut
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AAP
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https://www.nasdaq.com/articles/autoliv-alv-q3-earnings-miss-estimates-2018-view-cut-2018-10-29
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Autoliv, Inc.ALV reported adjusted earnings of $1.35 per share in third-quarter 2018, missing the Zacks Consensus Estimate of $1.58. Moreover, the bottom line declined from the prior-year quarter's tally of $1.47.
During the quarter under review, Autoliv reported net sales from continuing operations of $2.03 billion, reflecting a 4.1% rise year over year. While the Zacks Consensus Estimate for the same was pegged at $2.07 billion. Quarterly organic sales grew 6.4%, majorly driven by a 22% organic sales increase in Americas. However, this uptrend was partly offset by weak demand for light vehicle production in China and Europe.
Operating income from continuing operations gained 15.1% to $193 million. Adjusted operating margin from continuing operations was 9.5% in the reported quarter, higher than the prior-year quarter's figure of 8.6%.
Autoliv, Inc. Price, Consensus and EPS Surprise
Autoliv, Inc. Price, Consensus and EPS Surprise | Autoliv, Inc. Quote
Financial Position
Autoliv had cash and cash equivalents of $534 million as of Sep 30, 2018, lower than $958 million reported as of Sep 30, 2017. Long-term debt was $1.68 billion as of Sep 30, 2018, witnessing a rise from $1.31 billion as of Sep 30, 2017.
At the end of third-quarter 2018, the company's operating cash flow increased to $238 million compared with the year-ago figure of $218 million. Net capital expenditure decreased to $117 million from the year-ago figure of $142 million.
Guidance
For 2018, Autoliv anticipates organic sales growth for continuing operations to be around 6%. Combined with a positive currency translation of approximately 2%, the company expects a consolidated sales boost of approximately 8%. The previous anticipated figure was 10%, which included the effect of currency conversion. Further, the adjusted operating margin for continuing operations is projected to be around 10.5% compared with the prior guidance of 11%.
Zacks Rank and Stocks to Consider
Autoliv currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . While Allison Transmission sports a Zacks Rank #1 (Strong Buy), both CarMax and Advance Auto carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have rallied 12.7%.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have climbed 12.1%.
Advance Auto has an expected long-term growth rate of 12.3%. Shares of the company have soared 43.8% over the past six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CarMax, Inc. (KMX): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Autoliv, Inc. (ALV): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Autoliv, Inc.ALV reported adjusted earnings of $1.35 per share in third-quarter 2018, missing the Zacks Consensus Estimate of $1.58.
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Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . Autoliv, Inc. Price, Consensus and EPS Surprise Autoliv, Inc. Price, Consensus and EPS Surprise | Autoliv, Inc. Quote Financial Position Autoliv had cash and cash equivalents of $534 million as of Sep 30, 2018, lower than $958 million reported as of Sep 30, 2017.
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Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . Autoliv, Inc. Price, Consensus and EPS Surprise Autoliv, Inc. Price, Consensus and EPS Surprise | Autoliv, Inc. Quote Financial Position Autoliv had cash and cash equivalents of $534 million as of Sep 30, 2018, lower than $958 million reported as of Sep 30, 2017.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Adjusted operating margin from continuing operations was 9.5% in the reported quarter, higher than the prior-year quarter's figure of 8.6%.
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11311.0
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2018-10-29 00:00:00 UTC
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Tenneco's (TEN) Q3 Earnings & Revenues Drive Past Estimates
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AAP
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https://www.nasdaq.com/articles/tennecos-ten-q3-earnings-revenues-drive-past-estimates-2018-10-29
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Tenneco Inc.TEN reported third-quarter 2018 results, wherein adjusted earnings per share of $1.70 surpassed the Zacks Consensus Estimate of $1.50. Also, the company's bottom line improved from the prior-year quarter's figure of $1.67.
In the reported quarter, Tenneco's adjusted net income of $88 million remained flat year over year.
Quarterly revenues rose 4% year over year to $2.4 billion, beating the Zacks Consensus Estimate of $2.3 billion. The year-over-year rise was driven by revenue growth across the Clean Air and Ride Performance divisions. This upside stemmed from increased volumes of commercial truck and off-highway, along with new business and incremental content on light vehicles. On a constant-currency basis, total revenues were up 7%, while value-added revenues increased 5% to $1.8 billion.
Tenneco Inc. Price, Consensus and EPS Surprise
Tenneco Inc. Price, Consensus and EPS Surprise | Tenneco Inc. Quote
Adjusted EBIT (earnings before interest, taxes and non-controlling interests) was $149 million compared with $154 million recorded in the prior-year quarter. The adjusted EBIT results were impacted by rise in volume across commercial trucks and off-highway products, offset by costs related to steel and currency exchange rates.
Segmental Results
The Clean Air division's third-quarter revenues were $1.6 billion compared with the year-earlier figure of $1.5 billion.
Revenues in the Ride Performance division were $461 million compared with $457 million recorded in the year-ago quarter.
The Aftermarket division's revenues came in at $309 million, down from $322 million generated in third-quarter 2017.
Financial Position
Tenneco had cash and cash equivalents of $202 million as of Sep 30, 2018, down from $315 million as of Dec 31, 2017. Long-term debt was $1.3 billion as of Sep 30, 2018, compared with $1.36 billion as of Dec 31, 2017.
Outlook
For fourth-quarter 2018, the company expects organic revenues to grow 3% on a constant-currency basis. The company expects currency to have a negative impact of 3% on revenues as of Sep 30, 2018. Also, the acquisition of Federal-Mogul is anticipated to be conducive to the company's top line by $1.9 billion.
For 2018, Tenneco raised its organic revenue growth guidance to 6%, outpacing the industry production by 5 percentage points. The company expects revenues of approximately $11.8 billion in 2018, driven by strong organic growth and Federal-Mogul acquisition. Moreover, value-add adjusted EBITDA margin is expected to be 11.3-11.5%.
Additional News
The company announced closing of its original equipment (OE) ride control plants situated in Owen Sound, Ontario, and Hartwell, GA. The decision has been taken to improve its operational efficiency and remain in sync with the changing market conditions. Later this year, Tenneco will initiate shifting the existing customer business of these projects to its ride control facility in Kettering, OH.
Earlier on Oct 1, 2018, Tenneco concluded the acquisition of Federal-Mogul LLC, a global provider to original equipment manufacturers and the aftermarket.
Zacks Rank and Stocks to Consider
Tenneco currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . Allison Transmission sports a Zacks Rank #1 (Strong Buy), while CarMax and Advance Auto carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have moved up 12.7%.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have moved up 12.1%.
Advance Auto has an expected long-term growth rate of 12.3%. Shares of the company have risen 43.8% over the past six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CarMax, Inc. (KMX): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Tenneco Inc. (TEN): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Tenneco Inc. (TEN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. The adjusted EBIT results were impacted by rise in volume across commercial trucks and off-highway products, offset by costs related to steel and currency exchange rates.
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Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Tenneco Inc. (TEN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . Tenneco Inc. Price, Consensus and EPS Surprise Tenneco Inc. Price, Consensus and EPS Surprise | Tenneco Inc. Quote Adjusted EBIT (earnings before interest, taxes and non-controlling interests) was $149 million compared with $154 million recorded in the prior-year quarter.
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Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Tenneco Inc. (TEN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . Quarterly revenues rose 4% year over year to $2.4 billion, beating the Zacks Consensus Estimate of $2.3 billion.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , CarMax, Inc. KMX and Advance Auto Parts, Inc. AAP . Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Tenneco Inc. (TEN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Tenneco Inc.TEN reported third-quarter 2018 results, wherein adjusted earnings per share of $1.70 surpassed the Zacks Consensus Estimate of $1.50.
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11312.0
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2018-10-26 00:00:00 UTC
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Goodyear (GT) Q3 Earnings Miss Estimates, Deteriorate Y/Y
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AAP
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https://www.nasdaq.com/articles/goodyear-gt-q3-earnings-miss-estimates-deteriorate-y-y-2018-10-26
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The Goodyear Tire & Rubber CompanyGT reported adjusted earnings per share of 68 cents compared with 70 cents in the prior-year quarter. The bottom line missed the Zack Consensus Estimate of 76 cents. The company reported net income of $351 million, up from $129 million in the year-ago quarter.
The company delivered net revenues of $3.93 billion, slightly higher than $3.92 billion in the year-ago quarter. The top line was almost in line with the Zacks Consensus Estimate.
During the quarter, tire unit volumes were 40.5 million, up 2% from the year-ago quarter. Replacement tire shipments rose 4% while original equipment unit volume fell 4% from the prior-year quarter.
Segment operating income was $362 million, almost flat year over year.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise | The Goodyear Tire & Rubber Company Quote
Segment Details
Revenues in the Americas' segment improved slightly year over year from $2.04 billion to $2.10 billion, which reflects increases in price/mix, increase volume and higher third-party chemical sales. Segment operating income came in at $194 million, nearly flat year over year. Modest decline was due to higher conversion costs, impact of reduced price/mix, unfavorable foreign currency translation and increased cost of raw material.
Revenues at the Europe, Middle East and Africa segment were $1.3 billion, down 2% year over year due to unfavorable foreign currency translation, partially offset by increased volume and favorable price/mix. The segment's operating income increased 23% to $111 million. This was mainly driven by lower raw material costs, favorable price/mix, partially offset by unfavorable foreign currency translation and higher selling, administrative and general (SG&A) expenses.
Revenues at the Asia-Pacific segment declined 7% to $531 million, reflecting a drop in tire volumes and adverse foreign currency translation. The segment's operating income declined to $57 million year over year due to higher SG&A expenses, partially because of higher bad debt expense, lower price/mix and reduced volume.
Financial Position
Goodyear had cash and cash equivalents of $896 million as of Sep 30, 2018, down from $1.04 billion as of Dec 31, 2017. Long-term debt and capital leases amounted to $471 million as of Sep 30, 2018, up from $391 million as of Dec 31, 2017.
As of Sep 30, 2018, the company recorded total cash outflow of $24 million from operating activities in comparison with total outflow $154 million as of Sep 30, 2017. Also, capital expenditure for the period fell to $615 million from $683 million a year ago.
Capital Deployment
During the reported quarter, Goodyear repurchased 4.2 million shares for $100 million, under the previously announced $2.1-billion share buy-back program.
Since the program's initiation in 2013, the company bought back 52 million shares for $1.5 billion.
Outlook
Goodyear revised its segment operating income expectations for 2018 to reflect the challenging industry environment. The company expects its segment operating income to exceed $1.3 billion, down from previous guidance of $1.45-$1.5 billion. The revised guidance reflects the impact of higher raw material costs due to headwinds from unfavorable currency translation, soft market conditions in China and economic volatility in Brazil.
Zacks Rank & Stocks to Consider
Goodyear is a Zacks Rank#3 (Hold) company.
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have risen 12.8%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have risen 40.3%.
AutoZone has an expected long-term growth rate of 12.2%. Over the past two years, shares of the company have risen 17.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2 (Buy). Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. This was mainly driven by lower raw material costs, favorable price/mix, partially offset by unfavorable foreign currency translation and higher selling, administrative and general (SG&A) expenses.
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Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2 (Buy). The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise | The Goodyear Tire & Rubber Company Quote Segment Details Revenues in the Americas' segment improved slightly year over year from $2.04 billion to $2.10 billion, which reflects increases in price/mix, increase volume and higher third-party chemical sales.
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Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2 (Buy). The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise | The Goodyear Tire & Rubber Company Quote Segment Details Revenues in the Americas' segment improved slightly year over year from $2.04 billion to $2.10 billion, which reflects increases in price/mix, increase volume and higher third-party chemical sales.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2 (Buy). Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. Long-term debt and capital leases amounted to $471 million as of Sep 30, 2018, up from $391 million as of Dec 31, 2017.
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11313.0
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2018-10-26 00:00:00 UTC
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Sonic Automotive (SAH) Q3 Earnings Beat, Revenues Miss
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AAP
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https://www.nasdaq.com/articles/sonic-automotive-sah-q3-earnings-beat-revenues-miss-2018-10-26
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nan
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Sonic Automotive, Inc.SAH registered adjusted earnings per share of 43 cents in third-quarter 2018, beating the Zacks Consensus Estimate of 40 cents. The bottom line was 40 cents per share in third-quarter 2017.
Total revenues in the reported quarter were $2.47 billion, down from the prior-year quarter figure of $2.51 billion. Further, revenues missed the Zacks Consensus Estimate of $2.59 billion.
During the reported quarter, revenues from the total new-vehicle sales decreased 9.3% year over year to $1.24 billion. Revenues from used vehicles rose 13.1% to $746 million. Wholesale vehicle revenues rose 12.7% to $48.6 million. Revenues from parts, services and collision repair decreased 1.3% to $343.1 million while finance, insurance, and other revenues rose 5.6% to $98.1 million.
In third-quarter 2018, gross profit decreased to $360.5 million from $362.6 million recorded a year ago. Selling, general and administrative expenses increased to $289 million from $284 million in the year-ago quarter. The company reported operating income of $48.1 million compared with $55.8 million in the year-ago quarter.
In third-quarter 2018, EchoPark stores retailed 7,698 units, up considerably on a year-over-year basis.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
Sonic Automotive, Inc. Price, Consensus and EPS Surprise | Sonic Automotive, Inc. Quote
Dividend & Share Repurchase
The board of directors at Sonic Automotive announced a quarterly dividend of 6 cents per share. The dividend will be paid on Dec 14, 2018, to shareholders of record as of Jan 15, 2019.
Zacks Rank & Other Stocks to Consider
Currently, Sonic Automotive has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 12.8%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have risen 40.3%.
AutoZone has an expected long-term growth rate of 12.2%. Over the past two years, shares of the company have risen 17.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sonic Automotive, Inc. (SAH): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2. Click to get this free report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. In third-quarter 2018, EchoPark stores retailed 7,698 units, up considerably on a year-over-year basis.
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A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2. Click to get this free report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Sonic Automotive, Inc. Price, Consensus and EPS Surprise Sonic Automotive, Inc. Price, Consensus and EPS Surprise | Sonic Automotive, Inc. Quote Dividend & Share Repurchase The board of directors at Sonic Automotive announced a quarterly dividend of 6 cents per share.
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Click to get this free report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2. Revenues from parts, services and collision repair decreased 1.3% to $343.1 million while finance, insurance, and other revenues rose 5.6% to $98.1 million.
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A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO , each carrying a Zacks Rank #2. Click to get this free report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Further, revenues missed the Zacks Consensus Estimate of $2.59 billion.
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11314.0
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2018-10-25 00:00:00 UTC
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Tesla (TSLA) Q3 Earnings & Revenues Beat Estimates, Up Y/Y
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AAP
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https://www.nasdaq.com/articles/tesla-tsla-q3-earnings-revenues-beat-estimates-up-y-y-2018-10-25
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Tesla, Inc.TSLA has reported earnings per share of $2.90 in third-quarter 2018, surpassing the Zacks Consensus Estimate of loss of 55 cents. The company reported loss of $2.92 per share in the prior-year quarter.
During the reported quarter, net income attributable to common shareholders amounted $516.2 million compared with the year-ago net loss of $488.5 million.
Revenues increased to $6.8 billion from $3 billion registered in third-quarter 2017. The figure surpassed the Zacks Consensus Estimate of $5.7 billion.
During the quarter under review, Tesla delivered 27,710 Model S and Model X vehicles, and 56,065 Model 3 vehicles to the customers.
Total automotive revenues, including revenues from automotive sales and leasing, increased appreciably year over year to $6.1 billion in the reported quarter. The rise was due to a robust increase in Model 3 deliveries.
Energy generation and storage revenues increased from $317.5 million in third-quarter 2017 to $399.3 million in the reported quarter. The rise was mainly due to considerable growth of energy-storage deployments, and higher mix of cash and loan sales for solar deployments.
Services and other revenues increased 21.1% year over year to $445 million, primarily due to higher used-car sales.
Tesla's third-quarter 2018 automotive gross margin was 25.8%, increasing 752 basis points (bps) from third-quarter 2017.
Energy generation and storage gross margin declined 804 bps on a year-over-year basis to 17.2%.
Tesla, Inc. Price, Consensus and EPS Surprise
Tesla, Inc. Price, Consensus and EPS Surprise | Tesla, Inc. Quote
Financial Position
Tesla had cash and cash equivalents of $2.97 billion as of Sep 30, 2018, compared with $3.37 billion, as of Dec 31, 2017.
Net cash provided by operating activities amounted to $139.1 million in third-quarter 2018 compared with net cash of $300.6 million used in third-quarter 2017. Capital expenditure declined to $510.3 million from $1.12 billion in the year-ago quarter.
Business Expansion
In third-quarter 2018, Tesla opened four new stores and service locations. The company also opened 44 new supercharger locations, reaching the global total of 1,352.
Model 3 Update
The company roughly produced 5,300 Model 3 vehicles in the last week of the third quarter. The Model 3 production system was stable during the quarter. The company started the quarter by producing only Rear Wheel Drive (RWD) Model 3s and ended it by manufacturing almost the entire All-Wheel Drive (AWD) version of Model 3.
Labor time required per Model 3 declined by over 30% in third-quarter 2018 from that of second-quarter 2018.
Outlook
The company expects Model 3 production and deliveries to continue increasing in fourth-quarter 2018. Model 3 gross margin is likely to remain unchanged in fourth-quarter 2018. Tesla expects to deliver around 100,000 units of Model S and Model X in 2018, similar to the prior-quarter guidance.
Zacks Rank & Key Picks
Tesla currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and Navistar International Corporation NAV , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 13%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past two years, shares of the company have risen 40.6%.
Navistar has an expected long-term growth rate of 5%. Over the past two years, shares of the company have risen 35.3%.
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Tesla, Inc. (TSLA): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Navistar International Corporation (NAV): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and Navistar International Corporation NAV , each carrying a Zacks Rank #2 (Buy). Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Tesla, Inc.TSLA has reported earnings per share of $2.90 in third-quarter 2018, surpassing the Zacks Consensus Estimate of loss of 55 cents.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and Navistar International Corporation NAV , each carrying a Zacks Rank #2 (Buy). Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. Tesla, Inc. Price, Consensus and EPS Surprise Tesla, Inc. Price, Consensus and EPS Surprise | Tesla, Inc. Quote Financial Position Tesla had cash and cash equivalents of $2.97 billion as of Sep 30, 2018, compared with $3.37 billion, as of Dec 31, 2017.
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Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and Navistar International Corporation NAV , each carrying a Zacks Rank #2 (Buy). During the quarter under review, Tesla delivered 27,710 Model S and Model X vehicles, and 56,065 Model 3 vehicles to the customers.
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A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and Navistar International Corporation NAV , each carrying a Zacks Rank #2 (Buy). Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report To read this article on Zacks.com click here. During the quarter under review, Tesla delivered 27,710 Model S and Model X vehicles, and 56,065 Model 3 vehicles to the customers.
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11315.0
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2018-10-24 00:00:00 UTC
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Is a Beat in the Cards for Cummins (CMI) in Q3 Earnings?
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AAP
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https://www.nasdaq.com/articles/is-a-beat-in-the-cards-for-cummins-cmi-in-q3-earnings-2018-10-24
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nan
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nan
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Cummins Inc.CMI is scheduled to report third-quarter 2018 earnings on Oct 30, before the market opens. In the last reported quarter, the company delivered a positive earnings surprise of 12.8%. In fact, it beat estimates in all of the trailing four quarters, with an average beat of 12.6%.
In the past three months, shares of Cummins have outperformed the Auto sector. The stock has lost 0.7% compared with the sector's decline of 17.2% during the period.
Let's see, how things are shaping up for this announcement.
Cummins Inc. Price and EPS Surprise
Cummins Inc. Price and EPS Surprise | Cummins Inc. Quote
Why a Positive Surprise is Likely
Our proven model shows that Cummins is likely to beat on earnings this quarter. That is because it has the right combination of the two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - for increasing odds of an earnings beat.
Earnings ESP : Cummins has an Earnings ESP of +1.46%, as the Most Accurate Estimate is pegged at $3.81, higher than the Zacks Consensus Estimate of $3.75. A positive ESP indicates that the stock is poised to come up with a positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Cummins currently carries a Zacks Rank of 2 (Buy). This, when combined with a positive ESP, makes us reasonably confident of an earnings beat.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
What's Driving Better-Than-Expected Earnings?
The company is poised to gain from frequent business acquisitions. In an effort to be a leader in the electrified power, Cummins is undertaking several acquisitions. In July, it announced that it was acquiring Efficient Drivetrains, Inc. that manufactures hybrid and fully-electric power solutions. Similarly, in January 2018, the company acquired the automotive battery business of Johnson Matthey based in the U.K. and battery pack expertise, Brammo in October 2017.
Apart from expanding through acquisitions, Cummins is widening its product portfolio by launching suite of plug-in hybrid electric powertrain solutions that can cater to diverse applications. Further, it collaborates with companies to offer products in diverse markets. In September, the company announced that it will provide electrified power solutions for KAMAZ's new line of battery-powered vehicles.
The company is focused on enhancing shareholder value by pursuing share repurchases and dividend payouts. It has set a target to return 75% of its operating cash flow to shareholders through dividends and share repurchases in 2018. In sync with the target, Cummins' board approved a share repurchase program of around $2 billion. Further, it hiked the dividend payout by 5.6% to $1.14 per share in second-quarter 2018.
For the to-be-reported quarterly results, the Zacks Consensus Estimate for net sales of the company's four segments - Engine, Distribution, Components, and Power Generation are $2.72 billion, $1.9 billion, $1.84 billion and $1.18 billion, respectively. In second-quarter 2018, these segments' actual sales figures were $2.7 billion, $2 billion, $1.9 billion and $1.2 billion, respectively.
Other Stocks to Consider
Here are a few other stocks worth considering from the same space, with the right combination of elements to outpace earnings estimates this time around:
American Axle & Manufacturing Holdings, Inc. AXL has an Earnings ESP of +6.15% and a Zacks Rank #3. The company will report third-quarter 2018 financial figures on Nov 2.
You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto Parts, Inc. AAP has an Earnings ESP of +0.44% and a Zacks Rank of 2. The company's third-quarter financial results are expected to be released on Nov 13.
AutoZone, Inc. AZO has an Earnings ESP of +0.08% and a Zacks Rank of 2. The company's first-quarter fiscal 2019 financial results are anticipated to be released on Dec 4.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc. AAP has an Earnings ESP of +0.44% and a Zacks Rank of 2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP has an Earnings ESP of +0.44% and a Zacks Rank of 2. Cummins Inc. Price and EPS Surprise Cummins Inc. Price and EPS Surprise | Cummins Inc. Quote Why a Positive Surprise is Likely Our proven model shows that Cummins is likely to beat on earnings this quarter.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP has an Earnings ESP of +0.44% and a Zacks Rank of 2. Cummins Inc. Price and EPS Surprise Cummins Inc. Price and EPS Surprise | Cummins Inc. Quote Why a Positive Surprise is Likely Our proven model shows that Cummins is likely to beat on earnings this quarter.
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Advance Auto Parts, Inc. AAP has an Earnings ESP of +0.44% and a Zacks Rank of 2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. This, when combined with a positive ESP, makes us reasonably confident of an earnings beat.
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11316.0
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2018-10-23 00:00:00 UTC
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Harley-Davidson (HOG) Q3 Earnings Beat Estimates, Up Y/Y
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AAP
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https://www.nasdaq.com/articles/harley-davidson-hog-q3-earnings-beat-estimates-up-y-y-2018-10-23
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nan
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Harley-Davidson, Inc.HOG has reported adjusted earnings of 68 cents per share in third-quarter 2018, beating the Zacks Consensus Estimate of 47 cents. In the prior-year quarter, the figure was 40 cents.
Net income augmented to $113.9 million from $68.2 million registered a year ago.
Revenues from the Motorcycle and Related Products segment increased to $1.12 billion in the reported quarter, which was almost in-line with the Zacks Consensus Estimate of $1.1 billion. In the prior-year quarter, the figure was $962 million. The company also reported consolidated revenues of $1.32 billion, marking an increase from the prior year's figure of $1.15 billion. Harley-Davidson witnessed an improved international retail sales growth.
Harley-Davidson, Inc. Price, Consensus and EPS Surprise
Harley-Davidson, Inc. Price, Consensus and EPS Surprise | Harley-Davidson, Inc. Quote
Motorcycles and Related Products
Operating income from the Motorcycles and Related Products segment rose to $65.7 million from $17.4 million recorded a year ago. Further, operating margin was 5.8% compared with 1.8% recorded in the year-ago quarter. This rise was primarily due to higher gross margin and lower SG&A as a percent of revenues compared with the prior-year quarter.
For the quarter ending on Sep 30, the company shipped 48,639 motorcycles compared with 41,662 in third-quarter 2017.
Harley-Davidson's retail motorcycle sales in the United States declined 13.3% to 36,220 units. International sales gained 2.6% to 23,006 motorcycles from 22,416 in the prior-year quarter. During the reported quarter, sales in Latin America, and the Middle East and Africa (EMEA) region gained 11.8% and 4.6%, respectively. However, sales in the Asia-Pacific and Canada reduced by 0.3% and 4.7%, respectively.
Harley-Davidson's worldwide retail motorcycle sales fell 7.8% to 59,226 units from 64,209 in the year-ago quarter.
Revenues from the Parts and Accessories segment decreased 7.2% to $212.4 million. Moreover, the metric for General Merchandise - including MotorClothes apparel and accessories - lost 19.8% to $58.3 million.
Harley-Davidson Financial Services
Revenues in Harley-Davidson Financial Services ("HDFS") were $191.7 million compared with $189.1 million recorded in the prior-year quarter. Operating income gained 8.7% to $83.8 million from $77.1 million in the year-ago quarter.
Financial Position
Harley-Davidson had cash and cash equivalents of $927 million as of Sep 30, 2018, compared with $683.1 million as of Sep 24, 2017. Net long-term debt slumped to $4.2 billion from $4.6 billion as of Sep 24, 2017.
For nine months - ending on Sep 30, 2018 - Harley-Davidson's operating cash inflow rose to $1.12 billion from $949 million a year ago. Capital expenditure was $119.8 million compared with $114 million in the preceding year period.
Share Repurchase
During third-quarter 2018, the company repurchased 1.9 million common shares for $84.5 million. At the quarter end, 21.3 million shares remained under board-approved share repurchase authorizations.
Looking Forward
For 2018, Harley-Davidson reaffirmed its full-year motorcycle shipments of 231,000-236,000 units. Further, for fourth-quarter 2018, it expects motorcycle shipments to be approximately 45,800-50,800 units.
For 2018, the company reduced its capital expenditure to $230-$250 million from $250-$270 million stated earlier. It includes roughly $50 million to support manufacturing optimization.
Zacks Rank & Key Picks
Harley-Davidson currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Advanced Auto Parts, Inc. AAP , Horizon Global Corporation HZN and Allison Transmission Holdings, Inc. ALSN . Advanced Auto and Horizon Global presently carry a Zacks Rank #2 (Buy) while Allison Transmission sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Advanced Auto has an expected long-term growth rate of 12.3%. Over the past three months, shares of the company have gained 17.7%.
Horizon Global has an expected long-term growth rate of 2.7%. Over the past three months, shares of the company have gained 14.1%.
Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have risen 15.3% in the past three months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Horizon Global Corporation (HZN): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
Harley-Davidson, Inc. (HOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Advanced Auto Parts, Inc. AAP , Horizon Global Corporation HZN and Allison Transmission Holdings, Inc. ALSN . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Horizon Global Corporation (HZN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. This rise was primarily due to higher gross margin and lower SG&A as a percent of revenues compared with the prior-year quarter.
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A few better-ranked stocks in the auto space are Advanced Auto Parts, Inc. AAP , Horizon Global Corporation HZN and Allison Transmission Holdings, Inc. ALSN . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Horizon Global Corporation (HZN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Harley-Davidson, Inc. Price, Consensus and EPS Surprise Harley-Davidson, Inc. Price, Consensus and EPS Surprise | Harley-Davidson, Inc. Quote Motorcycles and Related Products Operating income from the Motorcycles and Related Products segment rose to $65.7 million from $17.4 million recorded a year ago.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Horizon Global Corporation (HZN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Advanced Auto Parts, Inc. AAP , Horizon Global Corporation HZN and Allison Transmission Holdings, Inc. ALSN . Harley-Davidson, Inc. Price, Consensus and EPS Surprise Harley-Davidson, Inc. Price, Consensus and EPS Surprise | Harley-Davidson, Inc. Quote Motorcycles and Related Products Operating income from the Motorcycles and Related Products segment rose to $65.7 million from $17.4 million recorded a year ago.
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A few better-ranked stocks in the auto space are Advanced Auto Parts, Inc. AAP , Horizon Global Corporation HZN and Allison Transmission Holdings, Inc. ALSN . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Horizon Global Corporation (HZN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. International sales gained 2.6% to 23,006 motorcycles from 22,416 in the prior-year quarter.
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11317.0
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2018-10-19 00:00:00 UTC
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Thor (THO) Announces 5% Hike in Quarterly Cash Dividend
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AAP
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https://www.nasdaq.com/articles/thor-tho-announces-5-hike-in-quarterly-cash-dividend-2018-10-19
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nan
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Thor Industries, Inc.THO announced that its board approved a 5% increase in its quarterly cash dividend on common stock to 39 cents per share. The earlier payout was 37 cents per share. The revised dividend will be paid on Nov 9 to shareholders of record as of Oct 25, 2018.
Prior to this hike, Thor's board approved a dividend hike of 12% to 37 cents per share in October 2017. In subsequent quarters, the same amount was paid to the company's shareholders.
Thor pays regular quarterly cash dividends and engages in share buyback programs to return value to its shareholders. In June 2018, Thor's board authorized it to repurchase $250 million worth of shares over the next two years.
At the fiscal 2018 end, on Jul 31, 2018, the company had cash and cash equivalents of $275.2 million, up from $223.3 million in the same period of last fiscal. Further, Thor's long-term debt was nil compared with $145 million recorded on Jul 31, 2017. A strong cash flow combined with gains from Jayco's acquisition in 2016 enabled the company to pay off its remaining debt before the fiscal end and offer regular quarterly cash dividend. Similar to the last fiscal, Thor aims to return capital to shareholders in fiscal 2019 as well.
A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . The long-term growth rate of Allison Transmission, Advance Auto and Volvo are 10%, 12.3% and 15%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
AB Volvo (VLVLY): Free Stock Analysis Report
Thor Industries, Inc. (THO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report To read this article on Zacks.com click here. Thor Industries, Inc.THO announced that its board approved a 5% increase in its quarterly cash dividend on common stock to 39 cents per share.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report To read this article on Zacks.com click here. A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Thor Industries, Inc.THO announced that its board approved a 5% increase in its quarterly cash dividend on common stock to 39 cents per share.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report To read this article on Zacks.com click here. Thor Industries, Inc.THO announced that its board approved a 5% increase in its quarterly cash dividend on common stock to 39 cents per share.
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11318.0
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2018-10-18 00:00:00 UTC
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Goodyear (GT) Cheers Shareholders With 14.3% Dividend Hike
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AAP
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https://www.nasdaq.com/articles/goodyear-gt-cheers-shareholders-with-14.3-dividend-hike-2018-10-18
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nan
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nan
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The Goodyear Tire & Rubber CompanyGT announced that its board approved a 14.3% increase in its quarterly cash dividend on common stock to 16 cents per share. The earlier payout was 14 cents per share. The dividend hike represents an annual rate of 58 cents per share for 2018, while for 2019 the rate is 64 cents. The revised dividend will be paid on Dec 3 to shareholders of record as of Nov 1, 2018.
Prior to this hike, Goodyear's board approved a dividend hike of 40% to 14 cents per share in October 2017. In subsequent quarters, the same amount was paid to shareholders.
The company pays regular dividends and engages in share buyback programs to return value to shareholders. In the last reported quarter, it repurchased 3 million shares for $75 million under the previously announced $2.1-billion share repurchase program. Moreover, the company aims to make a capital deployment of $3.5-$4 billion from 2017 and 2020.
Goodyear is a leading tire manufacturing company, which offers products under various brands across the globe. It manufactures tires at its 48 facilities, which are spread across 22 countries around the world.
A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . The long-term growth rate of Allison Transmission, Advance Auto and Volvo are 10%, 12.3% and 15%, respectively.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
AB Volvo (VLVLY): Free Stock Analysis Report
The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. The Goodyear Tire & Rubber CompanyGT announced that its board approved a 14.3% increase in its quarterly cash dividend on common stock to 16 cents per share.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. In the last reported quarter, it repurchased 3 million shares for $75 million under the previously announced $2.1-billion share repurchase program.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . The Goodyear Tire & Rubber CompanyGT announced that its board approved a 14.3% increase in its quarterly cash dividend on common stock to 16 cents per share.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. The revised dividend will be paid on Dec 3 to shareholders of record as of Nov 1, 2018.
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11319.0
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2018-10-17 00:00:00 UTC
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Magna (MGA) Opens Another Seating Facility in Czech Republic
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AAP
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https://www.nasdaq.com/articles/magna-mga-opens-another-seating-facility-in-czech-republic-2018-10-17
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nan
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nan
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Magna International Inc.MGA has opened a seating business and facility in Chomutov, Czech Republic, with BMW AG. The company's facility will offer seating systems in a variety of configurations to support assembling BMW's numerous vehicle models.
With an aim to increase efficiency and offer value products to customers, the hub utilizes smart factory manufacturing concepts. Having a manufacturing area of 6,000 square meters, the plant has the capability to create more than 360,000 sets of seats in a year. The current employee count of the hub is 150, which is expected to double in 2019. Manufacturing at the hub is anticipated to start by 2018 end.
The company's seating business has six research and development centers, and 50 manufacturing locations across the globe. Out of total production locations, 16 hubs are in Europe, with five in Czech Republic.
This is not the first plant that Magna opened to supply seats for BMW's vehicles. In March 2018, Magna announced that it opened a 230,000-sq-ft plant in Moore, SC. Manufactured seating systems at the Moore plant are supplied for the production of BMW's X models.
Per Magna's management, winning business from BMW, which is an existing customer, is significant for its global expansion. Further, the new business demonstrates Magna's cost-saving and innovative seating solutions.
A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . The long-term growth rate of Allison Transmission, Advance Auto and LKQ Corporation are 10%, 12.3% and 15%, respectively.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Magna International Inc. (MGA): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
AB Volvo (VLVLY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report To read this article on Zacks.com click here. Magna International Inc.MGA has opened a seating business and facility in Chomutov, Czech Republic, with BMW AG.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report To read this article on Zacks.com click here. A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Magna International Inc.MGA has opened a seating business and facility in Chomutov, Czech Republic, with BMW AG.
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A few other stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Advance Auto Parts, Inc. AAP and AB Volvo VLVLY . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report To read this article on Zacks.com click here. Magna International Inc.MGA has opened a seating business and facility in Chomutov, Czech Republic, with BMW AG.
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11320.0
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2018-10-17 00:00:00 UTC
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Walmart Makes a Smart Move in Auto Parts
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AAP
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https://www.nasdaq.com/articles/walmart-makes-smart-move-auto-parts-2018-10-17
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nan
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nan
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Some retail segments have lent themselves to e-commerce better than others. Books and electronics were among the first categories; Amazon (NASDAQ: AMZN) succeeded in part because it was well suited toward the internet. Amazon CEO Jeff Bezos chose to sell books first because he knew an online bookstore could carry a wider inventory than a brick-and-mortar store ever could. The benefit of reviews also made electronics a good fit for the online channel.
However, other categories have proven more difficult to sell online. Apparel, for instance, is rife with returns, a challenging factor when shipping is costly. Similarly, perishable food is also tricky, because food needs to be handled properly and customers need to be home to receive it. Auto parts is another challenging category to sell online. Chains like O'Reilly Automotive , AutoZone , and Advance Auto Parts (NYSE: AAP) have thousands of locations and carry tens of thousands of stock keeping units (SKUs). They also have knowledgeable employees to assist you, provide services like diagnostics, and cater to a customer base that often needs a spare part urgently.
Nonetheless, the auto parts industry, which brings in nearly $100 billion in annual revenue, has attracted attention from the likes of Amazon and Walmart (NYSE: WMT) .
Amazon started focusing on auto parts for the "do-it-yourself" market last year and already generates $6 billion in annual revenue from the segment, according to research firm MoffettNathanson.
Now Walmart has made an aggressive move into auto parts. The retail giant is partnering with Advance Auto Parts to make an automotive specialty store on Walmart.com, which is expected to begin rolling out early in 2019. Walmart already operates 2,500 auto centers around the country, which the online auto parts store will complement, and the two companies also plan to provide home delivery and same-day pickup at Walmart and Advance Auto Parts stores once the new online store is up and running.
Advance Auto Parts brings in more than $9 billion in revenue annually, so the partnership should give Walmart's online platform a significant boost.
The power of not being Amazon
In some ways, Walmart's biggest advantage in e-commerce is simply that it isn't Amazon. Amazon dominates e-commerce, controlling approximately half of all online sales in the U.S, but the company is not just a threat to other retailers. Its tech prowess has earned it the ire of fellow tech giants, and its experiments in far-flung sectors like shipping and healthcare have caught the notice of other industry leaders.
Walmart, once retail's big bully, has ceded that title to Amazon, but as a result Walmart is particularly attractive to other companies looking to fend off Amazon. Walmart has formed partnerships with tech titans likeGoogleandMicrosoft , acquired a slew of retailers including Bonobos and Modcloth, and opened up its online platform to Lord & Taylor and now Advance Auto Parts.
Though those moves haven't necessarily had an impact on Amazon's growth, they will help make Walmart successful, especially at a time when its e-commerce platform is still small compared to Amazon's.
With Walmart's 2,500 Auto Centers, the automotive segment appears to be area in which the retailer should have a natural advantage over Amazon. Resembling Walmart's tie-up with Advance, Amazon recently partnered with Sears to provide installation and balancing for tires sold on Amazon at Sears Auto Centers, a sign that a successful auto business requires physical locations. However, that deal may be in jeopardy following Sears' bankruptcy .
Automotive, like grocery , is sector in which it's beneficial to have omnichannel capabilities. Walmart needs to press these advantages, as well as partnerships, in order to maintain strong growth in e-commerce. Teaming up with Advance Auto Parts is a clever way to accomplish both.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chains like O'Reilly Automotive , AutoZone , and Advance Auto Parts (NYSE: AAP) have thousands of locations and carry tens of thousands of stock keeping units (SKUs). Amazon started focusing on auto parts for the "do-it-yourself" market last year and already generates $6 billion in annual revenue from the segment, according to research firm MoffettNathanson. Walmart has formed partnerships with tech titans likeGoogleandMicrosoft , acquired a slew of retailers including Bonobos and Modcloth, and opened up its online platform to Lord & Taylor and now Advance Auto Parts.
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Chains like O'Reilly Automotive , AutoZone , and Advance Auto Parts (NYSE: AAP) have thousands of locations and carry tens of thousands of stock keeping units (SKUs). The retail giant is partnering with Advance Auto Parts to make an automotive specialty store on Walmart.com, which is expected to begin rolling out early in 2019. Advance Auto Parts brings in more than $9 billion in revenue annually, so the partnership should give Walmart's online platform a significant boost.
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Chains like O'Reilly Automotive , AutoZone , and Advance Auto Parts (NYSE: AAP) have thousands of locations and carry tens of thousands of stock keeping units (SKUs). Walmart already operates 2,500 auto centers around the country, which the online auto parts store will complement, and the two companies also plan to provide home delivery and same-day pickup at Walmart and Advance Auto Parts stores once the new online store is up and running. Walmart, once retail's big bully, has ceded that title to Amazon, but as a result Walmart is particularly attractive to other companies looking to fend off Amazon.
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Chains like O'Reilly Automotive , AutoZone , and Advance Auto Parts (NYSE: AAP) have thousands of locations and carry tens of thousands of stock keeping units (SKUs). Auto parts is another challenging category to sell online. Walmart already operates 2,500 auto centers around the country, which the online auto parts store will complement, and the two companies also plan to provide home delivery and same-day pickup at Walmart and Advance Auto Parts stores once the new online store is up and running.
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11321.0
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2018-10-16 00:00:00 UTC
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Has Advance Auto Parts (AAP) Outpaced Other Retail-Wholesale Stocks This Year?
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AAP
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https://www.nasdaq.com/articles/has-advance-auto-parts-aap-outpaced-other-retail-wholesale-stocks-this-year-2018-10-16
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nan
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nan
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Investors focused on the Retail-Wholesale space have likely heard of Advance Auto Parts (AAP), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
Advance Auto Parts is one of 155 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. AAP is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AAP's full-year earnings has moved 2.22% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, AAP has gained about 67.45% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 6.75% on average. This means that Advance Auto Parts is performing better than its sector in terms of year-to-date returns.
To break things down more, AAP belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual companies and currently sits at #2 in the Zacks Industry Rank. On average, stocks in this group have gained 27.46% this year, meaning that AAP is performing better in terms of year-to-date returns.
Investors with an interest in Retail-Wholesale stocks should continue to track AAP. The stock will be looking to continue its solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors focused on the Retail-Wholesale space have likely heard of Advance Auto Parts (AAP), but is the stock performing well in comparison to the rest of its sector peers? Within the past quarter, the Zacks Consensus Estimate for AAP's full-year earnings has moved 2.22% higher. On average, stocks in this group have gained 27.46% this year, meaning that AAP is performing better in terms of year-to-date returns.
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To break things down more, AAP belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual companies and currently sits at #2 in the Zacks Industry Rank. On average, stocks in this group have gained 27.46% this year, meaning that AAP is performing better in terms of year-to-date returns. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors focused on the Retail-Wholesale space have likely heard of Advance Auto Parts (AAP), but is the stock performing well in comparison to the rest of its sector peers? On average, stocks in this group have gained 27.46% this year, meaning that AAP is performing better in terms of year-to-date returns. AAP is currently sporting a Zacks Rank of #2 (Buy).
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On average, stocks in this group have gained 27.46% this year, meaning that AAP is performing better in terms of year-to-date returns. Investors focused on the Retail-Wholesale space have likely heard of Advance Auto Parts (AAP), but is the stock performing well in comparison to the rest of its sector peers? AAP is currently sporting a Zacks Rank of #2 (Buy).
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11322.0
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2018-10-16 00:00:00 UTC
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Auto Sales Defy Dull September Retail Numbers: 5 Picks
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AAP
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https://www.nasdaq.com/articles/auto-sales-defy-dull-september-retail-numbers-5-picks-2018-10-16
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nan
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nan
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Retail sales returned another soft reading in September, weighed down by a drastic drop in spending at bars and restaurants. Spending also dropped at grocery stores and gas stations, leading to fears of a possible economic slowdown. Only a jump in spending at auto dealers staved off an overall decline.
However, experts feel that the decline in sales was largely attributable to the impact of Hurricane Florence. Restaurant sales fell but have remained robust over the past year.
Also, core retail sales experienced a healthy increase, indicating that consumer spending remains robust. Investing in auto and parts dealers, the leading gainers for the last month looks prudent at this point.
Sales Remain Soft, Restaurant Sales Plunge
According to the Department of Commerce, retail sales increased by 0.1% during the month of September, below the consensus estimate of a jump of 0.6%. The reading was in line with August's sluggish increase of 0.1%. Excluding motor vehicles and parts, retail sales decreased by 0.1%.
Sales may have been constrained by the impact of Hurricane Florence. But the soft reading was largely attributable to a 1.8% drop in sales at food services and drinking places. This is the largest decline since December 2016. However, restaurant sales have still increased 7.1% over the past 12 months.
Auto Sales Surge, Spending Remains Robust
As is evident, the headline number would have undergone a decline but for a good month at auto dealers and parts sellers. Sales at motor vehicle and parts dealers increased 0.8% last month. However, sales at gasoline stations declined by 0.8%, indicating that fuel prices had somewhat moderated.
Sales at clothing and accessories stores increased by 0.5%, rebounding from a 2.8% plunge in August. Nonstore retailers experienced a 1.1% increase in sales, reflecting the power of online retail. Building material store sales inched up 0.1%. Sales at musical instrument, hobby and book stores increased 0.7%.
Moreover, core retail sales, which exclude automobiles, building materials, gasoline and food services increased by 0.5%. This metric closely tracks the consumer spending portion of GDP. This strong reading indicates that robust consumer spending will likely offset the impact of trade tensions and weakness in the housing market.
Our Choices
Despite retail sales coming in soft for the second consecutive month, the robust nature of consumer spending remains intact. This is evident from the strong reading returned by core retail sales. Further, the dull nature of sales is largely attributable to the impact of Hurricane Florence.
This is why it makes sense to invest in stocks of motor vehicle and parts dealers, the leading gainers for last month. However, picking winning stocks may be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
We have narrowed down our search to the following stocks based on a good Zacks Rank and VGM Score.
America's Car-Mart, Inc.CRMT is one of the largest automotive retailers in the United States.
America's Car-Mart carries a Zacks Rank #1 (Strong Buy) and has a VGM Score of B. The company has expected earnings growth of 48.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 13.9% over the last 60 days.
Rush Enterprises, Inc.RUSHA is an integrated retailer of commercial vehicles and related services, operating in the United States.
Rush Enterprises has a VGM Score of A. The company's expected earnings growth for the current year is 46.6%. The stock sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
AutoZone, Inc.AZO is one of the nation's leading specialty retailers of automotive replacement parts and accessories.
AutoZone has a Zacks Rank #2 (Buy) and VGM Score of A. The company has expected earnings growth of 16% for the current year. The Zacks Consensus Estimate for the current year has improved by 2.5% over the last 30 days.
Asbury Automotive Group, Inc.ABG is one of the largest automotive retailers in the United States.
Asbury Automotive carries a Zacks Rank #2 and has a VGM Score of A. The company has expected earnings growth of 21.3% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.6% over the last 60 days.
Advance Auto Parts, Inc.AAP is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported vehicles.
Advance Auto Parts carries a Zacks Rank #2 and has a VGM Score of B. The company has expected earnings growth of 29.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.3% over the last 30 days.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
America's Car-Mart, Inc. (CRMT): Free Stock Analysis Report
Rush Enterprises, Inc. (RUSHA): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc.AAP is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported vehicles. Click to get this free report Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report America's Car-Mart, Inc. (CRMT): Free Stock Analysis Report Rush Enterprises, Inc. (RUSHA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report To read this article on Zacks.com click here. Retail sales returned another soft reading in September, weighed down by a drastic drop in spending at bars and restaurants.
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Click to get this free report Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report America's Car-Mart, Inc. (CRMT): Free Stock Analysis Report Rush Enterprises, Inc. (RUSHA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported vehicles. Also, core retail sales experienced a healthy increase, indicating that consumer spending remains robust.
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Click to get this free report Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report America's Car-Mart, Inc. (CRMT): Free Stock Analysis Report Rush Enterprises, Inc. (RUSHA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported vehicles. Sales Remain Soft, Restaurant Sales Plunge According to the Department of Commerce, retail sales increased by 0.1% during the month of September, below the consensus estimate of a jump of 0.6%.
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Advance Auto Parts, Inc.AAP is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported vehicles. Click to get this free report Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report America's Car-Mart, Inc. (CRMT): Free Stock Analysis Report Rush Enterprises, Inc. (RUSHA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report To read this article on Zacks.com click here. Sales Remain Soft, Restaurant Sales Plunge According to the Department of Commerce, retail sales increased by 0.1% during the month of September, below the consensus estimate of a jump of 0.6%.
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11323.0
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2018-10-15 00:00:00 UTC
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Why Advance Auto Parts (AAP) is Poised to Beat Earnings Estimates Again
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-aap-is-poised-to-beat-earnings-estimates-again-2018-10-15
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nan
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nan
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, could be a great candidate to consider.
When looking at the last two reports, this auto parts retailer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 6.27%, on average, in the last two quarters.
For the last reported quarter, Advance Auto Parts came out with earnings of $1.97 per share versus the Zacks Consensus Estimate of $1.85 per share, representing a surprise of 6.49%. For the previous quarter, the company was expected to post earnings of $1.98 per share and it actually produced earnings of $2.10 per share, delivering a surprise of 6.06%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Advance Auto Parts lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time . In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Advance Auto Parts currently has an Earnings ESP of +2.92%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #1 (Strong Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on November 13, 2018.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, could be a great candidate to consider. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, could be a great candidate to consider. For the last reported quarter, Advance Auto Parts came out with earnings of $1.97 per share versus the Zacks Consensus Estimate of $1.85 per share, representing a surprise of 6.49%.
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Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, could be a great candidate to consider. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, Advance Auto Parts came out with earnings of $1.97 per share versus the Zacks Consensus Estimate of $1.85 per share, representing a surprise of 6.49%.
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Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, could be a great candidate to consider. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, Advance Auto Parts came out with earnings of $1.97 per share versus the Zacks Consensus Estimate of $1.85 per share, representing a surprise of 6.49%.
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11324.0
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2018-10-15 00:00:00 UTC
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Harley-Davidson (HOG) Q3 Earnings: What's in the Offing?
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AAP
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https://www.nasdaq.com/articles/harley-davidson-hog-q3-earnings%3A-whats-in-the-offing-2018-10-15
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nan
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nan
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Harley-Davidson, Inc.HOG is set to report third-quarter 2018 results on Oct 23, before the opening bell. In the last reported quarter, it delivered positive surprise of 7.4%. Out of the trailing four quarters, the company surpassed estimates in three while meeting in one. The average positive surprise was 10.13%.
In the past three months, shares of Harley-Davidson have outperformed the industry it belongs to. The stock has lost 4.7% compared with the industry's 15.7% decline.
Let's see, how things have shaped up for the upcoming announcement.
Harley-Davidson, Inc. Price and EPS Surprise
Harley-Davidson, Inc. Price and EPS Surprise | Harley-Davidson, Inc. Quote
Factors Influencing This Quarter
For third-quarter 2018, Harley-Davidson anticipates total motorcycle shipments of 45,500-50,500 units compared with 39,000-44,000 expected in the year-ago period. For the to-be-reported quarter, the Zacks Consensus Estimate for total motorcycle shipments is 48,044 units.
For the soon-to-be-released quarterly results, the Zacks Consensus Estimate for total revenues of Motorcycles and Related Products segment is pegged at $1.1 billion, down from the second quarter's total revenues of $1.53 billion.
Similarly, the consensus estimate for total revenues of the company's Financial Services segment stands at $191 million, declining from the second quarter's total revenues of $188 million.
To avoid increased tariffs, Harley-Davidson decided to shift manufacturing location of its motorcycles sold in Europe from the United States to international facilities. Ramping up production at these international hubs will require investments, which will lead to rise in costs for the company.
Further, before international hubs get upgraded, Harley-Davidson has to keep paying high tariffs for motorcycles imported from the United States to Europe. As of June, the company estimated tariff-related costs of roughly $30-$45 million for the rest of 2018.
However, Harley-Davidson has been focusing on offering innovative products to remain at par with changing consumer demands. In July, it shared growth plan through 2022. Per the plan, the company aims to revive its U.S. business through investments, while accelerating pace of international growth.
Earnings Whispers
Our proven model does not conclusively show that Harley-Davidson is likely to beat earnings estimates this quarter. This is because, a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Earnings ESP : Harley-Davidson has an Earnings ESP of -2.13% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 46 cents and 47 cents, respectively. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Harley-Davidson currently carries a Zacks Rank #4 (Sell). Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering from the same space, with the right combination of elements to outpace earnings estimates this time around:
PACCAR Inc. PCAR has an Earnings ESP of +0.62% and is a #3 Ranked player. Its third-quarter 2018 results are slated to be announced on Oct 23.
You can see the complete list of today's Zacks #1 Rank stocks here .
Cummins Inc. CMI has an Earnings ESP of +1.73% and a Zacks Rank #3. Its third-quarter 2018 results are scheduled to be released on Oct 30.
Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.92% and has a Zacks Rank of 1. The company is expected to report third-quarter 2018 results on Nov 13.
More Stock News: This Is Bigger than the iPhone!
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
Harley-Davidson, Inc. (HOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.92% and has a Zacks Rank of 1. Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. To avoid increased tariffs, Harley-Davidson decided to shift manufacturing location of its motorcycles sold in Europe from the United States to international facilities.
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Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.92% and has a Zacks Rank of 1. Harley-Davidson, Inc. Price and EPS Surprise Harley-Davidson, Inc. Price and EPS Surprise | Harley-Davidson, Inc. Quote Factors Influencing This Quarter For third-quarter 2018, Harley-Davidson anticipates total motorcycle shipments of 45,500-50,500 units compared with 39,000-44,000 expected in the year-ago period.
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Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.92% and has a Zacks Rank of 1. Harley-Davidson, Inc. Price and EPS Surprise Harley-Davidson, Inc. Price and EPS Surprise | Harley-Davidson, Inc. Quote Factors Influencing This Quarter For third-quarter 2018, Harley-Davidson anticipates total motorcycle shipments of 45,500-50,500 units compared with 39,000-44,000 expected in the year-ago period.
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Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.92% and has a Zacks Rank of 1. Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Harley-Davidson, Inc. Price and EPS Surprise Harley-Davidson, Inc. Price and EPS Surprise | Harley-Davidson, Inc. Quote Factors Influencing This Quarter For third-quarter 2018, Harley-Davidson anticipates total motorcycle shipments of 45,500-50,500 units compared with 39,000-44,000 expected in the year-ago period.
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11325.0
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2018-10-15 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Advance Auto Parts, Atlas Air Worldwide Holdings, ABIOMED, Archer-Daniels-Midland and Amerisafe
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AAP
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-advance-auto-parts-atlas-air-worldwide-holdings-abiomed
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nan
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nan
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For Immediate Release
Chicago, IL - October 15, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Atlas Air Worldwide Holdings, Inc. AAWW , ABIOMED, Inc. ABMD , Archer-Daniels-Midland Co. ADM and Amerisafe, Inc. AMSF .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday's Analyst Blog:
5 of the Best Stocks to Buy for a Resurgent Wall Street
Things have been ugly for U.S. stocks for a while, mostly due to rise in benchmark bond yield that resulted in steeper borrowing costs for both corporates and individuals. But, we all know that it is momentary. Meanwhile, healthy economic conditions and upbeat expectations for quarterly earnings are likely to boost the stock market.
As the broader market is ready for a counter-trend bounce, it is the ideal time to bet on stocks that have the potential to grow in the near term.
Stock Market Carnage
Since Oct 9, the Dow plunged nearly 1,400 points or more than 5.2%. This has led to the Dow closing below its long-term moving average for the first time since July.
The broader stock market, in fact, seems to be on the verge of ending its record bull run. After all, the S&P 500 fell below its 200-day moving average for the first time on Oct 11 since Apr 2. Bespoke Investment Group further added that the S&P 500 is currently about 5% shy of correction territory and 15.4% short of a bear market, which is primarily defined as a drop of 20% from a recent high.
The tech-laden Nasdaq had already fallen below its 200-day moving average on Oct 10, while the Russell 2000 index of small-caps ended in the correction territory in the last trading session. Needless to say, that the CBOE Volatility Index (VIX) continues to hover above the 20 mark, indicating a bearish outlook for the equity market.
What Led to the Selloff?
Rapidly climbing benchmark bond yield has fueled fears that the profit margins of U.S. corporates will get squeezed by steeper borrowing costs. This escalating cost of borrowing already had a negative impact on mega-capitalization companies. Lest we forget, these players better known as FANG stocks do have an outsize impact on the broader market by dint of their market values.
At the same time, the rate on fixed-rate mortgages goes up with a tick-up of the 10-year Treasury note. Thus, individuals looking to buy a home or condo will also be hurt as the cost of financing the purchase will increase as rates go up. The Fed, by the way, has already raised its federal funds rate for three times this year and that typically spells short-term jitters for stocks, especially, now when the equity market is deemed lofty by some measures.
President Trump has also partly blamed the Fed for headwinds in the market. He said that "I think the Fed is making a mistake. It's so tight, I think the Fed has gone crazy." After all, the equity market did enjoy a bull run for a prolonged period of time mostly due to ultra-low yields.
Why Should You be Buying in This Stock Market Pullback?
Even though investors may be in doubt following the recent meltdown, they shouldn't completely shun the stock market. In the words of investing guru Warren Buffett, "be fearful when others are greedy and greedy only when others are fearful."
If you aren't game for risks, robust economic growth and upbeat corporate earnings are factors that should perk you up.
Most of the components of the Conference Board's Leading Economic Index has already indicated a 3% or more growth rate in GDP in the final two quarters of the year and is on track to hit the Trump administration's annual growth target of 3%. If that happens, it would be the best yearly performance since 2005, two years before the Great Recession. And when it comes to corporate earnings, Q3 is expected to be in double-digits for the sixth time in the last seven quarters (read more: Wall Street Gears Up for Blockbuster Q3 Earnings: 5 Picks ).
Buy These 5 Solid Stocks Now
Given the aforesaid positives, the bull run isn't over. And with Wall Street all set to dispel the recent meltdown, investing in fundamentally sound stocks that are poised to gain in the near future seems judicious. Moreover, by purchasing stocks right after a dip, investors are essentially buying shares at a discounted price.
We have, thus, selected five such stocks that flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto Parts, Inc . provides automotive replacement parts, batteries, accessories, and maintenance items. The Zacks Consensus Estimate for earnings rose 2.4% in the last 60 days period. Despite falling 5.8% in the last three trading days, the company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's expected growth of 19.7%.
Atlas Air Worldwide Holdings, Inc . provides outsourced aircraft and aviation operating services. The Zacks Consensus Estimate for earnings rose 1.9% in the last 60 days. In spite of losing 11.2% in the last three trading sessions, the company's expected earnings growth rate for the current year is 39.4% compared with the Transportation - Air Freight and Cargo industry's expected growth of 21.9%.
ABIOMED, Inc . engages in the research, development, and sale of medical devices. The Zacks Consensus Estimate for earnings soared 30.4% in the last 90 days. Despite falling 9.4% in the last three trading days, the company's expected earnings growth rate for the current year is 88.9% compared with the Medical - Instruments industry's estimated growth of 16.8%.
Archer-Daniels-Midland Co. procures, transports, stores, processes, and merchandises agricultural commodities. The Zacks Consensus Estimate for earnings rose 4.6% in the last 60 days. In spite of declining 5.9% in the last three trading sessions, the company's expected earnings growth rate for the current year is 41.2% compared with the Agriculture - Operations industry's expected growth of 35.2%.
Amerisafe, Inc . is an insurance holding company. The Zacks Consensus Estimate for earnings rose 0.6% in the last 60 days. Despite losing 0.9% in the last three trading days, the company's expected earnings growth rate for the current year is 9.4% compared with the Insurance - Accident and Health industry's projected growth of 7.7%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AMERISAFE, Inc. (AMSF): Free Stock Analysis Report
ABIOMED, Inc. (ABMD): Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report
Archer Daniels Midland Company (ADM): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Atlas Air Worldwide Holdings, Inc. AAWW , ABIOMED, Inc. ABMD , Archer-Daniels-Midland Co. ADM and Amerisafe, Inc. AMSF . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AMERISAFE, Inc. (AMSF): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. Bespoke Investment Group further added that the S&P 500 is currently about 5% shy of correction territory and 15.4% short of a bear market, which is primarily defined as a drop of 20% from a recent high.
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Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Atlas Air Worldwide Holdings, Inc. AAWW , ABIOMED, Inc. ABMD , Archer-Daniels-Midland Co. ADM and Amerisafe, Inc. AMSF . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AMERISAFE, Inc. (AMSF): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. In spite of declining 5.9% in the last three trading sessions, the company's expected earnings growth rate for the current year is 41.2% compared with the Agriculture - Operations industry's expected growth of 35.2%.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AMERISAFE, Inc. (AMSF): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Atlas Air Worldwide Holdings, Inc. AAWW , ABIOMED, Inc. ABMD , Archer-Daniels-Midland Co. ADM and Amerisafe, Inc. AMSF . Despite falling 5.8% in the last three trading days, the company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's expected growth of 19.7%.
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Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Atlas Air Worldwide Holdings, Inc. AAWW , ABIOMED, Inc. ABMD , Archer-Daniels-Midland Co. ADM and Amerisafe, Inc. AMSF . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AMERISAFE, Inc. (AMSF): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. Despite falling 5.8% in the last three trading days, the company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's expected growth of 19.7%.
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11326.0
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2018-10-12 00:00:00 UTC
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5 of the Best Stocks to Buy for a Resurgent Wall Street
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AAP
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https://www.nasdaq.com/articles/5-best-stocks-buy-resurgent-wall-street-2018-10-12
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nan
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nan
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Things have been ugly for U.S. stocks for a while, mostly due to rise in benchmark bond yield that resulted in steeper borrowing costs for both corporates and individuals. But, we all know that it is momentary. Meanwhile, healthy economic conditions and upbeat expectations for quarterly earnings are likely to boost the stock market.
As the broader market is ready for a counter-trend bounce, it is the ideal time to bet on stocks that have the potential to grow in the near term.
Stock Market Carnage
Since Oct 9, the Dow plunged nearly 1,400 points or more than 5.2%. This has led to the Dow closing below its long-term moving average for the first time since July.
The broader stock market, in fact, seems to be on the verge of ending its record bull run. After all, the S&P 500 fell below its 200-day moving average for the first time on Oct 11 since Apr 2. Bespoke Investment Group further added that the S&P 500 is currently about 5% shy of correction territory and 15.4% short of a bear market, which is primarily defined as a drop of 20% from a recent high.
The tech-laden Nasdaq had already fallen below its 200-day moving average on Oct 10, while the Russell 2000 index of small-caps ended in the correction territory in the last trading session. Needless to say, that the CBOE Volatility Index (VIX) continues to hover above the 20 mark, indicating a bearish outlook for the equity market.
What Led to the Selloff?
Rapidly climbing benchmark bond yield has fueled fears that the profit margins of U.S. corporates will get squeezed by steeper borrowing costs. This escalating cost of borrowing already had a negative impact on mega-capitalization companies like Facebook, Inc. FB , Amazon.com, Inc. AMZN , Netflix, Inc. NFLX and Alphabet Inc. GOOGL . Lest we forget, these players better known as FANG stocks do have an outsize impact on the broader market by dint of their market values.
At the same time, the rate on fixed-rate mortgages goes up with a tick-up of the 10-year Treasury note. Thus, individuals looking to buy a home or condo will also be hurt as the cost of financing the purchase will increase as rates go up. The Fed, by the way, has already raised its federal funds rate for three times this year and that typically spells short-term jitters for stocks, especially, now when the equity market is deemed lofty by some measures.
President Trump has also partly blamed the Fed for headwinds in the market. He said that "I think the Fed is making a mistake. It's so tight, I think the Fed has gone crazy." After all, the equity market did enjoy a bull run for a prolonged period of time mostly due to ultra-low yields.
Why Should You be Buying in This Stock Market Pullback?
Even though investors may be in doubt following the recent meltdown, they shouldn't completely shun the stock market. In the words of investing guru Warren Buffett, "be fearful when others are greedy and greedy only when others are fearful."
If you aren't game for risks, robust economic growth and upbeat corporate earnings are factors that should perk you up.
Most of the components of the Conference Board's Leading Economic Index has already indicated a 3% or more growth rate in GDP in the final two quarters of the year and is on track to hit the Trump administration's annual growth target of 3%. If that happens, it would be the best yearly performance since 2005, two years before the Great Recession. And when it comes to corporate earnings, Q3 is expected to be in double-digits for the sixth time in the last seven quarters (read more: Wall Street Gears Up for Blockbuster Q3 Earnings: 5 Picks ).
Buy These 5 Solid Stocks Now
Given the aforesaid positives, the bull run isn't over. And with Wall Street all set to dispel the recent meltdown, investing in fundamentally sound stocks that are poised to gain in the near future seems judicious. Moreover, by purchasing stocks right after a dip, investors are essentially buying shares at a discounted price.
We have, thus, selected five such stocks that flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto Parts, Inc . AAP provides automotive replacement parts, batteries, accessories, and maintenance items. The Zacks Consensus Estimate for earnings rose 2.4% in the last 60 days period. Despite falling 5.8% in the last three trading days, the company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's expected growth of 19.7%.
Atlas Air Worldwide Holdings, Inc . AAWW provides outsourced aircraft and aviation operating services. The Zacks Consensus Estimate for earnings rose 1.9% in the last 60 days. In spite of losing 11.2% in the last three trading sessions, the company's expected earnings growth rate for the current year is 39.4% compared with the Transportation - Air Freight and Cargo industry's expected growth of 21.9%.
ABIOMED, Inc . ABMD engages in the research, development, and sale of medical devices. The Zacks Consensus Estimate for earnings soared 30.4% in the last 90 days. Despite falling 9.4% in the last three trading days, the company's expected earnings growth rate for the current year is 88.9% compared with the Medical - Instruments industry's estimated growth of 16.8%.
Archer-Daniels-Midland CompanyADM procures, transports, stores, processes, and merchandises agricultural commodities. The Zacks Consensus Estimate for earnings rose 4.6% in the last 60 days. In spite of declining 5.9% in the last three trading sessions, the company's expected earnings growth rate for the current year is 41.2% compared with the Agriculture - Operations industry's expected growth of 35.2%.
Amerisafe, Inc . AMSF is an insurance holding company. The Zacks Consensus Estimate for earnings rose 0.6% in the last 60 days. Despite losing 0.9% in the last three trading days, the company's expected earnings growth rate for the current year is 9.4% compared with the Insurance - Accident and Health industry's projected growth of 7.7%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Facebook, Inc. (FB): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AMERISAFE, Inc. (AMSF): Free Stock Analysis Report
ABIOMED, Inc. (ABMD): Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report
Archer Daniels Midland Company (ADM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAP provides automotive replacement parts, batteries, accessories, and maintenance items. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AMERISAFE, Inc. (AMSF): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. Things have been ugly for U.S. stocks for a while, mostly due to rise in benchmark bond yield that resulted in steeper borrowing costs for both corporates and individuals.
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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AMERISAFE, Inc. (AMSF): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. AAP provides automotive replacement parts, batteries, accessories, and maintenance items. Despite falling 5.8% in the last three trading days, the company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's expected growth of 19.7%.
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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AMERISAFE, Inc. (AMSF): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. AAP provides automotive replacement parts, batteries, accessories, and maintenance items. Despite falling 5.8% in the last three trading days, the company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's expected growth of 19.7%.
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AAP provides automotive replacement parts, batteries, accessories, and maintenance items. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AMERISAFE, Inc. (AMSF): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. Why Should You be Buying in This Stock Market Pullback?
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11327.0
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2018-10-11 00:00:00 UTC
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12 Vulnerable Stocks to Watch on Market-Wide Weakness
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AAP
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https://www.nasdaq.com/articles/12-vulnerable-stocks-watch-market-wide-weakness-2018-10-11
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nan
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nan
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Several companies that have been red-hot over the past few months have suddenly become stocks to watch for all the wrong reasons.
Stocks do suffer setbacks from time to time. Too many investors have forgotten it, largely thanks to the market's mostly unfettered advance since 2016. But we caught a brief glimpse of that reality in early 2018, when the Standard & Poor's 500-stock index fell roughly 10% from its peak. The bigger-picture backdrop was so overwhelmingly bullish, however, that investors were quick to forget it and rekindle the rally.
This more recent stumble in October was a not-so-gentle reminder that stocks aren't bulletproof. Indeed, equities - still up 12% since early April and headed into a time of year known for marketwide weakness - appear ripe for the bearish pressures of heavy profit-taking. And some stocks that have outperformed their peers of late suddenly seem more vulnerable than others.
Here are a dozen stocks to watch that may well take the biggest hits should the market tide turn fully bearish. They've been big winners of late, but they don't appear to have the kind of staying power they need to hold their ground when things get rocky.
SEE ALSO: 10 Companies Already Hurt by President Trump's Tariffs
Market value: $442.1 billion
Facebook ( FB , $151.38) has been contending with some noncyclical problems of late, putting serious selling pressure on the stock. The 30% loss from its July peak, however, may only be part of its repricing should the market's broad tide worsen any further.
Much of Facebook's weakness has been spurred by its own hand, such as the fallout from the Cambridge Analytica debacle. There have been other external drivers, too, including the possibility that the company is nearing its maximum user headcount. Whatever the case, the collective impact of Facebook's headwinds prompted Chief Financial Officer David Wehner to caution a quarter ago that the company expects "revenue growth rates to decline by high single-digit percentages from prior quarters."
Wehner also warned that operating margins likely would fall from Q2's 44% to somewhere in the mid-30% area in the foreseeable future.
Further fanning the selling flames is a frothy valuation that was deliberately dismissed for too long. Even after losing 30% of their value, FB shares trade at nearly 24 times trailing earnings, and 18.5 times 2019 profit expectations that may be too optimistic.
Combine all that with the increasingly troubling market backdrop, and Facebook is among a handful of mega-cap stocks to watch as potential liabilities.
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Market value: $144.0 billion
Netflix ( NFLX , $325.89) is undeniably a "story" stock , bid up to nosebleed valuations based on its premise and hopes for significant profits in the future ... at the expense of comfortable near-term results.
The dynamic works when things are good. But when the backdrop turns rocky, the fragility of mere stories - rather than actual results - becomes a liability.
Despite the stock's 62% advance so far this year, the pros maintain their price target of $382, up another 17% from current levels. They also still (mostly) rate it a buy, even if not an outright strong buy. That optimism also may quickly turn into a liability, however, if traders start seeing the Netflix glass as half-empty. In that case, that trailing price-to-earnings ratio of 148 starts to look really, really ugly, and the potential for downgrades adds to the threat.
Another pitfall could just as easily put Netflix shares into a nosedive in the foreseeable future. Should subscriber growth come up short again as it did a quarter ago, investors may assume it's a sign that Netflix's service is within reach of saturation.
SEE ALSO: 7 Sell-Rated Stocks to Avoid This Fall
Market value: $25.0 billion
Semiconductor company Advanced Micro Devices ( AMD , $25.00) was teetering on the brink of collapse just a few years ago, but some savvy design work has brought AMD back from zombie status. Tech customers are choosing Advanced Micro Devices' wares.
Investors have taken notice, and responded. Even with the recent lull, AMD shares are up more than 160% since April's low, and are up nearly 900% since the end of 2015, in anticipation of sales growth that ended up panning out.
Sooner or later, though, Advanced Micro Devices must turn that revenue into a respectable profit. It's not clear whether AMD will be able to do that well enough to justify a forward-looking P/E ratio of 38.
Rival Intel ( INTC ) admittedly was caught unaware by AMD's overhaul, but it's not as dead in the water as some observers have suggested. Baird analyst Tristan Gerra expressed such doubts in early October, downgrading AMD and saying:
"While AMD's fundamentals continue to improve: 1). PC share gains expectations resulting from Intel's CPU shortage may be too high; 2). Graphic cards channel inventory deleveraging is likely a multi-quarter dynamic; 3). EPYC ramp outlook is impressive but remains limited and Intel will react with new architectures," he wrote. "(The) stock is currently trading at 25x our new 2020 EPS estimate. Expectations are high while Intel continues to execute and will likely introduce new architectures to protect its share in data center in the medium term."
SEE ALSO: 7 Struggling Companies in Retreat Mode
Market value: $106.5 billion
Customer relationship management platform provider Salesforce.com ( CRM , $137.81) has been pegged as a buyout candidate for a while now. However, it has largely sidestepped any prospective overtures by being a buyer - of companies including MuleSoft and Demandware - more than dressing itself up as a buyee.
Investors have loved all the growth (organic and inorganic alike) that deal-making has driven. CRM shares are up a whopping 33% so far this year even factoring in the stock's recent weakness; they've roughly doubled since the end of 2016.
Those bulls may have gotten ahead of themselves. Salesforce.com's revenues are projected to rise 26% this year and another 20% in 2019, while per-share earnings are expected to improve from $1.35 in 2017 to $2.51 this year and $2.73 next. But the stock's current valuation is nearly impossible to justify outside of the now-waning market euphoria. CRM is priced at 51 times its forward-looking earnings, and traders are taking notice, hence the 14% slide in just two weeks. And the bears might not be done repricing Salesforce.com to reflect newly realized market risks.
SEE ALSO: 7 Low-Cost Gold ETFs
Market value: $12.2 billion
Advance Auto Parts ( AAP , $163.17) is a company that has been strangely resilient of late, defying the broad tide. But it's still just as prone to a pullback amid greater weakness, and has more to pay the piper than its peers should the ball get rolling.
By almost all accounts, Advance Auto Parts should be fighting a losing battle. Not only is it competing with Amazon.com ( AMZN ), it's fighting a war against more durable, longer-lasting vehicles. New-car sales may be slowing, but with so many barely used cars on the road and much older vehicles still working just fine, repairs and maintenance needs are minimized.
The proof is in the numbers. Advance Auto Parts' revenues and operating income have been down more often than not since late 2015. Yet AAP shares are up 55% year-to-date, translating into an uncomfortably frothy forward-looking P/E of 20.5 -- and have given up very little ground since the end of August despite all the red flags.
Don't blindly rely on this apparent strength. This may be a case where the would-be sellers haven't gotten around to tearing into Advance Auto Parts, and are instead waiting on just the right trigger. With so much pent-up downside, however, AAP could get hard in one sweeping selloff.
SEE ALSO: 10 of the Market's Most Shorted Stocks
Market value: $46.0 billion
Shares of health diagnostic outfit Illumina ( ILMN , $304.76) have already been backpedaling, losing more than 15% of their value just since the beginning of the month. However, ILMN still is up about 40% for the year, and the drubbing might not be over yet if the environment remains bearish.
Illumina is the real deal within the genome-sequencing realm. It can look at anyone's DNA and spot potential genetic problems, diagnose vulnerability to cancer and weigh reproductive hurdles. More tests are on the way too, as medical science continues to figure out exactly how human genetic material works. But even without more testing options, Illumina has enjoyed years' worth of double-digit sales growth and reliable net profits since 2014.
A lot can change when investors become nervous, however. Even acknowledging strong predicted earnings growth for Illumina this year and next, ILMN's trailing P/E of 70 and projected P/E of 50 start to look problematic, especially when viewed through a bear's spectacles. Indeed, valuation might be what has sparked the selloff so far.
SEE ALSO: 10 Best ETFs to Buy for an All-Weather Portfolio
Market value: $12.2 billion
Most financial stocks have struggled since August, as investors weighed the potential impact of an inverted yield curve and priced in the raw toll that higher interest rates might take on finance-related activity. Shares of insurer Cincinnati Financial ( CINF , $76.33) have mostly sidestepped this headwind.
But it might not be able to do so indefinitely.
Sure Dividend CEO Ben Reynolds explains about this Dividend Aristocrat , "Cincinnati Financial is extremely overvalued today. The company is currently trading for a price-to-earnings ratio of 29.5 and a forward price-to-earnings ratio of 23.6. Over the past decade, the company's stock has traded for an average price-to-earnings ratio of 20.5."
Reynolds also is concerned about the time it takes CINF to work past cyclical problems, which would include a yield-curve inversion. Sure Dividend's chief continues, "Cincinnati Financial is vulnerable during recessions. Earnings per share declined from $3.54 in 2007 down to $1.32 in 2009, a 63% decline. And the company's adjusted earnings-per-share have still not hit pre-Great Recession highs."
Even if turbulence doesn't turn into a full-blown recession, it could do enough damage to ding the company's bottom line for the foreseeable future. Suddenly, investors have good reason to second-guess the resiliency they've priced into CINF shares.
Market value: $6.2 billion
TripAdvisor ( TRIP , $44.20) already was in trouble before the market bumped into a headwind. While TripAdvisor still is a destination within the online travel-booking arena, its role and value are being increasingly questioned by at least a couple of its biggest customers: Booking.com ( BKNG ) and Expedia ( EXPE ).
Many consumers assume all these companies are doing the same thing, in competition with one another. That's not exactly the case. Expedia and Booking rely on TripAdvisor to connect its customers with their clients, and they pay TripAdvisor for those referrals.
As time marches on, though, Expedia, Booking.com and their peers increasingly don't need TripAdvisor to serve as a middleman. Meanwhile, Alphabet ( GOOGL ) division Google - which has been in this business for a while - just rolled out a few more tools that allow it to more effectively act as an online travel agent.
Both are problematic for the beleaguered TripAdvisor. But more than that, it's a double-barreled liability most investors are choosing not to stomach. Shares are down 27% since July's high, but could fall more if investors believe the economy's recent strength is in jeopardy.
SEE ALSO: The Best and Worst Presidents (According to the Stock Market)
Market value: $9.2 billion
Online services conglomerate ANGI Homeservices ( ANGI , $18.97) - you may know it better as its combined brands, Angie's List and HomeAdvisor - is a great concept. That's a big part of why IAC/InterActiveCorp ( IAC ) acquired Angie's List in 2017, then spun it off after combining it with HomeAdvisor. It has acquired several other similar platforms before that deal and even a couple more in the meantime, all in the name of greater scale that would lead to wider profit margins.
But online consumer services is an increasingly crowded market with an increasingly limited potential for profit growth. And IAC's strategy hasn't worked out all that well. Some would say it hasn't worked at all.
Most growth has been inorganic, and losses (on operating and Generally Accepted Accounting Principles bases) remain the norm. That might be a key part of why CEO Chris Terrill will be stepping down at the end of this year and passing the torch to the company's chief product officer, Brandon Ridenour. But ANGI may not have a personnel problem - it may the product (or products) itself that is the crux of the company's growth challenges.
Between the sheer disruption of a CEO transition and the lingering doubts incited by the change, the 9% stumble ANGI shares have suffered since the Ridenour announcement may only be the beginning of the stock's weakness.
Market value: $6.5 billion
Used-car sales venue Carvana ( CVNA , $46.57) already is feeling the pressure of a cyclical slowdown in automobile sales. If the broad market hits a speedbump, it may feel worse than it really is, but it'll still feel bad enough to bring Carvana to a screeching halt.
"Peak auto" in the United States was a real thing, marked by an annualized sales pace of 18.25 million new cars in November 2015. That peak caused a ripple effect, spurring the turn-ins of millions of barely used vehicles before and after the new-car mania. Now both face a slowdown; most anyone who wanted to purchase a new or relatively unused automobile now has one.
Carvana still is growing its top line, though the pace of growth has diminished over the past couple quarters. Meanwhile, the company has logged a net loss in each of those two quarters, pulling it back into red ink - something CVNA hadn't planned on happening.
That brewing concern is a big part of the reason CVNA has peeled back roughly 35% from the high hit in September. But with 150% year-to-date gains still in its pocket, Carvana is one of several stocks to watch for continued profit-taking potential.
SEE ALSO: 45 Smart Financial Moves You Can Make in an Hour or Less
Market value: $7.0 billion
Twilio ( TWLO , $68.02) has had an amazing 2018. Shares were up more than 260% for the year at one point, and even the recent pullback leaves TWLO with an impressive 183% gain.
But like Carvana, those big gains leave Twilio vulnerable to further downside.
Twilio offers businesses a variety of cloud-based services, ranging from login authentications to text marketing to call-routing and more. There's clearly a growing market for such services, as the world becomes increasingly digital and consumers are increasingly connected to their smartphones. This paradigm shift and Twilio's real solutions made for an easy bullish argument.
The bulls have arguably gotten more than a little overzealous, however. TWLO shares are trading at nearly 470 times next year's adjusted earnings estimates, and at 14 times the company's trailing 12-month sales. The marketwide P/S average is a bit below 3.
Translation: Even if Twilio squeezes the most profit it possibly can out of its revenue, it's still going to be valued well beyond the norm. Investors are more apt to sell off such wildly overpriced stocks if the market gets any hairier.
Market value: $2.2 billion
Iridium Communications ( IRDM , $19.57) isn't exactly a household name, but that doesn't make it any less vulnerable to a setback. The stock is up more than 70% from May's low despite a sizable pullback since the end of September, so there's room for profit-takers to plow in. There's reason, too.
Iridium Communications makes and market satellite-based communications solutions. It names the U.S. government as a customer, but it also offers services to and with private enterprises. It's partnering with Amazon.com, for instance, to co-develop a platform that will power the Internet of Things.
Business has been stable, but not impressive. It hasn't recorded sustained revenue growth since 2012, and operating income has been slipping since 2017.
So why this year's big rally? Investors, as they usually do, are looking past the present into the future. The market believes Iridium's Amazon partnership could become a model for similar deals, rekindling revenue and profit growth for good. That may happen.
But the difference between the company's GAAP and non-GAAP (adjusted) earnings is difficult to handicap, and investors tend to be forgiving of actual losses when the backdrop turns bleak. Never even mind that non-GAAP profits are currently edging lower.
That makes IRDM among the momentum stocks to watch that are sitting dangerously close to the cliff's edge.
SEE ALSO: Best Online Brokers, 2018
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SEE ALSO: 7 Low-Cost Gold ETFs Market value: $12.2 billion Advance Auto Parts ( AAP , $163.17) is a company that has been strangely resilient of late, defying the broad tide. Yet AAP shares are up 55% year-to-date, translating into an uncomfortably frothy forward-looking P/E of 20.5 -- and have given up very little ground since the end of August despite all the red flags. With so much pent-up downside, however, AAP could get hard in one sweeping selloff.
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SEE ALSO: 7 Low-Cost Gold ETFs Market value: $12.2 billion Advance Auto Parts ( AAP , $163.17) is a company that has been strangely resilient of late, defying the broad tide. Yet AAP shares are up 55% year-to-date, translating into an uncomfortably frothy forward-looking P/E of 20.5 -- and have given up very little ground since the end of August despite all the red flags. With so much pent-up downside, however, AAP could get hard in one sweeping selloff.
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SEE ALSO: 7 Low-Cost Gold ETFs Market value: $12.2 billion Advance Auto Parts ( AAP , $163.17) is a company that has been strangely resilient of late, defying the broad tide. Yet AAP shares are up 55% year-to-date, translating into an uncomfortably frothy forward-looking P/E of 20.5 -- and have given up very little ground since the end of August despite all the red flags. With so much pent-up downside, however, AAP could get hard in one sweeping selloff.
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SEE ALSO: 7 Low-Cost Gold ETFs Market value: $12.2 billion Advance Auto Parts ( AAP , $163.17) is a company that has been strangely resilient of late, defying the broad tide. Yet AAP shares are up 55% year-to-date, translating into an uncomfortably frothy forward-looking P/E of 20.5 -- and have given up very little ground since the end of August despite all the red flags. With so much pent-up downside, however, AAP could get hard in one sweeping selloff.
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11328.0
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2018-10-10 00:00:00 UTC
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Cummins' (CMI) Board Approves $2B Share Repurchase Program
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AAP
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https://www.nasdaq.com/articles/cummins-cmi-board-approves-%242b-share-repurchase-program-2018-10-10
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nan
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nan
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Cummins Inc.CMI announced that its board has approved repurchase of up to $2 billion of its common shares. Approved on Oct 9, the new share repurchase program will be applicable after completing the $1-billion repurchase program announced in 2016.
The company is focused on enhancing shareholder value by pursuing share repurchases and dividend payouts. In fact, it attained its set target of returning 50% cash inflow from operations to its shareholders in 2017.
The company has set a target to return 75% of its operating cash flow to shareholders through dividends and share repurchases in 2018. Further, the return percentage has been raised by Cummins from the previously announced return of 50% for 2018.
Cummins Inc. Price and Consensus
Cummins Inc. Price and Consensus | Cummins Inc. Quote
In sync with its cash flow returning plan, the company has entered into an accelerated share repurchase (ASR) agreement with Goldman, Sachs & Co. LLC in August 2018. The ASR is part of the company's share repurchase plan and is approved by Cummins' board.
Apart from share repurchase programs, the company also pays quarterly cash dividends to its shareholders. In second-quarter 2018, it hiked the dividend payout by 5.6% to $1.14 per share.
In the second quarter, Cummins' adjusted earnings and revenues beat the respective Zacks Consensus Estimate. As of Jul 1, 2018, the company had cash and cash equivalents of around $1.32 billion. Long-term debt at the end of the second quarter was $1.57 billion, a slight decline from $1.59 billion recorded on Dec 31, 2017.
Cummins frequently embarks on partnerships and acquisitions to expand its global presence and widen its product portfolio. Further, improved demand for engines and components for heavy, and medium-duty trucks in North America is expected to drive earnings for Cummins in 2018.
Price Performance
In the past six months, Cummins' stock has lost 6.9%, outperforming 16.1% decrease recorded by the sector it belongs to.
Zacks Rank & Key Picks
Cummins currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and Navistar International Corporation NAV . AutoZone and Navistar carry a Zacks Rank #2 (Buy), while Advance Auto Parts sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto Parts has an expected long-term growth rate of 12.3%. Shares of the company have rallied 50.6% over the past six months.
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 26.9%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have increased 4.7% over the past six months.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Navistar International Corporation (NAV): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and Navistar International Corporation NAV . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Further, improved demand for engines and components for heavy, and medium-duty trucks in North America is expected to drive earnings for Cummins in 2018.
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A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and Navistar International Corporation NAV . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. AutoZone and Navistar carry a Zacks Rank #2 (Buy), while Advance Auto Parts sports a Zacks Rank #1 (Strong Buy).
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and Navistar International Corporation NAV . The company has set a target to return 75% of its operating cash flow to shareholders through dividends and share repurchases in 2018.
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A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and Navistar International Corporation NAV . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. The company has set a target to return 75% of its operating cash flow to shareholders through dividends and share repurchases in 2018.
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11329.0
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2018-10-09 00:00:00 UTC
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Meritor's ProTec Solutions Available for Tactical Vehicles
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AAP
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https://www.nasdaq.com/articles/meritors-protec-solutions-available-for-tactical-vehicles-2018-10-09
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nan
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nan
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Meritor, Inc.MTOR has announced that an expanded line of ProTec solutions is available, which can be used for light, medium, and heavy tactical vehicles and armored personnel carriers. The solutions are majorly used in military fleets.
Per management, the newly expanded portfolio, created on the basis of explicit requirements, can be used by defense contractors, law enforcement agency contractors and third parties. Further, the weight-efficient product line offers solution for any tactical or armored wheeled vehicle, thus, meeting the demand for specification requirements.
Moreover, along with Meritor's drivelines and transfer cases, based on ProTec High Mobility Independent Suspensions (HMIS) and beam axles, one can customize a complete drivetrain solution for their application. Otherwise, customers can select from individual ProTec axle and suspension components.
Meritor, Inc. Price and Consensus
Meritor, Inc. Price and Consensus | Meritor, Inc. Quote
The weight-efficient HMIS is designed for applications that require gross axle weight ratings (GAWR) of 9,000-29,000 pounds. Further, ProTec's all-wheel drive beam axles offer payload capability and ground clearance for challenging environments in exchange of 8,000-29,000 pounds.
Over the past 50 years, Meritor's HMIS platforms and axles are used for the U.S. Army's fleet of 2.5 and 5-ton vehicles, along with modern FMTV and MRAP vehicles.
Price Performance
In the past six months, Meritor's stock has lost 3.1%, outperforming 15% decrease recorded by the industry it belongs to.
Zacks Rank & Key Picks
Meritor currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . AutoZone and Navistar carry a Zacks Rank #2 (Buy), while Advance Auto Parts sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 27.8%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have increased 5.8% over the past six months.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Shares of the company have rallied 50.1% over the past six months.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Navistar International Corporation (NAV): Free Stock Analysis Report
Meritor, Inc. (MTOR): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report To read this article on Zacks.com click here. Meritor, Inc.MTOR has announced that an expanded line of ProTec solutions is available, which can be used for light, medium, and heavy tactical vehicles and armored personnel carriers.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report To read this article on Zacks.com click here. AutoZone and Navistar carry a Zacks Rank #2 (Buy), while Advance Auto Parts sports a Zacks Rank #1 (Strong Buy).
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Meritor, Inc. Price and Consensus Meritor, Inc. Price and Consensus | Meritor, Inc. Quote The weight-efficient HMIS is designed for applications that require gross axle weight ratings (GAWR) of 9,000-29,000 pounds.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report To read this article on Zacks.com click here. Over the past 50 years, Meritor's HMIS platforms and axles are used for the U.S. Army's fleet of 2.5 and 5-ton vehicles, along with modern FMTV and MRAP vehicles.
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11330.0
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2018-10-09 00:00:00 UTC
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BorgWarner's New China Plant to Produce EV and HEV Systems
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AAP
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https://www.nasdaq.com/articles/borgwarners-new-china-plant-to-produce-ev-and-hev-systems-2018-10-09
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nan
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BorgWarner Inc.BWA opened manufacturing plant at one of the provincial-level development zones of Wuhan, China. Built in the Caidian Economic Development Zone, the hub has floor area of 26,000 square meters and land area of 48,595 square meters.
The new plant is created to support the increasing demand for combustion, hybrid and electric vehicles (EVs) in China. It will produce drive motors, belt alternator starter systems, starters, alternators, drive motors and associated components.
The company's technology and system integration capability, along with local manufacturing and engineering capability, will support the facility to meet the increasing demand for EVs and hybrid electric vehicles (HEVs). The addition of this plant in China is a new milestone for BorgWarner, enabling it to witness sustained growth in upcoming years.
BorgWarner Inc. Price and Consensus
BorgWarner Inc. Price and Consensus | BorgWarner Inc. Quote
Construction of the facility was initiated in 2016; a year after BorgWarner acquired Remy International, Inc. The new plant is an assimilation of the Remy plant with close by production sites. In addition to its previous capacity, the upgraded plant will manufacture drive motors, P2 motors, and other EV and HEV products.
Apart from manufacturing, the hub will integrate comprehensive functions that include engineering, quality, sales, logistics, administration and finance. At present, the facility employs more than 300 employees, which is anticipated to double in the next five years.
China has good prospect for EVs, which pushed the company to look for new business opportunities related to EV and HEV technology in the market. Further, this is in sync with the company's long-term growth strategy of developing hybrid and electric technologies. In April 2018, it launched a broad range of product portfolio in China that will enable automakers to manufacture combustion, hybrid and electric vehicles. In the last month, the company entered an agreement with WM Motor to set up transportation model for smart city in China.
Price Performance
In the past six months, BorgWarner's stock has lost 20.3%, underperforming 14.9% decrease recorded by the industry it belongs to.
Zacks Rank & Key Picks
BorgWarner currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . AutoZone and Navistar carry a Zacks Rank #2 (Buy) while Advance Auto Parts sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 27.8%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have increased 5.8% over the past six months.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Shares of the company have rallied 50.1% over the past six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Navistar International Corporation (NAV): Free Stock Analysis Report
BorgWarner Inc. (BWA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from manufacturing, the hub will integrate comprehensive functions that include engineering, quality, sales, logistics, administration and finance.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report To read this article on Zacks.com click here. The company's technology and system integration capability, along with local manufacturing and engineering capability, will support the facility to meet the increasing demand for EVs and hybrid electric vehicles (HEVs).
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . The company's technology and system integration capability, along with local manufacturing and engineering capability, will support the facility to meet the increasing demand for EVs and hybrid electric vehicles (HEVs).
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report To read this article on Zacks.com click here. In addition to its previous capacity, the upgraded plant will manufacture drive motors, P2 motors, and other EV and HEV products.
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11331.0
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2018-10-08 00:00:00 UTC
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Genuine Parts' (GPC) UK-Based AAG Acquires 2 Businesses
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AAP
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https://www.nasdaq.com/articles/genuine-parts-gpc-uk-based-aag-acquires-2-businesses-2018-10-08
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nan
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nan
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Genuine Parts Company 's GPC wholly-owned automotive distribution company, Alliance Automotive Group ("AAG"), completed the acquisition of two automotive businesses in the United Kingdom. Notably, these two newly added companies - Platinum International Group Limited (Platinum) and TMS Motor Spares Ltd. ("TMS") - forms part of Genuine Part's European operations.
Platinum is a value-added battery distributor, serving automotive, industrial, marine and leisure markets. At present, this Manchester, England-based company operates in 10 locations, including nine in the United Kingdom and one in the Netherlands. Platinum sells batteries to AAG, thus providing a boost to the latter's battery sourcing platform and supply. Its acquisition is expected to generate annual revenues of $75 million, effective Oct 2, 2018.
Headquartered in Carlisle, England, TMS is a distributor of automotive parts with seven locations in England and 17 locations in Scotland. Apart from AAG's expansion in the country, the TMS acquisition will provide AAG with its first self-owned stores in Scotland. In fact, this buyout is anticipated to generate annual revenues of $30 million, effective Aug 31, 2018.
Genuine Parts Company Price and Consensus
Genuine Parts Company Price and Consensus | Genuine Parts Company Quote
Per management, these two latest transactions by AAG will strengthen its scale and existence in Europe, in sync with the company's global growth strategy.
Genuine Parts has also been acquiring business in Europe through its wholly-owned subsidiary AAG to improve product offerings and expand its geographical footprint. Earlier in June, AAG announced the acquisition of Germany-based European automotive business - Hennig Fahrzeugteile Group.
Price Performance
In the past six months, Genuine Parts' stock has gained 11.7%, outperforming 0.6% increase recorded by the industry it belongs to.
Zacks Rank & Key Picks
Genuine Parts currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . AutoZone and Navistar carry a Zacks Rank #2 (Buy), while Advance Auto Parts sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 25.4%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have increased 12.6% over the past six months.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Shares of the company have surged 50.2% over the past six months.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Navistar International Corporation (NAV): Free Stock Analysis Report
Genuine Parts Company (GPC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report To read this article on Zacks.com click here. Genuine Parts has also been acquiring business in Europe through its wholly-owned subsidiary AAG to improve product offerings and expand its geographical footprint.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Genuine Parts Company 's GPC wholly-owned automotive distribution company, Alliance Automotive Group ("AAG"), completed the acquisition of two automotive businesses in the United Kingdom.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Genuine Parts Company 's GPC wholly-owned automotive distribution company, Alliance Automotive Group ("AAG"), completed the acquisition of two automotive businesses in the United Kingdom.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report To read this article on Zacks.com click here. Genuine Parts Company 's GPC wholly-owned automotive distribution company, Alliance Automotive Group ("AAG"), completed the acquisition of two automotive businesses in the United Kingdom.
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11332.0
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2018-10-08 00:00:00 UTC
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Toyota (TM) Recalls 2.4M Vehicles on Flawed Hybrid System
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AAP
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https://www.nasdaq.com/articles/toyota-tm-recalls-2.4m-vehicles-on-flawed-hybrid-system-2018-10-08
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nan
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nan
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Toyota Motor CompanyTM announced a massive safety recall of 2.43 million gasoline hybrid vehicles in Japan, the United States and other markets. The recalled vehicles have a system issue that may lead to halting of cars.
Notably, the recalled cars include Toyota's Prius and Auris models, which were manufactured between October 2008 and November 2014. Out of the total cars recalled, 1.25 million were sold in Japan, 830,000 in North America and 290,000 in Europe. The additional recalled vehicles were sold in China, Africa, Oceania and other regions.
In unusual situations, the recalled cars might fail to switch to failsafe driving mode on the hybrid system faults, which may result in stalling of the car. This, at higher speeds, increases the risk of a car crash even if the power steering and braking system remain operational.
Toyota Motor Corporation Price and Consensus
Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote
Toyota dealers will update the software in all the recalled vehicles without any charge from the customers.
Almost within a month, this marks the second massive recall by the company, which is not related to the Takata airbag issue. Last month, Toyota was recalling more than 1 million of its Prius and C-HR compact crossover cars. The affected vehicle's engine wire harness, which is linked to the power control unit, might damage over time resulting in a short circuit or catch fire.
Such frequent vehicle recalls in large numbers not only add to expenses for Toyota but also hurts the company's reputation, which might weigh on vehicle sales.
Price Performance
In the past six months, Toyota's stock has lost 3.7%, outperforming 10.9% decrease recorded by the industry it belongs to.
Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . AutoZone and Navistar carry a Zacks Rank #2 (Buy), while Advance Auto Parts sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 25.4%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have increased 12.6% over the past six months.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Shares of the company have rallied 50.2% over the past six months.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toyota Motor Corporation (TM): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Navistar International Corporation (NAV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report To read this article on Zacks.com click here. Toyota Motor CompanyTM announced a massive safety recall of 2.43 million gasoline hybrid vehicles in Japan, the United States and other markets.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report To read this article on Zacks.com click here. Toyota Motor Corporation Price and Consensus Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote Toyota dealers will update the software in all the recalled vehicles without any charge from the customers.
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Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Toyota Motor Corporation Price and Consensus Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote Toyota dealers will update the software in all the recalled vehicles without any charge from the customers.
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A few better-ranked stocks in the Auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report To read this article on Zacks.com click here. The recalled vehicles have a system issue that may lead to halting of cars.
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11333.0
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2018-10-08 00:00:00 UTC
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Fastenal (FAST) to Report Q3 Earnings: What's in the Cards?
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AAP
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https://www.nasdaq.com/articles/fastenal-fast-to-report-q3-earnings%3A-whats-in-the-cards-2018-10-08
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nan
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nan
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Fastenal CompanyFAST is scheduled to report third-quarter 2018 results on Oct 10, before the opening bell.
The company surpassed the Zacks Consensus Estimate by 12.1% in the last reported quarter. However, its earnings were in line with the consensus mark in three of the trailing four quarters, resulting in an average beat of 3.03%.
Fastenal is expected to benefit from its core product offerings like Onsite Locations/vending machines/managed inventory. Meanwhile, continued construction tailwinds are also expected to act as a major growth catalyst. However, higher product and freight expenses, along with changes in product and customer mix raise concerns.
Let's take a look at the factors that might affect the company's results in the third quarter.
Vending Machines to Drive Growth: Over the past few quarters, Fastenal's sales have been driven by an increased installation of industrial vending machines. Sales through vending machines grew at or near a double-digit pace in each of the trailing four quarters of 2017. Then again, sales through vending devices continued to grow at a pace of more than 20% in the second quarter of 2018, primarily due to higher installed base.
Onsite Locations to Boost Sales: A consistent increase in the number of on-site locations is likely to strengthen Fastenal's market share and boost quarterly numbers. Sales growth through Onsite was 22% in 2017. As of Jun 30, 2018, the company had 761 active sites, up 56.6% year over year. The trend is expected to continue in the third quarter of 2018 as well. Fastenal aims to achieve 360-385 onsite signings in 2018, reflecting an increase from 270 signings in 2017.
Solid End-Market Demand: Robust construction market, especially the non-residential one, has been acting as a major tailwind for Fastenal's performance over the past few quarters. The trend is likely to be carried forward in the third quarter of 2018 as well.
The company is expected to report impressive top- and bottom-line growth in the third quarter, courtesy of sustained strength in most of its end markets, as well as strong momentum in vending machine installations and onsite locations. The Zacks Consensus Estimate for revenues is pegged at $1.27 billion, implying 12.3% year-over-year growth.
Gross Margin Pressure: We are apprehensive about Fastenal's changes in product and customer mix, which have been hurting the gross margin for quite some time now. Freight and product cost inflation also added to the woes. That said, Fastenal remains optimistic about its performance in the second half of the year, given improved pricing expectation as well as reasonable gross margin comparisons through the rest of 2018.
Overall, the consensus estimate for earnings is pegged at 67 cents, reflecting an improvement of 34% on a year-over-year basis.
Fastenal Company Price and EPS Surprise
Fastenal Company Price and EPS Surprise | Fastenal Company Quote
Here is What Our Quantitative Model Predicts:
Fastenal does not have the right combination of the two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher - to increase the odds of an earnings beat. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Earnings ESP: Fastenal has an Earnings ESP of -0.21%.
Zacks Rank: The company carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, we also need to have a positive ESP to be confident about an earnings surprise.
Stocks to Consider
Here are some companies in the Zacks Retail-Wholesale sector , which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported:
eBay Inc. EBAY has an Earnings ESP of +0.91% and a Zacks Rank #2. The company is expected to report quarterly numbers on Oct 17, 2018.
Advance Auto Parts, Inc. AAP has an Earnings ESP of +3.49% and a Zacks Rank #1. The company is expected to report quarterly results on Nov 13, 2018.
Chico's FAS, Inc. CHS has an Earnings ESP of +29.41% and a Zacks Rank #3. The company is expected to report quarterly numbers on Nov 20, 2018.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
eBay Inc. (EBAY): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Fastenal Company (FAST): Free Stock Analysis Report
Chico's FAS, Inc. (CHS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc. AAP has an Earnings ESP of +3.49% and a Zacks Rank #1. Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Chico's FAS, Inc. (CHS): Free Stock Analysis Report To read this article on Zacks.com click here. Solid End-Market Demand: Robust construction market, especially the non-residential one, has been acting as a major tailwind for Fastenal's performance over the past few quarters.
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Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Chico's FAS, Inc. (CHS): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP has an Earnings ESP of +3.49% and a Zacks Rank #1. Fastenal Company Price and EPS Surprise Fastenal Company Price and EPS Surprise | Fastenal Company Quote Here is What Our Quantitative Model Predicts: Fastenal does not have the right combination of the two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher - to increase the odds of an earnings beat.
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Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Chico's FAS, Inc. (CHS): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP has an Earnings ESP of +3.49% and a Zacks Rank #1. Fastenal Company Price and EPS Surprise Fastenal Company Price and EPS Surprise | Fastenal Company Quote Here is What Our Quantitative Model Predicts: Fastenal does not have the right combination of the two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher - to increase the odds of an earnings beat.
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Advance Auto Parts, Inc. AAP has an Earnings ESP of +3.49% and a Zacks Rank #1. Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Chico's FAS, Inc. (CHS): Free Stock Analysis Report To read this article on Zacks.com click here. However, higher product and freight expenses, along with changes in product and customer mix raise concerns.
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11334.0
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2018-10-05 00:00:00 UTC
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Cummins (CMI), Isuzu to Evaluate Technological Prospects
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AAP
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https://www.nasdaq.com/articles/cummins-cmi-isuzu-to-evaluate-technological-prospects-2018-10-05
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nan
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nan
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Cummins Inc.CMI has signed a Letter of Intent with Isuzu Motors Limited to evaluate prospects of delivering competitive products. Sharing business values, the companies will explore ways to leverage their individual strengths to gain opportunities. Isuzu and Cummins have a significant global reach and are leading developers of technologies.
With stringent emission regulations and improving technologies, it has become tough to cater to the commercial vehicle segment. In order to keep up with growing demands, considerable investments are required for the development of powertrain solutions based on diesel and natural gas, along with alternative energy powertrains. Collaborations will play major role for the development of these technologies with shared investments, thus, paving way for increased market share.
In the coming months, teams from the companies will be allocated to look for prospects to develop product technologies. Further, teams will explore potential areas of collaboration for a longer-term partnership to develop internal diesel and gasoline powertrains as well as new powertrain technologies.
Cummins Inc. Price and Consensus
Cummins Inc. Price and Consensus | Cummins Inc. Quote
Price Performance
In the past six months, Cummins' stock has lost 3.4%, outperforming 7.3% decrease recorded by the sector it belongs to.
Zacks Rank & Key Picks
Cummins currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . AutoZone and Navistar presently carry a Zacks Rank #2 (Buy) while Advance Auto Parts sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 23.2%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have increased 9.7% over the past six months.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Shares of the company have increased 48.1% over the past six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Navistar International Corporation (NAV): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Cummins Inc.CMI has signed a Letter of Intent with Isuzu Motors Limited to evaluate prospects of delivering competitive products.
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A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Cummins Inc. Price and Consensus Cummins Inc. Price and Consensus | Cummins Inc. Quote Price Performance In the past six months, Cummins' stock has lost 3.4%, outperforming 7.3% decrease recorded by the sector it belongs to.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Cummins Inc. Price and Consensus Cummins Inc. Price and Consensus | Cummins Inc. Quote Price Performance In the past six months, Cummins' stock has lost 3.4%, outperforming 7.3% decrease recorded by the sector it belongs to.
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A few better-ranked stocks in the auto space are AutoZone, Inc. AZO , Navistar International Corporation NAV and Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. In the coming months, teams from the companies will be allocated to look for prospects to develop product technologies.
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11335.0
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2018-10-03 00:00:00 UTC
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Toyota Cautions About Midlands Hub Closure With No-Deal Brexit
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AAP
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https://www.nasdaq.com/articles/toyota-cautions-about-midlands-hub-closure-with-no-deal-brexit-2018-10-03
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nan
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nan
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Toyota Motor CorporationTM expects closing of production at its U.K. factory if Britain exits without any deal from the European Union (EU), per Bloomberg. Once closed, the company is uncertain of the plant's reopening, which may take months. Incapability to ship parts required for car production from Europe has impelled Toyota to opt for this plan.
In 2017, the company's factory, based in the Midlands, manufactured 150,000 Auris and Avensis cars, with components shipped from the EU. Toyota follows just-in delivery system for parts, which arrive at the site minutes or hours before vehicle assembling. Of the total vehicles produced, approximately 90% were shipped to the countries in the EU. Per the company's website, the hub currently employs 2,500 people.
Except for Toyota, many automakers raised concerns on the uncertainty of cross-border tariffs if Britain exits the EU without a deal. Companies have warned about manufacturing disruptions due to tariffs and high chances of free trade loss.
Toyota Motor Corporation Price and Consensus
Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote
Similar to Toyota, BMW AG announced its decision to shut down its Mini plant in England for a month after Brexit on Mar 29. Another major Japanese automaker, Honda Motor Co., Ltd. announced that a no-deal exit would be very expensive for the company.
Price Performance
In the past six months, Toyota's stock has lost 1.6%, outperforming 8.3% decrease recorded by the industry it belongs to.
Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , Navistar International Corporation NAV and Cummins Inc. CMI . Advance Auto Parts sports Zacks Rank #1 (Strong Buy) while Navistar and Cummins carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have gained 47.1%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have increased 9.5% over the past six months.
Cummins has an expected long-term growth rate of 11.6%. Shares of the company have increased 13.7% over the past three months.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toyota Motor Corporation (TM): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Navistar International Corporation (NAV): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , Navistar International Corporation NAV and Cummins Inc. CMI . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Toyota Motor CorporationTM expects closing of production at its U.K. factory if Britain exits without any deal from the European Union (EU), per Bloomberg.
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A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , Navistar International Corporation NAV and Cummins Inc. CMI . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Toyota Motor Corporation Price and Consensus Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote Similar to Toyota, BMW AG announced its decision to shut down its Mini plant in England for a month after Brexit on Mar 29.
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Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , Navistar International Corporation NAV and Cummins Inc. CMI . Toyota Motor Corporation Price and Consensus Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote Similar to Toyota, BMW AG announced its decision to shut down its Mini plant in England for a month after Brexit on Mar 29.
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A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. AAP , Navistar International Corporation NAV and Cummins Inc. CMI . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Navistar International Corporation (NAV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Toyota Motor CorporationTM expects closing of production at its U.K. factory if Britain exits without any deal from the European Union (EU), per Bloomberg.
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2018-10-02 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Advance Auto Parts, Guess', Tilly's, UFP Technologies and Cleveland-Cliffs
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AAP
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-advance-auto-parts-guess-tillys-ufp-technologies-and
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For Immediate Release
Chicago, IL - October 2, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Guess', Inc. GES , Tilly's, Inc. TLYS , UFP Technologies, Inc. UFPT and Cleveland-Cliffs Inc. CLF .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
5 Top Stocks to Break the "October Effect"
The U.S. stock market has traditionally been more volatile in October than any other month and is also known for some major crashes. Even though it is typically a rough month for major bourses, it is mostly positive in midterm election years.
Some analysts cautioned that a more hawkish Fed and ongoing trade conflicts might slow the nine-year rally this month. However, most of the analysts agree that the general economic outlook is bright and will offset any concern.
By the way, the United States and Canada recently confirmed a "new modernized trade agreement," which should fuel the stock market rally further. Given the positives, investing in solid stocks that can make the most of this resilient October seems prudent.
October Effect Overrated
Astute investors pay special attention to the 'October Effect'. The theory states that stocks mainly decline in October. After all, some of the worst market crashes happened in this month.
According to the Stock Trader's Almanac, there were mega "crashes in 1929 and 1987." In fact, the great crash that occurred on Oct 19, 1987 saw the Dow plunge 22.6% in a single day, which is arguably the worst one-day decline ever. The other black days, of course, were "the 554-point drop on October 27, 1997, back-to-back massacres in 1978 and 1979, Friday the 13th in 1989, and the meltdown in 2008," per the Almanac.
However, the "October Effect" phenomenon does seem overrated. September has seen more declines than October. And from a historical perspective, October has seen the end of more bear markets than any other month. Thus, October is a month suitable for contrarian buying. At the same time, October has been relatively stronger during midterm election years, with 2018 being one such year.
According to Almanac, the Dow normally rises an average 0.6% in October and 3.1% in midterm election years. Similarly, the broader S&P 500 usually climbs 3.3% in midterm Octobers, way more than its typical rise of 0.9% over the month.
A Topsy-Turvy Ride This Month? Not Really!
Traditionally, October has experienced well-above-average gyration. For instance, the standard deviation of the Dow's daily changes has been 1.44% for all Octobers since 1896, much more than 1.05% for all months other than October, per Bespoke Investment Group.
And if you believe that the Dow's fluctuation is mostly because of the 1987 crash or 2008 financial crisis, you are mistaken. Even if these two years are not taken into consideration, the standard deviation of daily Dow changes is still higher in October compared to other months.
But, let's admit that investors heading into October have been a lot calmer. The Cboe Volatility Index tanked more than 19% in the third quarter, its steepest quarterly decline since the first quarter of 2016. Meanwhi;e, the third quarter represented one of the strongest quarters for Wall Street in years. The S&P 500, in particular, registered its biggest quarterly advance since the fourth quarter of 2013.
Bull Run Isn't Over
After a nine-year rally, sceptics are inquisitive about how farther the bull run will go, especially this month. They say that the Fed's interest rate hike and U.S. trade disputes might be big road bumps. After all, the soon-to-expire accommodative monetary policy did help markets chug along, while trade-related issues might hamper economic growth and corporate profits.
However, most investors time and again choose to ignore such issues. They rather believe that robust economic growth and upbeat corporate earnings will keep the bull market intact. Most of the components of the Conference Board's Leading Economic Index indicated a 3% or more growth rate in GDP in the final two quarters of the year and is on track to hit the Trump administration's annual growth target of 3%. If that happens, it would be the best yearly performance since 2005, two years before the Great Recession.
The economy has expanded at a seasonally adjusted rate of 4.2% in the April-June quarter, per the Commerce Department. This marked the strongest rise since a 4.3% annual gain recorded in the third quarter of 2014.
And when it comes to corporate earnings, Q2 growth has been the highest since 2010, while growth in Q3 is expected to be in double-digits for the sixth time in the last seven quarters (read more: Looking Ahead to Q3 Earnings Season ).
In fact, investors are getting optimistic about U.S. stocks, largely because of the encouraging outlook for corporate profits. Per the latest monthly survey of fund managers by Bank of America Merrill Lynch, there is a net allocation of 21% overweight to the U.S. equity market, the highest since January 2015.
The survey also figured out that a net 69% of those polled said that the United States is the most sorted region when it comes to earnings expectations.
5 of the Best Stocks to Buy in October
With October all set to dispel the darkness of its past, investing in fundamentally sound stocks that are poised to gain in the near term seems judicious. We have selected five such stocks that flaunt a Zacks Rank #1 (Strong Buy). Such stocks also boast of a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Advance Auto Parts, Inc. provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company currently has a VGM Score B.
In the last 60 days, 10 earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 2.4% in the same period. The company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's estimated rally of 19.4%. The stock has outperformed the broader industry so far this year (+68.8% vs +28.7%).
Guess', Inc. designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children. The company currently has a VGM Score A.
In the last 60 days, three earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose almost 3% in the same period. The company's expected earnings growth rate for the current year is 48.6% compared with the Textile - Apparel industry's estimated rally of 16%. The stock has outperformed the broader industry on a year-to-date basis (+33.9% vs +28%).
Tilly's, Inc. retails casual apparel, footwear, and accessories for young men and women, and boys and girls in the United States. The company currently has a VGM Score A.
In the last 60 days, three earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 11.1% in the same period. The company's expected earnings growth rate for the current year is 38.5% compared with the Retail - Apparel and Shoes industry's estimated rally of 13%. The stock has outperformed the broader industry so far this year (+28.4% vs +4.7%). You can see the complete list of today's Zacks #1 Rank stocks here .
UFP Technologies, Inc. designs and converts foams, plastics, composites, and natural fibre materials for the medical, automotive, consumer, electronics, industrial, and aerospace and defence markets in the United States. The company currently has a VGM Score B.
In the last 60 days, one earnings estimate moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings rose 4.8% in the same period. The company's expected earnings growth rate for the current year is 56% compared with the Containers - Paper and Packaging industry's projected rally of 24.3%. The stock has outperformed the broader industry on a year-to-date basis (+32.2% vs -5.7%).
Cleveland-Cliffs Inc. operates as an iron ore mining company in the United States. The company currently has a VGM Score A.
In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 2.9% in the same period. The company's expected earnings growth rate for the current year is 250% compared with the Mining - Miscellaneous industry's estimated rally of 6.2%. The stock has outperformed the broader industry so far this year (+75.6% vs -3.1%).
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
UFP Technologies, Inc. (UFPT): Free Stock Analysis Report
Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report
Tilly's, Inc. (TLYS): Free Stock Analysis Report
Guess?, Inc. (GES): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Guess', Inc. GES , Tilly's, Inc. TLYS , UFP Technologies, Inc. UFPT and Cleveland-Cliffs Inc. CLF . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report UFP Technologies, Inc. (UFPT): Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report To read this article on Zacks.com click here. Per the latest monthly survey of fund managers by Bank of America Merrill Lynch, there is a net allocation of 21% overweight to the U.S. equity market, the highest since January 2015.
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Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Guess', Inc. GES , Tilly's, Inc. TLYS , UFP Technologies, Inc. UFPT and Cleveland-Cliffs Inc. CLF . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report UFP Technologies, Inc. (UFPT): Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report To read this article on Zacks.com click here. The company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's estimated rally of 19.4%.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report UFP Technologies, Inc. (UFPT): Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Guess', Inc. GES , Tilly's, Inc. TLYS , UFP Technologies, Inc. UFPT and Cleveland-Cliffs Inc. CLF . Here are highlights from Monday's Analyst Blog: 5 Top Stocks to Break the "October Effect" The U.S. stock market has traditionally been more volatile in October than any other month and is also known for some major crashes.
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Stocks recently featured in the blog include Advance Auto Parts, Inc. AAP , Guess', Inc. GES , Tilly's, Inc. TLYS , UFP Technologies, Inc. UFPT and Cleveland-Cliffs Inc. CLF . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report UFP Technologies, Inc. (UFPT): Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Monday's Analyst Blog: 5 Top Stocks to Break the "October Effect" The U.S. stock market has traditionally been more volatile in October than any other month and is also known for some major crashes.
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2018-10-01 00:00:00 UTC
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5 Top Stocks to Break the 'October Effect' Jinx
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AAP
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https://www.nasdaq.com/articles/5-top-stocks-break-october-effect-jinx-2018-10-01
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nan
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The U.S. stock market has traditionally been more volatile in October than any other month and is also known for some major crashes. Even though it is typically a rough month for major bourses, it is mostly positive in midterm election years.
Some analysts cautioned that a more hawkish Fed and ongoing trade conflicts might slow the nine-year rally this month. However, most of the analysts agree that the general economic outlook is bright and will offset any concern.
By the way, the United States and Canada recently confirmed a "new modernized trade agreement," which should fuel the stock market rally further. Given the positives, investing in solid stocks that can make the most of this resilient October seems prudent.
October Effect Overrated
Astute investors pay special attention to the 'October Effect'. The theory states that stocks mainly decline in October. After all, some of the worst market crashes happened in this month.
According to the Stock Trader's Almanac, there were mega "crashes in 1929 and 1987." In fact, the great crash that occurred on Oct 19, 1987 saw the Dow plunge 22.6% in a single day, which is arguably the worst one-day decline ever. The other black days, of course, were "the 554-point drop on October 27, 1997, back-to-back massacres in 1978 and 1979, Friday the 13th in 1989, and the meltdown in 2008," per the Almanac.
However, the "October Effect" phenomenon does seem overrated. September has seen more declines than October. And from a historical perspective, October has seen the end of more bear markets than any other month. Thus, October is a month suitable for contrarian buying. At the same time, October has been relatively stronger during midterm election years, with 2018 being one such year.
According to Almanac, the Dow normally rises an average 0.6% in October and 3.1% in midterm election years. Similarly, the broader S&P 500 usually climbs 3.3% in midterm Octobers, way more than its typical rise of 0.9% over the month.
A Topsy-Turvy Ride This Month? Not Really!
Traditionally, October has experienced well-above-average gyration. For instance, the standard deviation of the Dow's daily changes has been 1.44% for all Octobers since 1896, much more than 1.05% for all months other than October, per Bespoke Investment Group.
And if you believe that the Dow's fluctuation is mostly because of the 1987 crash or 2008 financial crisis, you are mistaken. Even if these two years are not taken into consideration, the standard deviation of daily Dow changes is still higher in October compared to other months.
But, let's admit that investors heading into October have been a lot calmer. The Cboe Volatility Index tanked more than 19% in the third quarter, its steepest quarterly decline since the first quarter of 2016. Meanwhi;e, the third quarter represented one of the strongest quarters for Wall Street in years. The S&P 500, in particular, registered its biggest quarterly advance since the fourth quarter of 2013.
Bull Run Isn't Over
After a nine-year rally, sceptics are inquisitive about how farther the bull run will go, especially this month. They say that the Fed's interest rate hike and U.S. trade disputes might be big road bumps. After all, the soon-to-expire accommodative monetary policy did help markets chug along, while trade-related issues might hamper economic growth and corporate profits.
However, most investors time and again choose to ignore such issues. They rather believe that robust economic growth and upbeat corporate earnings will keep the bull market intact. Most of the components of the Conference Board's Leading Economic Index indicated a 3% or more growth rate in GDP in the final two quarters of the year and is on track to hit the Trump administration's annual growth target of 3%. If that happens, it would be the best yearly performance since 2005, two years before the Great Recession.
The economy has expanded at a seasonally adjusted rate of 4.2% in the April-June quarter, per the Commerce Department. This marked the strongest rise since a 4.3% annual gain recorded in the third quarter of 2014.
And when it comes to corporate earnings, Q2 growth has been the highest since 2010, while growth in Q3 is expected to be in double-digits for the sixth time in the last seven quarters (read more: Looking Ahead to Q3 Earnings Season ).
In fact, investors are getting optimistic about U.S. stocks, largely because of the encouraging outlook for corporate profits. Per the latest monthly survey of fund managers by Bank of America Merrill Lynch, there is a net allocation of 21% overweight to the U.S. equity market, the highest since January 2015.
The survey also figured out that a net 69% of those polled said that the United States is the most sorted region when it comes to earnings expectations.
5 of the Best Stocks to Buy in October
With October all set to dispel the darkness of its past, investing in fundamentally sound stocks that are poised to gain in the near term seems judicious. We have selected five such stocks that flaunt a Zacks Rank #1 (Strong Buy). Such stocks also boast of a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company currently has a VGM Score B.
In the last 60 days, 10 earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 2.4% in the same period. The company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's estimated rally of 19.4%. The stock has outperformed the broader industry so far this year (+68.8% vs +28.7%).
Guess', Inc.GES
In the last 60 days, three earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose almost 3% in the same period. The company's expected earnings growth rate for the current year is 48.6% compared with the Textile - Apparel industry's estimated rally of 16%. The stock has outperformed the broader industry on a year-to-date basis (+33.9% vs +28%).
Tilly's, Inc.TLYS
In the last 60 days, three earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 11.1% in the same period. The company's expected earnings growth rate for the current year is 38.5% compared with the Retail - Apparel and Shoes industry's estimated rally of 13%. The stock has outperformed the broader industry so far this year (+28.4% vs +4.7%). You can see the complete list of today's Zacks #1 Rank stocks here .
UFP Technologies, Inc.UFPT
In the last 60 days, one earnings estimate moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings rose 4.8% in the same period. The company's expected earnings growth rate for the current year is 56% compared with the Containers - Paper and Packaging industry's projected rally of 24.3%. The stock has outperformed the broader industry on a year-to-date basis (+32.2% vs -5.7%).
Cleveland-Cliffs Inc.CLF
In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 2.9% in the same period. The company's expected earnings growth rate for the current year is 250% compared with the Mining - Miscellaneous industry's estimated rally of 6.2%. The stock has outperformed the broader industry so far this year (+75.6% vs -3.1%).
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
UFP Technologies, Inc. (UFPT): Free Stock Analysis Report
Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report
Tilly's, Inc. (TLYS): Free Stock Analysis Report
Guess?, Inc. (GES): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report UFP Technologies, Inc. (UFPT): Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report To read this article on Zacks.com click here. Per the latest monthly survey of fund managers by Bank of America Merrill Lynch, there is a net allocation of 21% overweight to the U.S. equity market, the highest since January 2015.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report UFP Technologies, Inc. (UFPT): Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's estimated rally of 19.4%.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report UFP Technologies, Inc. (UFPT): Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company's expected earnings growth rate for the current year is 29.6% compared with the Automotive - Retail and Wholesale - Parts industry's estimated rally of 19.4%.
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Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report UFP Technologies, Inc. (UFPT): Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report To read this article on Zacks.com click here. The U.S. stock market has traditionally been more volatile in October than any other month and is also known for some major crashes.
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11338.0
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2018-09-27 00:00:00 UTC
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Auto Stock Roundup: Thor Q4 Earnings Lag, Nissan Recalls, BorgWarner Inks EV Deal
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AAP
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-thor-q4-earnings-lag-nissan-recalls-borgwarner-inks-ev-deal-2018-09-27
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Last week saw the continuation of the trade spat between the United States and China, adding to the worries of auto companies. Apart from trade-related tensions, cases of recalls put auto sector on low gear. Per the Associated Press, Japanese auto giant Nissan Motor Company NSANY recalled around 240,000 vehicles from all over the world. The faulty vehicles include cars and sport utility vehicles (SUVs) that have chances of catching fire.
Further, Thor Industries, Inc. THO reported fourth-quarter fiscal 2018 (ended Jul 31, 2018) results. This recreational vehicle (RV) manufacturer reported adjusted earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.93. Moreover, adjusted earnings decreased roughly 26% from the year-ago $2.26. However, during the reported quarter, revenues surpassed estimates, though it was lower than the prior-year quarter's figure.
Again, in a major development, BorgWarner Inc. BWA reached a three-year agreement with auto manufacturer WM Motor based in China. The companies collaborated to contribute to the development of electric vehicles (EVs) in China.
(Read the previous roundup here: Auto Stock Roundup for Sep 20, 2018 )
Recap of the Week's Most Important Stories
1. Thor reported fourth-quarter fiscal 2018 (ended Jul 31, 2018) adjusted earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.93. Moreover, adjusted earnings decreased roughly 26% from the year-ago figure of $2.26. Net income declined to $88.2 million from $119.5 million in the prior-year quarter.
For fiscal 2018, adjusted earnings per share increased year over year from $7.09 to $8.14.
During the reported quarter, revenues fell 3.1% year over year to $1.87 billion. However, the figure outpaced the Zacks Consensus Estimate of $1.8 billion.
For fiscal 2018, revenues rose to $8.33 billion from the last fiscal's $7.25 billion.
Gross profit decreased 18.9% to $244.4 million from $301.3 million in fourth-quarter fiscal 2018. Moreover, gross profit margin declined to 13% from 15.6% in the year-ago quarter.
The company's actions for managing its input factors enabled it to overcome year-over-year rise in labor and warranty-related costs along with inflationary price increases in certain raw material and commodity-based components.
Thor's quarterly results reflect actions taken to balance dealers' inventory levels. The company's reduced production levels, along with increased promotional costs and solid retail demand, have enhanced its dealers' inventory at the start of the new fiscal. (Read more: Thor Earnings Miss Estimates in Q4, Revenues Beat )
Thor currently carries a Zacks Rank # 5 (Strong Sell).
2. Genuine Parts Company GPC announced that it is acquiring companies for its two groups. One of the acquisitions is for its Industrial Parts Group that operates under the name Motion Industries, while the other is for its U.S. Automotive Parts Group.
Genuine Parts' Motions Industries has signed an agreement to acquire Sunrise, FL-based Hydraulic Supply Company ("HSC"). Established in 1947, HSC is a leading distributor of hydraulic, pneumatic, and industrial components and systems. Currently, HSC is present in 30 locations in the southeastern United States and is expected to generate $85 million of annual revenues.
Genuine Parts inked a deal to acquire Detroit, MI-based Hastings Auto Parts, Inc. Founded in 1981, Hastings will add four stores to the company's distribution channel and will enable Genuine Parts to expand presence in the Detroit market. Hastings is anticipated to make approximately $10 million in annual revenues.
Per president and CEO of Genuine Parts, HSC's experience in the fluid power industry will enhance Motion's footprint for fluid power product growth. Further, Hastings' addition will aid Genuine Parts' U.S. automotive business to develop store footprint and to compete in the Detroit market. Effective closing date for both the acquisitions is Oct 1, 2018. (Read more: Genuine Parts' Two Groups to Expand Through Acquisitions )
Genuine Parts currently carries a Zacks Rank # 3 (Hold).
3. Per AP, Nissan has recalled nearly 240,000 vehicles, globally. The recalled vehicles include cars and sport utility vehicles (SUVs) that have chances of catching fire.
Per Nissan, the anti-lock brake pump - consisting of brake fluid - can leak onto circuit board, which may result in electrical short and fire. The brake fluid leakage is due to defective seals in the anti-lock brake pump. The company has advised customers not to drive the vehicle if anti-lock brake warning lamp stays on for more than 10 seconds after starting the engine. Further, Nissan asked customers to park vehicles outdoor and away from other vehicles or structures.
The recall comprises of certain Nissan Pathfinder from 2017 through 2018, 2017 Infiniti QX60, Nissan Maxima of model year 2016 and 2017, and 2015 to 2017 Nissan Murano. The company is estimating that roughly 56% of vehicles might be at risk of catching fire. In 2016, a few Murano vehicles were recalled for the same reason. Majority of the recalled vehicles are from the United States, Canada and Mexico. (Read more: Nissan Recalls 240K Vehicles Due to Risk of Catching Fire )
Nissan currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
4. Cummins Inc. CMI announced that it signed a Memorandum of Understanding (MOU) with KAMAZ PTC, a Russian manufacturer of industrial and commercial vehicles. Per the agreement, Cummins will develop electrified power solutions for KAMAZ's new line of battery-powered vehicles.
Cummins will develop and supply high-voltage fully-electric powertrain prototypes, along with applications, for KAMAZ's buses and medium-range delivery trucks. Additionally, Cummins will design hybrid transmission prototype for KAMAZ's heavy-duty trucks. KAMAZ's proven electrified portfolio of vehicles will aid Cummins in offering electrified power solutions to customers.
The supplied prototypes will be tested on KAMAZ's city buses, medium-range delivery trucks and heavy-duty trucks. After completion of the test and certification, the companies will look at the potential market size and express viewpoint for further collaboration.
This new partnership is in sync with Cummins' recent launches. The company showcased its PowerDrive system, an advanced set of plug-in hybrid electric powertrain solutions for light, medium and heavy-duty applications. The new system will add to its diverse portfolio, consisting low emissions and fuel-efficient power solutions. (Read more: Cummins to Offer Electrified Solutions for KAMAZ's Vehicles )
Cummins currently carries a Zacks Rank #2.
5. BorgWarner entered into a three-year agreement with WM Motor, an auto manufacturer in China. The companies will collaborate to set up transportation model for smart city. Per the agreement, BorgWarner will provide its entire range of electric propulsion technologies and efficient electrical application systems, including high-performance electric drive modules (eDM).
Per management, its collaboration with one of the emerging players of China in the auto market will aid BorgWarner to discover business opportunities in the EV industry. The companies will add to the development of the EV industry, with their electrical systems and high-performance electric power products. This marks a major step for BorgWarner's growth in China's EV market.
However, the parties previously collaborated for WM Motor's first model EX5. Introduced in April, EX5 is a first fully electric sports utility vehicle offered with interactive experience. For the first model of its kind in the EV industry, BorgWarner provided its high-performance eDM. (Read more: BorgWarner and WM Motors Tie Up to Aid EV Industry )
BorgWarner currently carries a Zacks Rank #3.
Performance
Last week, shares of Tesla, Inc. TSLA gained the maximum whereas General Motors Company GM declined the most.
In the past six months, Advance Auto Parts, Inc. AAP increased the most, wherein Ford Motor Company F declined the most.
What's Next in the Auto Space?
Watch out for the usual news releases over the next week.
5 Medical Stocks to Buy Now
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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Motors Company (GM): Free Stock Analysis Report
Ford Motor Company (F): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Nissan Motor Co. (NSANY): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
BorgWarner Inc. (BWA): Free Stock Analysis Report
Genuine Parts Company (GPC): Free Stock Analysis Report
Thor Industries, Inc. (THO): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past six months, Advance Auto Parts, Inc. AAP increased the most, wherein Ford Motor Company F declined the most. Click to get this free report General Motors Company (GM): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Nissan Motor Co. (NSANY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. The company's actions for managing its input factors enabled it to overcome year-over-year rise in labor and warranty-related costs along with inflationary price increases in certain raw material and commodity-based components.
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Click to get this free report General Motors Company (GM): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Nissan Motor Co. (NSANY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, Advance Auto Parts, Inc. AAP increased the most, wherein Ford Motor Company F declined the most. Thor reported fourth-quarter fiscal 2018 (ended Jul 31, 2018) adjusted earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.93.
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Click to get this free report General Motors Company (GM): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Nissan Motor Co. (NSANY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, Advance Auto Parts, Inc. AAP increased the most, wherein Ford Motor Company F declined the most. (Read more: Nissan Recalls 240K Vehicles Due to Risk of Catching Fire ) Nissan currently carries a Zacks Rank #2 (Buy).
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In the past six months, Advance Auto Parts, Inc. AAP increased the most, wherein Ford Motor Company F declined the most. Click to get this free report General Motors Company (GM): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Nissan Motor Co. (NSANY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. (Read more: Genuine Parts' Two Groups to Expand Through Acquisitions ) Genuine Parts currently carries a Zacks Rank # 3 (Hold).
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11339.0
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2018-09-27 00:00:00 UTC
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Advance Auto Parts (AAP) Is Up 1.81% in One Week: What You Should Know
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-is-up-1.81-in-one-week%3A-what-you-should-know-2018-09-27
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nan
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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores , helps address this issue for us.
Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Advance Auto Parts currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for AAP that show why this auto parts retailer shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For AAP, shares are up 1.81% over the past week while the Zacks Automotive - Retail and Wholesale - Parts industry is up 1.71% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 3.53% compares favorably with the industry's 1.17% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Advance Auto Parts have risen 25.42%, and are up 70.47% in the last year. In comparison, the S&P 500 has only moved 7.25% and 18.48%, respectively.
Investors should also take note of AAP's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, AAP is averaging 935,404 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with AAP.
Over the past two months, 10 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AAP's consensus estimate, increasing from $6.79 to $6.96 in the past 60 days. Looking at the next fiscal year, 10 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that AAP is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Advance Auto Parts on your short list.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For AAP, shares are up 1.81% over the past week while the Zacks Automotive - Retail and Wholesale - Parts industry is up 1.71% over the same time period. Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. Let's discuss some of the components of the Momentum Style Score for AAP that show why this auto parts retailer shows promise as a solid momentum pick.
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Let's discuss some of the components of the Momentum Style Score for AAP that show why this auto parts retailer shows promise as a solid momentum pick. Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. For AAP, shares are up 1.81% over the past week while the Zacks Automotive - Retail and Wholesale - Parts industry is up 1.71% over the same time period.
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Let's discuss some of the components of the Momentum Style Score for AAP that show why this auto parts retailer shows promise as a solid momentum pick. Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. For AAP, shares are up 1.81% over the past week while the Zacks Automotive - Retail and Wholesale - Parts industry is up 1.71% over the same time period.
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Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. Investors should also take note of AAP's average 20-day trading volume. Let's discuss some of the components of the Momentum Style Score for AAP that show why this auto parts retailer shows promise as a solid momentum pick.
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11340.0
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2018-09-26 00:00:00 UTC
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Agree To Buy Advance Auto Parts At $115, Earn 5.8% Using Options
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AAP
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https://www.nasdaq.com/articles/agree-buy-advance-auto-parts-115-earn-58-using-options-2018-09-26
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nan
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Investors eyeing a purchase of Advance Auto Parts Inc (Symbol: AAP) shares, but cautious about paying the going market price of $168.84/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2021 put at the $115 strike, which has a bid at the time of this writing of $6.70. Collecting that bid as the premium represents a 5.8% return against the $115 commitment, or a 2.5% annualized rate of return (at Stock Options Channel we call this the YieldBoost ).
Selling a put does not give an investor access to AAP's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $115 strike if doing so produced a better outcome than selling at the going market price. ( Do options carry counterparty risk? This and six other common options myths debunked ). So unless Advance Auto Parts Inc sees its shares decline 31.7% and the contract is exercised (resulting in a cost basis of $108.30 per share before broker commissions, subtracting the $6.70 from $115), the only upside to the put seller is from collecting that premium for the 2.5% annualized rate of return.
Interestingly, that annualized 2.5% figure actually exceeds the 0.1% annualized dividend paid by Advance Auto Parts Inc by 2.4%, based on the current share price of $168.84. And yet, if an investor was to buy the stock at the going market price in order to collect the dividend, there is greater downside because the stock would have to lose 31.7% to reach the $115 strike price.
Always important when discussing dividends is the fact that, in general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Advance Auto Parts Inc, looking at the dividend history chart for AAP below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.1% annualized dividend yield.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $115 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2021 put at the $115 strike for the 2.5% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Advance Auto Parts Inc (considering the last 252 trading day closing values as well as today's price of $168.84) to be 35%. For other put options contract ideas at the various different available expirations, visit the AAP Stock Options page of StockOptionsChannel.com.
Top YieldBoost Puts of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors eyeing a purchase of Advance Auto Parts Inc (Symbol: AAP) shares, but cautious about paying the going market price of $168.84/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAP's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. In the case of Advance Auto Parts Inc, looking at the dividend history chart for AAP below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.1% annualized dividend yield.
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Selling a put does not give an investor access to AAP's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. Investors eyeing a purchase of Advance Auto Parts Inc (Symbol: AAP) shares, but cautious about paying the going market price of $168.84/share, might benefit from considering selling puts among the alternative strategies at their disposal. In the case of Advance Auto Parts Inc, looking at the dividend history chart for AAP below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.1% annualized dividend yield.
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In the case of Advance Auto Parts Inc, looking at the dividend history chart for AAP below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.1% annualized dividend yield. Investors eyeing a purchase of Advance Auto Parts Inc (Symbol: AAP) shares, but cautious about paying the going market price of $168.84/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAP's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised.
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Investors eyeing a purchase of Advance Auto Parts Inc (Symbol: AAP) shares, but cautious about paying the going market price of $168.84/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAP's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. In the case of Advance Auto Parts Inc, looking at the dividend history chart for AAP below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.1% annualized dividend yield.
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11341.0
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2018-09-26 00:00:00 UTC
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BorgWarner (BWA) and WM Motors Tie Up to Aid EV Industry
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AAP
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https://www.nasdaq.com/articles/borgwarner-bwa-and-wm-motors-tie-up-to-aid-ev-industry-2018-09-26
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nan
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nan
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BorgWarner Inc.BWA has entered into a three-year agreement with WM Motor, an auto manufacturer in China. Both the companies will collaborate to set up transportation model for smart city. Per the agreement, BorgWarner will provide its entire range of electric propulsion technologies and efficient electrical application systems, including high-performance electric drive modules (eDM).
Per management, its collaboration with China's one of the emerging players in the auto market will aid BorgWarner to discover business opportunities in the electric vehicle (EV) industry. The companies will jointly add to the development of the EV industry, with their electrical systems and high-performance electric power products. This marks a major step for BorgWarner's growth in China's EV market.
However, both the parties have previously collaborated for WM Motor's first model EX5. Introduced in April, EX5 is a first fully electric sports utility vehicle, offered with interactive experience. For the first model of its kind in the EV industry, BorgWarner provided its high-performance eDM.
BorgWarner Inc. Price and Consensus
BorgWarner Inc. Price and Consensus | BorgWarner Inc. Quote
Price Performance
In the past three months, BorgWarner's stock has lost 11.7%, underperforming 3.5% decrease recorded by the industry it belongs to.
Zacks Rank & Key Picks
BorgWarner currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Advance Auto Part, Inc. AAP , AutoZone, Inc. AZO and Nissan Motor Company NSANY . Advance Auto Part sports a Zacks Rank #1 (Strong Buy) while AutoZone and Nissan carry a Zacks Rank #2(Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto Part has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have gained 45.5%.
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 21.8%
Nissan has an expected long-term growth rate of 4.3%. Shares of the company have increased 3% over the past month.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nissan Motor Co. (NSANY): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
BorgWarner Inc. (BWA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the auto space are Advance Auto Part, Inc. AAP , AutoZone, Inc. AZO and Nissan Motor Company NSANY . Click to get this free report Nissan Motor Co. (NSANY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report To read this article on Zacks.com click here. Per management, its collaboration with China's one of the emerging players in the auto market will aid BorgWarner to discover business opportunities in the electric vehicle (EV) industry.
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A few better-ranked stocks in the auto space are Advance Auto Part, Inc. AAP , AutoZone, Inc. AZO and Nissan Motor Company NSANY . Click to get this free report Nissan Motor Co. (NSANY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Part sports a Zacks Rank #1 (Strong Buy) while AutoZone and Nissan carry a Zacks Rank #2(Buy).
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A few better-ranked stocks in the auto space are Advance Auto Part, Inc. AAP , AutoZone, Inc. AZO and Nissan Motor Company NSANY . Click to get this free report Nissan Motor Co. (NSANY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report To read this article on Zacks.com click here. BorgWarner Inc. Price and Consensus BorgWarner Inc. Price and Consensus | BorgWarner Inc. Quote Price Performance In the past three months, BorgWarner's stock has lost 11.7%, underperforming 3.5% decrease recorded by the industry it belongs to.
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A few better-ranked stocks in the auto space are Advance Auto Part, Inc. AAP , AutoZone, Inc. AZO and Nissan Motor Company NSANY . Click to get this free report Nissan Motor Co. (NSANY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report BorgWarner Inc. (BWA): Free Stock Analysis Report To read this article on Zacks.com click here. Per management, its collaboration with China's one of the emerging players in the auto market will aid BorgWarner to discover business opportunities in the electric vehicle (EV) industry.
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11342.0
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2018-09-25 00:00:00 UTC
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Nissan Recalls 240K Vehicles Due to Risk of Catching Fire
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AAP
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https://www.nasdaq.com/articles/nissan-recalls-240k-vehicles-due-to-risk-of-catching-fire-2018-09-25
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nan
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nan
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Per AP, Nissan Motor CompanyNSANY has recalled nearly 240,000 vehicles, globally. The recalled vehicles include cars and sport utility vehicles (SUVs) that have chances of catching fire.
Per Nissan, the anti-lock brake pump - consisting of brake fluid - can leak onto circuit board, which may result in electrical short and fire. The brake fluid leakage is due to defective seals in the anti-lock brake pump. The company has advised customers not to drive the vehicle, if anti-lock brake warning lamp stays on for more than 10 seconds, after starting the engine. Further, Nissan asked customers to park vehicles outdoor and away from other vehicles or structures.
The recall comprises of certain Nissan Pathfinder from 2017 through 2018, 2017 Infiniti QX60, Nissan Maxima of model year 2016 and 2017, and 2015 to 2017 Nissan Murano. The company is estimating that roughly 56% of vehicles might have the risk of catching fire. Earlier, in 2016, a few Murano vehicles were recalled for the same reason. Majority of the recalled vehicles are from the United States, Canada and Mexico.
Nissan Motor Co. Price and Consensus
Nissan Motor Co. Price and Consensus | Nissan Motor Co. Quote
Beginning Oct 15, car dealers will check pump serial numbers and will be replaced if required.
This marks the second recall for Nissan in a month. Earlier, on Aug 31, the company announced that it would recall 166,000 vehicles in the United States and Canada due to defective ignition switches. The models include NV, NV200, NV Taxi, Frontier, Sentra, Versa, Versa Note and Juke. All the affected vehicles are of 2017 and 2018 model years.
Lately, frequency of recalls by automakers increased along with rising vehicle sales. Few safety issues, which have led to recent recalls, consist of hatchback problems, risk of catching fire, brake-related concerns and, of course, faulty Takata airbag deflators.
Price Performance
In the past three months, Nissan's stock has gained 1.3% outperforming 1.8% decrease recorded by the industry it belongs to.
Zacks Rank & Other Key Picks
Nissan currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space include Advance Auto Part, Inc. AAP , Honda Motor Co., Ltd. HMC and Oshkosh Corporation OSK . Advance Auto and Honda sport a Zacks Rank #1 (Strong Buy) while Oshkosh carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto has an expected long-term growth rate of 12.3%. Over the past three months, shares of the company have gained 22.4%.
Honda has an expected long-term growth rate of 3%. Over the past three months, shares of the company have gained 2.1%.
Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have increased 6.3% in the past three months.
More Stock News: This Is Bigger than the iPhone!
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Nissan Motor Co. (NSANY): Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Oshkosh Corporation (OSK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other top-ranked stocks in the auto space include Advance Auto Part, Inc. AAP , Honda Motor Co., Ltd. HMC and Oshkosh Corporation OSK . Click to get this free report Nissan Motor Co. (NSANY): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Oshkosh Corporation (OSK): Free Stock Analysis Report To read this article on Zacks.com click here. The company has advised customers not to drive the vehicle, if anti-lock brake warning lamp stays on for more than 10 seconds, after starting the engine.
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Other top-ranked stocks in the auto space include Advance Auto Part, Inc. AAP , Honda Motor Co., Ltd. HMC and Oshkosh Corporation OSK . Click to get this free report Nissan Motor Co. (NSANY): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Oshkosh Corporation (OSK): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto and Honda sport a Zacks Rank #1 (Strong Buy) while Oshkosh carries a Zacks Rank #2.
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Click to get this free report Nissan Motor Co. (NSANY): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Oshkosh Corporation (OSK): Free Stock Analysis Report To read this article on Zacks.com click here. Other top-ranked stocks in the auto space include Advance Auto Part, Inc. AAP , Honda Motor Co., Ltd. HMC and Oshkosh Corporation OSK . The recall comprises of certain Nissan Pathfinder from 2017 through 2018, 2017 Infiniti QX60, Nissan Maxima of model year 2016 and 2017, and 2015 to 2017 Nissan Murano.
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Other top-ranked stocks in the auto space include Advance Auto Part, Inc. AAP , Honda Motor Co., Ltd. HMC and Oshkosh Corporation OSK . Click to get this free report Nissan Motor Co. (NSANY): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Oshkosh Corporation (OSK): Free Stock Analysis Report To read this article on Zacks.com click here. The recall comprises of certain Nissan Pathfinder from 2017 through 2018, 2017 Infiniti QX60, Nissan Maxima of model year 2016 and 2017, and 2015 to 2017 Nissan Murano.
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11343.0
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2018-09-24 00:00:00 UTC
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Advance Auto Parts (AAP) Hits Fresh High: Is There Still Room to Run?
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-hits-fresh-high%3A-is-there-still-room-to-run-2018-09-24
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Have you been paying attention to shares of Advance Auto Parts (AAP)? Shares have been on the move with the stock up 3.2% over the past month. The stock hit a new 52-week high of $171.33 in the previous session. Advance Auto Parts has gained 69% since the start of the year compared to the 18.1% move for the Zacks Retail-Wholesale sector and the 29.6% return for the Zacks Automotive - Retail and Wholesale - Parts industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 14, 2018, Advance Auto Parts reported EPS of $1.97 versus consensus estimate of $1.85 while it beat the consensus revenue estimate by 2.7%.
For the current fiscal year, Advance Auto Parts is expected to post earnings of $6.96 per share on $9.49 billion in revenues. This represents a 29.61% change in EPS on a 1.29% change in revenues. For the next fiscal year, the company is expected to earn $8.11 per share on $9.66 billion in revenues. This represents a year-over-year change of 16.56% and 1.79%, respectively.
Valuation Metrics
Advance Auto Parts may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Advance Auto Parts has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24.2X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 19.2X versus its peer group's average of 16.4X. Additionally, the stock has a PEG ratio of 1.97. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Advance Auto Parts currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Advance Auto Parts meets the list of requirements. Thus, it seems as though Advance Auto Parts shares could still be poised for more gains ahead.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Have you been paying attention to shares of Advance Auto Parts (AAP)? Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. For the current fiscal year, Advance Auto Parts is expected to post earnings of $6.96 per share on $9.49 billion in revenues.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Have you been paying attention to shares of Advance Auto Parts (AAP)? In its last earnings report on August 14, 2018, Advance Auto Parts reported EPS of $1.97 versus consensus estimate of $1.85 while it beat the consensus revenue estimate by 2.7%.
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Have you been paying attention to shares of Advance Auto Parts (AAP)? Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts has gained 69% since the start of the year compared to the 18.1% move for the Zacks Retail-Wholesale sector and the 29.6% return for the Zacks Automotive - Retail and Wholesale - Parts industry.
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Have you been paying attention to shares of Advance Auto Parts (AAP)? Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. In its last earnings report on August 14, 2018, Advance Auto Parts reported EPS of $1.97 versus consensus estimate of $1.85 while it beat the consensus revenue estimate by 2.7%.
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11344.0
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2018-09-21 00:00:00 UTC
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Amazon Is Becoming the Third Largest Internet Ad Platform in the U.S.
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https://www.nasdaq.com/articles/amazon-becoming-third-largest-internet-ad-platform-us-2018-09-21
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Amazon (NASDAQ: AMZN) could surpass Verizon 's Oath and Microsoft as the third largest online advertiser in America this year according to eMarketer. The firm estimates that Amazon's U.S. advertising business will generate $4.6 billion in revenues this year, giving it a 4.1% share of the market. $1.6 billion of that total could come from mobile ads, which would also give Amazon a 2.1% share of the U.S. mobile ad market.
As for the market leaders, eMarketer expects Alphabet 's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Facebook (NASDAQ: FB) to control 37.1% and 20.6% of the entire market, respectively, this year. But by 2020, the firm expects Amazon's share to grow to 7% as Google and Facebook's combined share slips from 57.7% to 55.9%.
That news might surprise investors who thought Amazon made most of its money from its online marketplace and cloud services businesses. Let's take a closer look at Amazon's advertising business, and why it could gradually become a new pillar of growth for the tech giant.
How does Amazon make money from ads?
Amazon's advertising business is comprised of three main divisions: Amazon Media Group (AMG), Amazon Marketing Services (AMS), and Amazon Advertising Platform (AAP). Amazon merged the three units into a single division called "Amazon Advertising" in early September.
AMG sells display ads across its marketplace, hardware devices (like the Kindle and Fire TV), and other websites. AMS offers a pay-per-click performance marketing suite that lets vendors boost their sales with sponsored product placements, sponsored brand ads, product display ads, and custom Amazon Stores. Unlike AMG ads, AMS ads are only displayed for products sold on Amazon. Lastly, AAP is a programmatic advertising platform for AMS that offers self-serve and team-assisted marketing campaigns.
Understanding Amazon's advantages
Amazon's websites drew in nearly 200 million unique monthly visitors in the US at the end of 2017 according to comScore. In July, research firm CIRP estimated that Amazon Prime had nearly 100 million members in the US.
The Fire TV is also the second most popular streaming device in America according to Parks Associates, and the Echo remains the top dog in the smart speaker market according to CIRP. That sprawling ecosystem gives advertisers plenty of ways to promote their products.
More importantly, Amazon isn't being pilloried for its advertising practices like Google and Facebook, which face intense regulatory scrutiny over their data-mining practices. Advertisers are also complaining about their ads being displayed with inappropriate and offensive content, especially on Google's YouTube.
Amazon's strategy of displaying targeted ads based on a user's browsing and shopping history is generally considered less invasive than Google's usage of a user's internet search, web browsing, and location history, or Facebook's usage of a user's profile, liked posts and pages, and social connections.
Therefore, if public scrutiny of Google and Facebook's advertising duopoly escalates, many advertisers could flock to Amazon as an alternative advertising platform. Moreover, Amazon can leverage all the shopping data it accumulated to show consumers products that they'd be more interested in buying than products shown on Google or Facebook.
But will it move the needle for Amazon?
Amazon's advertising business is growing quickly, but eMarketer's forecast indicates that its U.S. advertising revenues will account for just 2% of its projected revenue this year.
It's unclear how much ad revenue Amazon generates overseas, but the "other" category that houses its ad business and other small divisions generated $2.19 billion in revenue -- or 4% of its top line -- last quarter. For comparison, ad sales accounted for 86% of Alphabet's revenue and 99% of Facebook's revenue in their latest quarters.
Amazon's ad business won't move the needle for the tech giant anytime soon. However, the unit's steady growth could offset any slowdowns in its core marketplace and AWS (Amazon Web Services) divisions.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool's board of directors. LinkedIn is owned by Microsoft. Leo Sun owns shares of Amazon and Facebook. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and Facebook. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon's advertising business is comprised of three main divisions: Amazon Media Group (AMG), Amazon Marketing Services (AMS), and Amazon Advertising Platform (AAP). Lastly, AAP is a programmatic advertising platform for AMS that offers self-serve and team-assisted marketing campaigns. Amazon (NASDAQ: AMZN) could surpass Verizon 's Oath and Microsoft as the third largest online advertiser in America this year according to eMarketer.
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Amazon's advertising business is comprised of three main divisions: Amazon Media Group (AMG), Amazon Marketing Services (AMS), and Amazon Advertising Platform (AAP). Lastly, AAP is a programmatic advertising platform for AMS that offers self-serve and team-assisted marketing campaigns. As for the market leaders, eMarketer expects Alphabet 's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Facebook (NASDAQ: FB) to control 37.1% and 20.6% of the entire market, respectively, this year.
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Amazon's advertising business is comprised of three main divisions: Amazon Media Group (AMG), Amazon Marketing Services (AMS), and Amazon Advertising Platform (AAP). Lastly, AAP is a programmatic advertising platform for AMS that offers self-serve and team-assisted marketing campaigns. Therefore, if public scrutiny of Google and Facebook's advertising duopoly escalates, many advertisers could flock to Amazon as an alternative advertising platform.
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Amazon's advertising business is comprised of three main divisions: Amazon Media Group (AMG), Amazon Marketing Services (AMS), and Amazon Advertising Platform (AAP). Lastly, AAP is a programmatic advertising platform for AMS that offers self-serve and team-assisted marketing campaigns. The firm estimates that Amazon's U.S. advertising business will generate $4.6 billion in revenues this year, giving it a 4.1% share of the market.
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11345.0
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2018-09-20 00:00:00 UTC
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Auto Stock Roundup: German Automakers Under EU Radar, GM Recalls, Thor to Buy EHG
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-german-automakers-under-eu-radar-gm-recalls-thor-to-buy-ehg-2018-09-20
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Last week witnessed the troubled German automakers facing regulatory probe. European Union regulators opened an in-depth investigation to find out whether there was a possible collusion between top automakers to impede the development of emission technologies. It will be investigated whether the companies decided not to compete with each other by developing catalytic reduction systems to curb pollution from gasoline or diesel-engine passenger cars.
On the other hand, the past week saw, General Motors Company GM deciding to recall 1.2 million pickup trucks and sport utility vehicles (SUVs) from all over the world due to problems related to power steering, per Reuters. Again, Thor Industries, Inc. THO has agreed to buy Germany's Erwin Hymer Group SE ("EHG") for €2.1 billion, marking its biggest acquisition. This is likely to create the world's largest recreational vehicle ("RV") manufacturer, with strong position in both North America and Europe.
On the earnings front, past week saw Copart, Inc. CPRT to report fourth quarter and fiscal 2018 earnings results. During the quarter under review, the company reported adjusted earnings per share of 42 cents, missing the Zacks Consensus Estimate of 47 cents. However, revenues beat estimates during the reported quarter.
(Read the previous roundup here: Auto Stock Roundup for Sep 13, 2018 )
Recap of the Week's Most Important Stories
1. General Motors is recalling 1.2 million pickup trucks and SUVs across the globe due to problems pertaining to power steering, per Reuters. According to the National Highway Traffic Safety Administration, the flaw that is perhaps due to software and electrical issues may cause difficulty in steering the vehicle, particularly, while turning at a low speed. This even raises the chance of fire. Notably, in 2017, this carmaker had to recall 2014 model year trucks for the same problems.
The recall includes 1.02 million vehicles in the United States. Majority of vehicles recalled are from Canada and Mexico, and a small number of vehicles are from other countries. The models include Chevrolet Silverado 1500 and GMC Sierra 1500 pickups along with Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon and Cadillac Escalade SUVs from the 2015 model year.
Per the company, the automaker received reports of 30 crashes and two injuries but no death has been reported. Sources have added that the dealers are going to fix power steering software problems for free, though no specific date has been fixed yet to notify the customers. However, the company has informed that the software is available now; therefore, owners can contact dealers to schedule repairs. (Read more: General Motors to Recall 1.2M Pickup Trucks & SUVs )
General Motors currently carries a Zacks Rank # 5 (Strong Sell).
2. Volkswagen AG VLKAY intends to manufacture 10 million electric cars (e-cars) by utilizing its new modular MEB platform, per Reuters. This is in sync with this German auto giant's target of starting the global mass production of e-cars toward the end of 2022.
Per the news, this auto giant will build vehicles of 27 models, using the MEB -modular electrification kit - at its plant in Zwickau, Germany, in late 2019.
Similar to other German automakers, Volkswagen is aiming at the mass production of electric cars as its rival in the United States, Tesla, Inc. TSLA , is facing a lot of hardship to expedite the production of Model 3 - Tesla's first car, targeting the mass market.
In fact, after the revelation of the three-year-ago diesel emissions scandal, which badly tarnished Volkswagen's image, it set an ambitious plan to become a global leader in the electric vehicle market. The company plans to invest $7 billion in e-car production, which includes huge investment in its German plants at Braunschweig, Salzgitter and Kassel. (Read more: Volkswagen Intends to Build 10M Electric Cars in MEB Platform )
Volkswagen currently carries a Zacks Rank # 4 (Sell).
3. Lithia Motors, Inc. LAD has inked a strategic partnership with San Francisco-based e-commerce retailer, Shift. The underlying idea is to capture majority of used vehicles - above 40 million to be specific - sold in the United States per year and use more technology for simplifying car buying and ownership experience. Such an alliance will allow both the companies to collaborate with respect to technology, inventory, data, business and physical network.
Notably, Shift is the largest used-car retailer in San Francisco and operates all over California. The company is anticipated to sell around 8,000 vehicles during 2018. While leading automotive retailer, Lithia Motors deals in new and used vehicles plus related services in the United States. Shift's dynamic operational capabilities and technology platform are likely to complement Lithia Motors' culture of creating a digital marketplace as well as its timely provision of a decent retail experience to its customers.
Additionally, Lithia Motors will be the front-runner in Shift's Series D fundraising round. Lithia Motors will invest $54 million to become Shift's largest shareholder. (Read more: Lithia Motors Inks Strategic Deal With E-commerce Retailer )
Lithia Motors currently carries a Zacks Rank # 4.
4. In a notable development, Thor has agreed to buy Germany's EHG for €2.1 billion ($2.5 billion), marking its biggest acquisition.
This cash and stock deal is likely to open up chances before the Elkhart, IN-based RV manufacturer, Thor, to stamp its position in the growing European RV market. On the other hand, Hymer family finds a 'new owner partner' in Thor Industries for Erwin Hymer Group to effectively go on with its long-term growth and internationalization strategy. Moreover, the combination of Thor and Erwin Hymer Group is likely to create the world's largest RV manufacturer, with strong position in both North America and Europe.
The board of directors of Thor has approved the transaction and it is likely to close near the end of 2018. However, the fructification of the deal is subject to the satisfaction of certain customary and other required approvals. Following the announcement of the deal, shares of Thor have gained 5.8% in a day's trading.
Thor anticipates the acquisition of Bad Waldsee, Germany-based EHG to likely be accretive to its earnings in the first year. EHG is a leading manufacturer of RVs in the growing European market, with a strong lineup of industry-leading vehicle brands. This deal provides an excellent opportunity for Thor to expand with this European RV market leader.
On the other hand, with Thor Industries, Erwin Hymer Group will be able to expedite the development of its relatively new activities in the promising North American market. (Read more: Thor to Acquire Erwin Hymer Group for $2.5 Billion )
Thor currently carries a Zacks Rank # 4.
5. Copart reported adjusted earnings per share of 42 cents in fourth-quarter fiscal 2018 (ended Jul 31, 2018), missing the Zacks Consensus Estimate of 47 cents. The bottom line improved 20% from 35 cents recorded in the year-ago quarter.
Net income was $109.7 million, reflecting a surge of 56% or $39.4 million from fourth-quarter fiscal 2017.
Copart's revenues rose 18.7% to $449.2 million from the year-ago quarter and surpassed the Zacks Consensus Estimate of $446.4 million. Service revenues went up 16% year over year to $391.7 million while revenues from vehicle sales gained 38% to $56.6 million in comparison with the prior-year quarter.
Gross profit improved 13% to $188.4 million from $167.5 million a year ago. Total operating expenses increased to $314.4 million from $267.8 million recorded in the prior-year period.
Operating income increased to $134.8 million from $110.8 million a year ago.
For fiscal 2018, Copart has reported adjusted earnings per share of $1.73, up from the prior-year figure of $1.29. In fiscal 2018, revenues were $1.8 billion, up from the 2017 figure of $1.5 billion.
Copart currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Performance
Last week, all these stocks have gained except AutoZone, Inc. AZO , which recorded a decline of 1.3%. Honda Motor Co., Ltd. HMC has gained the maximum.
In the past six months, Advance Auto Parts, Inc. AAP has increased the most. Honda has declined the most.
What's Next in the Auto Space?
Watch out for the usual news releases over the next week.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
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Lithia Motors, Inc. (LAD): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Volkswagen AG (VLKAY): Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Thor Industries, Inc. (THO): Free Stock Analysis Report
Copart, Inc. (CPRT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past six months, Advance Auto Parts, Inc. AAP has increased the most. Click to get this free report Lithia Motors, Inc. (LAD): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here. On the other hand, the past week saw, General Motors Company GM deciding to recall 1.2 million pickup trucks and sport utility vehicles (SUVs) from all over the world due to problems related to power steering, per Reuters.
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Click to get this free report Lithia Motors, Inc. (LAD): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, Advance Auto Parts, Inc. AAP has increased the most. On the other hand, the past week saw, General Motors Company GM deciding to recall 1.2 million pickup trucks and sport utility vehicles (SUVs) from all over the world due to problems related to power steering, per Reuters.
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Click to get this free report Lithia Motors, Inc. (LAD): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, Advance Auto Parts, Inc. AAP has increased the most. On the other hand, the past week saw, General Motors Company GM deciding to recall 1.2 million pickup trucks and sport utility vehicles (SUVs) from all over the world due to problems related to power steering, per Reuters.
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In the past six months, Advance Auto Parts, Inc. AAP has increased the most. Click to get this free report Lithia Motors, Inc. (LAD): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Thor Industries, Inc. (THO): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here. On the other hand, the past week saw, General Motors Company GM deciding to recall 1.2 million pickup trucks and sport utility vehicles (SUVs) from all over the world due to problems related to power steering, per Reuters.
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11346.0
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2018-09-19 00:00:00 UTC
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New Strong Buy Stocks for September 19th
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https://www.nasdaq.com/articles/new-strong-buy-stocks-september-19th-2018-09-19
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Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today:
Arch Coal, Inc . (ARCH): This company that produces and sells thermal and metallurgical coal has seen the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.
Arch Coal Inc. Price and Consensus
Arch Coal Inc. price-consensus-chart | Arch Coal Inc. Quote
Covenant Transportation Group, Inc. (CVTI): This company that provides truckload transportation and brokerage services has seen the Zacks Consensus Estimate for its current year earnings increasing 5.9% over the last 60 days.
Covenant Transportation Group, Inc. Price and Consensus
Covenant Transportation Group, Inc. price-consensus-chart | Covenant Transportation Group, Inc. Quote
Guess', Inc. (GES): This company that designs, markets, distributes, and licenses lifestyle collections of apparel and accessories has seen the Zacks Consensus Estimate for its current year earnings increasing 2.9% over the last 60 days.
Guess?, Inc. Price and Consensus
Guess?, Inc. price-consensus-chart | Guess?, Inc. Quote
Advance Auto Parts, Inc . (AAP): This company that provides automotive replacement parts, batteries, accessories, and maintenance items has seen the Zacks Consensus Estimate for its current year earnings increasing 2.5% over the last 60 days.
Advance Auto Parts, Inc. Price and Consensus
Advance Auto Parts, Inc. price-consensus-chart | Advance Auto Parts, Inc. Quote
CNX Resources Corporation (CNX): This independent oil and natural gas company has seen the Zacks Consensus Estimate for its current year earnings increasing 52.9% over the last 60 days.
CNX Resources Corporation. Price and Consensus
CNX Resources Corporation. price-consensus-chart | CNX Resources Corporation. Quote
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here
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Guess?, Inc. (GES): Free Stock Analysis Report
Covenant Transportation Group, Inc. (CVTI): Free Stock Analysis Report
CNX Resources Corporation. (CNX): Free Stock Analysis Report
Arch Coal Inc. (ARCH): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(AAP): This company that provides automotive replacement parts, batteries, accessories, and maintenance items has seen the Zacks Consensus Estimate for its current year earnings increasing 2.5% over the last 60 days. (CNX): Free Stock Analysis Report Arch Coal Inc. (ARCH): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today: Arch Coal, Inc .
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(CNX): Free Stock Analysis Report Arch Coal Inc. (ARCH): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. (AAP): This company that provides automotive replacement parts, batteries, accessories, and maintenance items has seen the Zacks Consensus Estimate for its current year earnings increasing 2.5% over the last 60 days. Advance Auto Parts, Inc. Price and Consensus Advance Auto Parts, Inc. price-consensus-chart | Advance Auto Parts, Inc. Quote CNX Resources Corporation (CNX): This independent oil and natural gas company has seen the Zacks Consensus Estimate for its current year earnings increasing 52.9% over the last 60 days.
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(AAP): This company that provides automotive replacement parts, batteries, accessories, and maintenance items has seen the Zacks Consensus Estimate for its current year earnings increasing 2.5% over the last 60 days. (CNX): Free Stock Analysis Report Arch Coal Inc. (ARCH): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Arch Coal Inc. Price and Consensus Arch Coal Inc. price-consensus-chart | Arch Coal Inc. Quote Covenant Transportation Group, Inc. (CVTI): This company that provides truckload transportation and brokerage services has seen the Zacks Consensus Estimate for its current year earnings increasing 5.9% over the last 60 days.
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(AAP): This company that provides automotive replacement parts, batteries, accessories, and maintenance items has seen the Zacks Consensus Estimate for its current year earnings increasing 2.5% over the last 60 days. (CNX): Free Stock Analysis Report Arch Coal Inc. (ARCH): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Arch Coal Inc. Price and Consensus Arch Coal Inc. price-consensus-chart | Arch Coal Inc. Quote Covenant Transportation Group, Inc. (CVTI): This company that provides truckload transportation and brokerage services has seen the Zacks Consensus Estimate for its current year earnings increasing 5.9% over the last 60 days.
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11347.0
|
2018-09-19 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Ex-Dividend Date Scheduled for September 20, 2018
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-ex-dividend-date-scheduled-september-20-2018-2018-09-19
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nan
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nan
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Advance Auto Parts Inc ( AAP ) will begin trading ex-dividend on September 20, 2018. A cash dividend payment of $0.06 per share is scheduled to be paid on October 05, 2018. Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 21st quarter that AAP has paid the same dividend. At the current stock price of $167.65, the dividend yield is .14%.
The previous trading day's last sale of AAP was $167.65, representing a -1.91% decrease from the 52 week high of $170.91 and a 112.73% increase over the 52 week low of $78.81.
AAP is a part of the Consumer Services sector, which includes companies such as JD.com, Inc. ( JD ) and O'Reilly Automotive, Inc. ( ORLY ). AAP's current earnings per share, an indicator of a company's profitability, is $7.22. Zacks Investment Research reports AAP's forecasted earnings growth in 2018 as 29.63%, compared to an industry average of 20.9%.
For more information on the declaration, record and payment dates, visit the AAP Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAP through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAP as a top-10 holding:
Nationwide Maximum Diversification U.S. Core Equity ETF ( MXDU )
John Hancock Multifactor Consumer Discretionary ETF ( JHMC )
Invesco S&P 500 Equal Weight ETF ( RSP )
PowerShares Exchange-Traded Fund Trust II ( USEQ )
Invesco Russell Midcap Equal Weight ETF ( EQWM ).
The top-performing ETF of this group is MXDU with an increase of 11.19% over the last 100 days. It also has the highest percent weighting of AAP at 0.72%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAP is a part of the Consumer Services sector, which includes companies such as JD.com, Inc. ( JD ) and O'Reilly Automotive, Inc. ( ORLY ). Zacks Investment Research reports AAP's forecasted earnings growth in 2018 as 29.63%, compared to an industry average of 20.9%. For more information on the declaration, record and payment dates, visit the AAP Dividend History page.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Advance Auto Parts Inc ( AAP ) will begin trading ex-dividend on September 20, 2018. Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment.
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAP Dividend History page. Advance Auto Parts Inc ( AAP ) will begin trading ex-dividend on September 20, 2018.
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AAP's current earnings per share, an indicator of a company's profitability, is $7.22. Advance Auto Parts Inc ( AAP ) will begin trading ex-dividend on September 20, 2018. Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment.
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11348.0
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2018-09-18 00:00:00 UTC
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Ex-Dividend Reminder: Medifast, Advance Auto Parts and Omnicom Group
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AAP
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https://www.nasdaq.com/articles/ex-dividend-reminder-medifast-advance-auto-parts-and-omnicom-group-2018-09-18
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , on 9/20/18, Medifast Inc (Symbol: MED), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. Medifast Inc will pay its quarterly dividend of $0.48 on 11/8/18, Advance Auto Parts Inc will pay its quarterly dividend of $0.06 on 10/5/18, and Omnicom Group, Inc. will pay its quarterly dividend of $0.60 on 10/10/18. As a percentage of MED's recent stock price of $236.82, this dividend works out to approximately 0.20%, so look for shares of Medifast Inc to trade 0.20% lower - all else being equal - when MED shares open for trading on 9/20/18. Similarly, investors should look for AAP to open 0.04% lower in price and for OMC to open 0.87% lower, all else being equal.
Below are dividend history charts for MED, AAP, and OMC, showing historical dividends prior to the most recent ones declared.
Medifast Inc (Symbol: MED) :
Advance Auto Parts Inc (Symbol: AAP) :
Omnicom Group, Inc. (Symbol: OMC) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.81% for Medifast Inc, 0.14% for Advance Auto Parts Inc, and 3.47% for Omnicom Group, Inc..
In Tuesday trading, Medifast Inc shares are currently up about 0.2%, Advance Auto Parts Inc shares are up about 1.9%, and Omnicom Group, Inc. shares are down about 0.9% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/20/18, Medifast Inc (Symbol: MED), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAP to open 0.04% lower in price and for OMC to open 0.87% lower, all else being equal. Below are dividend history charts for MED, AAP, and OMC, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/20/18, Medifast Inc (Symbol: MED), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. Medifast Inc (Symbol: MED) : Advance Auto Parts Inc (Symbol: AAP) : Omnicom Group, Inc. (Symbol: OMC) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAP to open 0.04% lower in price and for OMC to open 0.87% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/20/18, Medifast Inc (Symbol: MED), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. Medifast Inc (Symbol: MED) : Advance Auto Parts Inc (Symbol: AAP) : Omnicom Group, Inc. (Symbol: OMC) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAP to open 0.04% lower in price and for OMC to open 0.87% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/20/18, Medifast Inc (Symbol: MED), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAP to open 0.04% lower in price and for OMC to open 0.87% lower, all else being equal. Below are dividend history charts for MED, AAP, and OMC, showing historical dividends prior to the most recent ones declared.
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11349.0
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2018-09-14 00:00:00 UTC
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RSP, DRI, AAP, JWN: ETF Inflow Alert
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AAP
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https://www.nasdaq.com/articles/rsp-dri-aap-jwn-etf-inflow-alert-2018-09-14
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $161.4 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 147,552,663 to 149,052,663). Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.1%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.6%, and Nordstrom, Inc. (Symbol: JWN) is lower by about 1.4%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average:
Looking at the chart above, RSP's low point in its 52 week range is $94.05 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.56. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.1%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.6%, and Nordstrom, Inc. (Symbol: JWN) is lower by about 1.4%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $94.05 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.56. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.1%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.6%, and Nordstrom, Inc. (Symbol: JWN) is lower by about 1.4%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $94.05 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.56. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.1%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.6%, and Nordstrom, Inc. (Symbol: JWN) is lower by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $161.4 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 147,552,663 to 149,052,663). For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $94.05 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.56.
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Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.1%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.6%, and Nordstrom, Inc. (Symbol: JWN) is lower by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $161.4 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 147,552,663 to 149,052,663). For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $94.05 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.56.
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11350.0
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2018-09-13 00:00:00 UTC
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Why Is Advance Auto Parts (AAP) Up 5.7% Since Last Earnings Report?
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AAP
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https://www.nasdaq.com/articles/why-is-advance-auto-parts-aap-up-5.7-since-last-earnings-report-2018-09-13
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nan
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nan
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). Shares have added about 5.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Advance Auto Parts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Advance Auto Parts Beats on Q2 Earnings & Revenues
Advance Auto Parts reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter. The figure surpassed the Zacks Consensus Estimate of $1.85. Adjusted operating income increased to $167.5 million from $146.7 million in second-quarter 2017.
Advance Auto Parts reported net revenues of $2.33 billion, beating the Zacks Consensus Estimate of $2.26 billion. Revenues were 2.8% higher than the year-ago quarter. During the quarter under review, comparable store sales were 2.8% higher year over year.
Gross profit was $1.01 billion in the reported quarter, higher than the prior-year quarter figure of $993.1 million. Gross Profit margin decreased 40 basis points year over year to 44.3%.
Adjusted selling, general and administrative (SG&A) expenses totaled $811.6 million or 34.9% of sales compared with $1797.6 million or 35.2% of sales in the year-ago period.
Financial Position
Advance Auto Parts had cash and cash equivalents of $902.2 million as of Jul 14, 2018, up from $257.2 million as of Jul 15, 2017. The total long-term debt was $1.05 billion as of Jul 14, 2018, higher than $1.04 billion as of Dec 30, 2017.
In second-quarter 2018, operating cash flow was $444 million compared with $267.3 million in the same period of 2017.
Share Repurchase
On Aug 8, 2018, the board of directors authorized a $600-million share repurchase program, replacing the existing $500-million share repurchase program.
Store Update
As of Jul 14, 2018, Advance Auto Parts operated 5,026 stores and 133 Worldpac branches and served approximately 1,219 independently-owned Carquest stores.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Advance Auto Parts has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Advance Auto Parts has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Will the recent positive trend continue leading up to its next earnings release, or is Advance Auto Parts due for a pullback?
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. It has been about a month since the last earnings report for Advance Auto Parts (AAP). Advance Auto Parts Beats on Q2 Earnings & Revenues Advance Auto Parts reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter.
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts Beats on Q2 Earnings & Revenues Advance Auto Parts reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter.
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts Beats on Q2 Earnings & Revenues Advance Auto Parts reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter.
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11351.0
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2018-09-11 00:00:00 UTC
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Why Advance Auto Parts (AAP) is a Top Pick for Momentum Investors
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-aap-is-a-top-pick-for-momentum-investors-2018-09-11
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nan
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nan
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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores , helps address this issue for us.
Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Advance Auto Parts currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if AAP is a promising momentum pick, let's examine some Momentum Style elements to see if this auto parts retailer holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For AAP, shares are up 1.98% over the past week while the Zacks Automotive - Retail and Wholesale - Parts industry is up 1.98% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 15.25% compares favorably with the industry's 10.43% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Advance Auto Parts have risen 20.75%, and are up 76.83% in the last year. On the other hand, the S&P 500 has only moved 4.1% and 18.99%, respectively.
Investors should also take note of AAP's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, AAP is averaging 1,131,615 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with AAP.
Over the past two months, 9 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AAP's consensus estimate, increasing from $6.79 to $6.94 in the past 60 days. Looking at the next fiscal year, 9 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that AAP is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Advance Auto Parts on your short list.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. In order to see if AAP is a promising momentum pick, let's examine some Momentum Style elements to see if this auto parts retailer holds up. For AAP, shares are up 1.98% over the past week while the Zacks Automotive - Retail and Wholesale - Parts industry is up 1.98% over the same time period.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. In order to see if AAP is a promising momentum pick, let's examine some Momentum Style elements to see if this auto parts retailer holds up.
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Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. In order to see if AAP is a promising momentum pick, let's examine some Momentum Style elements to see if this auto parts retailer holds up. For AAP, shares are up 1.98% over the past week while the Zacks Automotive - Retail and Wholesale - Parts industry is up 1.98% over the same time period.
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Below, we take a look at Advance Auto Parts (AAP) , which currently has a Momentum Style Score of B. Right now, AAP is averaging 1,131,615 shares for the last 20 days. In order to see if AAP is a promising momentum pick, let's examine some Momentum Style elements to see if this auto parts retailer holds up.
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11352.0
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2018-09-10 00:00:00 UTC
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Here's Why You Should Add RH Stock to Your Portfolio Now
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AAP
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https://www.nasdaq.com/articles/heres-why-you-should-add-rh-stock-to-your-portfolio-now-2018-09-10
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nan
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nan
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Shares of RHRH , formerly known as Restoration Hardware, have been riding high of late. The company's shares have gained more than 46% on a year-to-date basis against the industry 's decline of 0.8%. The overall improvement in the U.S. economy and a rise in housing momentum are expected to further drive RH's performance. This leading luxury home furnishings retailer recently reported stellar second-quarter fiscal 2018 results, with earnings beating the Zacks Consensus Estimate.
Notably, earnings estimates for RH have exhibited an uptrend, reflecting optimism in the stock's prospects. The Zacks Consensus Estimate for the company's earnings for fiscal 2018 has moved up 13.1%, reflecting 10 upward revisions over the past seven days. Also, estimates for fiscal 2019 have climbed 8% over the same time frame, depicting nine positive revisions. This signifies that analysts are optimistic of the company's future earnings growth, despite much apprehension surrounding the impact of a rising interest rate scenario and other ongoing headwinds.
Let us delve deeper into the other factors that make this Zacks Rank #2 (Buy) stock a profitable pick. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
What Makes the Stock an Attractive Pick?
Stellar Performance & Upbeat View: RH has been exhibiting strong quarterly numbers, buoyed by its focus on improving profit margins rather than chasing for sales, as well as creating a new and differentiating shopping experience with the addition of hospitality (restaurants and cafes) in new Full Line Design Galleries.
Recently, RH posted strong second-quarter fiscal 2018 results, with earnings beating the Zacks Consensus Estimate by 17.8% and also increasing more than three times from the year-ago quarter despite lower-than-expected revenues. The company's margins also showed solid improvement. Adjusted gross margins expanded 800 basis points on higher-full-price/lower clearance sales and supply-chain efficiencies.
RH's focus on executing its new business model, designing a new operating platform and maximizing cash flow via increasing revenues as well as earnings bodes well. Given solid quarterly results, the company raised its fiscal 2018 view. RH now expects adjusted gross margin in the 40-40.2% range (versus 39.3%-39.6% expected earlier). Adjusted operating margin is now expected in the 11.2-11.7% band, up from the previous expectation of 10.4-11%. Finally, adjusted earnings per share are expected in the $7.35-$7.75 range ($6.34-$6.83 expected earlier).
Solid Growth Prospects: RH has solid growth prospects, as is evident from the Zacks Consensus Estimate for its current-year earnings of $7.51 per share, which are expected to grow 146.2% year over year (higher than the industry average of 11.5%). Meanwhile, the company's revenues are expected to increase by a decent 4.3% in fiscal 2018 (versus 2.8% of the industry). Moreover, its earnings are expected to increase 9.9% on 7% revenue growth in fiscal 2019. Notably, the company has a three-five year expected EPS growth rate of 25.4%.
Overall, it constitutes a great pick in terms of growth investment, supported by a Growth Score of A.
Growth Initiatives to Drive Profitability: In 2016, the company transformed its business from a promotional to a membership model (RH Members Program), which is expected to enhance its brand, streamline operations and enhance customer experience. Meanwhile, RH has been focusing on the expansion of its chain of restaurants within its stores. Also, initiatives like RH Modern, RH Teen, RH Hospitality, the redesign of RH Interiors Source Book, the rollout of Design Ateliers across the company's retail Galleries are expected to contribute to growth in fiscal 2018 and beyond.
VGM Score: RH has a VGM Score of A. Our VGM Score identifies stocks that have the most attractive value, growth and momentum characteristics. In fact, our research shows that stocks with VGM Scores of A or B when combined with a Zacks Rank #1 or 2 make a solid investment choice.
Superior ROE: RH's return on equity (ROE) supports its growth potential. Its ROE of 520.9% compares favorably with the industry's average of 9.3%, implying that it is efficient in using its shareholders' funds.
Other Stocks to Consider
Other top-ranked stocks in the Retail-Wholesale sector include Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and O'Reilly Automotive, Inc. ORLY , each carrying a Zacks Rank #2.
Earnings for Advance Auto, AutoZone and O'Reilly Automotive are expected to increase 29.2%, 15.7% and 34.4%, respectively, for the current year.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Stocks to Consider Other top-ranked stocks in the Retail-Wholesale sector include Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and O'Reilly Automotive, Inc. ORLY , each carrying a Zacks Rank #2. Click to get this free report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report To read this article on Zacks.com click here. This leading luxury home furnishings retailer recently reported stellar second-quarter fiscal 2018 results, with earnings beating the Zacks Consensus Estimate.
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Other Stocks to Consider Other top-ranked stocks in the Retail-Wholesale sector include Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and O'Reilly Automotive, Inc. ORLY , each carrying a Zacks Rank #2. Click to get this free report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report To read this article on Zacks.com click here. This leading luxury home furnishings retailer recently reported stellar second-quarter fiscal 2018 results, with earnings beating the Zacks Consensus Estimate.
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Click to get this free report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Other top-ranked stocks in the Retail-Wholesale sector include Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and O'Reilly Automotive, Inc. ORLY , each carrying a Zacks Rank #2. Solid Growth Prospects: RH has solid growth prospects, as is evident from the Zacks Consensus Estimate for its current-year earnings of $7.51 per share, which are expected to grow 146.2% year over year (higher than the industry average of 11.5%).
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Other Stocks to Consider Other top-ranked stocks in the Retail-Wholesale sector include Advance Auto Parts, Inc. AAP , AutoZone, Inc. AZO and O'Reilly Automotive, Inc. ORLY , each carrying a Zacks Rank #2. Click to get this free report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report To read this article on Zacks.com click here. Solid Growth Prospects: RH has solid growth prospects, as is evident from the Zacks Consensus Estimate for its current-year earnings of $7.51 per share, which are expected to grow 146.2% year over year (higher than the industry average of 11.5%).
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2018-09-05 00:00:00 UTC
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SUVs Boost August Auto Sales: 4 Stocks to Buy
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AAP
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https://www.nasdaq.com/articles/suvs-boost-august-auto-sales-4-stocks-buy-2018-09-05
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. auto sales jumped in August helped by higher sales of SUVs, crossovers and pickup trucks. Both Ford Motor Company (NYSE: F ) and Fiat Chrysler Automobiles (NYSE: FCAU ) reported year-over-year increases. Also, sales of Honda Motor Company (NYSE: HMC ) and Nissan Motor Co (OTCMKTS: NSNAY ) rose in August.
The overall jump in auto sales is an indication of a booming economy that follows a rise in consumer confidence, which is near an 18-year high. This indicates that President Donald Trump's protectionist trade policies too haven't dented investor confidence much. Given this scenario, it makes good sense to indulge in stocks gaining from the jump in sales.
August Auto Sales Jump
Major automakers reported a jump in August auto sales. Ford reported a nearly 4.1% rise in auto sales. The company sold 218,504 vehicles in August compared with 209,897 vehicles in the year-ago period. Fiat Chrysler's sales jumped 10%. The automaker reported sales of 193,718 vehicles, driven by high demand for Jeep and Ram.
5 Top Stocks to Challenge a Notorious September
Honda and Nissan also reported an increase in vehicle sales in August. Honda's U.S. sales rose 1.3% in August to 147,903 vehicles, while Nissan's sales jumped 4% to 112,376 vehicles. The U.S. car industry has been suffering for a while. In 2017, auto sales declined 2% after hitting a record high of 17.55 million units in 2016. Moreover, the auto industry has had a roller coaster ride this year too, with automakers reeling under trade war fears. However, the jump in August auto sales is definitely going to bring a smile on the faces of carmakers.
Price Performance: Year to Date
SUVs, Trucks Help August Auto Sales
All major automakers reported a decline in sales of passenger cars. The rise in August auto sales can be primarily attributed to robust demand for SUVs, crossovers and trucks, which accounted for 68% of new-vehicle retail sales in August, according to J.D. Power. Sales of Ford's SUV brands jumped 20.1%, while pickups grew 5.7% in August. Ford's passenger car sales declined 21.3% in August.
Fiat's Ram sales surged 55% in August to 36,798 vehicles, while Jeep sales went up to 87,502 units. At the same time, Fiat's Dodge and Chrysler brands declined 18% and 3%, respectively, over the same time period. Toyota Motor Corporation's (TM) SUV sales jumped 11.7% through August. Understandably, sedans are fast losing their appeal to American customers, which have made automakers like Ford announce that it would gradually stop production of passenger cars in the United States.
Favorable Economic Scenario
The jump in August auto sales follows a rise in consumer confidence, which is near an 18-year high. Moreover, higher wages, stable jobs, unemployment level at a 19-year low all pointy all hint at a booming economy. This definitely has given a boost to consumers' confidence, resulting in higher spending.
At the same time, trade war fears too don't seem to have affected investors' sentiment much. Moreover, last week United States and Mexico entered into a new agreement to overhaul the North American Free Trade Agreement (NAFTA). The new pact will bring a sigh of relief to domestic automakers, which have been reeling under trade war fears, as a number of U.S. automakers have their production units in Mexico.
Our Choices
The jump in August auto sales will definitely boost automakers' confidence. A near 18-year-high consumer confidence is an indicator of customers' willingness to spend more. Moreover, higher wages and unemployment level at a 19-year low is sign of a booming economy. Given this scenario, it makes good sense to invest in stocks benefiting from the spike in auto sales.
However, picking winning stocks may be difficult. We have narrowed down our search to the following stocks based on a good Zacks Rank and other relevant metrics.
Fox Factory Holding Corp (NASDAQ: FOXF ) is a designer, manufacturer and marketer of suspension products used primarily on mountain bikes, side-by-side vehicles, on-road vehicles, off-road vehicles, all-terrain vehicles, snowmobiles, specialty vehicles and applications and motorcycles.
The company has expected earnings growth of 31.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 14.2% over the last 60 days. The stock sports a Zacks Rank #1 (Strong Buy).
PACCAR Inc (NASDAQ: PCAR ) is a global technology company that designs and manufactures premium quality light, medium and heavy duty commercial vehicles sold worldwide under the Kenworth, Peterbilt and DAF nameplates.
PACCAR has a Zacks Rank #2 (Buy). The company has expected earnings growth of 41.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 6.2% over the last 60 days.
O'Reilly Automotive Inc (NASDAQ: ORLY ) is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both professional service providers and do-it-yourself customers.
O'Reilly Automotive has a Zacks Rank #2. The company has expected earnings growth of 34.3% for the current year. The Zacks Consensus Estimate for the current year has improved by 2.4% over the last 60 days.
Advance Auto Parts (NYSE: AAP ) a leading automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers.
5 Stocks Near 52-Week High With Potential to Scale Higher
Advance Auto Parts carries a Zacks Rank #2. The company has expected earnings growth of 28.9% for the current year. The Zacks Consensus Estimate for the current year has improved by 1.9% over the last 60 days.
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The post SUVs Boost August Auto Sales: 4 Stocks to Buy appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (NYSE: AAP ) a leading automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. 5 Top Stocks to Challenge a Notorious September Honda and Nissan also reported an increase in vehicle sales in August. Understandably, sedans are fast losing their appeal to American customers, which have made automakers like Ford announce that it would gradually stop production of passenger cars in the United States.
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Advance Auto Parts (NYSE: AAP ) a leading automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. auto sales jumped in August helped by higher sales of SUVs, crossovers and pickup trucks. August Auto Sales Jump Major automakers reported a jump in August auto sales.
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Advance Auto Parts (NYSE: AAP ) a leading automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. auto sales jumped in August helped by higher sales of SUVs, crossovers and pickup trucks. August Auto Sales Jump Major automakers reported a jump in August auto sales.
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Advance Auto Parts (NYSE: AAP ) a leading automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. The overall jump in auto sales is an indication of a booming economy that follows a rise in consumer confidence, which is near an 18-year high. August Auto Sales Jump Major automakers reported a jump in August auto sales.
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2018-09-05 00:00:00 UTC
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Advance Auto Parts (AAP) Hits 52-Week High, Can the Run Continue?
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-hits-52-week-high-can-the-run-continue-2018-09-05
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Have you been paying attention to shares of Advance Auto Parts (AAP)? Shares have been on the move with the stock up 16.8% over the past month. The stock hit a new 52-week high of $169.59 in the previous session. Advance Auto Parts has gained 70% since the start of the year compared to the 19.8% move for the Zacks Retail-Wholesale sector and the 30.5% return for the Zacks Automotive - Retail and Wholesale - Parts industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 14, 2018, Advance Auto Parts reported EPS of $1.97 versus consensus estimate of $1.85 while it beat the consensus revenue estimate by 2.7%.
For the current fiscal year, Advance Auto Parts is expected to post earnings of $6.94 per share on $9.49 billion in revenues. This represents a 29.24% change in EPS on a 1.29% change in revenues. For the next fiscal year, the company is expected to earn $7.92 per share on $9.66 billion in revenues. This represents a year-over-year change of 14.15% and 1.79%, respectively.
Valuation Metrics
Advance Auto Parts may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Advance Auto Parts has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 19.3X versus its peer group's average of 16.5X. Additionally, the stock has a PEG ratio of 2.28. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Advance Auto Parts currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Advance Auto Parts meets the list of requirements. Thus, it seems as though Advance Auto Parts shares could still be poised for more gains ahead.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Have you been paying attention to shares of Advance Auto Parts (AAP)? Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. For the current fiscal year, Advance Auto Parts is expected to post earnings of $6.94 per share on $9.49 billion in revenues.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Have you been paying attention to shares of Advance Auto Parts (AAP)? In its last earnings report on August 14, 2018, Advance Auto Parts reported EPS of $1.97 versus consensus estimate of $1.85 while it beat the consensus revenue estimate by 2.7%.
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Have you been paying attention to shares of Advance Auto Parts (AAP)? Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts has gained 70% since the start of the year compared to the 19.8% move for the Zacks Retail-Wholesale sector and the 30.5% return for the Zacks Automotive - Retail and Wholesale - Parts industry.
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Have you been paying attention to shares of Advance Auto Parts (AAP)? Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. In its last earnings report on August 14, 2018, Advance Auto Parts reported EPS of $1.97 versus consensus estimate of $1.85 while it beat the consensus revenue estimate by 2.7%.
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11355.0
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2018-09-04 00:00:00 UTC
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49 Companies Amazon Could Destroy (And 1 It Already Has)
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AAP
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https://www.nasdaq.com/articles/49-companies-amazon-could-destroy-and-1-it-already-has-2018-09-04
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nan
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You would think e-commerce and cloud computing giant Amazon.com ( AMZN ), after 20 years of unfettered growth, would have run out of room to pump up its top line. But the company continues to choose new opportunities. Amazon is willing to try its hand at almost any sort of business, does well at the bulk of them - and threatens to destroy dozens of other companies with its success.
The latest foray into unfamiliar territory? The June acquisition of PillPack turns Amazon into a mail-order pharmacy, with a twist. PillPack packs all pills it dispenses into individual bags, each with a unique time and date to be consumed by the customer.
That's not Amazon's first venture outside its space. Amazon's also a grocer, a fashion venue, a peddler of handmade crafts and even a video game developer, just to name a few.
As a result, Amazon has become at best a headache, at worst a survival threat, for any rival organization in its past. Indeed, in November, we tallied up 32 companies that looked like potential victims of Amazon's never-ending expansion. Today, we're looking at 49 companies Amazon could kill - a few updates of the original list, but also an alarming number of new outfits that have fallen into Amazon's crosshairs - as well as one confirmed kill.
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The unchecked growth of Amazon didn't faze auto parts suppliers like O'Reilly Automotive ( ORLY ), AutoZone ( AZO ) and Advance Auto Parts ( AAP ) for a long time. Car parts are too heavy, bulky and specialized to be handled like a consumer-centric commodity. And besides, when mechanics (DIYers or the real thing) need a part to use in a repair, they usually want it quickly. The big three names in the auto parts retailing game haven't needed to worry.
But times have changed, helped along by inventory-management technology and delivery networks that are willing and able to handle goods they simply couldn't before. That's why Amazon was willing to enter the fray in January 2017.
It didn't take long for brick-and-mortar operators to notice. AutoZone shares fell 27% during the first half of 2017, reflecting a first-quarter revenue and earnings miss. O'Reilly hit a similar headwind in Q2 2017 as well, as did Advance Auto Parts.
All three stocks have since recovered, as the market realizes Amazon hasn't yet unleashed the same havoc realizing Amazon hasn't unleashed the same kind of havoc on the auto parts retailing industry that it has on other consumer-facing markets. Give it time though. The fact that a little more than half of this trio's business, on average, comes from consumers rather than mechanics, it's a perfect opportunity for Amazon to become a disruptor.
SEE ALSO: The Best and Worst Presidents (According to the Stock Market)
Amazon's purchase of Whole Foods Market sent shockwaves through the organic-grocery business, but just as vulnerable (albeit in a different way) are more conventional grocers such as Kroger ( KR ), privately owned Albertsons and the grocery arm of Walmart ( WMT ).
Yes, Whole Foods and Kroger somewhat overlap, particularly since Kroger has stepped up its organic and whole foods offering. But it's not the brick-and-mortar alternative that should worry Kroger shareholders the most. More concerning is that consumers are increasingly comfortable with the idea of ordering their potato chips, laundry detergent and ground coffee from Amazon.com, just like they order office supplies or books.
Recent numbers from industry research outfit One Click Retail tell the story. Since the end of last year, Amazon has sold 18% of all groceries purchased online in the United States, making it the biggest online grocer despite more recognizable names in the business also offering online ordering. The firm estimates the company sold $650 million worth of groceries in the second quarter of this year, up 40% on a year-over-year basis. Beverages, of all things, are likely to be Amazon.com's best-selling grocery category.
As time rolls on, more people raised in the internet era are becoming comfortable with the idea of not shopping in an actual grocery store. This shift plays right into Amazon's hand.
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Music isn't the only audio Amazon.com can digitally deliver. It's also the owner of Audible , which boasts the largest audiobook library in the world. It's a direct threat to (among others) Audiobooks.com and Playster.
Don't dismiss this market's importance. Although audio books only generated $2.5 billion worth of revenue in the United States last year, the size of the market is not only growing, it's accelerating. In the first quarter, the industry's revenue was up 32% year-over-year, extending a longstanding hot streak.
What was largely missing from the audiobook landscape for a long time was a central name, playing the role Netflix ( NFLX ) played within the streaming video arena in mainstreaming the audio books.
Amazon largely has become that player.
Audible controls about 41% of the audio book market, as of the most recent look. And, like Netflix, being the first to become the dominant, defining force in a particular market leaves little room for a second or third player ... which is all Playster and Audiobooks.com are in a position to enjoy from here. But playing second fiddle to Amazon in any business is a problem, especially when Audible can be sold as part of an Amazon Prime package.
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Bookstore chain Barnes & Noble ( BKS ) and Joseph-Beth Booksellers were the first major victims of the rise of Amazon. Remember: Initially, Amazon.com was an online bookstore, and the advent of e-readers - then tablets - made e-books commonplace, further displacing physical bookstores.
One end result for B&N is 11 consecutive years of declining sales, and the 12th appears to be underway. Another end result: nine straight years of net store closures.
The matter may get worse, too. CEO Demos Parneros was terminated after only 14 months on the job during which he presumably couldn't drive any measurable change. A statement from the company only said Demos had violated corporate policies, and further made a point of saying it wasn't a matter of fraud or misreporting of results.
Such a disruption here only exacerbates the underlying problem.
Global Data Retail analyst Neil Saunders explains the challenge bluntly and succinctly, saying, "People may drop in for a browse but they won't make a dedicated trip to a bookstore. They don't have the need and they don't have the time. The way people shop changed, and that's been detrimental for Barnes & Noble." Ditto for tiny Joseph-Beth, which has four stores left in the U.S.
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There are a number of specific gaming companies that, with the exception of YouTube Gaming, won't ring any bells with investors. But within video gaming circles, Hitbox, Mixer, Dailymotion, Beam and a whole slew of other non-descript names are plenty familiar. All of these organizations have developed platform that let gaming fans pay to watch other people play video games.
Yes, it's a real thing. Last year nearly 700 million people watched someone else play a game, though some suggest the figure is actually closer to 1 billion, depending on how it's measured.
What does that have to do with Amazon?
Amazon.com is the owner and operator of Twitch , which is the world's most popular destination to watch other individuals play video games. Not unlike YouTube, the maker of the video and Amazon split any subscription revenue created by a particular gamer's channel, so that player has an incentive to do well and grow his or her audience.
It's possible there's room for more than one player in the game-streaming space. It's unlikely there's room for more than one dominant player. For the same reason Facebook ( FB ) became the place where the world can gather online, the biggest crowd attracts the best game players, and the best game players attract an increasingly bigger crowd.
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There's no denying that electronics retailer Best Buy ( BBY ) pulled off a miracle.
The deeper Amazon.com waded into the consumer electronics market, the more trouble Best Buy found itself in. By 2012, chatter about Best Buy's impending doom was common. Many presumed the company would follow in Circuit City's footsteps to bankruptcy, as Amazon was simply too competitive.
A funny thing happened on the road to oblivion. Turnaround artist Hubert Joly took the helm that year and began working on a turnaround plan to save Best Buy. It worked, at least according to Joly. He flatly said earlier this year, "We have turned around the business, it's about where we go from here. We have not only survived but thrived and I don't believe this is a winner-takes-all market."
Last quarter's numbers suggest there's some truth to the matter. Company-wide revenue was up 6.8%, and same-store sales grew 7.1%.
Hold off on the victory lap. Best Buy wasn't facing the most difficult of comps last quarter, and it remains to be seen whether there's a growth trajectory in place or if Best Buy is simply lifting the revenue plateau to a slightly higher level. It will take a few more quarters to know for sure. In the meantime, Amazon is undoubtedly going to push back, reminding Best Buy that it's tough to fight a sustained war against a bigger army.
SEE ALSO: 15 Consumer Stocks That Deliver Dividend Growth Like Clockwork
Major video game publishing outfits such as Activision-Blizzard ( ATVI ) and Electronic Arts ( EA ) will be forced to face off with Amazon at some point in the future. Both those companies are big enough and well-grounded enough to hold their own, however.
The same can't be said for all the smaller, "indie" game developers and game-engine providers such as HeroEngine, Unity, Blender, Godot and more, which eventually could feel the pressure from Amazon.
Confused? You're not alone. Though most investors - and even most gamers - don't know it, Amazon has a hand in the video game development arena. It owns a game engine called Lumberyard , allowing developers and designers free access to this solid technology licensed from a company called Crytek. Games such as Crucible and Star Citizen are some of the early AAA games the Amazon platform has produced.
You've heard little about this because the whole effort still is in its infancy. It's possible not even Amazon really knows where it's going. So it's not entirely clear who should be worried about Amazon's potential push.
Given Amazon's sheer size and strength, though, any of the smaller players in the highly fragmented game development industry should fear what Amazon may try to do once it feels Lumberyard is ready to promote in a big way.
SEE ALSO: RBC Capital's 10 Best Tech Stocks to Buy for 2025
No one disputes Amazon.com has mastered the art of delivering anything and everything that isn't perishable, but what about pre-packaged meals? Yep, the e-commerce company can do that too. It got into the business in the middle of last year, and it has since stepped up its game. Its entry into the race is a direct threat to the likes of rival meal kit outfits Blue Apron ( APRN ), Hello Fresh and Plated.
The marketability and viability of the so-called "pure plays" in the business were never all that strong. They're all subject to the changing - usually rising - price of food, and it takes massive scale to make meal kits cost-effective enough to turn into a sustainable business. Blue Apron, for instance, is one of the biggest names in the business yet still is nowhere near profitability.
Another unsavory reality of the meal kit biz: Roughly three-fourths of Blue Apron's and HelloFresh's customers stop buying them (on a regular basis anyway) within about six months. The idea is creative, but not necessarily one with longevity.
To the extent there is a viable meal kit market, though, Amazon.com has an edge. Two edges, actually. One of them is the fact that Amazon regularly serves more than 300 million customers, enough of whom will test drive a meal kit. The other edge is that Amazon doesn't have to turn a profit selling pre-packaged meals. It can extract a profit from those customers by selling them other products and services.
SEE ALSO: Why Blue Apron Was a Bust in My Marriage
Energizer Holdings ( ENR ), which of course is the name behind Energizer batteries, clearly is one of the most recognizable names in the business, as is Duracell, which is held by Warren Buffett's Berkshire Hathaway ( BRK.B ).
Batteries currently sold under Amazon's "Basics" label don't exactly inspire deep brand loyalty.
Don't dismiss the potential of Amazon's entry into the seemingly boring business. In the United States alone, the battery business (including the automotive component of the market) is worth roughly $17 billion per year, and Amazon already outsells all other battery brands in the U.S. As of last year, Amazon.com sold a little more than 30% of all consumer-electronics-sized batteries for use in the United States, versus Energizer's market share of around 12%. Duracell is holding up a little better, sporting roughly 21% of last year's non-rechargeable battery business in the U.S.
It's unlikely either brand will ever be wiped out completely. But Amazon doesn't even really promote its Basics battery other than as an add-on purchase at its website, and yet it already has proven disruptive to the two biggest brands in the business.
SEE ALSO: The 25 Best Low-Fee Mutual Funds You Can Buy
Teachers Pay Teachers is an unconventional, though brilliant, business idea. Rather than proverbially re-create the wheel, teachers can create structured classroom handouts and materials, then sell them to other (often overworked) teachers who may not have the time to do so for themselves.
It's not exactly clear how big the market is. Owler provides an estimate of $5.8 million in annual revenues for Teachers pay Teachers, but the ecosystem of the money its 80,000 contributors earn is much larger. Last year, they collectively banked more than $100 million. For perspective, the textbook market in the United States alone is worth roughly $11 billion per year.
Amazon's increasingly disruptive role in the middle of that melee is its relatively new Amazon Inspire site , which is "an open collaboration service that helps teachers to easily discover, gather, and share quality educational content with their community."
The problem for Teachers Pay Teachers, Educents and all their peers? Amazon Inspire is free to use.
That may or may not always be the case, but as long as it's free, it's a threat to for-profit sites in the same arena. Conversely, should Amazon eventually opt to make it a profit center, it's apt to turn up the heat on promoting Amazon Inspire. That could prove highly disruptive to the other venues that have commercialized DIY classroom materials.
Etsy ( ETSY ) was, and is, a brilliant idea.
Some things are just not meant to be made or sold in bulk. Handmade one-of-a-kinds still have a place in consumers' hearts, but makers of these goods are facing an increasingly tough time in just being able to show their wares to an increasingly distracted market. By bringing a huge number of artisans under one roof and then promoting the entire collection, Etsy has successfully melded an old-school idea with the new.
But Amazon noticed, and responded. In 2015, the e-commerce giant launched Amazon Handmade , taking a stab at Etsy.
Amazon's disruption of Etsy has been hit and miss. Etsy's revenue grew 30% year-over-year last quarter, and the company upped its full-year revenue guidance, too. Clearly Etsy is doing something right under the relatively new leadership of former eBay ( EBAY ) executive Josh Silverman.
Still, Amazon may slowly but surely taking a toll - or at least forcing Etsy to take a toll on itself. In July, Etsy upped the transaction fee it charges merchants from 3.5% to 5.0%, inciting enough grumbling among some of its sellers that it's a legitimate fear many of them will look elsewhere ... such as Amazon. Amazon Handmade charges considerably more, but also boasts considerably more marketing firepower.
Amazon appears to be playing the proverbial long game, planning to win the war by attrition.
SEE ALSO: 20 Small Towns With Big Millionaire Populations
Ride-hailing services Uber and Lyft were long thought to be potential victims of Amazon. Whispers that Lyft was aiming at parcel delivery were circulating, and Uber was waist-deep into the package-shipping business. Amazon was using contractors to deliver packages as well, though, and the foray into people transportation would have been an easy one.
Amazon's focus is elsewhere, however. Rather than expands its network of delivery drivers, earlier this year it doubled down on building its own delivery chain using contractors. Called Amazon Delivery Service Partners , the company is encouraging individuals with an entrepreneurial spirit to build their own business by delivering Amazon-ordered parcels. Such a venture takes aim at the likes of United Parcel Service ( UPS ) and FedEx ( FDX ).
The Amazon Delivery Service Partners venture isn't a direct, immediate threat to the existence of FedEx and UPS. Indeed, some of these deliveries may well be ones that those bigger logistics outfits don't want to do.
Amazon isn't a company that thinks small, however. With a fleet of 32 delivery jets in operation and a growing fleet of trucks on the road, the next natural step is bridging the two and completely cutting out middlemen like FedEx and United Parcel Service from many of its delivery chains.
GameStop ( GME ) historically has made its money by serving as the middleman, but the game publishing industry's move toward downloads and away from discs and cartridges is increasingly making the venue less of a destination for gamers.
Jefferies analyst Stephanie Wissink explained the problem in July, noting "We've observed meaningful valuation expansion across retailers where margin rates base, pricing power returns (inventory & markdown clean-up), and sector participation/consumption is healthy." Wissink added, however, that "GME has not participated in this reversal ... due in part to leadership turnover, lack of an articulated vision & direction, and overriding fears around software profit dependence."
Don't misunderstand. GameStop also sells game downloads via its own website. Amazon does too. Neither venue is completely out of the loop when it comes to this paradigm shift underway within the gaming business.
But Amazon.com induced 2.8 billion unique visits just over the course of the first half of the year. It simply draws a bigger crowd, and the gamers among them know they can buy downloads via the site. GameStop's website simply doesn't attract nearly as many people.
The premise is evident in the numbers. Revenue has been drifting lower since 2011, and more often than not since 2012, the organization has reported slight declines in per-share profits. Its first quarter revenue was off to the tune of 5.5%, cutting profits roughly in half year-over-year.
SEE ALSO: 10 Roughed-Up Stocks to Buy for a Recovery Rally
Initially, the rise of Amazon.com was not only not a threat to book publishers; it was a benefit, making it easy for consumers to purchase a book rather than require a visit to an actual bookstore.
Technology never stops marching forward, though. The development of e-books and e-readers has quelled the need for printing and shipping while simultaneously positioning Amazon.com as an e-book hub. For the crowd that still prefers the feel of paper and the look of a volume on a bookshelf, Amazon's Create Space can arrange for a book to be printed on-demand - even just one at a time.
With that option on the table, traditional book publishers like Penguin Random House and Hachette Books are struggling to justify their new role as a middleman that doesn't bring any real value to the table. Amazon can do the marketing job too, or at least offer a platform that will allow an author to promote a book as effectively as a publishing house often does.
The paradigm shift toward self-publishing continues to get traction too, democratizing the space in a way that accelerates that shift. Jeff Bezos noted in his most recent letter to shareholders that that more than 1,000 independent authors earned more than $100,000 using Kindle Direct Publishing last year. For 2017, Amazon paid out more than $200 million to its authors.
The numbers prompt one key question: Who needs an old-school publisher?
Most consumers have heard of online business directory and review repository Yelp ( YELP ). Ditto for Angie's List, which was owned by InterActiveCorp ( IAC ) but later spun off into ANGI Homeservices ( ANGI ). What most consumers don't yet realize, however, is that Amazon is quietly encroaching into that market.
It's called Amazon Home Services , and it looks a lot like Angie's List. Homeowners looking for anything ranging from tech support to housecleaning services to yardwork can browse Amazon's curated list of service providers and read reviews regarding their previous work. Angie's List and Yelp offer similar information. And while Yelp also serves up information about a variety of other consumer-facing businesses such as restaurants or retail stores, there's no denying that Amazon Home Services is a viable alternative source of information on many fronts.
Given that Amazon already connects consumers with restaurants near them, adding reviews to the mix wouldn't be a major technical hurdle.
Nothing is wrong with Yelp yet, at least not given its most recent quarterly earnings report. Sales were up 12% year-over-year, and per-share profits grew from 9 cents to 12 cents. But the company hasn't yet faced Amazon in a full-on fight.
SEE ALSO: The 10 Best Tech Stocks of All Time
Even something as mundane and common, yet garment-specific, as fabric could be upended by Amazon.
At first glance, it doesn't appear Amazon has given its fabric and material business any particular special attention. Many of the sewing and craft supplies the website offers are featured on the same basic page used to sell all sorts of other goods, and the featured seller, Fabric.com, appears to be the beneficiary of the usual handoff Amazon makes when a customer needs something that can't be sold en masse.
But take a closer look at the website that Amazon.com redirects you to when you click on the sizeable at the top of the "Fabrics" page. You're buying fabric by the yard from Fabric.com, but Fabric.com is wholly owned by Amazon .
It's a very un-Amazon-like business, though the company knows something most consumers and investors don't: The fabric and sewing supply retailing market is worth about $4 billion per year, and globally, the textile market is expected to be worth more than $1 trillion by 2025.
That's more Amazon-like! Amazon's edge in the arena is that it has the much-needed scale that most textile outlets and retailers don't. That's a problem for Jo-Ann Fabrics.
If you own any activewear sporting the Goodsport, Rebel Canyon or Peak Velocity labels, you're actually wearing one of Amazon's homegrown house brands. The company got into the business for itself late last year.
The foray was a modest one - more of an experiment than something meant to make a splash. It largely was meant to fill gaps left unfilled by the athletic apparel names that weren't offering the entire breadth of their lineup at Amazon.com. Most everything Amazon does, though, starts small and eventually gets big enough to become disruptive.
It's a shot at names such as Lululemon Athletica ( LULU ) and Under Armour ( UAA ), which are well-recognized brands but fiscally struggling companies. Under Armour has been saddled by debt, while Lululemon is finding that an increasingly competitive environment isn't driving profits any higher despite rising revenue.
Nike ( NKE ) is vulnerable too, but being the biggest and most respected name in the business, it could just as easily benefit from the fact that Amazon has put other activewear manufacturers on the defensive.
It certainly wouldn't be a significant stretch to wreak some significant havoc in the semi-specialized apparel arena. Morgan Stanley noted earlier this year that Amazon.com already generates more U.S. apparel revenue than any other retailer, garnering 8.6% of the market for itself in 2017. And last year, online apparel sales grew 7% to make up more than 20% of the market, while in-store purchases fell 3%. Amazon is well-positioned to leverage its own athletic apparel into the equation.
SEE ALSO: 5 Companies That Are Defying Amazon
Reminder: Office Depot ( ODP ) and OfficeMax are now one and the same company, having merged back in 2013 as a means of defending itself from the slow disintegration of the office supply business.
Amazon.com - and Amazon Business in particular - put that disintegration into motion.
It still wasn't enough. That's why Office Depot and privately held Staples sought a merger of their own a couple of years later, explaining that unless the two retailers worked as one, neither would survive. The Department of Justice didn't buy into the argument, however; it feared that whittling down the number of large brick-and-mortar office supply outfits would harm consumers.
Little has changed since then. Office Depot managed to top its second-quarter earnings estimates, catapulting ODP shares higher, but a closer look at the Q2 report reveals that not all of the tepid growth was even organic. It was driven by acquisitions and new initiatives. Perhaps worse, the lackluster year-over-year results appear to be the new normal.
Staples doesn't have to disclose its quarterly results, but it's difficult to see how it could be faring much better than ODP. Neither can compete with Amazon's prices, and low prices are everything to business customers.
When consumers mull their digital music options, Amazon Prime generally isn't a name that comes to mind. The race for online-radio mindshare has largely been won by the likes of Spotify or Pandora ( P ) ... or increasingly, Apple ( AAPL ), which was recently cultivated its own subscription-based service to complement the a la carte nature of its iTunes store.
However, a wide swath of consumers are grooving to Amazon's beat. As of Q1, Amazon Music boasted 12.7 million regular/monthly users. That pales in comparison to the "Big Three" of Apple, Pandora and Spotify. But considering how little effort Amazon.com puts into music, that user base could ramp up quickly if Amazon turns up the heat.
Amazon's exposure to the digital music market may actually be much bigger than it seems on the surface, too. That's because you also could include the number of Amazon Prime subscribers that take advantage of the Prime Music offer available to Prime members. There's no firm figure on how many people listen to some sort of online audio via Amazon, but the company said the number is in the "tens of millions."
One small tweak in its music platform, then, could make Amazon alarmingly disruptive.
SEE ALSO: 10 Apple Products That Changed Everything (And 10 That Didn't)
Rite Aid ( RAD ) actually earned a spot on Amazon's list of likely victims a few months ago - back when rumors were merely swirling that the e-commerce outfit was toying with the idea becoming a drug dispenser. Little had come of the possibility at the time, but obviously much has changed.
Aside from the threat that Amazon's acquisition of PillPack poses to the Rite Aid, the remaining piece of Rite Aid that wasn't sold to Walgreens ( WBA ) still needs help in reinvigorating sales and profitability. A partner/buyer appears to be a means to that end, but finding a suitable, willing suitor is proving tough to do. The latest would-be partner was grocery chain Albertson's, though such a pairing may not exactly have been of any benefit to investors. Proxy advisor Institutional Shareholder Services penned a report on the matter just a few weeks ago. It wrote, "The merger combines two low-margin, over leveraged companies, both of which are facing heightened competitive environments."
Shareholders agreed, prompting management to kill the deal and leaving Rite Aid in need of a lifeline that doesn't appear to be on the horizon.
Amazon is largely responsible for the "heightened competitive environments" both parties are facing. Amazon not only owns PillPack and Whole Foods Market, but it's also selling all sorts of consumable dry goods via its online platform.
In all fairness, Amazon has been making things tough for all brick and mortar retailers. Sears ( SHLD ) is the wounded and sickest member of the herd, though, and therefore the prey most vulnerable to Amazon.com.
Revenue has been shrinking since 2006, and the company hasn't turned a full-year profit since 2011. In retrospect, hedge-fund-manager-turned-CEO Eddie Lampert should have fixed as many of its poorly performing stores as he could rather than simply shed them in an effort to raise much-needed cash. Or, maybe Sears (and Kmart) were and still are simply unfixable.
The irony? Sears has actually partnered with Amazon on multiple occasions in an effort to drive sales. In October of last year, Kenmore - a Sears-owned brand of home appliances - unveiled a new line of smart refrigerators that work with Amazon's artificial intelligence assistant Alexa. In July of last year, Sears listed a slew of Kenmore branded goods at the Amazon.com website. In May of this year, Amazon began selling tires to consumers that ultimately would be installed at a Sears Tire Center.
The struggling retailer may only be feeding the beast that will eventually eat it, however. Amazon also is selling tires that Monro will install, and Amazon.com sells Maytag and Frigidaire home appliances too, even if those other brands aren't featured as prominently.
Sears, and Kmart, are just too deep into the Amazon quicksand now to fight their way out.
SEE ALSO: 12 Retailers That May Soon Disappear Forever
It's not exactly a secret that people across the U.S., and around the world for that matter, are increasingly concerned about what they're eating. Chemicals and pesticides are completely out of fashion, as is genetically modified produce. En vogue are organic goods, and where at all possible, locally sourced foods.
It's a trend that initially sprang life for outfits like Sprouts Farmers Market ( SFM ) and Trader Joe's, which historically have been the go-to options for health-conscious consumers. Now that rival grocer Whole Foods Market is an Amazon holding, it can benefit from Amazon's strong marketing reach.
That's not the only edge Amazon has on its organic-grocery rivals, however.
Unlike Trader Joe's and Sprouts, Amazon isn't all that concerned about turning a profit in the grocery biz. Indeed, the company is almost annoyingly coy about how its grocery business is doing, offering no meaningful details of its performance. Being in the business is simply another means of connecting with consumers, pulling them further into the Amazon ecosystem, where they can be monetized in other ways.
More than that, though, Amazon's ambition of dominance-at-all-costs has allowed it to become the low-price leader in the whole foods and organic grocery market. Unable to compete with the giant, The Fresh Market announced in July it was closing a total of 15 stores.
Sprouts and Trader Joe's haven't been forced become that defensive - yet - but both have been forced to reshape plans. They're investing more in technology, and less in store growth, where Amazon can really start to pound them.
Amazon.com has proven problematic for the likes of Walmart ( WMT ) and Costco ( COST ), and more recently, vice versa. All three companies are big enough and different enough from one another that they'll be able to at least defend their turf.
Target ( TGT ) is in a tougher situation, however. It has neither the size of Walmart, the pricing power of Costco nor the sheer online presence of Amazon.com. It's trapped somewhere in the middle, which within the world of modern retailing is the last place any organization wants to be.
You can see this idea at work in the company's most recent earnings report. Although fiscal Q1's same-store sales grew nicely, investments in Target's online presence and customer-attraction efforts - such as deliveries and price-cutting - crimped margins from 7.1% a year earlier to 6.2% this time around. Morningstar's analysts foresee more of the same heavy spending ahead, and Target isn't in a position to outspend its competition.
There is one plausible, albeit low-percentage, ray of hope on the horizon. More than once, Amazon has been rumored to be interested in acquiring Target. Such a maneuver would instantly give the organization a retail footprint that could prove more problematic for Walmart than Target is on its own. But simply hoping for a buyout is never a good enough reason to buy or stick with a stock.
SEE ALSO: The 15 Best ETFs for a Prosperous 2018
Supply outfit W. W. Grainger ( GWW ) has held up better than many investors presumed it would when Amazon announced it was tiptoeing onto its turf last year with a platform called Amazon Business. Indeed, GWW shares are up more than 120% from their August 2017 lows, largely driven by slow and steady revenue and earnings growth that analysts didn't think Grainger would achieve.
How did GWW manage it, and against a bigger foe that cares little about profits? Macquarie analyst Hamzah Mazari explained earlier this year, "Close to $2.5 billion of their revenue, out of their total $10 billion, was uncompetitively priced, so they cut their price to be more in line with the market ... in the fourth quarter they showed volumes were up double digits."
It has worked so far. But Grainger isn't well-equipped to fight a price war, and CEO D.G. Macpherson has already hinted that gross margins around 38% would be the new norm. That compares unfavorably to gross margins of 44% achieved in 2013. And Grainger will only hit that 38% number if Amazon does something very un-Amazon-like and doesn't start a price war within this business sliver.
Last but not least, a eulogy for Toys R Us.
After a poor showing for 2017's busy holiday shopping season, the privately held toy company finally decided to call it quits in March 2018. It didn't even bother seeking a buyer that might be looking for a cheap way to scoop up a recognized name, or garner some cheap retailing square footage.
Not every observer entirely blames Amazon.com for the demise of Toys R Us. In many regards (and like so many other brick-and-mortar retailers), Toys R Us became sloppy on its own - operationally and fiscally - and never fully realized it until it was too late. Greg Portell, lead partner at retail consultant A.T. Kearney, commented in June, "If you're going to have that breadth of inventory, you need someone in the store to help you find it, help you experience it. It's hard to sell toys in a cold, warehouse environment."
If not Amazon, another player would have continued to chip away at the once-iconic toy store chain.
Still, the fact that Amazon.com is rumored to be preparing the printing of a traditional holiday toy catalog this year sends a clear message. That message: Amazon isn't stopping now. With the biggest pure-play threat out of the way, it's going to be even easier for the company to go after other toy sellers such as Target and Walmart.
SEE ALSO: Best Online Brokers, 2018
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SEE ALSO: Millionaires in America: All 50 States Ranked The unchecked growth of Amazon didn't faze auto parts suppliers like O'Reilly Automotive ( ORLY ), AutoZone ( AZO ) and Advance Auto Parts ( AAP ) for a long time. The race for online-radio mindshare has largely been won by the likes of Spotify or Pandora ( P ) ... or increasingly, Apple ( AAPL ), which was recently cultivated its own subscription-based service to complement the a la carte nature of its iTunes store. SEE ALSO: 15 Consumer Stocks That Deliver Dividend Growth Like Clockwork Major video game publishing outfits such as Activision-Blizzard ( ATVI ) and Electronic Arts ( EA ) will be forced to face off with Amazon at some point in the future.
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SEE ALSO: Millionaires in America: All 50 States Ranked The unchecked growth of Amazon didn't faze auto parts suppliers like O'Reilly Automotive ( ORLY ), AutoZone ( AZO ) and Advance Auto Parts ( AAP ) for a long time. The race for online-radio mindshare has largely been won by the likes of Spotify or Pandora ( P ) ... or increasingly, Apple ( AAPL ), which was recently cultivated its own subscription-based service to complement the a la carte nature of its iTunes store. Since the end of last year, Amazon has sold 18% of all groceries purchased online in the United States, making it the biggest online grocer despite more recognizable names in the business also offering online ordering.
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SEE ALSO: Millionaires in America: All 50 States Ranked The unchecked growth of Amazon didn't faze auto parts suppliers like O'Reilly Automotive ( ORLY ), AutoZone ( AZO ) and Advance Auto Parts ( AAP ) for a long time. The race for online-radio mindshare has largely been won by the likes of Spotify or Pandora ( P ) ... or increasingly, Apple ( AAPL ), which was recently cultivated its own subscription-based service to complement the a la carte nature of its iTunes store. All three stocks have since recovered, as the market realizes Amazon hasn't yet unleashed the same havoc realizing Amazon hasn't unleashed the same kind of havoc on the auto parts retailing industry that it has on other consumer-facing markets.
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SEE ALSO: Millionaires in America: All 50 States Ranked The unchecked growth of Amazon didn't faze auto parts suppliers like O'Reilly Automotive ( ORLY ), AutoZone ( AZO ) and Advance Auto Parts ( AAP ) for a long time. The race for online-radio mindshare has largely been won by the likes of Spotify or Pandora ( P ) ... or increasingly, Apple ( AAPL ), which was recently cultivated its own subscription-based service to complement the a la carte nature of its iTunes store. What does that have to do with Amazon?
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11356.0
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2018-08-31 00:00:00 UTC
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RSP, DRI, AAP, ORLY: Large Outflows Detected at ETF
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AAP
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https://www.nasdaq.com/articles/rsp-dri-aap-orly-large-outflows-detected-etf-2018-08-31
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $107.1 million dollar outflow -- that's a 0.7% decrease week over week (from 148,852,663 to 147,852,663). Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.7%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.9%, and O'Reilly Automotive, Inc. (Symbol: ORLY) is up by about 0.8%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average:
Looking at the chart above, RSP's low point in its 52 week range is $92.52 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.17. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.7%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.9%, and O'Reilly Automotive, Inc. (Symbol: ORLY) is up by about 0.8%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $92.52 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.17. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.7%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.9%, and O'Reilly Automotive, Inc. (Symbol: ORLY) is up by about 0.8%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $92.52 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.17. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.7%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.9%, and O'Reilly Automotive, Inc. (Symbol: ORLY) is up by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $107.1 million dollar outflow -- that's a 0.7% decrease week over week (from 148,852,663 to 147,852,663). For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $92.52 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.17.
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Among the largest underlying components of RSP, in trading today Darden Restaurants, Inc. (Symbol: DRI) is up about 0.7%, Advance Auto Parts Inc (Symbol: AAP) is up about 0.9%, and O'Reilly Automotive, Inc. (Symbol: ORLY) is up by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $107.1 million dollar outflow -- that's a 0.7% decrease week over week (from 148,852,663 to 147,852,663). For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $92.52 per share, with $107.89 as the 52 week high point - that compares with a last trade of $107.17.
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11357.0
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2018-08-29 00:00:00 UTC
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S&P 500 Hits 2,900: Best Performing Stocks YTD
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AAP
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https://www.nasdaq.com/articles/sp-500-hits-2900-best-performing-stocks-ytd-2018-08-29
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nan
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nan
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Thanks to easing trade tensions and the U.S.-Mexico deal, the country's stock market continues to enjoy the longest bull run since World War II. Notably, the S&P 500 hit 2,900 for the first time in history and closed at record highs for the third consecutive session. The index is up 8.4% so far this year.
The surge was driven by the dual tailwinds of solid corporate earnings and a booming economy as suggested by rounds of upbeat data. The U.S. economy is witnessing the fastest pace of growth in nearly four years with a nearly two-decade low unemployment rate of 3.9% and 18-year high consumer confidence. Historic tax cuts, higher government spending and deregulation are fueling exceptional growth.
For the quarter as a whole, total Q2 earnings for the index are expected to be up 24.9% from the same period last year on 9.7% higher revenues. This exceeds 24.6% earnings growth in first quarter 2018, which was the highest quarterly growth pace since 2010.
Additionally, the Fed is on track for gradual rate hikes this year, citing that the economy is strong and can handle a tighter monetary policy. The central bank, which began to tighten monetary policy in 2015, has raised rates twice this year in quarter-point increments and is widely expected to do so again next month and in December. A rising rate scenario also signals a strengthening economy, which is spurring growth in the stock market.
While there are winners from various corners of the space, we have highlighted five stocks on the S&P 500 that have outperformed so far this year. Additionally, their strong performance is expected to continue given that these have a solid Zacks Rank #1 (Strong Buy) or 2 (Buy), a VGM Score of A or B, above-average estimated earnings growth for this year and positive estimate revisions over the past 90 days. Moreover, these stocks belong to top-ranked Zacks industry. You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto Parts Inc. AAP - Up 62.5%
With a market cap of $12 billion, Advance Auto Parts is a leading automotive aftermarket parts provider in North America, serving both professional installers and do-it-yourself customers. The stock has seen positive earnings estimate revision of 14 cents for this year over the past three months, with an expected earnings growth rate of 28.86%, much higher than the industry's average growth of 26.63%. It has a Zacks Rank #2 and VGM Score of A.
HCA Healthcare Inc. HCA - Up 49.4%
This is a non-governmental hospital in the United States, providing healthcare and related services. The Zacks Consensus Estimate for this year has moved up from $8.83 to $9.23 over the past three months, representing an earnings growth rate of 40.06%, much higher than the industry's average growth of 26.20%. The stock has a market cap of $45.42 billion and carries a Zacks Rank #2. It flaunts a top VGM Score of A.
Broadridge Financial Solutions Inc. BR - Up 47.8%
The global fintech leader provides investor communications and technology-driven solutions to banks, broker-dealers, mutual funds and corporate issuers globally. With a market cap of $15.57 billion, the stock has witnessed positive earnings estimate revision of 14 cents for the year (ending June 2019) in the past three months. It has estimated earnings growth of 10.74%, higher than the industry's average growth of 8%. The stock has a Zacks Rank #2 and VGM Score of B.
Robert Half International Inc. RHI - Up 40.9%
It is a recognized leader in professional staffing and consulting services. The stock has seen positive earnings estimate revision of 8 cents for this year over the past three months, with an expected earnings growth rate of 32.69%, much higher than the industry's average growth of 24.88%. RHI has a market cap of $9.58 billion and carries a Zacks Rank #2. Its VGM Score stands at B.
Archer Daniels Midland Company ADM - Up 26.7%
It procures, transports, stores, processes, and merchandises agricultural commodities and products. The stock has seen solid earnings estimate revision of 45 cents for this year over the past three months and has an expected growth rate of 40.33% - higher than the industry's average growth of 28.37%. It has a Zacks Rank #1 and VGM Score of A. Archer Daniels has a market cap of $28.42 billion.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
HCA Healthcare, Inc. (HCA): Free Stock Analysis Report
Archer Daniels Midland Company (ADM): Free Stock Analysis Report
Robert Half International Inc. (RHI): Free Stock Analysis Report
Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts Inc. AAP - Up 62.5% With a market cap of $12 billion, Advance Auto Parts is a leading automotive aftermarket parts provider in North America, serving both professional installers and do-it-yourself customers. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report Robert Half International Inc. (RHI): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Thanks to easing trade tensions and the U.S.-Mexico deal, the country's stock market continues to enjoy the longest bull run since World War II.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report Robert Half International Inc. (RHI): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts Inc. AAP - Up 62.5% With a market cap of $12 billion, Advance Auto Parts is a leading automotive aftermarket parts provider in North America, serving both professional installers and do-it-yourself customers. The stock has seen positive earnings estimate revision of 14 cents for this year over the past three months, with an expected earnings growth rate of 28.86%, much higher than the industry's average growth of 26.63%.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report Robert Half International Inc. (RHI): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts Inc. AAP - Up 62.5% With a market cap of $12 billion, Advance Auto Parts is a leading automotive aftermarket parts provider in North America, serving both professional installers and do-it-yourself customers. The stock has seen positive earnings estimate revision of 14 cents for this year over the past three months, with an expected earnings growth rate of 28.86%, much higher than the industry's average growth of 26.63%.
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Advance Auto Parts Inc. AAP - Up 62.5% With a market cap of $12 billion, Advance Auto Parts is a leading automotive aftermarket parts provider in North America, serving both professional installers and do-it-yourself customers. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report Robert Half International Inc. (RHI): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. The stock has seen positive earnings estimate revision of 14 cents for this year over the past three months, with an expected earnings growth rate of 28.86%, much higher than the industry's average growth of 26.63%.
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11358.0
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2018-08-29 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Advance Auto, AutoZone, O'Reilly Automotive and CSX
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AAP
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-advance-auto-autozone-oreilly-automotive-and-csx-2018
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nan
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For Immediate Release
Chicago, IL -August 29, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Advance Auto Parts, Inc.AAP , AutoZone, Inc.AZO , O'Reilly Automotive, Inc.ORLY and CSX CorporationCSX .
Here are highlights from Friday's Analyst Blog:
4 Top Winners for the U.S./Mexico Trade Deal
The United States recently reached an agreement with Mexico for a new trade deal. It is called U.S.-Mexico trade pact and will rewrite NAFTA, which also includes Canada. The announcement lifted the broader markets that have for quite some time been weighed down by trade conflicts.
U.S. auto and parts makers, in particular, recorded even bigger gains as the deal gave American plants an upper hand over Mexican facilities, where workers earn far less. Railroads also gained as the trade deal eases the risks of big tariffs, thus, offering smooth cross-border transportation services. Given the positives, investing in solid domestic automakers and railroad companies seems judicious.
US-Mexico Trade Agreement
The United States and Mexico reached a deal to change parts of the NAFTA, the trade agreement that Trump finds unreasonable. US Trade Representative Robert Lighthizer said that the deal requires 75% of parts in a car traded in North America to be sourced from the United States or Mexico. This is higher than the current 62.5% of the parts needed to be produced in the United States, Mexico or Canada.
The deal also requires around 40% to 45% of parts in cars sold to be manufactured by workers earning at least $16 UDS an hour. The agreement is intended to last nearly 16 years and will be reviewed every six years.
The deal however raises concerns about whether Canada, the third country in NAFTA, will agree to the amendments. Nonetheless, Lighthizer said that the pact was "absolutely terrific" and would surely modernize a trade agreement that had "gotten seriously out of whack." He remained optimistic that the Congress would approve the deal with broad bipartisan support.
Canadian Minister of Foreign Affairs Chrystia Freeland added that "progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement" and that "Canada is encouraged by the continued optimism shown by negotiating partners."
Markets Hit an All-Time High
Investors seem to be shouting approval for the new trade deal. After all, the Trump administration had imposed series of tariffs and other protectionist measures against several of its key trading partners, raising concerns about a global trade war, which in turn may derail economic growth and squeeze corporate profits.
Both the S&P 500 and Nasdaq closed at an all-time high for a second straight session on Aug 27, with the Nasdaq trading above the coveted 8,000 mark. This marked the second 1,000 point advance for the tech-laden index this year, something that has not happened since 1999. The Dow also exited its correction phase for the first time in more than six months, finishing its longest correction period since the 223-session run in 1961, per Dow Jones Market Data.
Auto Stocks Rev Up
Shares of U.S. auto and parts manufacturers surged the most on news that the United States and Mexico have reached a tentative deal to update the 25-year old NAFTA. General Motors Company shot up almost 5% and Ford Motor Company jumped more than 3%. Both these stocks are now rebounding from a two-month downtrend.
But, what led to the rally in domestic auto shares? This was largely backed by the deal's allowance of import tariffs on cars, trucks and their parts if manufacturers do not get bulk of their content from the NAFTA region, or use a significant number of workers who earn handsomely. The latter provision, in fact, will further compel car makers to push for more of their production into the United States from the lower wage Mexican plants.
Railroad Stocks Gain Steam
Top rail stocks also scaled higher on the trade agreement as it eased the effects of big tariffs on Mexico that could disrupt supply chains and rail shipments all through North America.
Shares of Kansas City Southern climbed 4.7% to end at 119.04 and successfully broke out of a flat base with a 115.01 entry point earlier this month. Rail giant Union Pacific Corporation (UNP) increased 1.8% to 152.78 and broke out of a flat base last month with a 148.43 entry point. Canadian Pacific Railway and Canadian National Railway also rallied on the deal news, up 1.7% and 2%, respectively.
4 Top Picks
Banking on such positives, investing in the stocks from the mentioned sectors seems prudent. We have, thus, selected four stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider in North America. It provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The stock currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has increased 1.9% in the last 60 days. The company's projected growth rate for the current year is 28.9%, while the Automotive - Retail and Wholesale - Parts industry is projected to rise 21.2%.
AutoZone, Inc. is the nation's leading retailer and distributor of automotive replacement parts and accessories with stores in the United States and Mexico. The stock currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has advanced 0.5% in the last 90 days. The company's projected growth rate for the quarter is 17.7%, while the Automotive - Retail and Wholesale - Parts industry is estimated to rise 16.9%.
O'Reilly Automotive, Inc. engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The stock currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has increased 2.2% in the last 60 days. The company's projected growth rate for the current year is 34.1%, while the Automotive - Retail and Wholesale - Parts industry is likely to rise 21.2%. You can see the complete list of today's Zacks #1 Rank stocks here .
CSX Corporation provides rail-based transportation services in the United States and Canada. The stock currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has jumped 9.8% in the last 60 days. The company's projected growth rate for the current year is 56.1%, while the Transportation - Rail industry is expected to rise 23%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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CSX Corporation (CSX): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Advance Auto Parts, Inc.AAP , AutoZone, Inc.AZO , O'Reilly Automotive, Inc.ORLY and CSX CorporationCSX . Click to get this free report CSX Corporation (CSX): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report To read this article on Zacks.com click here. Canadian Minister of Foreign Affairs Chrystia Freeland added that "progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement" and that "Canada is encouraged by the continued optimism shown by negotiating partners."
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Stocks recently featured in the blog include: Advance Auto Parts, Inc.AAP , AutoZone, Inc.AZO , O'Reilly Automotive, Inc.ORLY and CSX CorporationCSX . Click to get this free report CSX Corporation (CSX): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report To read this article on Zacks.com click here. US-Mexico Trade Agreement The United States and Mexico reached a deal to change parts of the NAFTA, the trade agreement that Trump finds unreasonable.
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Click to get this free report CSX Corporation (CSX): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Advance Auto Parts, Inc.AAP , AutoZone, Inc.AZO , O'Reilly Automotive, Inc.ORLY and CSX CorporationCSX . US-Mexico Trade Agreement The United States and Mexico reached a deal to change parts of the NAFTA, the trade agreement that Trump finds unreasonable.
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Stocks recently featured in the blog include: Advance Auto Parts, Inc.AAP , AutoZone, Inc.AZO , O'Reilly Automotive, Inc.ORLY and CSX CorporationCSX . Click to get this free report CSX Corporation (CSX): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Friday's Analyst Blog: 4 Top Winners for the U.S./Mexico Trade Deal The United States recently reached an agreement with Mexico for a new trade deal.
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11359.0
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2018-08-28 00:00:00 UTC
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iShares Morningstar Mid-Cap ETF -- Insider Buying Index Registering 10.4%
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AAP
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https://www.nasdaq.com/articles/ishares-morningstar-mid-cap-etf-insider-buying-index-registering-104-2018-08-28
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nan
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A look at the weighted underlying holdings of the iShares Morningstar Mid-Cap ETF (Symbol: JKG) shows an impressive 10.4% of holdings on a weighted basis have experienced insider buying within the past six months.
Advance Auto Parts Inc (Symbol: AAP), which makes up 0.62% of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $4,811,954 worth of AAP, making it the #61 largest holding. The table below details the recent insider buying activity observed at AAP:
AAP - last trade: $161.98 - Recent Insider Buys:
And RPM International Inc (Symbol: RPM), the #101 largest holding among components of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $3,542,461 worth of RPM, which represents approximately 0.46% of the ETF's total assets at last check. The recent insider buying activity observed at RPM is detailed in the table below:
RPM - last trade: $67.56 - Recent Insider Buys:
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts Inc (Symbol: AAP), which makes up 0.62% of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at AAP: AAP - last trade: $161.98 - Recent Insider Buys: And RPM International Inc (Symbol: RPM), the #101 largest holding among components of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $4,811,954 worth of AAP, making it the #61 largest holding.
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Advance Auto Parts Inc (Symbol: AAP), which makes up 0.62% of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at AAP: AAP - last trade: $161.98 - Recent Insider Buys: And RPM International Inc (Symbol: RPM), the #101 largest holding among components of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $4,811,954 worth of AAP, making it the #61 largest holding.
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The table below details the recent insider buying activity observed at AAP: AAP - last trade: $161.98 - Recent Insider Buys: And RPM International Inc (Symbol: RPM), the #101 largest holding among components of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), shows 2 directors and officers as recently filing Form 4's indicating purchases. Advance Auto Parts Inc (Symbol: AAP), which makes up 0.62% of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $4,811,954 worth of AAP, making it the #61 largest holding.
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Advance Auto Parts Inc (Symbol: AAP), which makes up 0.62% of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $4,811,954 worth of AAP, making it the #61 largest holding. The table below details the recent insider buying activity observed at AAP: AAP - last trade: $161.98 - Recent Insider Buys: And RPM International Inc (Symbol: RPM), the #101 largest holding among components of the iShares Morningstar Mid-Cap ETF (Symbol: JKG), shows 2 directors and officers as recently filing Form 4's indicating purchases.
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11360.0
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2018-08-28 00:00:00 UTC
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Why Advance Auto Parts (AAP) Stock Might be a Great Pick
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-aap-stock-might-be-a-great-pick-2018-08-28
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nan
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nan
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One stock that might be an intriguing choice for investors right now is Advance Auto Parts, Inc.AAP . This is because this security in the Automotive - Retail and Wholesale - Parts space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Automotive - Retail and Wholesale - Parts space as it currently has a Zacks Industry Rank of 21 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, Advance Auto Parts is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
Advance Auto Parts, Inc. Price and Consensus
Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote
In fact, over the past month, current quarter estimates have risen from $1.72 per share to $1.74 per share, while current year estimates have risen from $6.79 per share to $6.92 per share. This has helped AAP to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
So, if you are looking for a decent pick in a strong industry, consider Advance Auto Parts. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This has helped AAP to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position. One stock that might be an intriguing choice for investors right now is Advance Auto Parts, Inc.AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. One stock that might be an intriguing choice for investors right now is Advance Auto Parts, Inc.AAP . This has helped AAP to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position.
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One stock that might be an intriguing choice for investors right now is Advance Auto Parts, Inc.AAP . This has helped AAP to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here.
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One stock that might be an intriguing choice for investors right now is Advance Auto Parts, Inc.AAP . This has helped AAP to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here.
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11361.0
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2018-08-28 00:00:00 UTC
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4 Top Winners From the US-Mexico Trade Deal
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AAP
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https://www.nasdaq.com/articles/4-top-winners-from-the-us-mexico-trade-deal-2018-08-28
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The United States recently reached an agreement with Mexico for a new trade deal. It is called U.S.-Mexico trade pact and will rewrite NAFTA, which also includes Canada. The announcement lifted the broader markets that have for quite some time been weighed down by trade conflicts.
U.S. auto and parts makers, in particular, recorded even bigger gains as the deal gave American plants an upper hand over Mexican facilities, where workers earn far less. Railroads also gained as the trade deal eases the risks of big tariffs, thus, offering smooth cross-border transportation services. Given the positives, investing in solid domestic automakers and railroad companies seems judicious.
US-Mexico Trade Agreement
The United States and Mexico reached a deal to change parts of the NAFTA, the trade agreement that Trump finds unreasonable. US Trade Representative Robert Lighthizer said that the deal requires 75% of parts in a car traded in North America to be sourced from the United States or Mexico. This is higher than the current 62.5% of the parts needed to be produced in the United States, Mexico or Canada.
The deal also requires around 40% to 45% of parts in cars sold to be manufactured by workers earning at least $16 UDS an hour. The agreement is intended to last nearly 16 years and will be reviewed every six years.
5 Stocks Riding High on Increasing Cash Flow to Buy Now
The deal however raises concerns about whether Canada, the third country in NAFTA, will agree to the amendments. Nonetheless, Lighthizer said that the pact was "absolutely terrific" and would surely modernize a trade agreement that had "gotten seriously out of whack." He remained optimistic that the Congress would approve the deal with broad bipartisan support.
Canadian Minister of Foreign Affairs Chrystia Freeland added that "progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement" and that "Canada is encouraged by the continued optimism shown by negotiating partners."
Markets Hit an All-Time High
Investors seem to be shouting approval for the new trade deal. After all, the Trump administration had imposed series of tariffs and other protectionist measures against several of its key trading partners, raising concerns about a global trade war, which in turn may derail economic growth and squeeze corporate profits.
Both the S&P 500 and Nasdaq closed at an all-time high for a second straight session on Aug 27, with the Nasdaq trading above the coveted 8,000 mark. This marked the second 1,000 point advance for the tech-laden index this year, something that has not happened since 1999. The Dow also exited its correction phase for the first time in more than six months, finishing its longest correction period since the 223-session run in 1961, per Dow Jones Market Data.
Auto Stocks Rev Up
Shares of U.S. auto and parts manufacturers surged the most on news that the United States and Mexico have reached a tentative deal to update the 25-year old NAFTA. General Motors (NYSE: GM ) shot up almost 5% and Ford Motor Company F jumped more than 3%. Both these stocks are now rebounding from a two-month downtrend.
But, what led to the rally in domestic auto shares? This was largely backed by the deal's allowance of import tariffs on cars, trucks and their parts if manufacturers do not get bulk of their content from the NAFTA region, or use a significant number of workers who earn handsomely. The latter provision, in fact, will further compel car makers to push for more of their production into the United States from the lower wage Mexican plants.
Railroad Stocks Gain Steam
Top rail stocks also scaled higher on the trade agreement as it eased the effects of big tariffs on Mexico that could disrupt supply chains and rail shipments all through North America.
3 Tech Stocks Under $10 to Buy Now
Shares of Kansas City Southern (NYSE: KSU ) climbed 4.7% to end at 119.04 and successfully broke out of a flat base with a 115.01 entry point earlier this month. Rail giant Union Pacific Corporation (UNP) increased 1.8% to 152.78 and broke out of a flat base last month with a 148.43 entry point. Canadian Pacific Railway (NYSE: CP ) and Canadian National Railway (NYSE: CNI ) also rallied on the deal news, up 1.7% and 2%, respectively.
4 Top Picks
Banking on such positives, investing in the stocks from the mentioned sectors seems prudent. We have, thus, selected four stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Top Winners From the US-Mexico Trade Deal: Advance Auto Parts, Inc. (AAP)
Advance Auto Parts (NYSE: AAP ) is a leading automotive aftermarket parts provider in North America.
Source: Shutterstock
It provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks.
AAP stock currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has increased 1.9% in the last 60 days.
5 Top Stocks to Gain as Powell Backs Gradual Rate Hikes
The company's projected growth rate for the current year is 28.9%, while the Automotive - Retail and Wholesale - Parts industry is projected to rise 21.2%.
Top Winners From the US-Mexico Trade Deal: AutoZone, Inc. (AZO)
AutoZone (NYSE: AZO ) is the nation's leading retailer and distributor of automotive replacement parts and accessories with stores in the United States and Mexico.
Source: time anchor via Flickr (Modified)
AZO stock currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has advanced 0.5% in the last 90 days.
These 4 Food Stocks Are Getting Hurt by Tariffs
The company's projected growth rate for the quarter is 17.7%, while the Automotive - Retail and Wholesale - Parts industry is estimated to rise 16.9%.
Top Winners From the US-Mexico Trade Deal: O'Reilly Automotive Inc (ORLY)
O'Reilly Automotive (NASDAQ: ORLY ) engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States.
The stock currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has increased 2.2% in the last 60 days.
3 Manufacturing Stocks to Buy Despite Trade War Concerns
The company's projected growth rate for the current year is 34.1%, while the Automotive - Retail and Wholesale - Parts industry is likely to rise 21.2%.
Top Winners From the US-Mexico Trade Deal: CSX Corporation (CSX)
CSX Corporation (NASDAQ: CSX ) provides rail-based transportation services in the United States and Canada.
3 Coal Stocks in Focus as ACE Rule Gets Put on View
The stock currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has jumped 9.8% in the last 60 days. The company's projected growth rate for the current year is 56.1%, while the Transportation - Rail industry is expected to rise 23%.
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The post 4 Top Winners From the US-Mexico Trade Deal appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top Winners From the US-Mexico Trade Deal: Advance Auto Parts, Inc. (AAP) Advance Auto Parts (NYSE: AAP ) is a leading automotive aftermarket parts provider in North America. AAP stock currently has a Zacks Rank #2. Canadian Minister of Foreign Affairs Chrystia Freeland added that "progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement" and that "Canada is encouraged by the continued optimism shown by negotiating partners."
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Top Winners From the US-Mexico Trade Deal: Advance Auto Parts, Inc. (AAP) Advance Auto Parts (NYSE: AAP ) is a leading automotive aftermarket parts provider in North America. AAP stock currently has a Zacks Rank #2. Top Winners From the US-Mexico Trade Deal: O'Reilly Automotive Inc (ORLY) O'Reilly Automotive (NASDAQ: ORLY ) engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States.
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Top Winners From the US-Mexico Trade Deal: Advance Auto Parts, Inc. (AAP) Advance Auto Parts (NYSE: AAP ) is a leading automotive aftermarket parts provider in North America. AAP stock currently has a Zacks Rank #2. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The United States recently reached an agreement with Mexico for a new trade deal.
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Top Winners From the US-Mexico Trade Deal: Advance Auto Parts, Inc. (AAP) Advance Auto Parts (NYSE: AAP ) is a leading automotive aftermarket parts provider in North America. AAP stock currently has a Zacks Rank #2. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The United States recently reached an agreement with Mexico for a new trade deal.
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11362.0
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2018-08-27 00:00:00 UTC
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Is Advance Auto Parts (AAP) Outperforming Other Retail-Wholesale Stocks This Year?
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AAP
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https://www.nasdaq.com/articles/is-advance-auto-parts-aap-outperforming-other-retail-wholesale-stocks-this-year-2018-08-27
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nan
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Investors focused on the Retail-Wholesale space have likely heard of Advance Auto Parts (AAP), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of AAP and the rest of the Retail-Wholesale group's stocks.
Advance Auto Parts is a member of the Retail-Wholesale sector. This group includes 214 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. AAP is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AAP's full-year earnings has moved 2.29% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, AAP has moved about 64.87% on a year-to-date basis. Meanwhile, the Retail-Wholesale sector has returned an average of 17.42% on a year-to-date basis. This means that Advance Auto Parts is performing better than its sector in terms of year-to-date returns.
Looking more specifically, AAP belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual stocks and currently sits at #21 in the Zacks Industry Rank. This group has gained an average of 26.34% so far this year, so AAP is performing better in this area.
Investors with an interest in Retail-Wholesale stocks should continue to track AAP. The stock will be looking to continue its solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors focused on the Retail-Wholesale space have likely heard of Advance Auto Parts (AAP), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of AAP and the rest of the Retail-Wholesale group's stocks. AAP is currently sporting a Zacks Rank of #2 (Buy).
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Looking more specifically, AAP belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual stocks and currently sits at #21 in the Zacks Industry Rank. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Investors focused on the Retail-Wholesale space have likely heard of Advance Auto Parts (AAP), but is the stock performing well in comparison to the rest of its sector peers?
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Investors focused on the Retail-Wholesale space have likely heard of Advance Auto Parts (AAP), but is the stock performing well in comparison to the rest of its sector peers? Looking more specifically, AAP belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual stocks and currently sits at #21 in the Zacks Industry Rank. One simple way to answer this question is to take a look at the year-to-date performance of AAP and the rest of the Retail-Wholesale group's stocks.
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One simple way to answer this question is to take a look at the year-to-date performance of AAP and the rest of the Retail-Wholesale group's stocks. Investors focused on the Retail-Wholesale space have likely heard of Advance Auto Parts (AAP), but is the stock performing well in comparison to the rest of its sector peers? AAP is currently sporting a Zacks Rank of #2 (Buy).
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11363.0
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2018-08-21 00:00:00 UTC
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Bull Market is Hale and Hearty: 5 U.S. Stocks to Buy
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AAP
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https://www.nasdaq.com/articles/bull-market-hale-and-hearty-5-us-stocks-buy-2018-08-21
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nan
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nan
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The Dow is set to burst out of correction phase for the first time in more than six months. The broader S&P 500 and the tech-laden Nasdaq Composite, by the way, have already exited the correction territory, showing signs of renewed optimism on Wall Street.
The U.S. stock market, in fact, notched healthy gains this month, dismissing August's reputation as a weak month for equities. US-China trade talk optimism along with robust earnings on promising fundamentals helped stocks scale up.
And now the bull market is about to become the longest in history, with optimistic investors arguing that it has miles to go. Given the bullishness, let's invest in stocks that have not only outperformed in the current bull market but have also scope to scale higher.
Dow is Close to Exiting Correction Phase
So far, the Dow Jones Industrial Average has failed to trade 10% above the closing low of 23,533.20 touched on Mar 23. The Dow needs to close at 25,886.52 or higher to achieve such a feat. The blue-chip index needs around 0.5% to rise from the correction territory.
After gaining 89.37 points, or 0.4%, to 25,758.69 on Aug 20, the 30-stock gauge is just less than 130 points short of the coveted mark. Needless to say, this is Dow's longest spell in the correction phase since 223 sessions in 1961, per Dow Jones Market Data.
Bull Market in Pink of Health
All three major bourses have rallied more than 1% month to date as the U.S. stock market is preparing for the longest bull run on record this week. But, this stellar upward journey raised doubts over whether the market's momentum is about to lose steam.
However, the U.S. market still has plenty of upside. Bank of America Corporation's BAC technical research analyst Stephen Suttmeier said that the strength in the market's breadth, as judged by a record high in the S&P 500's NYSE Composite Advance-Decline line last week showed that stocks have more room to run.
The U.S. stock market's comparative strength against the rest of the world is another argument in favor. After all, allocations to U.S. stocks climbed 10 percentage points to a net of 19% overweight, the highest since January 2015, according to the fund managers of Bank of America. This makes America the most-popular region to invest in for the first time in five years.
The volatility backdrop is promising as well. The Cboe Volatility Index at present is at 1.10, which is a key support level. And as long as it remains at or above such a level, the S&P 500 will be in a position to trade above 2,800 and scale higher levels, added Stephen Suttmeier.
US-China Trade Optimism
A recent spell of optimism around U.S. stocks has gained strength, partly on hopes that both the United States and China are laying the groundwork this week for ending a prolonged trade dispute that has threatened to disrupt economic progression and eventually squeeze corporate profits.
The planning requires a concerted effort by both sides to keep the spiraling trade issues at bay. Such issues have already involved billions of dollars in tariffs and come with a threat of hundreds of billions more.
Both the sides have agreed to conduct midlevel talks in Washington this week. A nine-member delegation from Beijing, including Vice Commerce Minister Wang Shouwen, will hold meetings with U.S. counterparts on Aug 22 and 23.
US Stocks Put Up Stellar Show
It may also be worth noting that U.S. stocks are poised to perform well, courtesy of robust earnings on the back of a solid labor market and rising consumer confidence.
Total second-quarter earnings of the 467 S&P 500 members that have reported so far are up 25.5% from the same period last year on 9.9% higher revenues, with 79.2% of the companies beating EPS estimates and 72.8% surpassing the revenue mark (read more: Strong Retail Sector Earnings Performance ).
5 Best US Stocks to Invest In
Banking on such positives, we have selected five solid stocks that have outdone in the current bull market and have scope to gain further. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
The search was also narrowed down with a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Korn/Ferry InternationalKFY provides talent management solutions worldwide. The company has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 0.3% in the last 60 days. The stock's expected growth rate for the current year is 18.4%, more than the Staffing Firms industry's rally of 11.3%. The company has given a superb return of 270.3% in the past 10 years.
Cypress Semiconductor CorporationCY designs, develops, manufactures, markets and sells embedded system solutions worldwide. The company has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has jumped 7.2% in the last 60 days. The stock's expected growth rate for the current year is 50.6%, way more than the Semiconductor - Communications industry's rally of 6.7%. The company has given a solid return of 241.2% in the past decade.
SkyWest, Inc.SKYW operates a regional airline in the United States. The company has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has improved 6% in the last 60 days. The stock's expected growth rate for the current year is 43.4%, in contrast to the Transportation - Airline industry's projected decline of 10.2%. The company has given a stellar return of 274.8% in the past 10 years. You can see the complete list of today's Zacks #1 Rank stocks here .
eXp World Holdings, Inc.EXPI provides cloud-based real estate brokerage services for residential real estate market in the United states and Canada. The company has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has soared 37% in the last 60 days. The stock's expected growth rate for the current quarter is 60%, higher than the Internet - Services industry's rally of 7.8%. The company has given a whopping return of 1,480% in the past decade.
Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 1.9% in the last 60 days. The stock's expected growth rate for the current year is 28.9%, better than the Automotive - Retail and Wholesale - Parts industry's rally of 21.2%. The company has yielded an encouraging return of 305.6% in the past 10 years.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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SkyWest, Inc. (SKYW): Free Stock Analysis Report
Bank of America Corporation (BAC): Free Stock Analysis Report
Cypress Semiconductor Corporation (CY): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Korn/Ferry International (KFY): Free Stock Analysis Report
Exp World Holdings, Inc. (EXPI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Korn/Ferry International (KFY): Free Stock Analysis Report Exp World Holdings, Inc. (EXPI): Free Stock Analysis Report To read this article on Zacks.com click here. The broader S&P 500 and the tech-laden Nasdaq Composite, by the way, have already exited the correction territory, showing signs of renewed optimism on Wall Street.
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Korn/Ferry International (KFY): Free Stock Analysis Report Exp World Holdings, Inc. (EXPI): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. Total second-quarter earnings of the 467 S&P 500 members that have reported so far are up 25.5% from the same period last year on 9.9% higher revenues, with 79.2% of the companies beating EPS estimates and 72.8% surpassing the revenue mark (read more: Strong Retail Sector Earnings Performance ).
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Korn/Ferry International (KFY): Free Stock Analysis Report Exp World Holdings, Inc. (EXPI): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. US Stocks Put Up Stellar Show It may also be worth noting that U.S. stocks are poised to perform well, courtesy of robust earnings on the back of a solid labor market and rising consumer confidence.
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Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Korn/Ferry International (KFY): Free Stock Analysis Report Exp World Holdings, Inc. (EXPI): Free Stock Analysis Report To read this article on Zacks.com click here. US-China trade talk optimism along with robust earnings on promising fundamentals helped stocks scale up.
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11364.0
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2018-08-20 00:00:00 UTC
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Insider Bets Paying Off At AAP As New 52-Week High Reached
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AAP
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https://www.nasdaq.com/articles/insider-bets-paying-aap-new-52-week-high-reached-2018-08-20
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nan
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nan
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) touched a new 52-week high of $161.14/share. That's a 104.47% rise, or $82.33 per share from the 52-week low of $78.81 set back on 11/08/2017. That means at today's intraday high, any investor who purchased AAP stock any time over the past 52 weeks has an unrealized gain, including company insiders.
Over the past six months, insiders have been scooping up shares, and those bets are now paying off handsomely. As summarized by the table below, AAP has seen 2 different instances of insiders buying over the trailing six month period.
The chart below shows where AAP has traded over the past year, with the 50-day and 200-day moving averages included.
In afternoon trading on Monday, AAP shares are changing hands at $160.83/share, slightly below the new 52-week high.
Ten Bargains You Can Buy Cheaper Than The Insiders Did »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) touched a new 52-week high of $161.14/share. That means at today's intraday high, any investor who purchased AAP stock any time over the past 52 weeks has an unrealized gain, including company insiders. In afternoon trading on Monday, AAP shares are changing hands at $160.83/share, slightly below the new 52-week high.
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In afternoon trading on Monday, AAP shares are changing hands at $160.83/share, slightly below the new 52-week high. In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) touched a new 52-week high of $161.14/share. That means at today's intraday high, any investor who purchased AAP stock any time over the past 52 weeks has an unrealized gain, including company insiders.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) touched a new 52-week high of $161.14/share. That means at today's intraday high, any investor who purchased AAP stock any time over the past 52 weeks has an unrealized gain, including company insiders. As summarized by the table below, AAP has seen 2 different instances of insiders buying over the trailing six month period.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) touched a new 52-week high of $161.14/share. That means at today's intraday high, any investor who purchased AAP stock any time over the past 52 weeks has an unrealized gain, including company insiders. As summarized by the table below, AAP has seen 2 different instances of insiders buying over the trailing six month period.
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11365.0
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2018-08-17 00:00:00 UTC
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Advance Auto Parts (AAP) Shares March Higher, Can It Continue?
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-shares-march-higher-can-it-continue-2018-08-17
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nan
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nan
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As of late, it has definitely been a great time to be an investor in Advance Auto Parts, Inc. AAP . The stock has moved higher by 12.9% in the past month, while it is also above its 20 Day SMA too. This combination of strong price performance and favorable technical, could suggest that the stock may be on the right path.
We certainly think that this might be the case, particularly if you consider AAP's recent earnings estimate revision activity. From this look, the company's future is quite favorable; as AAP has earned itself a Zacks Rank #2 (Buy), meaning that its recent run may continue for a bit longer, and that this isn't the top for the in-focus company. You can see the complete list of today's Zacks #1 Rank stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of late, it has definitely been a great time to be an investor in Advance Auto Parts, Inc. AAP . We certainly think that this might be the case, particularly if you consider AAP's recent earnings estimate revision activity. From this look, the company's future is quite favorable; as AAP has earned itself a Zacks Rank #2 (Buy), meaning that its recent run may continue for a bit longer, and that this isn't the top for the in-focus company.
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As of late, it has definitely been a great time to be an investor in Advance Auto Parts, Inc. AAP . Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. We certainly think that this might be the case, particularly if you consider AAP's recent earnings estimate revision activity.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. As of late, it has definitely been a great time to be an investor in Advance Auto Parts, Inc. AAP . We certainly think that this might be the case, particularly if you consider AAP's recent earnings estimate revision activity.
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From this look, the company's future is quite favorable; as AAP has earned itself a Zacks Rank #2 (Buy), meaning that its recent run may continue for a bit longer, and that this isn't the top for the in-focus company. As of late, it has definitely been a great time to be an investor in Advance Auto Parts, Inc. AAP . We certainly think that this might be the case, particularly if you consider AAP's recent earnings estimate revision activity.
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11366.0
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2018-08-16 00:00:00 UTC
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Auto Stock Roundup: Earnings Approaching End, Ford to Spend on Self-Driving Technology
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AAP
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-earnings-approaching-end-ford-to-spend-on-self-driving-technology-2018
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nan
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Earnings season for the auto companies is nearing the end. Past week witnessed some important auto companies such as Magna International Inc. MGA , Advance Auto Parts, Inc. AAP and Westport Fuel Systems Inc. WPRT reporting their numbers for the quarter ending Jun 30. Westport Fuel reported quarterly loss of $0.04 per share, in line with the Zacks Consensus Estimate. On the other hand, Advance Auto Parts reported an earnings beat while Magna missed estimates.
The week witnessed Ford Motor Company F reportedly planning to spend around $740 million for the renovation of Detroit's extensive vacant train depot and the redevelopment of other properties. The idea is to aid the research and development of self-driving vehicles.
In another development, Lear Corporation LEA has opened a manufacturing facility at Flint, MI. The facility will manufacture automotive seats for one of its major customers, General Motors Company.
(Read the previous roundup here: Auto Stock Roundup for Aug 9, 2018 )
Recap of the Week's Most Important Stories
1. In second-quarter 2018, Magna reported adjusted earnings per share of $1.67, missing the Zacks Consensus Estimate of $1.71. However, earnings were higher than the year-ago figure of $1.45.
Revenues increased 12.5% year over year to $10.3 billion. However, the top line missed the Zacks Consensus Estimate of $10.6 billion. The year-over-year rise in sales is primarily owing to growth across all of its operating segments.
Moreover, the company reported a 6% increase in adjusted EBIT to $803 million from the year-ago figure of $785 million.
Revenues at the Body Exteriors & Structures segment was $4.6 billion in the reported quarter compared with $4.1 billion recorded in second-quarter 2017. Revenues at the Power & Vision segment totaled $3.2 billion in comparison with $2.9 billion recorded in the prior-year quarter. Revenues at the Seating Systems segment totaled $1.42 billion compared with $1.37 billion recorded in the prior-year quarter. Revenues from the Complete Vehicles segment increased to $1.28 billion in the quarter under review from $869 million in second-quarter 2017. (Read more: Magna Misses Q2 Earnings Estimates, Lowers Guidance )
AutoNation currently carries a Zacks Rank #5 (Strong Sell).
2. Advance Auto Parts reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter. The figure surpassed the Zacks Consensus Estimate of $1.85. Adjusted operating income increased to $167.5 million from $146.7 million in second-quarter 2017.
Advance Auto Parts reported net revenues of $2.33 billion, beating the Zacks Consensus Estimate of $2.26 billion. Revenues were 2.8% higher than the year-ago quarter. During the quarter under review, comparable store sales were 2.8% higher year over year.
Gross profit was $1.01 billion in the reported quarter, higher than the prior-year quarter figure of $993.1 million. Gross Profit margin decreased 40 basis points year over year to 44.3%.
Adjusted selling, general and administrative (SG&A) expenses totaled $811.6 million or 34.9% of sales compared with $1797.6 million or 35.2% of sales. (Read more: Advance Auto Parts Beats on Q2 Earnings & Revenues )
Advance Auto Parts currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
3. Lear has opened a manufacturing facility at Flint, MI. The facility will manufacture automotive seats for one of its major customers, General Motors. In over 30 years, this marks the first major construction of a supplier manufacturing facility in Flint.
The seating manufactured at the plant will serve as just-in-time delivery to the close by General Motors Flint assembly plant. Additionally, its products will be supplied at General Motors' another plant in Fort Wayne, CA.
The new conveyor system at the hub, which is enabled with Lear's LPS (Lear Production System), is going to check all major elements of seat manufacturing. Situated in a 156,000-sq.ft. area. The facility is expected to employ roughly 600 team members by the end of 2019. Out of the total, 400 will be newly hired employees.
Associates of the new hub will manage their teams, including member hiring, providing quality assurance and aiding peers. The factory will focus on a top-notch team formation, structured organization and promote employee engagement. (Read more: Lear Opens Seat Manufacturing Facility in Michigan )
Lear currently carries a Zacks Rank #3 (Hold).
4. Westport Fuel second-quarter 2018 adjusted net loss from continuing operations was 4 cents per share, in line with the Zacks Consensus Estimate. Net loss per share from continuing operations was 12 cents per share in second-quarter 2017.
Total net loss from continuing operations in the reported quarter was $5.7 million compared with net loss of $13.4 million in second-quarter 2017.
Westport Fuel logged consolidated revenues of $80.5 million in the reported quarter, up 37% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate of $64.5 million. This upside was driven by strong sales growth in aftermarket, DOEM, and light- and medium-duty OEM businesses. Rise of euro vis-a-vis the U.S. dollar, along with shipments of Westport HPDI 2.0 product, also contributed to rise in revenues.
During the quarter under review, consolidated gross margin increased to $21.7 million (27% of sales) from $15.3 million (26% of sales) recorded in the year-ago quarter.
Adjusted EBITDA amounted to $8.6 million compared with a negative $5.3 million in the prior-year quarter, reflecting strong operational results across businesses.
In second-quarter 2018, CWI revenues rose to $86.9 million from the prior-year quarter's figure of $79.5 million. This rise is driven by the higher demand for near-zero emissions products and higher parts revenues.
Westport Fuel carries a Zacks Rank #3.
5.Ford intends to make another move in the self-driving vehicle front. Per Associated Press, this auto giant intends to spend around $740 million for the renovation of Detroit's extensive vacant train depot and the redevelopment of other properties. The underlying aim is to foster the research and development of self-driving vehicles.
Notably, Ford is working on bringing autonomous vehicle technology to the market. The company will add several driver-assist technologies in its vehicles over the next five years. In June 2018, the company used the Michigan Central depot as a background, and laid out plans for the 105-year-old train station and surrounding Corktown neighborhood.
Ford currently carries a Zacks Rank #5.
Performance
In the last week, Tesla, Inc. TSLA has declined the most. Advance Auto Parts has gained the maximum.
In the past six months, Advance Auto Parts has increased the most. Honda has declined the most.
What's Next in the Auto Space?
Watch out for the usual news releases as well as the few remaining earnings releases of auto companies over the next week.
Today's Stocks From Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
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Ford Motor Company (F): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Magna International Inc. (MGA): Free Stock Analysis Report
Lear Corporation (LEA): Free Stock Analysis Report
Westport Fuel Systems Inc. (WPRT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Past week witnessed some important auto companies such as Magna International Inc. MGA , Advance Auto Parts, Inc. AAP and Westport Fuel Systems Inc. WPRT reporting their numbers for the quarter ending Jun 30. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Lear Corporation (LEA): Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT): Free Stock Analysis Report To read this article on Zacks.com click here. The week witnessed Ford Motor Company F reportedly planning to spend around $740 million for the renovation of Detroit's extensive vacant train depot and the redevelopment of other properties.
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Past week witnessed some important auto companies such as Magna International Inc. MGA , Advance Auto Parts, Inc. AAP and Westport Fuel Systems Inc. WPRT reporting their numbers for the quarter ending Jun 30. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Lear Corporation (LEA): Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT): Free Stock Analysis Report To read this article on Zacks.com click here. (Read more: Advance Auto Parts Beats on Q2 Earnings & Revenues ) Advance Auto Parts currently carries a Zacks Rank #2 (Buy).
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Lear Corporation (LEA): Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT): Free Stock Analysis Report To read this article on Zacks.com click here. Past week witnessed some important auto companies such as Magna International Inc. MGA , Advance Auto Parts, Inc. AAP and Westport Fuel Systems Inc. WPRT reporting their numbers for the quarter ending Jun 30. Advance Auto Parts reported net revenues of $2.33 billion, beating the Zacks Consensus Estimate of $2.26 billion.
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Past week witnessed some important auto companies such as Magna International Inc. MGA , Advance Auto Parts, Inc. AAP and Westport Fuel Systems Inc. WPRT reporting their numbers for the quarter ending Jun 30. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Lear Corporation (LEA): Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter.
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11367.0
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2018-08-15 00:00:00 UTC
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Company News For Aug 15, 2018
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AAP
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https://www.nasdaq.com/articles/company-news-aug-15-2018-2018-08-15
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Tapestry, Inc.'s TPR shares surged 12% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.57 per share
Shares of Brinker International, Inc. EAT declined 1.6% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.20 per share
Advance Auto Parts, Inc.'s AAP shares jumped 7.8% after the company reported second-quarter fiscal 2018 adjusted earnings of $1.97 per share, surpassing the Zacks Consensus Estimate of $1.85 per share
Shares of Vipshop Holdings Limited VIPS fell 16.2 % after the company reported second-quarter fiscal 2018 adjusted earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.11 per share
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vipshop Holdings Limited (VIPS): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Brinker International, Inc. (EAT): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tapestry, Inc.'s TPR shares surged 12% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.57 per share Shares of Brinker International, Inc. EAT declined 1.6% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.20 per share Advance Auto Parts, Inc.'s AAP shares jumped 7.8% after the company reported second-quarter fiscal 2018 adjusted earnings of $1.97 per share, surpassing the Zacks Consensus Estimate of $1.85 per share Shares of Vipshop Holdings Limited VIPS fell 16.2 % after the company reported second-quarter fiscal 2018 adjusted earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.11 per share Want the latest recommendations from Zacks Investment Research? Click to get this free report Vipshop Holdings Limited (VIPS): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Brinker International, Inc. (EAT): Free Stock Analysis Report Tapestry, Inc. (TPR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tapestry, Inc.'s TPR shares surged 12% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.57 per share Shares of Brinker International, Inc. EAT declined 1.6% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.20 per share Advance Auto Parts, Inc.'s AAP shares jumped 7.8% after the company reported second-quarter fiscal 2018 adjusted earnings of $1.97 per share, surpassing the Zacks Consensus Estimate of $1.85 per share Shares of Vipshop Holdings Limited VIPS fell 16.2 % after the company reported second-quarter fiscal 2018 adjusted earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.11 per share Want the latest recommendations from Zacks Investment Research? Click to get this free report Vipshop Holdings Limited (VIPS): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Brinker International, Inc. (EAT): Free Stock Analysis Report Tapestry, Inc. (TPR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tapestry, Inc.'s TPR shares surged 12% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.57 per share Shares of Brinker International, Inc. EAT declined 1.6% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.20 per share Advance Auto Parts, Inc.'s AAP shares jumped 7.8% after the company reported second-quarter fiscal 2018 adjusted earnings of $1.97 per share, surpassing the Zacks Consensus Estimate of $1.85 per share Shares of Vipshop Holdings Limited VIPS fell 16.2 % after the company reported second-quarter fiscal 2018 adjusted earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.11 per share Want the latest recommendations from Zacks Investment Research? Click to get this free report Vipshop Holdings Limited (VIPS): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Brinker International, Inc. (EAT): Free Stock Analysis Report Tapestry, Inc. (TPR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tapestry, Inc.'s TPR shares surged 12% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.57 per share Shares of Brinker International, Inc. EAT declined 1.6% after the company reported fourth-quarter fiscal 2018 adjusted earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.20 per share Advance Auto Parts, Inc.'s AAP shares jumped 7.8% after the company reported second-quarter fiscal 2018 adjusted earnings of $1.97 per share, surpassing the Zacks Consensus Estimate of $1.85 per share Shares of Vipshop Holdings Limited VIPS fell 16.2 % after the company reported second-quarter fiscal 2018 adjusted earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.11 per share Want the latest recommendations from Zacks Investment Research? Click to get this free report Vipshop Holdings Limited (VIPS): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Brinker International, Inc. (EAT): Free Stock Analysis Report Tapestry, Inc. (TPR): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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11368.0
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2018-08-14 00:00:00 UTC
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Tuesday Sector Leaders: Services, Consumer Products
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AAP
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https://www.nasdaq.com/articles/tuesday-sector-leaders-services-consumer-products-2018-08-14
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The best performing sector as of midday Tuesday is the Services sector, higher by 1.7%. Within that group, Advance Auto Parts Inc (Symbol: AAP) and The Gap Inc (Symbol: GPS) are two of the day's stand-outs, showing a gain of 7.6% and 4.1%, respectively. Among the largest ETFs , one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 1.1% on the day, and up 13.66% year-to-date. Advance Auto Parts Inc, meanwhile, is up 56.47% year-to-date, and The Gap Inc, is down 2.68% year-to-date. Combined, AAP and GPS make up approximately 0.6% of the underlying holdings of IYC.
The next best performing sector is the Consumer Products sector, higher by 1.0%. Among large Consumer Products stocks, Tapestry Inc (Symbol: TPR) and Under Armour Inc (Symbol: UAA) are the most notable, showing a gain of 12.4% and 3.9%, respectively. One ETF closely tracking Consumer Products stocks is the iShares U.S. Consumer Goods ETF ( IYK ), which is up 0.5% in midday trading, and down 4.31% on a year-to-date basis. Tapestry Inc, meanwhile, is up 22.15% year-to-date, and Under Armour Inc is up 49.69% year-to-date. Combined, TPR and UAA make up approximately 0.9% of the underlying holdings of IYK.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, nine sectors are up on the day, while none of the sectors are down.
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, AAP and GPS make up approximately 0.6% of the underlying holdings of IYC. Within that group, Advance Auto Parts Inc (Symbol: AAP) and The Gap Inc (Symbol: GPS) are two of the day's stand-outs, showing a gain of 7.6% and 4.1%, respectively. Combined, TPR and UAA make up approximately 0.9% of the underlying holdings of IYK.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and The Gap Inc (Symbol: GPS) are two of the day's stand-outs, showing a gain of 7.6% and 4.1%, respectively. Combined, AAP and GPS make up approximately 0.6% of the underlying holdings of IYC. Among the largest ETFs , one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 1.1% on the day, and up 13.66% year-to-date.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and The Gap Inc (Symbol: GPS) are two of the day's stand-outs, showing a gain of 7.6% and 4.1%, respectively. Combined, AAP and GPS make up approximately 0.6% of the underlying holdings of IYC. Among the largest ETFs , one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 1.1% on the day, and up 13.66% year-to-date.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and The Gap Inc (Symbol: GPS) are two of the day's stand-outs, showing a gain of 7.6% and 4.1%, respectively. Combined, AAP and GPS make up approximately 0.6% of the underlying holdings of IYC. Among the largest ETFs , one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 1.1% on the day, and up 13.66% year-to-date.
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11369.0
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2018-08-14 00:00:00 UTC
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Advance Auto Parts Stock Accelerates on Q2 Earnings Beat
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https://www.nasdaq.com/articles/advance-auto-parts-stock-accelerates-q2-earnings-beat-2018-08-14
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Advance Auto Parts (NYSE: AAP ) stock was one the rise Tuesday following the release of its earnings report for the second quarter of the year.
Source: Shutterstock
During the second quarter of 2018, Advance Auto Parts reported earnings per share of $1.97. This is better than the company's earnings per share of $1.58 from the same period of the year prior. It was also a boon to AAP stock by coming in above Wall Street's earnings per share estimate of $1.86 for the quarter.
Advance Auto Parts' earnings report for the second quarter of the year also includes net income of $117.84 million. This is an increase over its net income of $87.05 million that was reported in the second quarter of the previous year.
Operating income reported by Advance Auto Parts for the second quarter of 2018 came in at $167.54 million. This is up from the retail company's operating income of $146.71 million that was reported in the second quarter of 2017.
Advance Auto Parts also reported revenue of $2.33 billion for the second quarter of the year. This is an improvement over its revenue of $2.26 million that was reported during the same time last year. It was also good news for AAP stock by beating out analysts' revenue estimate of $2.27 billion for the period.
15 Stocks in the FANG Junior-Varsity League
Advance Auto Parts's most recent earnings report also includes an update its outlook for the full year of 2018. The company says that it is now expecting revenue for the year to range from $9.30 billion to $9.50 billion. Wall Street is looking for revenue of $9.38 billion in 2018.
AAP stock was up 7% as of Tuesday morning and is up 36% year-to-date.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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The post Advance Auto Parts Stock Accelerates on Q2 Earnings Beat appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advance Auto Parts (NYSE: AAP ) stock was one the rise Tuesday following the release of its earnings report for the second quarter of the year. It was also a boon to AAP stock by coming in above Wall Street's earnings per share estimate of $1.86 for the quarter. It was also good news for AAP stock by beating out analysts' revenue estimate of $2.27 billion for the period.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advance Auto Parts (NYSE: AAP ) stock was one the rise Tuesday following the release of its earnings report for the second quarter of the year. It was also a boon to AAP stock by coming in above Wall Street's earnings per share estimate of $1.86 for the quarter. It was also good news for AAP stock by beating out analysts' revenue estimate of $2.27 billion for the period.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advance Auto Parts (NYSE: AAP ) stock was one the rise Tuesday following the release of its earnings report for the second quarter of the year. It was also a boon to AAP stock by coming in above Wall Street's earnings per share estimate of $1.86 for the quarter. It was also good news for AAP stock by beating out analysts' revenue estimate of $2.27 billion for the period.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advance Auto Parts (NYSE: AAP ) stock was one the rise Tuesday following the release of its earnings report for the second quarter of the year. It was also good news for AAP stock by beating out analysts' revenue estimate of $2.27 billion for the period. It was also a boon to AAP stock by coming in above Wall Street's earnings per share estimate of $1.86 for the quarter.
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11370.0
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2018-08-14 00:00:00 UTC
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5 Top-Ranked S&P 500 Stocks to Buy on Market Dip
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AAP
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https://www.nasdaq.com/articles/5-top-ranked-sp-500-stocks-buy-market-dip-2018-08-14
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nan
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nan
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Escalating trade disputes between the United States and Turkey have had investors worked up, dragging the broader S&P 500 down for the fourth straight session on Aug 13. After things took a graver turn between the nations on difference in opinion on the in Syria policy, Turkey's lira was subject to a downward spiral and touched a record low on Aug 13.
But, lira gained some ground on Aug 14 after the country's central bank pledged to provide liquidity, soothing investors. Moreover, time and again, the stock market has recouped after any currency crisis.
Lest we forget, higher household net worth, tight labor market and favorable government policy will provide the much needed windfall to the equity market. Hence, it is the ideal time to capitalize on this drop by betting on stocks that are poised to grow in the near term.
Turkey Shakes US
President Trump recently approved higher tariffs on imports from Turkey, levying a 20% duty on aluminum and 50% on steel. The White House and Ankara are at loggerheads for quite some time over a couple of issues, including the detention of American pastor Andrew Brunsonin Turkey and the Syrian civil war.
Trump's approval on higher tariffs on imports from Turkey ripped the Turkish financial markets, sending lira into a freefall. The lira slipped, with one dollar buying 6.974 lira on Aug 13, compared with 6.427 lira on Aug 10. This, in turn, increased the risk of default on foreign-currency loans. Global banks, having substantial exposure to Turkey, have thus come under tremendous pressure.
By the way, lira has already lost 40% against the dollar this year. Such a ruthless crash has raised the cost of goods in Turkey. Turkey might slip into recession and debt crisis and in turn affect other economies. Turkey, eventually, will require a bailout from the International Monetary Fund.
Why Turkey Crisis is a Buying Opportunity
Turkey currency crisis, however, does provide a good buying opportunity for astute investors. And why not? Central banks from around the world will certainly make sure that there is plenty of liquidity to keep Turkey's financial crisis at bay. And, invariably, so much liquidity will make its way into the equity markets.
Let's recall what happened to Turkey's arch rival Greece in late 2009. Despite the gloomy forecast that a Grexit would lead to the disintegration of the European Union and in the process affect the global equity markets, the S&P 500 now is several hundred percent higher. In fact, historically, the equity markets have always taken any currency or sovereign debt crisis very much in stride.
Turkish Lira Edges Up, Central Bank Steps In
Turkey's central bank, in fact, has pledged to provide liquidity mostly to its banking sector. The central bank will provide more breathing space to banks by trimming foreign currency reserve requirements.
Investors are definitely taking some comfort from such news, with the lira rising 5% to 6.54 to the U.S. dollar on the morning of Aug 14, after tanking 20% in the past four trading sessions.
Top 5 S&P 500 Stocks to Buy Now
Banking on the strengths, the S&P 500 is positioned to make a comeback in the near term. Since the long term bodes well for stocks after the initial dip, it will be wise to invest in growth stocks. Moreover, by purchasing stocks right after a dip, investors are essentially buying shares at a discount.
With the help of our new Style Score System , we have short-listed Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks with a Growth Style Score of A or B that hold immense growth potential despite the recent slump. Our research shows that stocks with a Growth Style Score of A or B when combined with a Zacks Rank #2 offer the best investment opportunities in the growth investing space.
Agilent Technologies, Inc.A provides application focused solutions to the life sciences, diagnostics, and applied chemical markets. The company has a Zacks Rank #2 and a Growth Score of B despite the 2.4% fall in the last four trading sessions. The stock's expected earnings growth rate for the current quarter and year are 6.8% and 13.1%, respectively.
Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company has a Zacks Rank #2 and a Growth Score of A in spite of the 0.2% fall in the last four trading sessions. The stock's expected earnings growth rate for the current quarter and year are a respective 16.5% and 26.6%. You can see the complete list of today's Zacks #1 Rank stocks here .
Bristol-Myers Squibb CompanyBMY discovers, develops, licenses, manufactures, markets, and distributes biopharmaceutical products. The company has a Zacks Rank #1 and a Growth Score of B despite the 0.8% fall in the last four trading sessions. The stock's expected earnings growth rate for the current quarter and year are 18.7% and 19.3%, respectively.
Caterpillar Inc.CAT manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries. The company has a Zacks Rank #2 and a Growth Score of B despite the 3.1% drop in the last four trading sessions. The stock's expected earnings growth rate for the current quarter and year are 41.5% and 67.7%, respectively.
D.R. Horton, Inc.DHI operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest and West America. The company has a Zacks Rank #2 and a Growth Score of A despite the 1.8% decline in the last four trading sessions. The stock's expected earnings growth rate for the current quarter and year are a respective 52.4% and 41.6%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Agilent Technologies, Inc. (A): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report D.R. After things took a graver turn between the nations on difference in opinion on the in Syria policy, Turkey's lira was subject to a downward spiral and touched a record low on Aug 13.
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Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report D.R. Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. Why Turkey Crisis is a Buying Opportunity Turkey currency crisis, however, does provide a good buying opportunity for astute investors.
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Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report D.R. Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. With the help of our new Style Score System , we have short-listed Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks with a Growth Style Score of A or B that hold immense growth potential despite the recent slump.
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Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report D.R. Advance Auto Parts, Inc.AAP provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. Why Turkey Crisis is a Buying Opportunity Turkey currency crisis, however, does provide a good buying opportunity for astute investors.
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11371.0
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2018-08-14 00:00:00 UTC
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Close Update: Wall Street Buoyed by Earnings, Economy as Turkish Lira Stabilizes
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AAP
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https://www.nasdaq.com/articles/close-update-wall-street-buoyed-earnings-economy-turkish-lira-stabilizes-2018-08-14
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The major market averages closed near their highs of the day on Tuesday as a stable Turkish lira allowed Wall Street to shift its focus back to healthy corporate earnings and the US economy. Led by gains in consumer discretionary and financial stocks, the Dow closed with a gain of more than 100 points, its first positive close in five days.
Overseas markets were mixed with China and Hong Kong weighed down by disappointing Chinese industrial production and retail sales data, while Europe capitalized on both the rebound in the lira as well as bullish euro-zone economic data. Into the NY open, Dow futures were indicating a triple-digit gain with energy and technology shares outperforming.
Data released this morning showed a 0.5% decline in export prices while import prices were unchanged, both missing expectations for a gain of 0.2% and 0.1%, respectively. Household debt increased for the 16th straight month as consumers continue to buy on credit despite higher interest rates. The data helped fuel today's gains in the market with the Dow gaining altitude for most of the day until flatlining at resistance at the 20-day moving average.
With geopolitics fading to the background, corporate earnings were back in focus with Home Depot ( HD ) crushing expectations. Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results.
Looking ahead to Wednesday, theeconomic calendarhas July retail sales (est +0.1%, +0.4% ex autos and gas), the Empire State manufacturing index (est 20.0 vs 22.6 last), Q2 non-farm productivity (est +2.5%) and unit labor costs (est -0.2%), July industrial production (est +0.3%) and capacity utilization (78.2%), June business inventories (est +0.1%) and the Aug housing market index (est unchanged at 68). Also, the weekly EIA petroleum inventory data is announced at 10:30et.
US MARKETS
Dow Jones Industrial Index was up 112.22 points (+0.45%)
S&P 500 was up 18.03 points (+0.64%)
Nasdaq Composite Index was up 51.19 points (+0.65%)
GLOBAL SENTIMENT
FTSE 100 was down 0.40%
Nikkei 225 was up 2.28%
Hang Seng Index was down 0.66%
Shanghai China Composite Index was down 0.17%
UPSIDE MOVERS
(+) THST (+50.00%) Sold wholesale wine business to Precept Brands for $18 million
(+) HYRE (+16.86%) Reported upbeat Q2 results and FY18 revenue guidance
(+) SVT (+13.23%) Q2 revenue increased 24% Y-O-Y
DOWNSIDE MOVERS
(-) SWCH (-24.39%) Q2 results missed expectations, lowered FY18 guidance
(-) VERI (-21.71%) Reported wider-than-expected loss, missed revenue estimates
(-) VIPS (-15.76%) Reported mixed Q2 results, issued weak Q3 guidance
(-) GFI (-12.80%) Announced layoffs to cut costs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results. The major market averages closed near their highs of the day on Tuesday as a stable Turkish lira allowed Wall Street to shift its focus back to healthy corporate earnings and the US economy. With geopolitics fading to the background, corporate earnings were back in focus with Home Depot ( HD ) crushing expectations.
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Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results. Overseas markets were mixed with China and Hong Kong weighed down by disappointing Chinese industrial production and retail sales data, while Europe capitalized on both the rebound in the lira as well as bullish euro-zone economic data. Looking ahead to Wednesday, theeconomic calendarhas July retail sales (est +0.1%, +0.4% ex autos and gas), the Empire State manufacturing index (est 20.0 vs 22.6 last), Q2 non-farm productivity (est +2.5%) and unit labor costs (est -0.2%), July industrial production (est +0.3%) and capacity utilization (78.2%), June business inventories (est +0.1%) and the Aug housing market index (est unchanged at 68).
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Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results. Led by gains in consumer discretionary and financial stocks, the Dow closed with a gain of more than 100 points, its first positive close in five days. Looking ahead to Wednesday, theeconomic calendarhas July retail sales (est +0.1%, +0.4% ex autos and gas), the Empire State manufacturing index (est 20.0 vs 22.6 last), Q2 non-farm productivity (est +2.5%) and unit labor costs (est -0.2%), July industrial production (est +0.3%) and capacity utilization (78.2%), June business inventories (est +0.1%) and the Aug housing market index (est unchanged at 68).
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Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results. The major market averages closed near their highs of the day on Tuesday as a stable Turkish lira allowed Wall Street to shift its focus back to healthy corporate earnings and the US economy. Led by gains in consumer discretionary and financial stocks, the Dow closed with a gain of more than 100 points, its first positive close in five days.
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11372.0
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2018-08-14 00:00:00 UTC
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Advance Auto Parts (AAP) Beats on Q2 Earnings & Revenues
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-beats-on-q2-earnings-revenues-2018-08-14
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Advance Auto Parts, Inc.AAP reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter. The figure surpassed the Zacks Consensus Estimate of $1.85. Adjusted operating income increased to $167.5 million from $146.7 million in second-quarter 2017.
Advance Auto Parts reported net revenues of $2.33 billion, beating the Zacks Consensus Estimate of $2.26 billion. Revenues were 2.8% higher than the year-ago quarter. During the quarter under review, comparable store sales were 2.8% higher year over year.
Gross profit was $1.01 billion in the reported quarter, higher than the prior-year quarter figure of $993.1 million. Gross Profit margin decreased 40 basis points year over year to 44.3%.
Adjusted selling, general and administrative (SG&A) expenses totaled $811.6 million or 34.9% of sales compared with $1797.6 million or 35.2% of sales in the year-ago period.
Advance Auto Parts, Inc. Price, Consensus and EPS Surprise
Advance Auto Parts, Inc. Price, Consensus and EPS Surprise | Advance Auto Parts, Inc. Quote
Financial Position
Advance Auto Parts had cash and cash equivalents of $902.2 million as of Jul 14, 2018, up from $257.2 million as of Jul 15, 2017. The total long-term debt was $1.05 billion as of Jul 14, 2018, higher than $1.04 billion as of Dec 30, 2017.
In second-quarter 2018, operating cash flow was $444 million compared with $267.3 million in the same period of 2017.
Dividend & Share Repurchase
On Aug 8, 2018, Advance Auto Parts' board approved a cash dividend of 6 cents per share to be paid on Oct 5, 2018, for shareholders of record as of Sep 21, 2018.
On Aug 8, 2018, the board of directors authorized a $600-million share repurchase program, replacing the existing $500-million share repurchase program.
Store Update
As of Jul 14, 2018, Advance Auto Parts operated 5,026 stores and 133 Worldpac branches and served approximately 1,219 independently-owned Carquest stores.
Zacks Rank & Other Stocks to Consider
Advance Auto Parts currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are Fox Factory Holding Corp. FOXF , PACCAR Inc. PCAR and AB Volvo VLVLY . While Fox Factory sports a Zacks Rank #1 (Strong Buy), both PACCAR and Volvo carry a Zacks Rank #2. 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%. Shares of the company have risen 76.2% over the past year.
PACCAR has an expected long-term growth rate of 10.8%. Over the past month, shares of the company have moved up 2.2%.
AB Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have gained 52.4%.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AB Volvo (VLVLY): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc.AAP reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter. Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report To read this article on Zacks.com click here. In second-quarter 2018, operating cash flow was $444 million compared with $267.3 million in the same period of 2017. Dividend & Share Repurchase On Aug 8, 2018, Advance Auto Parts' board approved a cash dividend of 6 cents per share to be paid on Oct 5, 2018, for shareholders of record as of Sep 21, 2018.
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Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter. Advance Auto Parts, Inc. Price, Consensus and EPS Surprise Advance Auto Parts, Inc. Price, Consensus and EPS Surprise | Advance Auto Parts, Inc. Quote Financial Position Advance Auto Parts had cash and cash equivalents of $902.2 million as of Jul 14, 2018, up from $257.2 million as of Jul 15, 2017.
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Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter. Advance Auto Parts, Inc. Price, Consensus and EPS Surprise Advance Auto Parts, Inc. Price, Consensus and EPS Surprise | Advance Auto Parts, Inc. Quote Financial Position Advance Auto Parts had cash and cash equivalents of $902.2 million as of Jul 14, 2018, up from $257.2 million as of Jul 15, 2017.
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Advance Auto Parts, Inc.AAP reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter. Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis Report Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AB Volvo (VLVLY): Free Stock Analysis Report To read this article on Zacks.com click here. During the quarter under review, comparable store sales were 2.8% higher year over year.
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11373.0
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2018-08-14 00:00:00 UTC
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Advance Auto Parts (AAP) Surpasses Q2 Earnings and Revenue Estimates
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-surpasses-q2-earnings-and-revenue-estimates-2018-08-14
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Advance Auto Parts (AAP) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.85 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.49%. A quarter ago, it was expected that this auto parts retailer would post earnings of $1.98 per share when it actually produced earnings of $2.10, delivering a surprise of 6.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Advance Auto Parts, which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, posted revenues of $2.33 billion for the quarter ended June 2018, surpassing the Zacks Consensus Estimate by 2.70%. This compares to year-ago revenues of $2.26 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Advance Auto Parts shares have added about 45.3% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for Advance Auto Parts?
While Advance Auto Parts has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Advance Auto Parts was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.72 on $2.20 billion in revenues for the coming quarter and $6.80 on $9.39 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Wholesale - Parts is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.85 per share. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. While Advance Auto Parts has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts (AAP) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.85 per share. Advance Auto Parts, which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, posted revenues of $2.33 billion for the quarter ended June 2018, surpassing the Zacks Consensus Estimate by 2.70%.
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Advance Auto Parts (AAP) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.85 per share. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. A quarter ago, it was expected that this auto parts retailer would post earnings of $1.98 per share when it actually produced earnings of $2.10, delivering a surprise of 6.06%.
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Advance Auto Parts (AAP) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.85 per share. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. While Advance Auto Parts has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
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11374.0
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2018-08-14 00:00:00 UTC
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Morning Movers: Dow Rallies 69 Points as Earnings Put Turkey Out of Mind
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AAP
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https://www.nasdaq.com/articles/morning-movers-dow-rallies-69-points-earnings-put-turkey-out-mind-2018-08-14
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Needed Distractions. The Dow Jones Industrial Average looks set to end its four-day losing streak thanks to strong economic data out of the U.S. and Germany, and solid earnings from retailers like Home Depot (HD). The Turkey situation-and the potential contagion from it -is not out of sight, but on Tuesday it appears out of mind. In today's Morning Movers, we...
Anton Darius Thesollers
•...explain why earnings might trump Turkey; •...highlight Switch's (SWCH) 20%-plus pre-open tumble; •...review Advance Auto Parts' (AAP) earnings.
Earnings are back in focus, and that's pushed concerns about Turkey out of investor minds, at least for one day.
S&P 500 futures have risen 0.3%, while Dow Jones Industrial Average futures have advanced 69 points, or 0.3%. Nasdaq Composite futures have gained 0.3%.
It's not that Turkey isn't still a problem. Overnight, Turkey President Recep Tayyip Erdoğan called for a boycott of U.S. products, and appears to blame the U.S. for everything that's happened to the country. Still, nothing falls forever, and the Turkish lira has finally rallied against the dollar -it's up 5.3% as we write-bringing a little calm to the market. "Investors' worries that t he situation in Turkey might spill over to Europe are dissipating for the time being and this change in sentiment will help stocks recover," writes Konstantinos Anthis, head of research at ADSS.
Just as important, however, are the earnings that are still trickling out. Home Depot (HD), Tapestry (TPR) and Advance Auto Parts (AAP) all reported their results this morning, and all three are trading higher following solid numbers. It continues the trend that we've seen all quarter long: U.S. corporate profits are really, really good, and provide something of a buffer despite overriding concerns Turkey, tariffs and other issues. "I continue to believe the strength is being driven by the fundamental narrative I continue to highlight, most importantly strong corporate results in Q2 following Q1," writes Tigress Financial's Ivan Feinseth. "Gains in stocks are further being driven by increases in dividends and share repurchases, positive trends in U.S. economic data, and a moderate-leaning-toward-accommodative Federal Reserve."
And for now, that will have to be enough.
Advance Auto Parts (AAP) is up 6.2% to $153.84 after reporting second-quarter earnings. The auto parts retailer earned $1.97 a share on revenue of $2.33 billion. Analysts were looking for earnings of $1.86 on revenue of $2.26 billion. For the full year, it sees revenue of $9.3 billion to $9.5 billion, compared with the $9.38 billion consensus estimate.
HCA Healthcare (HCA) is up 0.9% to $129.79 after Barclays initiated coverage with a Buy rating.
Getty Images
Home Depot (HD) is up 2.3% to $198.64 after reporting second-quarter earnings. The home improvement retailer earned $3.05 a share on revenue of $30.46 billion. Analysts were looking for earnings of $2.85 on revenue of $30.04 billion. For the full year, it sees earnings of $9.42 on revenue of $108 billion. Consensus calls for earnings of $9.46 on revenue of $107.9 billion.
Switch (SWCH) is down 23.8% to $10.65 after reporting second-quarter earnings. The data center hosting firm earned two cents a share on revenue of $102.2 million. Analysts were looking for earnings of four cents on revenue of $102.78 million. For the full year, it sees revenues of $405 million to $408 million, compared with the $428.29 million consensus estimate.
Tapestry (TPR) is up 5.3% to $49.95 after reporting fourth-quarter earnings. The Coach and Kate Spade parent company earned 60 cents a share on revenue of $1.48 billion. Analysts were looking for earnings of 57 cents on revenue of $1.47 billion. For the full year, it sees EPS of $2.70 to $2.80, on revenue of $6.1 billion to $6.2 billion. The consensus calls for earnings of $2.82 on revenue of $6.08 billion. - Teresa Rivas
Sign up to Review & Preview, a new daily email from Barron's. Every evening we'll review the news that moved markets during the day and look ahead to what it means for your portfolio in the morning.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Home Depot (HD), Tapestry (TPR) and Advance Auto Parts (AAP) all reported their results this morning, and all three are trading higher following solid numbers. In today's Morning Movers, we... Anton Darius Thesollers •...explain why earnings might trump Turkey; •...highlight Switch's (SWCH) 20%-plus pre-open tumble; •...review Advance Auto Parts' (AAP) earnings. Advance Auto Parts (AAP) is up 6.2% to $153.84 after reporting second-quarter earnings.
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In today's Morning Movers, we... Anton Darius Thesollers •...explain why earnings might trump Turkey; •...highlight Switch's (SWCH) 20%-plus pre-open tumble; •...review Advance Auto Parts' (AAP) earnings. Home Depot (HD), Tapestry (TPR) and Advance Auto Parts (AAP) all reported their results this morning, and all three are trading higher following solid numbers. Advance Auto Parts (AAP) is up 6.2% to $153.84 after reporting second-quarter earnings.
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In today's Morning Movers, we... Anton Darius Thesollers •...explain why earnings might trump Turkey; •...highlight Switch's (SWCH) 20%-plus pre-open tumble; •...review Advance Auto Parts' (AAP) earnings. Home Depot (HD), Tapestry (TPR) and Advance Auto Parts (AAP) all reported their results this morning, and all three are trading higher following solid numbers. Advance Auto Parts (AAP) is up 6.2% to $153.84 after reporting second-quarter earnings.
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In today's Morning Movers, we... Anton Darius Thesollers •...explain why earnings might trump Turkey; •...highlight Switch's (SWCH) 20%-plus pre-open tumble; •...review Advance Auto Parts' (AAP) earnings. Home Depot (HD), Tapestry (TPR) and Advance Auto Parts (AAP) all reported their results this morning, and all three are trading higher following solid numbers. Advance Auto Parts (AAP) is up 6.2% to $153.84 after reporting second-quarter earnings.
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2018-08-14 00:00:00 UTC
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Why Abercrombie & Fitch, Tapestry, and Advance Auto Parts Jumped Today
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AAP
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https://www.nasdaq.com/articles/why-abercrombie-fitch-tapestry-and-advance-auto-parts-jumped-today-2018-08-14
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Wall Street rebounded on Tuesday, and the Dow Jones Industrial Average posted a triple-digit gain as major benchmarks recovered much of the ground they had given up over the past few sessions. A substantial bounce in the value of the Turkish lira helped to convince many market participants that worries about a possible spread of financial uncertainties were likely overblown, and continuing optimism about the U.S. economy and the prospects for the biggest players in the corporate world helped spur gains. Some companies had particularly good news, and Abercrombie & Fitch (NYSE: ANF) , Tapestry (NYSE: TPR) , and Advance Auto Parts (NYSE: AAP) were among the best performers on the day. Here's why they did so well.
Abercrombie moves on without Einhorn
Shares of Abercrombie & Fitch jumped nearly 10% after the latest round of hedge fund disclosures revealed that well-known investor David Einhorn sold off his position in the apparel retailer. Einhorn's Greenlight Capital made numerous sales, ranging from some of the most important tech companies in the world to a number of retailers. Abercrombie's recent results have been solid , but the company hasn't been as reassuring that hard-earned gains will continue. With Einhorn now apparently out of the picture, shareholders can at least have the certainty of knowing that Abercrombie management's strategic moves won't be subject to challenge from activist investors.
Weaving a prettier Tapestry
Tapestry stock climbed 12% in the wake of the release of the company's fiscal fourth-quarter financial report. The luxury-fashion retailer said that revenue soared 31%, led higher by the acquisition of the Kate Spade retail chain. With the merger, Tapestry now comprises handbag specialist Coach, footwear designer Stuart Weitzman, and Kate Spade. CEO Victor Luis pointed to 2019 as "a pivotal year" for the company, especially with Kate Spade, where new collections will test the willingness of the public to embrace the brand after the death of its founder. Even as retail overall has gone through challenges, luxury brands appear to be recovering from the worst of their losses, and that gives Tapestry some tailwinds to help drive its growth in the year to come.
Driving higher at Advance
Finally, shares of Advance Auto Parts picked up 8%. The auto parts store posted comparable-store sales growth of 2.8% in the second quarter, which helped result in a nearly 25% boost to adjusted earnings per share. Advance also announced that it would authorize stock repurchases of as much as $600 million, or more than 5% of its current market capitalization, amid a brighter outlook for the full year that included revenue expectations of between $9.3 billion and $9.5 billion. With better conditions in the industry and improved execution on an internal basis, Advance Auto Parts wants to make the most of its opportunities while the time is right.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tapestry. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some companies had particularly good news, and Abercrombie & Fitch (NYSE: ANF) , Tapestry (NYSE: TPR) , and Advance Auto Parts (NYSE: AAP) were among the best performers on the day. Wall Street rebounded on Tuesday, and the Dow Jones Industrial Average posted a triple-digit gain as major benchmarks recovered much of the ground they had given up over the past few sessions. With Einhorn now apparently out of the picture, shareholders can at least have the certainty of knowing that Abercrombie management's strategic moves won't be subject to challenge from activist investors.
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Some companies had particularly good news, and Abercrombie & Fitch (NYSE: ANF) , Tapestry (NYSE: TPR) , and Advance Auto Parts (NYSE: AAP) were among the best performers on the day. Driving higher at Advance Finally, shares of Advance Auto Parts picked up 8%. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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Some companies had particularly good news, and Abercrombie & Fitch (NYSE: ANF) , Tapestry (NYSE: TPR) , and Advance Auto Parts (NYSE: AAP) were among the best performers on the day. Abercrombie moves on without Einhorn Shares of Abercrombie & Fitch jumped nearly 10% after the latest round of hedge fund disclosures revealed that well-known investor David Einhorn sold off his position in the apparel retailer. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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Some companies had particularly good news, and Abercrombie & Fitch (NYSE: ANF) , Tapestry (NYSE: TPR) , and Advance Auto Parts (NYSE: AAP) were among the best performers on the day. Abercrombie moves on without Einhorn Shares of Abercrombie & Fitch jumped nearly 10% after the latest round of hedge fund disclosures revealed that well-known investor David Einhorn sold off his position in the apparel retailer. Driving higher at Advance Finally, shares of Advance Auto Parts picked up 8%.
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2018-08-14 00:00:00 UTC
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Why Shares of Advanced Auto Parts Popped 8% Tuesday
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AAP
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https://www.nasdaq.com/articles/why-shares-advanced-auto-parts-popped-8-tuesday-2018-08-14
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What happened?
Shares of Advanced Auto Parts (NYSE: AAP) , a leading automotive aftermarket parts provider for professional installers and do-it-yourself consumers, are up 8% as of 3:25 p.m. EDT Tuesday after a strong second-quarter result. In fact, the company's strong earnings result even boosted the share price of its competitors: AutoZone, Inc. (NYSE: AZO) popped more than 5% during early afternoon trading, and O'Reilly Automotive (NASDAQ: ORLY) also logged a smaller 3% gain.
So what
Advance reported a 2.8% sales increase to $2.33 billion, which topped analysts' estimates looking for $2.27 billion. The top-line result was driven by a 2.8% increase in same-store sales, which topped estimates for only 0.1% growth. Adjusted earnings per share checked in at $1.97, well ahead of analysts' estimates calling for $1.86 per share.
President and Chief Executive Officer Tom Greco said the following in a press release:
Now what
Management also raised its full-year revenue guidance to a range of $9.3 billion to $9.5 billion thanks to the strong start to 2018 and noted that industry demand continues to improve. Advance also announced a new share repurchase program authorized for $600 million, with plans to return $100 million to $200 million to shareholders through buybacks during the second half of 2018. You could argue that share buybacks aren't the best use of capital -- Advance isn't cheap, trading at a price-to-earnings ratio near 23 times -- but between rising same-store sales, profits that topped estimates, and increased full-year guidance, there was plenty for investors to like about Advance's second quarter.
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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Advanced Auto Parts (NYSE: AAP) , a leading automotive aftermarket parts provider for professional installers and do-it-yourself consumers, are up 8% as of 3:25 p.m. EDT Tuesday after a strong second-quarter result. In fact, the company's strong earnings result even boosted the share price of its competitors: AutoZone, Inc. (NYSE: AZO) popped more than 5% during early afternoon trading, and O'Reilly Automotive (NASDAQ: ORLY) also logged a smaller 3% gain. You could argue that share buybacks aren't the best use of capital -- Advance isn't cheap, trading at a price-to-earnings ratio near 23 times -- but between rising same-store sales, profits that topped estimates, and increased full-year guidance, there was plenty for investors to like about Advance's second quarter.
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Shares of Advanced Auto Parts (NYSE: AAP) , a leading automotive aftermarket parts provider for professional installers and do-it-yourself consumers, are up 8% as of 3:25 p.m. EDT Tuesday after a strong second-quarter result. So what Advance reported a 2.8% sales increase to $2.33 billion, which topped analysts' estimates looking for $2.27 billion. You could argue that share buybacks aren't the best use of capital -- Advance isn't cheap, trading at a price-to-earnings ratio near 23 times -- but between rising same-store sales, profits that topped estimates, and increased full-year guidance, there was plenty for investors to like about Advance's second quarter.
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Shares of Advanced Auto Parts (NYSE: AAP) , a leading automotive aftermarket parts provider for professional installers and do-it-yourself consumers, are up 8% as of 3:25 p.m. EDT Tuesday after a strong second-quarter result. You could argue that share buybacks aren't the best use of capital -- Advance isn't cheap, trading at a price-to-earnings ratio near 23 times -- but between rising same-store sales, profits that topped estimates, and increased full-year guidance, there was plenty for investors to like about Advance's second quarter. 10 stocks we like better than Advance Auto Parts When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Shares of Advanced Auto Parts (NYSE: AAP) , a leading automotive aftermarket parts provider for professional installers and do-it-yourself consumers, are up 8% as of 3:25 p.m. EDT Tuesday after a strong second-quarter result. So what Advance reported a 2.8% sales increase to $2.33 billion, which topped analysts' estimates looking for $2.27 billion. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them!
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11377.0
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2018-08-14 00:00:00 UTC
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Mid-Day Update: Risk Aversion Extinguished by Rebound in Turkish Lira
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AAP
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https://www.nasdaq.com/articles/mid-day-update-risk-aversion-extinguished-rebound-turkish-lira-2018-08-14
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nan
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nan
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US stocks were trading higher at midday as Wall Street took comfort from stability in the Turkish lira and signs of strength in the US economy. Led by gains in industrial and material stocks, the S&P 500 and Dow Jones Industrial Average were positive for the first time in five days.
The recent meltdown in the Turkish currency, fueled by immense foreign currency debt, exceedingly low interest rates and President Recep Erdogan's nationalistic fury, took a breather on Tuesday and restored investors' appetite for risk. The Dow opened more than 100 points higher while the yield on the 10-year Treasury note inched up a basis point.
Economic data was also a factor in Tuesday's positive price action. Import and export prices were flat to lower, while household debt increased for a 16th consecutive month, underscoring robust consumer spending despite rising interest rates.
With geopolitics fading to the background, corporate earnings were back in focus with Home Depot ( HD ) crushing expectations. Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results.
Most European bourses were trading higher with the exception of the UK's FTSE-100 after copper miner Antofagasta warned that trade tensions could impact earnings. The subsequent losses in the mining sector outweighed a 43-year low in the UK jobless rate. Eurozone markets were universally higher as worries surrounding Italian debt eased and German economic data beat expectations.
Crude oil was up $0.02 to $67.22 per barrel. Natural gas was up $0.04 to $2.97 per 1 million BTU. Gold was up $4.50 to $1,203.40 an ounce, while silver was up $0.07 to $15.06 an ounce. Copper was down $0.04 to $2.68 per pound.
Among energy ETFs, the United States Oil Fund was down 0.43% to $13.95 with the United States Natural Gas Fund up 1.46% to $24.39. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 0.68% to 19.86 while SPDR Gold Shares were up 0.26% to $113.25. The iShares Silver Trust was up 0.50% to $14.17.
Here's where the markets stand at mid-day:
US MARKETS
NYSE Composite Index was up 60.58 points (+0.48%) to 7,868.66
Dow Jones Industrial Index was up 108.07 points (+0.43%) to 25,295.77
S&P 500 was up 15.50 points (+0.55%) to 2,837.87
Nasdaq Composite Index was up 48.85 points (+0.63%) to 7,868.28
GLOBAL SENTIMENT
FTSE 100 was down 30.81 points (-0.40%) to 7,611.64
DAX was up 0.13 points (+0.0%) to 12,358.87
CAC 40 was down 8.91 points (-0.17%) to 5,403.41
Nikkei 225 was up 498.65 points (+2.28%) to 22,356.08
Hang Seng Index was down 183.64 points (-0.66%) to 27,752.93
Shanghai China Composite Index was down 4.71 points (-0.17%) to 2,781.16
NYSE SECTOR INDICES
NYSE Energy Sector Index was up 13.62 points (+0.12%) to 11,777.35
NYSE Financial Sector Index was up 43.69 points (+0.55%) to 8,004.99
NYSE Healthcare Sector Index was up 41.78 points (+0.27%) to 15,489.05
UPSIDE MOVERS
(+) THST (+77.07%) Sold wholesale wine business to Precept Brands for $18 million
(+) HYRE (+20.25%) Reported upbeat Q2 results and FY18 revenue guidance
(+) SVT (+14.58%) Q2 revenue increased 24% Y-O-Y
DOWNSIDE MOVERS
(-) SWCH (-24.43%) Q2 results missed expectations, lowered FY18 guidance
(-) VERI (-21.20%) Reported wider-than-expected loss, missed revenue estimates
(-) VIPS (-15.04%) Reported mixed Q2 results, issued weak Q3 guidance
(-) GFI (-11.31%) Announced layoffs to cut costs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results. Import and export prices were flat to lower, while household debt increased for a 16th consecutive month, underscoring robust consumer spending despite rising interest rates. Eurozone markets were universally higher as worries surrounding Italian debt eased and German economic data beat expectations.
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Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results. NYSE Composite Index was up 60.58 points (+0.48%) to 7,868.66 Dow Jones Industrial Index was up 108.07 points (+0.43%) to 25,295.77 S&P 500 was up 15.50 points (+0.55%) to 2,837.87 Nasdaq Composite Index was up 48.85 points (+0.63%) to 7,868.28 NYSE Energy Sector Index was up 13.62 points (+0.12%) to 11,777.35 NYSE Financial Sector Index was up 43.69 points (+0.55%) to 8,004.99 NYSE Healthcare Sector Index was up 41.78 points (+0.27%) to 15,489.05
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Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results. NYSE Composite Index was up 60.58 points (+0.48%) to 7,868.66 Dow Jones Industrial Index was up 108.07 points (+0.43%) to 25,295.77 S&P 500 was up 15.50 points (+0.55%) to 2,837.87 Nasdaq Composite Index was up 48.85 points (+0.63%) to 7,868.28 FTSE 100 was down 30.81 points (-0.40%) to 7,611.64 DAX was up 0.13 points (+0.0%) to 12,358.87 CAC 40 was down 8.91 points (-0.17%) to 5,403.41 Nikkei 225 was up 498.65 points (+2.28%) to 22,356.08 Hang Seng Index was down 183.64 points (-0.66%) to 27,752.93 Shanghai China Composite Index was down 4.71 points (-0.17%) to 2,781.16
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Advanced Auto Parts ( AAP ) and Tapestry ( TPR ), formally Coach, also reported better-than-expected results. Among energy ETFs, the United States Oil Fund was down 0.43% to $13.95 with the United States Natural Gas Fund up 1.46% to $24.39. NYSE Composite Index was up 60.58 points (+0.48%) to 7,868.66 Dow Jones Industrial Index was up 108.07 points (+0.43%) to 25,295.77 S&P 500 was up 15.50 points (+0.55%) to 2,837.87 Nasdaq Composite Index was up 48.85 points (+0.63%) to 7,868.28
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11378.0
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2018-08-14 00:00:00 UTC
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Tuesday's ETF Movers: XRT, MCHI
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AAP
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https://www.nasdaq.com/articles/tuesdays-etf-movers-xrt-mchi-2018-08-14
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nan
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nan
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In trading on Tuesday, the SPDR S&P Retail ETF ( XRT ) is outperforming other ETFs, up about 2% on the day. Components of that ETF showing particular strength include shares of Advance Auto Parts Inc Advance Auto Parts ( AAP ), up about 8% and shares of Abercrombie & Fitch ( ANF ), up about 7.5% on the day.
And underperforming other ETFs today is the iShares MSCI China ETF ( MCHI ), off about 1.4% in Tuesday afternoon trading. Among components of that ETF with the weakest showing on Tuesday were shares of YY ( YY ), lower by about 15.9%, and shares of Vipshop Holdings (VIPS), lower by about 15% on the day.
VIDEO: Tuesday's ETF Movers: XRT, MCHI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of Advance Auto Parts Inc Advance Auto Parts ( AAP ), up about 8% and shares of Abercrombie & Fitch ( ANF ), up about 7.5% on the day. Among components of that ETF with the weakest showing on Tuesday were shares of YY ( YY ), lower by about 15.9%, and shares of Vipshop Holdings (VIPS), lower by about 15% on the day. VIDEO: Tuesday's ETF Movers: XRT, MCHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of Advance Auto Parts Inc Advance Auto Parts ( AAP ), up about 8% and shares of Abercrombie & Fitch ( ANF ), up about 7.5% on the day. Among components of that ETF with the weakest showing on Tuesday were shares of YY ( YY ), lower by about 15.9%, and shares of Vipshop Holdings (VIPS), lower by about 15% on the day. VIDEO: Tuesday's ETF Movers: XRT, MCHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of Advance Auto Parts Inc Advance Auto Parts ( AAP ), up about 8% and shares of Abercrombie & Fitch ( ANF ), up about 7.5% on the day. Among components of that ETF with the weakest showing on Tuesday were shares of YY ( YY ), lower by about 15.9%, and shares of Vipshop Holdings (VIPS), lower by about 15% on the day. VIDEO: Tuesday's ETF Movers: XRT, MCHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of Advance Auto Parts Inc Advance Auto Parts ( AAP ), up about 8% and shares of Abercrombie & Fitch ( ANF ), up about 7.5% on the day. In trading on Tuesday, the SPDR S&P Retail ETF ( XRT ) is outperforming other ETFs, up about 2% on the day. And underperforming other ETFs today is the iShares MSCI China ETF ( MCHI ), off about 1.4% in Tuesday afternoon trading.
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11379.0
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2018-08-14 00:00:00 UTC
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Consumer Sector Update for 08/14/2018: TPR,AAP,ANGI
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-08142018-tpraapangi-2018-08-14
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nan
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nan
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Top Consumer Stocks
WMT +1.45%
MCD +1.66%
DIS +0.65%
CVS +2.73%
KO +0.24%
Consumer stocks were most higher Tuesday, with shares of consumer staples companies in the S&P 500 gaining almost 0.6% after noon while shares of consumer discretionary firms in the S&P 500 were climbing more than 1.0%.
In industry news:
Same-store sales continued their brisk pace during the seven days ended Aug. 11, rising 4.5% year-over-year, although that marked a 1.1-percentage point slowdown from last week's 5.6% expansion for the 20 of the largest chain-store retailers in the Redbook survey. Month-to-date sales also slowed, dropping 0.8-percentage points from the prior week to a gain of just 0.1% over the first two weeks in July.
Among consumer stocks moving on news:
+ Tapestry ( TPR ) shares surged Tuesday, climbing almost 14%, after the luxury goods retailer reported better-than-expected fiscal Q4 financial results. Excluding one-time items, Tapestry earned $0.60 per share, up from period's $0.50 per share during the year-ago period and beating the Capital IQ consensus by $0.03 per share. Revenue grew to $1.48 billion from $1.13 billion last year and sneaking past the $1.47 billion analyst mean.
In other sector news:
+ Advance Auto Parts ( AAP ) jumped out to a nearly 20-month high, rising almost 9% to its best share price since January 2017 at $157.73, after the retailer beat Wall Street expectations with its Q2 financial results. Excluding one-time items, the company reported non-GAAP net income of $1.97 per share on $2.33 billion in sales, exceeding the Capital IQ consensus by $0.11 per share and $70 million, respectively. It also raised the the bottom end of its FY18 sales outlook by $200 million to a new range of $9.3 billion to $9.5 billion, still bracketing the $9.38 billion Street view.
+ ANGI Homeservices ( ANGI ) climbed almost 5% on Tuesday after SQN Investors LP disclosed owning almost 3.62 million of its shares, acquiring a 5.5% passive stake in the home-services referral website, according to a SC 13G regulatory filing late Monday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In other sector news: + Advance Auto Parts ( AAP ) jumped out to a nearly 20-month high, rising almost 9% to its best share price since January 2017 at $157.73, after the retailer beat Wall Street expectations with its Q2 financial results. Excluding one-time items, the company reported non-GAAP net income of $1.97 per share on $2.33 billion in sales, exceeding the Capital IQ consensus by $0.11 per share and $70 million, respectively. In industry news: Same-store sales continued their brisk pace during the seven days ended Aug. 11, rising 4.5% year-over-year, although that marked a 1.1-percentage point slowdown from last week's 5.6% expansion for the 20 of the largest chain-store retailers in the Redbook survey.
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Excluding one-time items, the company reported non-GAAP net income of $1.97 per share on $2.33 billion in sales, exceeding the Capital IQ consensus by $0.11 per share and $70 million, respectively. In other sector news: + Advance Auto Parts ( AAP ) jumped out to a nearly 20-month high, rising almost 9% to its best share price since January 2017 at $157.73, after the retailer beat Wall Street expectations with its Q2 financial results. Among consumer stocks moving on news: + Tapestry ( TPR ) shares surged Tuesday, climbing almost 14%, after the luxury goods retailer reported better-than-expected fiscal Q4 financial results.
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Excluding one-time items, the company reported non-GAAP net income of $1.97 per share on $2.33 billion in sales, exceeding the Capital IQ consensus by $0.11 per share and $70 million, respectively. In other sector news: + Advance Auto Parts ( AAP ) jumped out to a nearly 20-month high, rising almost 9% to its best share price since January 2017 at $157.73, after the retailer beat Wall Street expectations with its Q2 financial results. Consumer stocks were most higher Tuesday, with shares of consumer staples companies in the S&P 500 gaining almost 0.6% after noon while shares of consumer discretionary firms in the S&P 500 were climbing more than 1.0%.
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Excluding one-time items, the company reported non-GAAP net income of $1.97 per share on $2.33 billion in sales, exceeding the Capital IQ consensus by $0.11 per share and $70 million, respectively. In other sector news: + Advance Auto Parts ( AAP ) jumped out to a nearly 20-month high, rising almost 9% to its best share price since January 2017 at $157.73, after the retailer beat Wall Street expectations with its Q2 financial results. Consumer stocks were most higher Tuesday, with shares of consumer staples companies in the S&P 500 gaining almost 0.6% after noon while shares of consumer discretionary firms in the S&P 500 were climbing more than 1.0%.
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11380.0
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2018-08-13 00:00:00 UTC
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Can Molecular Diagnostics Drive Myriad's (MYGN) Q4 Earnings?
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AAP
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https://www.nasdaq.com/articles/can-molecular-diagnostics-drive-myriads-mygn-q4-earnings-2018-08-13
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nan
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nan
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Myriad Genetics, Inc.MYGN is scheduled to report fourth-quarter fiscal 2018 results on Aug 14, after the closing bell.
Last quarter, the company posted a positive earnings surprise of 14.8%. Moreover, Myriad Genetics beat the Zacks Consensus Estimate in the trailing four quarters, the average being 20.8%.
Let's take a look at how things are shaping up prior to this announcement.
Factors at Play
Similar to last quarter, Myriad Genetics is expected to gain from strong Molecular Diagnostics performance, led by solid contributions from the GeneSight, EndoPredict and Prolaris tests.
GeneSight Test
Per the company, as the GeneSight test is placed in a highly under-penetrated preventive care market, the product has huge potential. Management expects consistent growth in revenues from the test.
Furthermore, the company recently presented encouraging data related to the test from a large, well-controlled pharmacogenomics study on major depressive disorder (MDD). This has resulted in a commercial coverage decision for GeneSight from a top-20 payer in the Mid-Atlantic region.
EndoPredict Test
Over the last few months, Myriad Genetics has been making steady progress with the EndoPredict test. During the second quarter of fiscal 2018, the company announced the finalization of LCD from Noridian for EndoPredict, thereby expanding the test's coverage to around 90% of the U.S. market.
Further, the National Institute for Health and Care Excellence (NICE) in the United Kingdom issued a revised Diagnostics Consultation Document (DCD) that covers EndoPredict as one of the three approved prognostic tests. Notably, the company projects more than 26,000 breast cancer patients in the United Kingdom annually, which would be eligible for breast cancer prognostic signature.
Prolaris Test
Management expects double-digit volume growth in fiscal 2018 for GeneSight, Vectra DA and Prolaris tests. Notably, all of these make up the chunk of the Molecular Diagnostics portfolio.
Prolaris testing volumes grew double digits in the last reported quarter. We are encouraged by the company's receipt of seven new commercial coverage decisions for the test.
During the fiscal fourth quarter, Myriad Genetics announced that the payers represent six million new covered lives for Prolaris. Plus, per the company, the payers include one of the top 25 commercial insurers in the United States.
Myriad Genetics, Inc. Price and EPS Surprise
Myriad Genetics, Inc. Price and EPS Surprise | Myriad Genetics, Inc. Quote
Myriad Genetics noted that this acceleration in commercial insurer coverage for Prolaris has come close on the heels of the recently updated National Comprehensive Cancer Network (NCCN) guidelines, which support Prolaris as the standard of care in making treatment decisions for patients suffering from low and favorable-intermediate risk prostate cancer.
With this development, Prolaris now provides insurance coverage to 50% of prostate cancer patients in the United States.
Hereditary Cancer Testing
We expect Myriad Genetics to continue to see year-over-year growth in Hereditary Cancer volumes. Moreover, the previously reported quarter was the fifth consecutive quarter wherein volume growth was led by encouraging response to the newly launched riskScore test under its myRisk Hereditary Cancer testing portfolio.
Also, during the fiscal third quarter, the company begun well-planned commercialization of BRACAnalysis CDx to roughly 3,000 oncologists. Consequently, the company witnessed a 70% rise in metastatic breast cancer testing in comparison to the second quarter of fiscal 2018. This momentum is expected to get maintained in the to-be-reported quarter as well.
In April, the company received manufacturing and marketing approval for its BRACAnalysis Diagnostic System in Japan. Notably, the company projects more than 15,000 cases in Japan which are eligible for testing with BRACAnalysis CDx. This development is expected to boost the top line in the to-be-reported quarter.
Management has provided the guidance for the fourth quarter of fiscal 2018. The company estimates adjusted EPS of 31-33 cents on total revenues of $193-$195 million.
Meanwhile, unfavorable foreign currency translation continues to be a risk. With a considerable portion of revenues coming from outside the United States, the company faces the risk of exchange rate fluctuations. Additionally, the company apprehends a decline in pharmaceutical and clinical services segment revenues in the to-be-reported quarter due to seasonally reduced patient visits in spring in comparison to winter.
Further, the Zacks Consensus Estimate for fourth-quarter revenues of $195.8 million reflects a decline of 2.4% from the year-ago quarter.
Earnings Whispers
Our proven model shows that Myriad Genetics is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is the case here as you will see below.
Earnings ESP : Myriad Genetics has an Earnings ESP of +5.71%.
Zacks Rank : Myriad Genetics carries a Zacks Rank #3, which increases the predictive power of ESP. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
The Zacks Consensus Estimate for fourth-quarter 2018 adjusted earnings of 33 cents reflects an increase of 10% over the year-ago quarter.
Other Stocks Worth a Look
Here are a few other stocks worth considering as they have the right combination of elements to beat estimates this time around.
National Vision Holdings, Inc. EYE has an Earnings ESP of +2.70% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.22% and a Zacks Rank of 2.
Best Buy Co., Inc. BBY has an Earnings ESP of +0.55% and is a Zacks #2 Ranked company.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Myriad Genetics, Inc. (MYGN): Free Stock Analysis Report
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
National Vision Holdings, Inc. (EYE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.22% and a Zacks Rank of 2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Myriad Genetics, Inc. (MYGN): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report National Vision Holdings, Inc. (EYE): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play Similar to last quarter, Myriad Genetics is expected to gain from strong Molecular Diagnostics performance, led by solid contributions from the GeneSight, EndoPredict and Prolaris tests.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Myriad Genetics, Inc. (MYGN): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report National Vision Holdings, Inc. (EYE): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.22% and a Zacks Rank of 2. Myriad Genetics, Inc. Price and EPS Surprise Myriad Genetics, Inc. Price and EPS Surprise | Myriad Genetics, Inc. Quote Myriad Genetics noted that this acceleration in commercial insurer coverage for Prolaris has come close on the heels of the recently updated National Comprehensive Cancer Network (NCCN) guidelines, which support Prolaris as the standard of care in making treatment decisions for patients suffering from low and favorable-intermediate risk prostate cancer.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Myriad Genetics, Inc. (MYGN): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report National Vision Holdings, Inc. (EYE): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.22% and a Zacks Rank of 2. Myriad Genetics, Inc. Price and EPS Surprise Myriad Genetics, Inc. Price and EPS Surprise | Myriad Genetics, Inc. Quote Myriad Genetics noted that this acceleration in commercial insurer coverage for Prolaris has come close on the heels of the recently updated National Comprehensive Cancer Network (NCCN) guidelines, which support Prolaris as the standard of care in making treatment decisions for patients suffering from low and favorable-intermediate risk prostate cancer.
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Advance Auto Parts, Inc. AAP has an Earnings ESP of +2.22% and a Zacks Rank of 2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Myriad Genetics, Inc. (MYGN): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report National Vision Holdings, Inc. (EYE): Free Stock Analysis Report To read this article on Zacks.com click here. During the fiscal fourth quarter, Myriad Genetics announced that the payers represent six million new covered lives for Prolaris.
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11381.0
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2018-08-13 00:00:00 UTC
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Is a Beat Likely for Advance Auto Parts' (AAP) Q2 Earnings?
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AAP
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https://www.nasdaq.com/articles/is-a-beat-likely-for-advance-auto-parts-aap-q2-earnings-2018-08-13
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nan
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nan
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Advance Auto Parts, Inc.AAP is set to report second-quarter 2018 results before the opening bell on Aug 14.
In the last-reported quarter, the company delivered a positive surprise of 6.1%. Per the earnings record, it beat estimates thrice and missed once in the trailing four quarters, with an average beat of 9.9%.
In the past three months, shares of Advance Auto Parts have outperformed the industry it belongs to. The stock has moved up 20.3% compared with growth of 14.5% recorded by the industry during the period.
Let's see, how things have shaped up for the upcoming announcement.
Advance Auto Parts, Inc. Price and EPS Surprise
Advance Auto Parts, Inc. Price and EPS Surprise | Advance Auto Parts, Inc. Quote
Is a Positive Surprise Likely?
Our proven model shows that Advance Auto Parts is likely to beat on earnings this quarter. That is because it has the right combination of the two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - for increasing the odds of an earnings beat.
Earnings ESP : Advance Auto Parts has an Earnings ESP of +2.22% as the Most Accurate Estimate is pegged at $1.89, higher than the Zacks Consensus Estimate of $1.84. A positive ESP indicates that an earnings surprise is likely. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Advance Auto Parts currently carries a Zacks Rank #2 (Buy). This, when combined with a positive ESP, makes us reasonably confident of an earnings beat.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
What's Driving Better-Than-Expected Earnings?
Advance Auto Parts is emphasizing on expanding its footprint by opening new stores, widening online presence and collaboration. In April, the company partnered with Uber Technologies to become an exclusive aftermarket auto parts supplier for the Uber Visa Debit Card program for driver partners. The company anticipates this partnership to drive DIY traffic of stores and websites.
Moreover, the company is undertaking various initiatives to bolster and streamline its supply chain to meet the evolving need of customers. Except for supply chain initiatives, it is also looking into store transformation and inventory positioning. Further, the company expects to complete the transition to demand-driven assortment by 2018 end. Advance Auto Parts anticipates this to aid customers.
Other Stocks to Consider
Here are a few other stocks worth considering, with the right combination of elements to outpace earnings estimates this time around:
The Gap, Inc.GPS has an Earnings ESP of +3.90% and is a #2 Ranked player. The company is expected to announce its upcoming earnings on Aug 23.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Science Applications International CorporationSAIC has an Earnings ESP of +1.70% and is a #1 Ranked player. The company is expected to announce its upcoming earnings on Sep 6.
Frontline Ltd.FRO has an Earnings ESP of +10.59% and is a Zacks #3 Ranked player. The company is expected to report upcoming earnings on Aug 29.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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Frontline Ltd. (FRO): Free Stock Analysis Report
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc.AAP is set to report second-quarter 2018 results before the opening bell on Aug 14. Click to get this free report Frontline Ltd. (FRO): Free Stock Analysis Report SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts is emphasizing on expanding its footprint by opening new stores, widening online presence and collaboration.
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Click to get this free report Frontline Ltd. (FRO): Free Stock Analysis Report SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP is set to report second-quarter 2018 results before the opening bell on Aug 14. Advance Auto Parts, Inc. Price and EPS Surprise Advance Auto Parts, Inc. Price and EPS Surprise | Advance Auto Parts, Inc. Quote Is a Positive Surprise Likely?
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Click to get this free report Frontline Ltd. (FRO): Free Stock Analysis Report SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP is set to report second-quarter 2018 results before the opening bell on Aug 14. Advance Auto Parts, Inc. Price and EPS Surprise Advance Auto Parts, Inc. Price and EPS Surprise | Advance Auto Parts, Inc. Quote Is a Positive Surprise Likely?
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Advance Auto Parts, Inc.AAP is set to report second-quarter 2018 results before the opening bell on Aug 14. Click to get this free report Frontline Ltd. (FRO): Free Stock Analysis Report SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings ESP : Advance Auto Parts has an Earnings ESP of +2.22% as the Most Accurate Estimate is pegged at $1.89, higher than the Zacks Consensus Estimate of $1.84.
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11382.0
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2018-08-13 00:00:00 UTC
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Pre-Market Earnings Report for August 14, 2018 : HD, TPR, AAP, CDK, CAE, GDS, ARRY, MMYT, EAT, CSIQ, URGN, ECC
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AAP
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https://www.nasdaq.com/articles/pre-market-earnings-report-august-14-2018-hd-tpr-aap-cdk-cae-gds-arry-mmyt-eat-csiq-urgn
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The following companies are expected to report earnings prior to market open on 08/14/2018. Visit our Earnings Calendar for a full list of expected earnings releases.
Home Depot, Inc. ( HD ) is reporting for the quarter ending July 31, 2018. The building company's consensus earnings per share forecast from the 14 analysts that follow the stock is $2.84. This value represents a 26.22% increase compared to the same quarter last year. In the past year HD has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 0.97%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for HD is 20.75 vs. an industry ratio of 17.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Tapestry, Inc. ( TPR ) is reporting for the quarter ending June 30, 2018. The retail (shoe) company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.56. This value represents a 12.00% increase compared to the same quarter last year. In the past year TPR has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 8%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for TPR is 18.51 vs. an industry ratio of 20.30.
Advance Auto Parts Inc ( AAP ) is reporting for the quarter ending June 30, 2018. The wholesale retail company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.84. This value represents a 16.46% increase compared to the same quarter last year. AAP missed the consensus earnings per share in the 2nd calendar quarter of 2017 by -4.24%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for AAP is 21.52 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry.
CDK Global, Inc. ( CDK ) is reporting for the quarter ending June 30, 2018. The information technology services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.80. This value represents a 45.45% increase compared to the same quarter last year. In the past year CDK has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.19%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CDK is 20.92 vs. an industry ratio of 56.70.
CAE Inc ( CAE ) is reporting for the quarter ending June 30, 2018. The aerospace and defense company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.20. This value represents a 11.11% increase compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for CAE is 21.90 vs. an industry ratio of 33.70.
GDS Holdings Limited ( GDS ) is reporting for the quarter ending June 30, 2018. The technology services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.11. This value represents a 8.33% increase compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for GDS is -86.53 vs. an industry ratio of -8.50.
Array BioPharma Inc. ( ARRY ) is reporting for the quarter ending June 30, 2018. The biomedical (gene) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $-0.24. This value represents a 41.18% decrease compared to the same quarter last year. In the past year ARRY has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for ARRY is -20.27 vs. an industry ratio of -10.00.
MakeMyTrip Limited ( MMYT ) is reporting for the quarter ending June 30, 2018. The internet services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.30. This value represents a 50.82% increase compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for MMYT is -25.00 vs. an industry ratio of 31.90.
Brinker International, Inc. ( EAT ) is reporting for the quarter ending June 30, 2018. The restaurant company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.19. This value represents a 9.17% increase compared to the same quarter last year. EAT missed the consensus earnings per share in the 3rd calendar quarter of 2017 by -2.33%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for EAT is 12.55 vs. an industry ratio of 32.10.
Canadian Solar Inc. ( CSIQ ) is reporting for the quarter ending June 30, 2018. The solar company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.32. This value represents a 313.33% increase compared to the same quarter last year. In the past year CSIQ has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CSIQ is 7.56 vs. an industry ratio of -8.10, implying that they will have a higher earnings growth than their competitors in the same industry.
UroGen Pharma Ltd. ( URGN ) is reporting for the quarter ending June 30, 2018. The biomedical (gene) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.91. This value represents a 30.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for URGN is -12.60 vs. an industry ratio of -10.00.
Eagle Point Credit Company Inc. ( ECC ) is reporting for the quarter ending June 30, 2018. The finance/investment management company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.24. This value represents a 54.72% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for ECC is 11.02 vs. an industry ratio of -11.30, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts Inc ( AAP ) is reporting for the quarter ending June 30, 2018. AAP missed the consensus earnings per share in the 2nd calendar quarter of 2017 by -4.24%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for AAP is 21.52 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2018 Price to Earnings ratio for AAP is 21.52 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry. Advance Auto Parts Inc ( AAP ) is reporting for the quarter ending June 30, 2018. AAP missed the consensus earnings per share in the 2nd calendar quarter of 2017 by -4.24%.
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Zacks Investment Research reports that the 2018 Price to Earnings ratio for AAP is 21.52 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry. Advance Auto Parts Inc ( AAP ) is reporting for the quarter ending June 30, 2018. AAP missed the consensus earnings per share in the 2nd calendar quarter of 2017 by -4.24%.
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Advance Auto Parts Inc ( AAP ) is reporting for the quarter ending June 30, 2018. AAP missed the consensus earnings per share in the 2nd calendar quarter of 2017 by -4.24%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for AAP is 21.52 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry.
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11383.0
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2018-08-11 00:00:00 UTC
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Advance Auto Parts to post Q2 results
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-post-q2-results-2018-08-11
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What's Happening
Advance Auto Parts ( AAP ) is scheduled to report its second-quarter numbers before the market open on August 14. Earnings are expected to rise to $1.84 per share from $1.58 during the same period last year. The stock has outperformed in 2018, appreciating 38.6% year to date.
Technical Analysis
AAP was recently trading at $147.08 down $1.62 from its 12-month high and $68.27 above its 12-month low. InvestorsObserver's Stock Score Report gives AAP an 86 long-term technical score and a 94 short-term technical score. The stock has recent support above $140 and recent resistance below $148.75. Of the 19 analysts who cover the stock 8 rate it Strong Buy, 2 rate it Buy, 6 rate it Hold, 1 rate it Sell, and 2 rate it Strong Sell, AAP gets a score of 73 from InvestorsObserver's Stock Score Report.
Analyst's Thoughts
AAP has enjoyed strong gains since the stock turned bullish late last year, and the gains have been fueled by a string of three consecutive earnings beat. While earnings have been much better than expected, the company did miss on sales last quarter, but the market overlooked the sales miss and pushed shares to a new 52-week high in the time since. AAP remains just shy of its 52-week high, and another strong report could easily see the stock climb to set a new high for the year. The street expects another good report, with a whisper number of $1.91 versus the consensus $1.84.
Stock Only Trade
If you're looking to establish a long stock position in AAP consider buying the stock under $147. Sell if it falls below $136 or take profits if it gets to $169.
Bullish Trade
If you want a bullish hedged trade on the stock, consider a 9/21/18 120/125 bull-put credit spread for a $0.35 credit. That's a potential 7.5% return (65.4% annualized*) and the stock would have to fall 15.3% to cause a problem.
Bearish Trade
If you want to take a bearish stance on the stock at this time, consider an 9/21/18 165/170 bear-call credit spread for a $0.5 credit. That's a potential 11.1% return (96.6% annualized*) and the stock would have to rise 12.5% to cause a problem.
Covered Call Trade
If you like the stock but wish to lower your cost basis on a new position, you may want to consider a 9/21/18 $145 covered call. Buy AAP shares (typically 100 shares, scale as appropriate), while selling the 9/21/18 $145 call for a debit of $137.64, per share. The trade has a target assigned return of 5.3%, and a target annualized return of 46.5% (for comparison purposes only).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Originally published on InvestorsObserver.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What's Happening Advance Auto Parts ( AAP ) is scheduled to report its second-quarter numbers before the market open on August 14. Technical Analysis AAP was recently trading at $147.08 down $1.62 from its 12-month high and $68.27 above its 12-month low. InvestorsObserver's Stock Score Report gives AAP an 86 long-term technical score and a 94 short-term technical score.
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InvestorsObserver's Stock Score Report gives AAP an 86 long-term technical score and a 94 short-term technical score. Of the 19 analysts who cover the stock 8 rate it Strong Buy, 2 rate it Buy, 6 rate it Hold, 1 rate it Sell, and 2 rate it Strong Sell, AAP gets a score of 73 from InvestorsObserver's Stock Score Report. What's Happening Advance Auto Parts ( AAP ) is scheduled to report its second-quarter numbers before the market open on August 14.
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InvestorsObserver's Stock Score Report gives AAP an 86 long-term technical score and a 94 short-term technical score. Of the 19 analysts who cover the stock 8 rate it Strong Buy, 2 rate it Buy, 6 rate it Hold, 1 rate it Sell, and 2 rate it Strong Sell, AAP gets a score of 73 from InvestorsObserver's Stock Score Report. Stock Only Trade If you're looking to establish a long stock position in AAP consider buying the stock under $147.
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Technical Analysis AAP was recently trading at $147.08 down $1.62 from its 12-month high and $68.27 above its 12-month low. Buy AAP shares (typically 100 shares, scale as appropriate), while selling the 9/21/18 $145 call for a debit of $137.64, per share. What's Happening Advance Auto Parts ( AAP ) is scheduled to report its second-quarter numbers before the market open on August 14.
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11384.0
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2018-08-03 00:00:00 UTC
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What's in the Cards for Cooper Tire (CTB) in Q2 Earnings?
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AAP
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https://www.nasdaq.com/articles/whats-in-the-cards-for-cooper-tire-ctb-in-q2-earnings-2018-08-03
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Cooper Tire & Rubber CompanyCTB is set to report second-quarter 2018 results, before the market opens on Aug 6. In the last-reported quarter, this tire manufacturer delivered an earnings miss of 73.3%. In the trailing four quarters, it missed estimates twice while beating in the remaining two, with an average negative earnings surprise of 9.8%.
Cooper Tire has an expected long-term growth rate of 4%. In the last three months, shares of Cooper Tire & Rubber's have outperformed the industry it belongs to. During the period, the stock has gained 14% in comparison with the industry's decline of 2%.
Let's see how things are shaping up after this announcement.
Cooper Tire & Rubber Company Price and EPS Surprise
Cooper Tire & Rubber Company Price and EPS Surprise | Cooper Tire & Rubber Company Quote
Factors to Consider
Cooper Tire focuses on developing products with better design and functionality to satisfy the market demand across all regions. Recently, the company introduced Mastercraft Glacier Trex tire. The new tire is suitable for passenger cars and crossover vehicles, which helps consumers to manage their automobiles in severe weather conditions by offering superior braking and handling on snow, and ice. Moreover, in order to enhance its logistics infrastructure and improve business operations, the company has been focusing on expanding the product distribution network in the United States.
However, Cooper Tire operates in an extremely competitive industry. This makes it exposed to the bigger North American peers, with greater financial resources. Moreover, it competes with low-cost producers in Asia, Mexico, South America and Central Europe. If the company fails to improve its operating efficiencies compared with its peers, it might suffer.
The company is also facing rise in capital expenses, primarily due to volatile raw material prices. For 2018, capital expenditures are expected between $215 million and $235 million, higher than $197 million recorded in 2017.
In first-quarter 2018, Americas Tire Operations registered an 8.7% year-over-year decrease in net sales to $485 million. For second-quarter 2018, the Zacks Consensus Estimate for net sales from Americas Tire Operations is $579 million.
In first-quarter 2018, International Tire Operations registered 13.6% year-over-year rise in revenues to $161 million. For second-quarter 2018, the Zacks Consensus Estimate for net sales from International Tire Operations is $145 million.
Earnings Whispers
Our proven model does not conclusively show that Cooper Tire is likely to beat earnings this quarter. This is because, a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Earnings ESP : Cooper Tire has an Earnings ESP of -1.03%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : The company presently carries a Zacks Rank of 3. This, combined with its Earnings ESP, makes the surprise prediction difficult.
Note that we caution against Rank #4 and 5 (Sell-rated) stocks going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering, with the right combination of elements to outpace earnings estimates this time around:
PPL CorporationPPL has an Earnings ESP of +1.43% and a Zacks Rank of 3. The company is scheduled to report second-quarter 2018 results on Aug 7.
You can see the complete list of today's Zacks #1 Rank stocks here .
Advance Auto Parts, Inc.AAP has an Earnings ESP of +4.12% and a Zacks Rank of 2. The company will report second-quarter 2018 results on Aug 14.
The Gap, Inc.GPS has an Earnings ESP of +3.52% and is a #2 Ranked player. The company is expected to announce its upcoming earnings on Aug 23.
Will You Make a Fortune on the Shift to Electric Cars?
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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PPL Corporation (PPL): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
The Gap, Inc. (GPS): Free Stock Analysis Report
Cooper Tire & Rubber Company (CTB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc.AAP has an Earnings ESP of +4.12% and a Zacks Rank of 2. Click to get this free report PPL Corporation (PPL): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report Cooper Tire & Rubber Company (CTB): Free Stock Analysis Report To read this article on Zacks.com click here. The new tire is suitable for passenger cars and crossover vehicles, which helps consumers to manage their automobiles in severe weather conditions by offering superior braking and handling on snow, and ice.
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Click to get this free report PPL Corporation (PPL): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report Cooper Tire & Rubber Company (CTB): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP has an Earnings ESP of +4.12% and a Zacks Rank of 2. Cooper Tire & Rubber Company Price and EPS Surprise Cooper Tire & Rubber Company Price and EPS Surprise | Cooper Tire & Rubber Company Quote Factors to Consider Cooper Tire focuses on developing products with better design and functionality to satisfy the market demand across all regions.
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Click to get this free report PPL Corporation (PPL): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report Cooper Tire & Rubber Company (CTB): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc.AAP has an Earnings ESP of +4.12% and a Zacks Rank of 2. Cooper Tire & Rubber Company Price and EPS Surprise Cooper Tire & Rubber Company Price and EPS Surprise | Cooper Tire & Rubber Company Quote Factors to Consider Cooper Tire focuses on developing products with better design and functionality to satisfy the market demand across all regions.
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Advance Auto Parts, Inc.AAP has an Earnings ESP of +4.12% and a Zacks Rank of 2. Click to get this free report PPL Corporation (PPL): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report Cooper Tire & Rubber Company (CTB): Free Stock Analysis Report To read this article on Zacks.com click here. Cooper Tire & Rubber Company Price and EPS Surprise Cooper Tire & Rubber Company Price and EPS Surprise | Cooper Tire & Rubber Company Quote Factors to Consider Cooper Tire focuses on developing products with better design and functionality to satisfy the market demand across all regions.
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11385.0
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2018-08-02 00:00:00 UTC
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Auto Stock Roundup: Ford, Tesla Earnings Miss, Honda Motor Revenues Up
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AAP
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-ford-tesla-earnings-miss-honda-motor-revenues-up-2018-08-02
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Majority of the auto companies have reported their earnings for the quarter ended on Jun 30, 2018. In the past week, auto biggies, including Ford Motor Co. F , Autoliv, Inc. ALV , Honda Motor Co., Ltd. HMC , Tesla, Inc. TSLA have reported second-quarter results.
Auto industry sales have been witnessing an upside in 2018. A robust job market and favorable tax measures have driven the consumer demand, which, in turn, is aiding sales. According to the latest Earnings Preview , as of Jul 27, the auto sector's earnings are expected to decline 13.9%, while revenues are likely to gain 2.1% on a year-over-year basis. However, the S&P 500 companies are estimated to record a respective 23.6% and 8.8% year-over-year rise in earnings and revenues in the quarter under review.
In second-quarter 2018, Tesla produced 53,339 vehicles. Moreover, the company delivered 22,319 Model S and Model X vehicles, along with 18,449 Model 3 vehicles, totaling 40,768 deliveries. In the last week of June, Tesla roughly produced 7,000 Model 3, Model S and Model X vehicles. Ford reported an earnings miss in the quarter under review. Ford's earnings miss might have been caused due to the China market-related challenges and the production disruption in North America.
(Read the previous roundup here: Auto Stock Roundup for Jul 26, 2018 )
Recap of the Week's Most Important Stories
1. Ford reported second-quarter 2018 adjusted earnings per share of 27 cents, missing the Zacks Consensus Estimate of 31 cents per share. Adjusted earnings in the prior-year quarter were 56 cents per share. The results were impacted by challenges faced by the company in the China market and the North American production disruption.
Ford is continuing with its strategy of redesigning business models by reallocating capital to augment competitiveness and attain higher returns. Second-quarter net income was $1.1 billion, reflecting a decrease of $0.9 billion from the year-ago quarter.
During the reported quarter, Ford logged automotive revenues of $35.9 billion, down from the prior-year quarter figure of $37.1 billion. Its Zacks Consensus Estimate for revenues was $35.5 billion. (Read more: Ford Q2 Earnings Lag Estimates & Fall Y/Y, View Slashed )
Ford currently carries a Zacks Rank #5 (Strong Sell).
2. Penske Automotive Group, Inc. PAG recorded second-quarter 2018 adjusted earnings of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.42. The company recorded net earnings of $1.23 per share in the year-ago quarter.
Net income from continuing operations increased 27% year over year to $134.6 million in the reported quarter from $106.2 million a year ago.
Total revenues rose 10.3% year over year to $5.9 billion. Same-store retail unit sales increased 1.6% year over year to 126,484 units and retail unit sales went up 3.1% to 134,214. Penske Automotive's diversified transportation service model enabled it to witness growth in the second quarter.
Gross profit increased 8.9% to $889.8 million from $817.3 million in the prior-year quarter. Operating income grew 9.7% to $188.7 million from $172 million. (Read more: Penske Automotive's Q2 Earnings Surpass Estimates )
Penske Automotive currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
3. Autoliv reported adjusted earnings of $2.22 per share in second-quarter 2018, beating the Zacks Consensus Estimate of $1.88. Moreover, the bottom line improved from the prior-year quarter's figure of $1.50.
During the quarter under review, Autoliv reported net sales of $2.21 billion, reflecting an increase of 11.5% year over year. The top line missed the Zacks Consensus Estimate of $2.3 billion.
Quarterly organic sales grew 7.3%, with major geographic organic growth across China, India, ASEAN and South America.
Operating income from continuing operations gained 4.2% to $229 million. However, adjusted operating margin from continuing operations was 10.4% in the reported quarter, lower than the prior-year quarter's figure of 11.1%.
On Jun 29, 2018, Autoliv completed the spin-off of its Electronics business to Veoneer, Inc. After the completion of the spin-off, the company is focused on occupant safety products. The total cost of separation in 2017 and 2018, including tax effects, amounted to roughly $105 million compared with the company's expectation of $150 million. (Read more: Autoliv Q2 Earnings Drive Past Estimates, Rise Y/Y )
Autoliv currently carries a Zacks Rank #3 (Hold).
4. Honda reported a consolidated profit of ¥244.3 billion in the first quarter of fiscal 2019, up 17.8% from the year-ago period.
Revenues increased 8.4% year over year to ¥4 trillion. The year-over-year increase can be attributed to higher revenues in all business operations.
Consolidated operating profit was ¥299.3 billion, reflecting an increase of 11.2% from the prior-year quarter. This improvement can be attributable to rise in profit related to changes in sales volume and model mix, and a fall in selling, general and administrative (SG&A) expenses.
For the three months ended Jun 30, 2018, revenues from the Automobile segment's sales increased 8% to ¥2.8 trillion. During the reported quarter, unit sales increased 3% year over year to 1.31 million. The Motorcycle segment increased 9.1% to ¥554.9 billion and unit sales increased 13.9% on a year-over-year basis to 5.35 million.
In the quarter ended Jun 30, 2018, the Financial Services segment increased 9.9% to ¥590 billion. The Power Product & Other segment was up 5.6% to ¥82 billion and unit sales increased 0.8% on a year-over-year basis to 1.34 million vehicles. (Read more: Honda Reports Y/Y Improvement in Q1 Profit and Revenues )
Honda currently carries a Zacks Rank #2.
5. Tesla incurred an adjusted loss of $3.06 per share in second-quarter 2018, wider than the Zacks Consensus Estimate of the loss of $2.78. The company reported loss of $1.33 per share in the prior-year quarter.
The reported net loss in the quarter under review was $742.7 million compared with the year-ago net loss of $401.4 million.
Revenues increased to $4 billion from $2.8 billion registered in second-quarter 2017. The figure surpassed the Zacks Consensus Estimate of $3.8 billion.
Tesla produced 53,339 vehicles in second-quarter 2018. Also, the company delivered 22,319 Model S and Model X vehicles, and 18,449 Model 3 vehicles, totaling 40,768 deliveries.
Total automotive revenues, including revenues from automotive sales and leasing, increased 47% year over year to $3.36 billion in the reported quarter. The rise was due to Model 3 deliveries.
Energy generation and storage revenues soared from $286.8 million in second-quarter 2017 to $374.4 million in the reported quarter. The rise was mainly due to considerable growth of energy-storage deployments.
Services and other revenues increased 25% year over year, primarily due to higher used-car sales.
Tesla's second-quarter 2018 automotive gross margin was 20.6%, declining 735 basis points (bps) from second-quarter 2017.
Energy generation and storage gross margin declined 1,716 bps on a year-over-year basis to 11.8%.
Tesla currently carries a Zacks Rank #2.
Performance
Last week, all these stocks have declined except for Honda. Tesla has declined the most. Shares of Honda has risen 2.5%.
In the past six months, share prices of all these stocks declined, except for Advance Auto Parts, Inc. AAP . Honda has declined the most.
What's Next in the Auto Space?
Watch out for the usual news releases as well as earnings releases of auto companies over the next week.
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Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report
Ford Motor Company (F): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Autoliv, Inc. (ALV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past six months, share prices of all these stocks declined, except for Advance Auto Parts, Inc. AAP . Click to get this free report Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report To read this article on Zacks.com click here. Ford is continuing with its strategy of redesigning business models by reallocating capital to augment competitiveness and attain higher returns.
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Click to get this free report Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, share prices of all these stocks declined, except for Advance Auto Parts, Inc. AAP . In the past week, auto biggies, including Ford Motor Co. F , Autoliv, Inc. ALV , Honda Motor Co., Ltd. HMC , Tesla, Inc. TSLA have reported second-quarter results.
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Click to get this free report Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, share prices of all these stocks declined, except for Advance Auto Parts, Inc. AAP . Net income from continuing operations increased 27% year over year to $134.6 million in the reported quarter from $106.2 million a year ago.
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In the past six months, share prices of all these stocks declined, except for Advance Auto Parts, Inc. AAP . Click to get this free report Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report To read this article on Zacks.com click here. Majority of the auto companies have reported their earnings for the quarter ended on Jun 30, 2018.
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11386.0
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2018-07-26 00:00:00 UTC
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Auto Stock Roundup: Q2 Earnings Miss for GM & F, Beat for PCAR & HOG
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AAP
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-q2-earnings-miss-for-gm-f-beat-for-pcar-hog-2018-07-26
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nan
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nan
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The second-quarter 2018 earnings season is in full swing now, with releases flowing in from the Auto sector. Many of the auto biggies have reported results for the quarter ending on Jun 30, 2018, in the past week.
In 2018, auto industry sales have been trending up on a robust job market and favorable tax measures that have driven consumer demand. According to the latest Earnings Preview , as of Jul 20, auto sector's earnings are expected to decline 9.7% while revenues are likely to gain 3.5% year over year. The S&P 500 companies are estimated to record a respective 21% and 8.3% year-over-year rise in earnings and revenues in the quarter.
Some important auto companies which have reported quarterly numbers are PACCAR Inc. PCAR , Harley-Davidson Inc. HOG , General Motors Company GM and Ford Motor Company F . While PACCAR and Harley-Davidson delivered an earnings beat in the second quarter, General Motors and Ford reported a miss. General Motors' results can be attributed to a considerable rise in commodity costs and unfavorable foreign exchange. Ford's earnings miss may have been caused by challenges in China market and production disruption in North America.
(Read the previous roundup here: Auto Stock Roundup for Jul 19, 2018 )
Recap of the Week's Most Important Stories
1. Genuine Parts Company GPC reported adjusted earnings of $1.59 per share, beating the Zacks Consensus Estimate of $1.56. Adjusted earnings in the year-ago quarter were $1.29.
The company recorded net income of $227 million in second-quarter 2018, up from $190 million in the prior-year quarter.
Genuine Parts reported net sales of $4.82 billion, up 17.6% year over year. The figure surpassed the consensus estimate of $4.66 billion. The rise was driven by acquisitions and improved organic sales. Total sales included 3% comparable growth, 14% from acquisitions - including Alliance Automotive Group ("AAG") - and 0.5% benefit from the foreign currency translation.
Operating profit increased to $390.2 million from $349.2 million in second-quarter 2017. Selling, administrative and other expenses rose to $1.16 billion from $903.3 million a year ago. (Read more: Genuine Parts' Q2 Earnings & Revenues Top Estimates )
Genuine Parts Company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
2. Gentex Corporation GNTX reported second-quarter 2018 earnings per share of 40 cents, missing the Zacks Consensus Estimate by a penny. However, the bottom line was higher than the year-ago quarter's 31 cents.
Reported net sales of $455 million missed the consensus mark of $473 million. However, it was higher than net sales of $443.1 million in second-quarter 2017. When compared with the company's mid-April forecast of HIS for second-quarter 2018, the light-vehicle production in North America declined around 3%, leading to lower-than-expected unit shipments and revenues.
Net income in second-quarter 2018 rose 23% to $109 million from $88.5 million a year ago. (Read more: Gentex's Q2 Earnings and Revenues Miss, Rise Y/Y )
Gentex currently carries a Zacks Rank #3.
3. Harley-Davidson reported adjusted earnings of $1.45 per share in second-quarter 2018, beating the Zacks Consensus Estimate of $1.35. In the prior-year quarter, the figure was $1.48.
Net income decreased to $242.3 million from $258.9 million a year ago.
Revenues from Motorcycle and Related Products declined to $1.53 billion in the reported quarter from $1.58 billion in the prior-year quarter. However, the figure surpassed the Zacks Consensus Estimate of $1.42 billion. The company also reported consolidated revenues of $1.71 billion, down from the prior-year figure of $1.77 billion.
Operating income from Motorcycles and Related Products declined to $243 million from $317 million recorded a year ago. This was primarily due to lower shipments, higher operating expenses and costs associated with the manufacturing optimization initiative.
For the quarter ending Jul 1, the company shipped 72,593 motorcycles compared with 81,807 in second-quarter 2017. (Read more: Harley-Davidson Q2 Earnings Top Estimates, Fall Y/Y )
Harley-Davidson currently carries a Zacks Rank #5 (Strong Sell).
4. PACCAR's second-quarter 2018 adjusted earnings were $1.59 per share, up from $1.06 in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.43 on robust global truck deliveries and parts sales.
The company posted quarterly consolidated net sales and revenues of $5.81 billion. Adjusted revenues totaled $5.47 billion. The Zacks Consensus Estimate for revenues was pegged at $5.43 billion.
Revenues from the Truck, Parts and Other segment increased to $5.47 billion in second-quarter 2018 from $4.40 billion in second-quarter 2017. The segment's pre-tax income increased to $632.6 million from $467.9 million recorded a year ago.
Revenues from the Financial Services segment rose to $338 million from $306.3 million a year ago. Pre-tax income increased to $72.4 million from $62.4 million in the year-ago quarter. (Read more: PACCAR Earnings and Revenues Beat Estimates in Q2 )
PACCAR currently carries a Zacks Rank #3.
5. General Motors reported second-quarter 2018 adjusted earnings per share of $1.81, down 4.2% from the prior-year quarter. The bottom line lagged the Zacks Consensus Estimate of $1.84. Significant rise in commodity costs and unfavorable foreign exchange affected the results.
General Motors reported revenues of $36.8 billion, down 0.6% from the year-ago quarter. Revenues also lagged the Zacks Consensus Estimate of $37 billion.
During the last reported quarter, total sales for the wholesale unit declined to 1.20 million from 1.21 million in the second quarter of 2017. Worldwide retail-unit sales decreased to 2.06 million from 2.34 million in the year-ago quarter. The automaker'sglobal marketshare was 8.6% during the reported quarter, reflecting a decline from 10.2% in the year-ago quarter. (Read more: General Motors' Q2 Earnings & Revenues Miss Estimates )
General Motors currently carries a Zacks Rank #2 (Buy).
Performance
Last week, Harley-Davidson's stock recorded the strongest rally, while shares of Tesla, Inc. TSLA declined the maximum.
In the past six months, share prices of all these stocks have declined, except Advance Auto Parts, Inc. AAP . In fact, Harley-Davidson has lost the most.
What's Next in the Auto Space?
Watch out for the usual news releases as well as earnings releases of auto companies over the next week.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F): Free Stock Analysis Report
PACCAR Inc. (PCAR): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Gentex Corporation (GNTX): Free Stock Analysis Report
Genuine Parts Company (GPC): Free Stock Analysis Report
Harley-Davidson, Inc. (HOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past six months, share prices of all these stocks have declined, except Advance Auto Parts, Inc. AAP . Click to get this free report Ford Motor Company (F): Free Stock Analysis Report PACCAR Inc. (PCAR): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Gentex Corporation (GNTX): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In 2018, auto industry sales have been trending up on a robust job market and favorable tax measures that have driven consumer demand.
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report PACCAR Inc. (PCAR): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Gentex Corporation (GNTX): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, share prices of all these stocks have declined, except Advance Auto Parts, Inc. AAP . (Read more: Genuine Parts' Q2 Earnings & Revenues Top Estimates ) Genuine Parts Company currently carries a Zacks Rank #3 (Hold).
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report PACCAR Inc. (PCAR): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Gentex Corporation (GNTX): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, share prices of all these stocks have declined, except Advance Auto Parts, Inc. AAP . Revenues from Motorcycle and Related Products declined to $1.53 billion in the reported quarter from $1.58 billion in the prior-year quarter.
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In the past six months, share prices of all these stocks have declined, except Advance Auto Parts, Inc. AAP . Click to get this free report Ford Motor Company (F): Free Stock Analysis Report PACCAR Inc. (PCAR): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Gentex Corporation (GNTX): Free Stock Analysis Report Genuine Parts Company (GPC): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. While PACCAR and Harley-Davidson delivered an earnings beat in the second quarter, General Motors and Ford reported a miss.
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11387.0
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2018-07-24 00:00:00 UTC
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United Technologies (UTX) Q2 Earnings Top, '18 EPS View Up
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AAP
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https://www.nasdaq.com/articles/united-technologies-utx-q2-earnings-top-18-eps-view-up-2018-07-24
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nan
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nan
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United Technologies CorporationUTX reported better-than-expected results for second-quarter 2018.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.97 per share, surpassing the Zacks Consensus Estimate. The reported figure also came in higher than the year-ago tally of $1.85 per share.
Revenues in the reported quarter came in at $16,705 million, up 9.3% year over year. The top line also outpaced the Zacks Consensus Estimate of $16,264 million. Revenues grew 6% year over year organically.
Segmental Break-Up
Otis revenues in the quarter were $3,344 million, up 6.8% year over year. Aggregate sales of the UTC Climate, Controls & Security segment expanded 6.9% year over year to $5,035 million. The Pratt & Whitney segment's Q2 revenues came in at $4,736 million, up 16.4% from the year-ago tally. The top-line performance of the UTC Aerospace Systems segment improved 8.8% year over year to $3,962 million.
United Technologies Corporation Price, Consensus and EPS Surprise
United Technologies Corporation Price, Consensus and EPS Surprise | United Technologies Corporation Quote
Costs/Margins
Cost of products and services sold during the quarter was $12,422 million, up 11.3% year over year.
Selling, general and administrative expenses in the second quarter flared up 10.6% year over year to $1,759 million.
Adjusted operating margin the quarter was 14.2%, down 80 basis points from the year-ago figure.
Balance Sheet/Cash Flow
Exiting the second quarter, United Technologies had cash and cash equivalents of $11,068 million, up from $8,985 million recorded as of Dec 21, 2017. Long-term debt stood at $27,246 million, up from $24,989 million recorded at the end of 2017.
During the April-June quarter, the company generated $2,102 million cash from operating activities, down 2.1% year over year. Capital expended was down 16.6% year over year to $372 million.
Outlook
United Technologies has raised its 2018 earnings view to $7.10-$7.25 per share from the prior guidance of $6.95-$7.15 per share. Revenue for the full year are predicted to lie in the $63.5-$64.5 billion range, estimating organic growth rate of 5-6%.
Zacks Rank & Stocks to Consider
United Technologies currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks are listed below:
Hitachi Ltd. HTHIY sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 51.77%, over the last four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Honeywell International Inc. HON currently carries a Zacks Rank #2 (Buy). The company delivered an average positive earnings surprise of 2.44%, in the trailing four quarters.
Advance Auto Parts, Inc. AAP also has a Zacks Rank of 2. The company came up with an average positive earnings surprise of 9.86%, during the same time frame.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Honeywell International Inc. (HON): Free Stock Analysis Report
United Technologies Corporation (UTX): Free Stock Analysis Report
Hitachi Ltd. (HTHIY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc. AAP also has a Zacks Rank of 2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report Hitachi Ltd. (HTHIY): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings/Revenues Quarterly adjusted earnings came in at $1.97 per share, surpassing the Zacks Consensus Estimate.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report Hitachi Ltd. (HTHIY): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP also has a Zacks Rank of 2. United Technologies Corporation Price, Consensus and EPS Surprise United Technologies Corporation Price, Consensus and EPS Surprise | United Technologies Corporation Quote Costs/Margins Cost of products and services sold during the quarter was $12,422 million, up 11.3% year over year.
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Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report Hitachi Ltd. (HTHIY): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP also has a Zacks Rank of 2. Revenues in the reported quarter came in at $16,705 million, up 9.3% year over year.
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Advance Auto Parts, Inc. AAP also has a Zacks Rank of 2. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report Hitachi Ltd. (HTHIY): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues in the reported quarter came in at $16,705 million, up 9.3% year over year.
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11388.0
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2018-07-24 00:00:00 UTC
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Is Advance Auto Parts (AAP) Outperforming Other Retail-Wholesale Stocks This Year?
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AAP
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https://www.nasdaq.com/articles/is-advance-auto-parts-aap-outperforming-other-retail-wholesale-stocks-this-year-2018-07-24
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Advance Auto Parts (NYSE: AAP ) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Source: Shutterstock
Advance Auto Parts is a member of the Retail-Wholesale sector. This group includes 214 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. AAP is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AAP's full-year earnings has moved 1.35% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
5 Top Stocks With a Handsome Net Profit Margin
Based on the most recent data, AAP has returned 45.11% so far this year. At the same time, Retail-Wholesale stocks have gained an average of 13.90%. This means that Advance Auto Parts is outperforming the sector as a whole this year.
To break things down more, AAP belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual companies and currently sits at #16 in the Zacks Industry Rank. This group has gained an average of 17.85% so far this year, so AAP is performing better in this area.
Investors in the Retail-Wholesale sector will want to keep a close eye on AAP as it attempts to continue its solid performance.
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The post Is Advance Auto Parts (AAP) Outperforming Other Retail-Wholesale Stocks This Year? appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Over the past 90 days, the Zacks Consensus Estimate for AAP's full-year earnings has moved 1.35% higher. 5 Top Stocks With a Handsome Net Profit Margin Based on the most recent data, AAP has returned 45.11% so far this year. Has Advance Auto Parts (NYSE: AAP ) been one of those stocks this year?
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To break things down more, AAP belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual companies and currently sits at #16 in the Zacks Industry Rank. 5 Stocks in Focus on New Analyst Coverage 5 Low-Beta Stocks to Combat Trade and Geopolitical Tensions Compare Brokers The post Is Advance Auto Parts (AAP) Outperforming Other Retail-Wholesale Stocks This Year? Has Advance Auto Parts (NYSE: AAP ) been one of those stocks this year?
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5 Stocks in Focus on New Analyst Coverage 5 Low-Beta Stocks to Combat Trade and Geopolitical Tensions Compare Brokers The post Is Advance Auto Parts (AAP) Outperforming Other Retail-Wholesale Stocks This Year? Has Advance Auto Parts (NYSE: AAP ) been one of those stocks this year? AAP is currently sporting a Zacks Rank of #2 (Buy).
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This group has gained an average of 17.85% so far this year, so AAP is performing better in this area. 5 Stocks in Focus on New Analyst Coverage 5 Low-Beta Stocks to Combat Trade and Geopolitical Tensions Compare Brokers The post Is Advance Auto Parts (AAP) Outperforming Other Retail-Wholesale Stocks This Year? Has Advance Auto Parts (NYSE: AAP ) been one of those stocks this year?
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11389.0
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2018-07-20 00:00:00 UTC
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General Motors - Time For Activist Involvement
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AAP
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https://www.nasdaq.com/articles/general-motors-time-activist-involvement-2018-07-20
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nan
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nan
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By Seven Corners Capital Management :
The Problem: Persistent Share Price Underperformance
Common shares of General Motors ( GM ) ( SEC filings here ) have chronically underperformed the market since their November 2010 IPO, rising just ~16.5% plus dividends in almost 8 years versus the S&P 500 being up 135% plus dividends during same period, for a total underperformance of almost 120% (the difference is even greater after dividends, since GM did not initiate a dividend until 2014). Shockingly, were GM shares to reach our $64 target price immediately (or 10X 2018E earnings), they would still have underperformed the S&P since their IPO, evidencing just how poorly the owners of the company have fared during the current bull market. Below is the tale of the disappointing tape from November 2010 to the present ( per Google Finance ):
The Cause: Misalignment Of Financial Incentives And Poor Corporate Governance
One might ascribe various reasons to explain this poor performance. Perhaps GM simply has a bad business model and thus value never compounds for shareholders. We note, however, that competitors Toyota ( TM ) ( SECs here ) and Fiat Chrysler ( FCAU ) ( SECs here ) have not suffered despite having highly similar business models, as TM stock is up more than 65% since GM's IPO, while FCAU stock has more than tripled since late 2014, outgaining GM by 180% during that time frame:
So, GM's share price laggardness cannot be explained by the fact that it manufactures and sells autos. Nor can it rationally be explained by the threat of tariffs by the Trump administration or (in retaliation) by the Chinese government, as the vast majority of GM's GAAP profitability is generated within North America from pick-up truck and SUV sales (and is therefore not dependent on vehicle exports). Moreover, GM China is composed of joint ventures with domestic Chinese companies such as SAIC Motors and Wuling Motors , which one would expect to be minimally impacted by any China-imposed retaliatory tariffs.
Also note that there are not even any headwinds evident in GM's 2018 financial performance that could logically explain the share price malaise. For example, GM recently reported increased domestic sales numbers for the April-June period, with deliveries up 5% year over year, resulting in a half percentage point uptick in market share ( see here ). In addition, the company announced that first half 2018 vehicle sales in China were up 4.4% ( see here ). So, growth in GM's two largest and most profitable markets has been strong lately.
Could it be that GM has squandered massive amounts of money on unwise acquisitions since 2010? That does not seem to be the case either, as GM has not engaged in any large scale M&A transactions; rather, it has made apparently smart bolt-on deals. For example, in 2010, GM paid $3.5 billion for AmeriCredit (now GM Financial) ( see here ), in 2012, they paid $4.2 billion for Ally Financial's ( ALLY ) international operations ( see here ), and in 2015, they bought a 35% stake in Ally's China operations for $700 million ( see here ). All of these were logical additions to the core business model of selling vehicles to retail customers. In addition, GM paid $500 million for a stake in Lyft in early 2016 ( see here ) and paid around $1 billion for Cruise Automation in March 2016 ( see here ). Softbank ( SFTBF ) recently committed to invest $2.25 billion in Cruise in exchange for 19.6% of the entity's equity, giving Cruise an implied valuation of $11.5 billion ( see here ). Concurrently, GM invested an additional $1.1 billion into Cruise. Thus, if we assume that GM has sunk an aggregate of $2.1 billion into the company for its 80% stake (now valued at approximately $9.2 billion), on paper, GM shareholders should be enjoying about $7 billion, or ~$5/share, in Cruise-related profits thus far. Meanwhile, Lyft's valuation has supposedly doubled over just the past year ( see here ), so GM's 2016 investment in the company should be firmly in the black. Yet GM's stock price is only up about $7/share since these investments were made, despite the company recording over $12/share in adjusted EPS since that time.
Could GM's share price doldrums be a result of stagnant earnings during this bull market? Again, no. Below are GM's 2009 through 2017 financial results, showing rising earnings from 2009 through 2016 and minimal 2017 earnings due solely to tax charges (without which earnings would have come in at $6.60/share) (sources here and here , respectively):
If we adjust for certain one-time tax charges and pencil in $6.60/share in earnings for 2017, below is a chart showing 2009-2018E earnings trends for GM:
This hardly resembles a company whose business model is collapsing or about to collapse. In fact, just the opposite appears to be the case. Yet GM ranks close to the bottom of the entire S&P 500 in terms of forward P/E ratio (GM is expected to earn about $6.40/share in 2018 , so its forward P/E is 6.2X). So, we conclude that neither GM's business model nor its financial performance nor acquisition track record logically explains why the company's shares have massively underperformed peers as well as the overall market since late 2010.
So, what is the real reason for the long-term underperformance? We believe that investors refuse to bid up GM shares because they believe that the interests of the board and management are not aligned with those of the shareholders, and, therefore, most of the economic benefits of GM's business model will never fully filter down to the true owners of the company. Why do we think shareholders believe this? Look at the following facts:
First, there is no true shareholder representative on the Board of Directors, so the owners of the company lack an advocate for their interests in the key decision-making body of the organization. Board members historically have bought only token quantities of stock on the open market and CEO Barra has only bought a minuscule 800 shares with her own money since 2010 (grand total spent: $26,400), despite receiving tens of millions of dollars in cash compensation (salary plus cash bonuses) since then. The following is the ONLY open market purchase of GM stock Barra has EVER made ( source ):
Barra is Chairman of the Board - by far the most important director - yet is not financially aligned with shareholders and in our opinion runs the board to benefit primarily the members of the C-suite rather than the shareholders. GM attempts to claim the contrary in its 2018 Proxy Statement , with the lead independent director stating that "Your board holds management accountable" (see excerpt below); yet how can this possibly be when the board itself is chaired - and therefore basically controlled - by management (i.e., the CEO)???
The company further states above that "GM's performance under [Barra's] leadership demonstrates that [having her also serve as Board Chairman] is the most efficient way... to create value for shareholders". Does this statement make any sense at all given the fact that since Barra became chairman in early January 2016 (1) GM stock has vastly underperformed the S&P 500 and (2) the company has only raised the dividend by $0.02/share per quarter (with zero dividend increases since February 2016)?
In addition, below, we can see that the non-executive directors on GM's board (who supposedly are looking out for the shareholders' interests and overseeing management's activities) collectively own just 107,088 shares outright, or about one-thirteen thousandth (1/13,000th) of all outstanding shares ( source ):
1. FCAU merger proposal - Back in 2015, Fiat Chrysler chairman Sergio Marchionne proposed a potential merger between FCAU and GM. However, instead of pursuing a combination that could have brought with it many billions of dollars in synergies (most of which would flow to the shareholders of the respective companies), GM CEO Barra rejected the idea out of hand. According to contemporary news accounts (sources here and here ):
2. Proxy Fights - In addition, CEO & Chairman Barra et al. have now been the subject of two separate proxy fights in just the past 3 years. The first was in early 2015 when Harry Wilson acted on behalf of a group of hedge funds advocating for better capital allocation at GM, which contest GM settled by agreeing to a large buyback ( source ):
The second was waged by Greenlight Capital last year. Greenlight proposed an ingenious dual-share structure for GM that would likely have raised the share price significantly. GM, in its infinite bureaucratic wisdom, decided to sabotage any hope that the plan could come to fruition by trashing it with the rating agencies (and, predictably, the ratings agencies soured on the proposal). We discussed this corporate governance debacle in detail in a previous Seeking Alpha article ( see here ). However, the impending threat of Greenlight's proxy fight was sufficient to spur GM management into finally divesting GM's European operations after racking up $20 billion in losses there over the previous 17 years. So, Greenlight's efforts had at least one beneficial result for the owners of the company (note that the troubled European car market is again stagnating this year).
Why The Stock Price Matters: Access To Cheap Capital
Frankly, we are a bit tired of hearing apologists for Mary Barra & Co. who insist the stock price doesn't matter, that it's all about the long term, etc. First, if it's "all about the long term", then why do the C-suite members get annual incentive bonuses based on achieving short-term (yearly) metrics (aka, the STIP)? If it's "all about the long term", then why do GM's illustrious C-suite denizens constantly exercise options and dump their shares on the open market as soon as they legally can (see, e.g., here , here , here and here )? But more than that, why the stock price matters is because the stock price partially determines a company's cost of capital - and the lower the cost of capital, the better able said company is to compete in the marketplace.
For example, what company would have a greater advantage in selling cars: Company A, whose stock trades at a P/E multiple of 6.2X (or an earnings yield of 16%), or Company B, whose stock trades at a P/E multiple of 120X (or an earnings yield of 0.8%)? Obviously, other things being equal, Company B will have a great advantage over Company A because it will be able to raise equity capital with an earnings yield of just under 1% (far below the yield on, say, 30-year Treasuries). Moreover, a company that can raise cheap equity capital will also likely be able to issue cheap debt, since debtholders will take comfort in the company's strong "equity cushion". In other words, the higher the market cap, the more easily a company can raise both equity and debt (a competitive advantage).
Take Tesla, Inc. ( TSLA ) ( SECs here ) and its CEO, Elon Musk , for example. Say what you will about the man and his personality (and there are lots there to criticize), Musk inspires incredible loyalty and enthusiasm among his employees and investors. Musk's followers become passionate devotees to his causes (space exploration and green energy) because they simply BELIEVE in him 100%. This allows Tesla the option to fund ongoing losses and cash burn because Tesla's elevated stock price means that the capital markets remain wide open to the company. Onlookers consider Tesla's slavish investor devotion to be kooky ( see here , for example). However, it is actually logical. First, Musk's followers are "all in" because Musk also is "all in" for the cause. Musk has invested virtually his entire net worth into Tesla and SpaceX (Musk currently owns 33.74 million TSLA shares, worth almost $11 billion). Thus, when TSLA's stock price falls, Musk literally feels the shareholders' pain, since he is the largest shareholder with a 20% stake. In fact, amidst the financial crisis in late 2008 Musk went as far as to put his last remaining $20 million of personal funds into Tesla in order to save the company from bankruptcy, as recounted by Wired in 2010 ( source here ):
This is the type of commitment and financial alignment with shareholders that GM sorely lacks. While GM senior executives consistently dump their stock on the open market shortly after vesting, Musk has been buying Tesla stock recently at what many investors believe to be nosebleed valuations, indicating his total commitment to his company and its shareholders ( source ):
To put it bluntly, we don't believe the GM's CEO Mary Barra (or any other senior GM executive for that matter) would ever be caught pulling all-nighters on the assembly line in order to make sure GM's production targets get hit (in fairness, she would probably respond that when you know what you are doing, all nighters aren't required). Musk, however, apparently will, which is probably one clue why TSLA trades at a 120X forward P/E multiple ( source here ), while GM trades at a measly 6.2X forward P/E multiple ( source here ).
The Remedy: Activism
Today, an activist in GM has an opportunity to make billions in profits by forcing board of directors to act in the shareholders' interests (rather than management's). If GM's board of directors were chaired and/or represented by directors who actually prioritized the interests of the shareholders (as the true owners of the company) and took the steps outlined below to increase shareholder value at GM, we believe that GM's stock could re-rate to as high as $64/share, or 10X 2018's estimated EPS of $6.40 (indicating shares could have up to 60% upside). Thus, an activist who amassed a 5% stake in GM (or 70 million shares) could make up to a $1.7 billion profit on a $2.8 billion initial investment. To repeat, that is a clear profit of $1,700,000,000 - not exactly chump change.
Does our $64 target price really make sense, though? After all, vehicle manufacturing is capital intensive and highly competitive. Below, we do a sum-of-the-parts (SotP) analysis as a second valuation check. In this respect, we noted in our "Divide and Prosper" Seeking Alpha article on GM from last September as follows:
Updating this 10-month-old analysis with today's 1,430,000,000 fully diluted outstanding share count and adding in the value of GM's stake in Cruise Automation and Lyft, we obtain the following updated SOTP for GM:
GM China --> worth $20 to $30 billion based on $2 billion average 3-year trailing net income and a 10X to 15X P/E multiple, or ~$14 to ~$21 per share
Cruise Automation Equity Stake --> worth $7 billion, or ~$5/share (as discussed above)
Lyft Equity Stake --> worth $1.5 billion, or ~$1/share
GM remainder of business --> worth $40/share, based on an increased $2/share annual dividend (see below) and a 5% dividend yield.
SotP --> $60 on the low end and $67 on the high end (note this aligns well with our above P/E derived $64/share valuation).
What about liquidity? Is there enough for a large activist to acquire a sufficiently large stake to effect change at the company? We note that in the past 6 months of trading, more than the entire outstanding share count has changed hands ( see here ). Thus, in order to acquire 70MM shares (a 5% position), an activist would only need to buy about 10% of the daily trading volume to build such a stake in about three months.
Who could be potential activists? The following:
Greenlight Capital - as noted above, Greenlight ran a proxy contest against GM just last year and as of the end of Q1 2018 owned 22.6 million shares, or about 1.6% of the outstanding stock ( source );
Elliott Management - probably the top activist hedge fund, Elliott has around $34 billion in AUM ( source ), so could easily amass a large enough GM stake to make a proxy contest worthwhile;
Appaloosa - Appaloosa Management, founded by David Tepper, is one of the most successful hedge funds of recent decades ( source ); Appaloosa was involved as an activist in the 2015 proxy contest and could potentially go for a second round of activism in light of GM's recent sagging stock performance;
Jana - Jana Partners had a 1.3 million share position in GM at the end of Q1 2018 ( source ) and is a noted activist investor in major companies such as Whole Foods ( see here );
Starboard Value - Starboard is a large and successful activist hedge fund; they take concentrated positions and advocate aggressively for change at their investee companies. In addition, Starboard has experience in the auto/industrial manufacturing space, with recent positions in Advance Auto Parts ( AAP ) and Cars.com ( CARS ) ( see here ) and prior industrial-company activist campaigns such as that concerning Wausau Paper Corp. ( see here );
Pershing Square - Pershing Square is a well-known activist outfit which is now apparently on the rebound from several investment misfires; chief investment officer Bill Ackman tends to focus on alignment of incentives, which is clearly the biggest problem at GM. Note that Pershing held a significant position in GM as of the end of 2010, so they should be familiar with the company ( source );
Trian - Trian, headed by Nelson Peltz, has activist experience with industrial companies such as General Electric ( GE ) (currently holding over 70 million shares, source here ), thus they could be a future activist with respect to GM; and
Carl Icahn - Carl Icahn currently has an entire auto-related business segment under the aegis of his holding company Icahn Enterprises, consisting of the following (thus being an activist in GM could make logical sense for him) ( source ):
The following are steps we believe an activist must make GM's board take:
Increase the dividend - the current payout ratio, at ~25%, is far too low. The dividend should be increased to $2/share per year, representing a payout ratio of approximately 33% (which is still conservative). GM shares would yield a healthy 5% at current price levels.
Repurchase stock based on share price & P/E ratio (buy more when lower, less when higher) - we think it was a questionable decision in March of this year to buy $1.59 billion worth of shares owned by the UAW Retiree Medical Benefits Trust at nearly $40/share ( see here ), when GM could have bought a similar amount of stock 10% or so lower in price on the open market. As a general rule, however, as long as the company's forward P/E remains under 10X, repurchasing shares makes a lot of sense.
Tracking Stocks - GM should issue tracking stocks for GM China and GM's New Ventures (Cruise Automation and its Lyft stake) or, alternatively, spin off these equity stakes to shareholders. If this were done, GM would be much more likely to trade according to the sum of its constituent parts, meaning the respective parts should accurately reflect their underlying cost of capital. Why, for example, should Cruise Automation, clearly a tech business, suffer from the suboptimal cost of capital attributed to an auto manufacturer, a capital-intensive industrial business? Shouldn't Cruise Automation be able to raise capital via the public markets in a manner similar to the recent Softbank investment (i.e., at a high valuation)? In addition, the compensation of GM's employees could be much better targeted using trackers or spin-offs, since individuals working for the tracked or spun-off entities would be compensated with the equity currency of such entities instead of the holding company.
Fix GM's corporate governance - GM should allow for proxy access for holders (or groups of aligned holders) of a 1.5% stake (which currently would amount to about $840 million worth) + 2 year hold period, as opposed to the 3% + 3 years status quo. In addition, the company must split the CEO and chairman roles and onboard as the new chairman a representative of a large shareholder (which would likely be a designee of one of the aforementioned activists).
Fix GM's senior executive compensation system - we outlined the flaws in GM's compensation system in our last GM Seeking Alpha article ( see here ). The current system is in dire need of reform, which changes an activist would be poised to effect.
Additional Items - an activist would be able to draw upon their own prior experience in proposing additional shareholder-friendly changes at GM. Perfection should always be the goal, therefore pressure constantly needs to be on the board and management to improve and perfect things over time.
Note that many activists operate behind the scenes as the most effective way to influence boards and management. Thus, just because a Greenlight or a Jana may not be attempting in public view to effect one or more of the above-outlined steps to increase shareholder value doesn't mean that they are not doing so privately.
Conclusion
In reviewing GM's 2018 proxy statement, we were not surprised to discover on page "i" the following statement:
The fact that a full three-quarters of the holders of GM's common equity did not have any contact with GM's CEO or the company's other directors last year shows how out of touch GM's senior leadership is with the true owners of the company. We believe that this, combined with GM's subpar corporate governance, lack of financial alignment between board/management and shareholders, severely flawed senior executive compensation system and anemic dividend payout, has caused the massive underperformance of GM shares versus the S&P 500 as well as peers (such as Toyota and Fiat) during the current lengthy bull market. We further believe that the obvious solution to GM's problems lies in shareholder activism. If a large activist obtains a significant stake in GM, we think such an activist could potentially make billions in profits if shares were to reach our $64 target price. Given such an enticing opportunity and clear path to value creation, we think that additional activism in GM's future is simply a question of when, not if.
See also Texas Capital's Strong Loan Growth And Spread Leverage Is A Potent Growth Cocktail on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nor can it rationally be explained by the threat of tariffs by the Trump administration or (in retaliation) by the Chinese government, as the vast majority of GM's GAAP profitability is generated within North America from pick-up truck and SUV sales (and is therefore not dependent on vehicle exports). In addition, Starboard has experience in the auto/industrial manufacturing space, with recent positions in Advance Auto Parts ( AAP ) and Cars.com ( CARS ) ( see here ) and prior industrial-company activist campaigns such as that concerning Wausau Paper Corp. ( see here ); Pershing Square - Pershing Square is a well-known activist outfit which is now apparently on the rebound from several investment misfires; chief investment officer Bill Ackman tends to focus on alignment of incentives, which is clearly the biggest problem at GM. Shockingly, were GM shares to reach our $64 target price immediately (or 10X 2018E earnings), they would still have underperformed the S&P since their IPO, evidencing just how poorly the owners of the company have fared during the current bull market.
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Nor can it rationally be explained by the threat of tariffs by the Trump administration or (in retaliation) by the Chinese government, as the vast majority of GM's GAAP profitability is generated within North America from pick-up truck and SUV sales (and is therefore not dependent on vehicle exports). In addition, Starboard has experience in the auto/industrial manufacturing space, with recent positions in Advance Auto Parts ( AAP ) and Cars.com ( CARS ) ( see here ) and prior industrial-company activist campaigns such as that concerning Wausau Paper Corp. ( see here ); Pershing Square - Pershing Square is a well-known activist outfit which is now apparently on the rebound from several investment misfires; chief investment officer Bill Ackman tends to focus on alignment of incentives, which is clearly the biggest problem at GM. In this respect, we noted in our "Divide and Prosper" Seeking Alpha article on GM from last September as follows: Updating this 10-month-old analysis with today's 1,430,000,000 fully diluted outstanding share count and adding in the value of GM's stake in Cruise Automation and Lyft, we obtain the following updated SOTP for GM: GM China --> worth $20 to $30 billion based on $2 billion average 3-year trailing net income and a 10X to 15X P/E multiple, or ~$14 to ~$21 per share Cruise Automation Equity Stake --> worth $7 billion, or ~$5/share (as discussed above) Lyft Equity Stake --> worth $1.5 billion, or ~$1/share GM remainder of business --> worth $40/share, based on an increased $2/share annual dividend (see below) and a 5% dividend yield.
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Nor can it rationally be explained by the threat of tariffs by the Trump administration or (in retaliation) by the Chinese government, as the vast majority of GM's GAAP profitability is generated within North America from pick-up truck and SUV sales (and is therefore not dependent on vehicle exports). In addition, Starboard has experience in the auto/industrial manufacturing space, with recent positions in Advance Auto Parts ( AAP ) and Cars.com ( CARS ) ( see here ) and prior industrial-company activist campaigns such as that concerning Wausau Paper Corp. ( see here ); Pershing Square - Pershing Square is a well-known activist outfit which is now apparently on the rebound from several investment misfires; chief investment officer Bill Ackman tends to focus on alignment of incentives, which is clearly the biggest problem at GM. In this respect, we noted in our "Divide and Prosper" Seeking Alpha article on GM from last September as follows: Updating this 10-month-old analysis with today's 1,430,000,000 fully diluted outstanding share count and adding in the value of GM's stake in Cruise Automation and Lyft, we obtain the following updated SOTP for GM: GM China --> worth $20 to $30 billion based on $2 billion average 3-year trailing net income and a 10X to 15X P/E multiple, or ~$14 to ~$21 per share Cruise Automation Equity Stake --> worth $7 billion, or ~$5/share (as discussed above) Lyft Equity Stake --> worth $1.5 billion, or ~$1/share GM remainder of business --> worth $40/share, based on an increased $2/share annual dividend (see below) and a 5% dividend yield.
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Nor can it rationally be explained by the threat of tariffs by the Trump administration or (in retaliation) by the Chinese government, as the vast majority of GM's GAAP profitability is generated within North America from pick-up truck and SUV sales (and is therefore not dependent on vehicle exports). In addition, Starboard has experience in the auto/industrial manufacturing space, with recent positions in Advance Auto Parts ( AAP ) and Cars.com ( CARS ) ( see here ) and prior industrial-company activist campaigns such as that concerning Wausau Paper Corp. ( see here ); Pershing Square - Pershing Square is a well-known activist outfit which is now apparently on the rebound from several investment misfires; chief investment officer Bill Ackman tends to focus on alignment of incentives, which is clearly the biggest problem at GM. So, we conclude that neither GM's business model nor its financial performance nor acquisition track record logically explains why the company's shares have massively underperformed peers as well as the overall market since late 2010.
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11390.0
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2018-07-19 00:00:00 UTC
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Auto Stock Roundup: Tariff Woes Rampant, Ford to Settle Takata Lawsuit
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AAP
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-tariff-woes-rampant-ford-to-settle-takata-lawsuit-2018-07-19
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The U.S. auto industry is now encountering tariff woes. According to the Alliance of Automobile Manufacturers, if 25% tariff is imposed on imported cars and parts, it would escalate the price of U.S. vehicles by $83 billion annually and result in job losses. The auto industry has organized a full-scale campaign to oppose the tariffs.
In another development, the week witnessed Ford Motor Company F agreeing to pay $299.1 million to settle the claims of economic loss incurred by the consumers, pertaining to Takata Corp. air-bag recalls. Notably, Takata air-bag recalls are the largest recall in the history, which resulted in a number of lawsuits by consumers and accident victims.
Sonic Automotive, Inc. SAH believes that gross margin pressure in key brands is going to affect its performance in the soon-to-be-reported quarter. At its BMW and Honda dealerships, new vehicle gross profit per unit has been low in second-quarter 2018.
(Read the previous roundup here: Auto Stock Roundup for Jul 12, 2018 )
Recap of the Week's Most Important Stories
1. Cummins Inc. CMI has announced that its board approved an increase in its quarterly cash dividend on common stock to $1.14 per share. The revised dividend will be paid on Sep 4 to shareholders of record as of Aug 22, 2018.
The dividend was hiked roughly 5.6% from $1.08 per share, which was offered in the previous four quarters. Prior to this, in July 2017, the company raised its dividend payout by 5.4% from $1.025 per common share.
Per the CEO, the company will maintain strong returns by offering products and services to customers. Also, the dividend hike is in sync with Cummins' commitment to providing increased returns to shareholders, which reflects the company's confidence in its long-term performance.(Read more: Cummins Announces 5.6% Hike in Quarterly Dividend )
Cummins currently carries a Zacks Rank #3 (Hold).
2. WABCO Holdings Inc. WBC has signed a steering system deal in India with Tata Motors Limited TTM , a global manufacturer of cars, utility vehicles, buses, trucks and defense vehicles. Per the deal, WABCO will supply its hydraulic power steering systems to meet Tata Motors' performance and reliability requirements for manufacturing new heavy-duty trucks.
This marks the first major deal in India after WABCO acquired the U.S.-based supplier of steering technologies, R.H. Sheppard, in September 2017. Further, the latest agreement is in sync with WABCO's commitment to expand and offer its technology portfolio to customers outside the United States. The contract with Tata Motors corresponds to a significant milestone in providing steering solutions to global customers.
The company will supply M110 heavy-duty hydraulic power steering gears and assemblies, enabling Tata Motors to cater to the rising demand for new heavy-duty trucks after the changes in legislation to limit axle weight loads. Since 1986, WABCO's M-Series gears have been meeting industry standards by using top-quality materials and components. (Read more: WABCO Signs Contract to Supply Steering System in India )
WABCO currently carries a Zacks Rank #3.
3. Ford has agreed to pay $299.1 million for settling the claims of economic loss incurred by the consumers, pertaining to Takata Corp. air-bag recalls. Per Reuters, the settlement covers various damages linked to the inflators. This includes claims that vehicles were falsely presented as safe, buyers were charged higher price for cars with faulty air bags and customers had to bear out of pocket expenses to deal with recalls.
The Takata air-bag recalls, the largest in the history, resulted in a number of lawsuits by consumers and accident victims. The air bags can go wrong and send pieces of metal to drivers and passengers. At least 23 deaths have been reported across the globe, pertaining to the rupturing of flawed Takata air bag inflators.
The auto giant, Ford is the latest automaker to settle the claims of economic loss. Previously, many other auto biggies reached similar settlements, valuing more than $1.2 billion. The Ford settlement covers at least 6 million U.S. vehicles, with potentially faulty Takata air bag inflators. (Read more: Ford Agrees to Pay $299.1M to Settle Takata Lawsuit )
Ford currently carries a Zacks Rank #4 (Sell).
4. Sonic Automotive is slated to report second-quarter 2018 results on Jul 27. The company anticipates gross margin pressure in key brands to adversely impact its performance in the soon-to-be-reported quarter. According to the company sources, at its BMW and Honda dealerships, new vehicle gross profit per unit was considerably lower during the second quarter. This low margin can be attributed to the lower manufacturer-to-dealer incentives on certain models. This low margin pressure is likely to continue in the third quarter too. However, this scenario is anticipated to reverse in the fourth quarter, with new model releases from BMW and support from its manufacturing partners.
However, due to these headwinds, the company now expects diluted earnings per share from continuing operations for second-quarter 2018 to be in the range of $0.37-$0.41 and on an adjusted basis to be in the range of $0.32-$0.36. For 2018, the company expects diluted earnings per share from continuing operations to be within the range $1.65-$1.75 and on an adjusted basis to be between $1.90 and $2.00. (Read more: Sonic Automotive's Q2 Results to be Impacted by Margin Woes )
Sonic Automotive currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Performance
Last week, Toyota Motor Corporation TM has recorded the biggest gains. However, shares of Harley-Davidson, Inc. HOG have declined the most.
In the past six months, share prices of all these stocks have declined, except for Advance Auto Parts, Inc. AAP . Harley-Davidson has declined the most.
What's Next in the Auto Space?
Watch out for the earnings releases as well as usual news of auto companies over the next week.
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Sonic Automotive, Inc. (SAH): Free Stock Analysis Report
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Toyota Motor Corporation (TM): Free Stock Analysis Report
Tata Motors Ltd (TTM): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
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Cummins Inc. (CMI): Free Stock Analysis Report
Harley-Davidson, Inc. (HOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past six months, share prices of all these stocks have declined, except for Advance Auto Parts, Inc. AAP . Click to get this free report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Tata Motors Ltd (TTM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Wabco Holdings Inc. (WBC): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. According to the Alliance of Automobile Manufacturers, if 25% tariff is imposed on imported cars and parts, it would escalate the price of U.S. vehicles by $83 billion annually and result in job losses.
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Click to get this free report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Tata Motors Ltd (TTM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Wabco Holdings Inc. (WBC): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, share prices of all these stocks have declined, except for Advance Auto Parts, Inc. AAP . In another development, the week witnessed Ford Motor Company F agreeing to pay $299.1 million to settle the claims of economic loss incurred by the consumers, pertaining to Takata Corp. air-bag recalls.
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Click to get this free report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Tata Motors Ltd (TTM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Wabco Holdings Inc. (WBC): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, share prices of all these stocks have declined, except for Advance Auto Parts, Inc. AAP . In another development, the week witnessed Ford Motor Company F agreeing to pay $299.1 million to settle the claims of economic loss incurred by the consumers, pertaining to Takata Corp. air-bag recalls.
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In the past six months, share prices of all these stocks have declined, except for Advance Auto Parts, Inc. AAP . Click to get this free report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Tata Motors Ltd (TTM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Wabco Holdings Inc. (WBC): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. The dividend was hiked roughly 5.6% from $1.08 per share, which was offered in the previous four quarters.
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11391.0
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2018-07-05 00:00:00 UTC
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Auto Stock Roundup: June Sales Rise, Tariff Woes Loom, TSLA Achieves Model 3 Target
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AAP
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-june-sales-rise-tariff-woes-loom-tsla-achieves-model-3-target-2018-07
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The week saw the release of the auto sales report for the month of June. U.S. auto sales jumped in the month, defying the odds of rising interest rates, higher gas prices and large supply of used vehicles. While the first half of the year saw auto sales rise 1.8%, sales in June increased 5% compared with a year ago. Strong consumer confidence and low level of unemployment boosted auto sales.
There is however the lurking fear of this joyride being derailed due to President Trump's proposed tariffs. In fact, the auto industry, which relies heavily on a complicated global supply chain and is adapting to a spate of technological changes such as autonomous and electric vehicles (EVs) technology, is likely to be adversely impacted by this trade policy.
Other than the June sales report and tariff concerns, the week saw Tesla, Inc.'s TSLA vehicle production reaching a historic level in the second quarter of 2018, making it the most-productive three-month period. Notably, Tesla achieved its goal to produce 5,000 Model 3 sedans in the last week of second-quarter 2018.
(Read the previous roundup here: Auto Stock Roundup for Jun 28, 2018 )
Recap of the Week's Most Important Stories
1. General Motors Company GM is set to transfer its Vietnamese operation to VinFast Trading and Production LLC, a unit of Vietnam's biggest private conglomerate - Vingroup JSC, per Reuters. General Motors intends to distribute Chevrolet cars through this local carmaker and anticipates this to boost its sales.
General Motors is likely to transfer the full ownership of its Hanoi factory, dealer network and employee base to VinFast by the end of 2018. From 2019, small cars will be produced under a GM global license.
General Motors used its Hanoi plant to assemble Chevrolet vehicles, with parts imported from South Korea. GM Korea is the biggest production base of General Motors in Asia, excluding China. The latest GM-VinFast partnership will be beneficial for the Chevrolet brand. Domestic strength, the insight of VinFast, and the global scale and expertise of General Motors will bolster this partnership. (Read more: General Motor to Transfer Vietnam Operation to Boost Sales )
General Motors currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
2. Autoliv ALV announced the completion of the spin-off of its electronics segment, Veoneer, Inc. The spin-off process had started in September 2017 when the Stockholm, Sweden-based leader in automotive safety systems announced its intention to establish its electronics segment as a separate entity. The underlying aim was to create two isolated entities, capable of catering to two different markets, with separate product offerings.
Prior to the spin-off, Autoliv made cash contributions to Veoneer taking its cash liquidity to around $1 billion. Autoliv channelized the contribution through a mixture of external funding and existing cash. With the completion of the spin-off, Veoneer will begin regular trading on the New York Stock Exchange and on Nasdaq Stockholm as an independent company. (Read more: Autoliv Closes Spin-off of Electronics Segment Veoneer )
Autoliv currently carries a Zacks Rank #3 (Hold).
3. Cummins CMI announced the acquisition of Efficient Drivetrains, Inc. ("EDI"), a company that engages in the designing and manufacturing of hybrid, and fully-electric power solutions for the commercial market. This acquisition will aid Cummins to be a global leader in electrified power. The deal is expected to be completed by the third quarter upon fulfillment of customary closing conditions.
EDI's skilled workforce and electrification abilities will broaden Cummins' electrification expertise and products. Further, in real time, EDI's hybrid system is capable of switching between fully-electric, series and parallel modes.
For over a decade, Cummins has been developing its electrification capabilities. Moreover, over the past nine months, the company has accelerated efforts to build an entire range of electric storage through investments and acquisitions of businesses. In January 2018, the company announced its plan to acquire the automotive battery business of the United Kingdom's Johnson Matthey. In October 2017, Cummins had acquired battery pack expertise and resources of Brammo. (Read more: Cummins to Acquire EDI for Electrified Technologies )
Cummins currently carries a Zacks Rank #3.
4. Tesla's vehicle production reached a historic level in the second quarter of 2018, making it the most-productive three-month period. During the reported quarter, the company witnessed 55% sequential rise in production to 53,339 vehicles, with Model 3 production rising almost three times from the prior quarter. Total production includes 24,761 units of Model S and X combined, and 28,578 units of Model 3.
Notably, Tesla achieved its goal to produce 5,000 Model 3 sedans in the last week of second-quarter 2018. In the past week, the company manufactured 5,031 Model 3 and 1,913 Model S and X vehicles.
Further, Tesla anticipates reaching 6,000 units of Model 3 per week by August end. The company reaffirmed its positive guidance for net income and cash flow for the third and fourth quarters, in spite of higher tariffs and a weaker U.S. currency. (Read more: Tesla Announces Q2 Production & Delivery Numbers )
Tesla currently carries a Zacks Rank #3.
5. Volkswagen AG VLKAY announced an investment of €1 billion between 2019 and 2021 for the implementation of its planned model campaign, INDIA 2.0. The campaign will be led by Volkswagen's Skoda Auto brand. Further, a project center for vehicle development will also be set up in the country to maintain proximity to the market and understand the requirement of targeted customers.
Within a few years, India has the potential to become the third-largest automotive market, globally. In order to tap the projected increase in demand, the company has been looking for sustainable growth in the country. Per Skoda's CEO, the company is aiming for a market share of up to 5% in the long term, which will also depend on market and segmental development.
Skoda will manufacture new products in India through its heavily-localized MQB A0 platform. The platform is already in sync with stricter emission and safety standards that are expected to be applicable in India by 2020. (Read more: Volkswagen's Skoda Invests EUR 1B in INDIA 2.0 Campaign )
Volkswagen currently carries a Zacks Rank #4 (Sell).
Performance
Last week, Tesla witnessed the sharpest decline in price, while Harley-Davidson, Inc. HOG rose the most.
In the past six months, the maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Honda Motor Co., Ltd. (HMC) have declined the most.
What's Next in the Auto Space?
Watch out for the usual news releases of auto companies over the next week.
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General Motors Company (GM): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Volkswagen AG (VLKAY): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Autoliv, Inc. (ALV): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
Harley-Davidson, Inc. (HOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past six months, the maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Honda Motor Co., Ltd. (HMC) have declined the most. Click to get this free report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Other than the June sales report and tariff concerns, the week saw Tesla, Inc.'s TSLA vehicle production reaching a historic level in the second quarter of 2018, making it the most-productive three-month period.
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Click to get this free report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, the maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Honda Motor Co., Ltd. (HMC) have declined the most. Other than the June sales report and tariff concerns, the week saw Tesla, Inc.'s TSLA vehicle production reaching a historic level in the second quarter of 2018, making it the most-productive three-month period.
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Click to get this free report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, the maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Honda Motor Co., Ltd. (HMC) have declined the most. (Read more: General Motor to Transfer Vietnam Operation to Boost Sales ) General Motors currently carries a Zacks Rank #2 (Buy).
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In the past six months, the maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Honda Motor Co., Ltd. (HMC) have declined the most. Click to get this free report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. (Read more: Cummins to Acquire EDI for Electrified Technologies ) Cummins currently carries a Zacks Rank #3.
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11392.0
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2018-06-28 00:00:00 UTC
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Auto Stock Roundup: HOG to Shift Production to Escape EU Tariff, F & TM in Focus
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AAP
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-hog-to-shift-production-to-escape-eu-tariff-f-tm-in-focus-2018-06-28
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nan
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nan
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Harley-Davidson, Inc. HOG recently announced that it will shift some of its production out of the United States to avoid EU (European Union) tariffs. The automaker's decision came after Trump's announcement of imposing tariffs on steel and aluminum, imported from the EU. In retaliation, the EU levied tariffs on U.S. goods, including motorcycles.
Understandably, this tariff war has raised concerns among automakers. In fact, not only the automakers but the overall auto sector - including auto manufacturers, dealers, and auto parts and transportation companies - will be hit.
Other than tariff-induced activities, the week saw Toyota Motor Corporation's TM luxury brand, Lexus, making the announcement to recall around 121,000 cars to fix fuel leaks that can cause a fire. Also, the week witnessed Ford Motor Company F inking a deal with China's Internet search company, Baidu Inc. The companies will co-develop artificial intelligence and smart connectivity solutions for cars.
(Read the previous roundup here: Auto Stock Roundup for Jun 21, 2018 )
Recap of the Week's Most Important Stories
1. Harley-Davidson reported its plan to shift the manufacturing of its motorcycles in the United States - which are sold in European Union (EU) - to international facilities. The decision has been taken after the EU hiked import tariffs to 31% for products manufactured in the United States, effective Jun 22, 2018.
The hike in import tariffs has been levied by the EU as a counter strike for raising tariffs on steel and aluminum exported from the EU to the United States.
Harley-Davidson expects the increased tariffs to raise costs of up to $2,200 per average motorcycle if the company continues to ship motorcycles from the United States to the EU countries. Further, it has no plan to transfer the increased costs to wholesale or retail customers. Per the company, passing on the costs to dealers and retail customers might have a long-term negative impact on its business in the European region.
Harley-Davidson will have to bear the rise in costs due to increased tariffs, which will result in incremental costs of roughly $30-$45 million for the rest of 2018. Moreover, as the company has to ramp up production at its international facilities, it has to make investments to upgrade facilities, which are expected to take at least 9-18 months to be fully ready. (Read more: Harley to Shift Production to Escape EU Tariff Hike )
Harley-Davidson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
2. Toyota's luxury brand, Lexus announced the recall of around 121,000 cars to fix fuel leaks that can cause a fire, per Associated Press. The majority of the recalls include cars in the United States. This is a blow to the Japanese auto giant, which has already been grappling with several recall issues.
According to Toyota, the fuel injection system, which is composed of diaphragm material, may harden over time, leading to a fuel leakage. The company has assured that the dealers are going to replace the fuel delivery pipe with a new one, which has improved parts, at no cost.
Toyota is one of the leading automakers in the world, in terms of sales and production. In the past few years, the company has been recalling vehicles in large numbers. Recalls not only affect the company's reputation adversely but also result in considerable expenses and lower vehicle resale value. In January 2018, Toyota announced a recall of 601,300 vehicles due to flawed Takata airbags. The recall comprised of Toyota and Lexus models. The latest case of recall includes certain 2006 through 2013 IS350 cars, 2010 through 2014 IS350C, and 2007 through 2011 GS350 and GS450h. All contain 3.5-liter V6 gasoline engines. (Read more: Toyota's Lexus to Recall 121,000 Cars to Fix Fuel Leaks )
Toyota currently sports a Zacks Rank #1.
3. Per Reuters, Volkswagen AG VLKAY plans to close its Germany-based Wolfsburg factory for one to two days per week, between August and September. During the production halt, the company will deal with problems caused by engine emission tests. Except for Wolfsburg hub, facilities at Zwickau and Emden will also remain closed for a few days.
A new Worldwide Harmonised Light Vehicle Test Procedure ("WLTP"), which works on real-driving information, has found higher carbon dioxide emission readings in a few vehicles. The new readings have deferred official road certification for those vehicles and thus, sales.
These delays have deterred the company to be on track with the production of some of its vehicle models at different hubs. Further, Volkswagen has witnessed a probable dip in sales due to stricter emission tests. Last week, Daimler AG blamed WLTP and trade wars for lowering its income guidance. (Read more: Volkswagen Plans Production Halt to Tackle WLTP )
Volkswagen currently has a Zacks Rank #4 (Sell).
4. Dana Incorporated DAN announced a joint venture (JV) partnership with Canada's largest electricity producer, Hydro-Quebec. Per the announcement, Hydro-Québec's subsidiary TM4 Inc. will supply electric motors, power inverters and control systems to Dana.
Additionally, Dana will hold the majority share of TM4 against a payment of CA$165 million (US$127 million) and Hydro-Québec will keep 45% stake.
Established in 1998 by Hydro-Québec, TM4 designs and manufactures electric motors, generators, power electronics and control systems for electric vehicles (EVs), making it suitable for Dana's range of electric gearboxes and thermal-management technologies for batteries, motors, and inverters. The collaboration will position Dana as the sole provider of complete gearboxes, motor, inverter and thermal-management capability for electrified vehicles.
Per management, the JV will help the company to gain a leading position in mechanical power conveyance and thermal-management technology. TM4's skilled production of electric motors and its distribution will cater Dana's customers at the end markets. (Read more: Dana & Hydro-Quebec Set to Form JV Partnership for EVs )
Dana currently has a Zacks Rank #3.
5. Ford announced that it has signed a letter of intent (LOI) with Baidu, Inc. to co-develop artificial intelligence (AI) and connectivity solutions for Ford's vehicles in China. Baidu offers a Chinese internet searching platform.
By combining Baidu's innovative AI technology and Ford's engineering expertise, the team aspires to transform the mobility system and produce the next-generation in-vehicle experience for consumers in China. Based on Baidu's DuerOS conversational AI platform, Ford will develop in-vehicle infotainment systems and digital services. The DuerOS platform has features to recognize voice and image, enabling vehicle owners to control and communicate with their cars in their native language, without any difficulty to access information and services.
Further, both the companies aim to set up a joint-lab to look for innovation opportunities across automotive and mobility businesses in China. In order to focus more on digital marketing, Ford and Baidu will also assess prospects in technologies and big data.
Per management, the collaboration is in sync with the company's 'In China, For China' strategy. Through this partnership, Ford aims to offer smart products and solutions to its customers.
Ford currently has a Zacks Rank #3.
Performance
Last week, all these stocks witnessed a decline in price, with the maximum decline recorded by Harley-Davidson.
In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson have declined the most.
What's Next in the Auto Space?
Watch out for the usual news releases of other auto companies over the next week.
5 Medical Stocks to Buy Now
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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Ford Motor Company (F): Free Stock Analysis Report
Toyota Motor Corporation (TM): Free Stock Analysis Report
Volkswagen AG (VLKAY): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Dana Incorporated (DAN): Free Stock Analysis Report
Harley-Davidson, Inc. (HOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson have declined the most. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Dana Incorporated (DAN): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Other than tariff-induced activities, the week saw Toyota Motor Corporation's TM luxury brand, Lexus, making the announcement to recall around 121,000 cars to fix fuel leaks that can cause a fire.
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Dana Incorporated (DAN): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson have declined the most. Other than tariff-induced activities, the week saw Toyota Motor Corporation's TM luxury brand, Lexus, making the announcement to recall around 121,000 cars to fix fuel leaks that can cause a fire.
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Dana Incorporated (DAN): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson have declined the most. Also, the week witnessed Ford Motor Company F inking a deal with China's Internet search company, Baidu Inc.
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In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson have declined the most. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Dana Incorporated (DAN): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Also, the week witnessed Ford Motor Company F inking a deal with China's Internet search company, Baidu Inc.
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11393.0
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2018-06-21 00:00:00 UTC
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Why Is Advance Auto Parts (AAP) Up 19.9% Since Its Last Earnings Report?
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AAP
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https://www.nasdaq.com/articles/why-is-advance-auto-parts-aap-up-19.9-since-its-last-earnings-report-2018-06-21
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nan
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A month has gone by since the last earnings report for Advance Auto Parts, Inc.AAP . Shares have added about 19.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is AAP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Advance Auto Parts Q1 Earnings Beat Estimates, Up Y/Y
Advance Auto Parts reported adjusted earnings of $2.10 per share in first-quarter 2018 (ended Apr 21, 2018), up from $1.60 in the prior-year quarter. Also, the figure surpassed the Zacks Consensus Estimate of $1.98. Adjusted operating income increased to $224.1 million from $204.9 million in first-quarter 2017.
Advance Auto Parts reported net revenues of $2.87 billion, missing the Zacks Consensus Estimate of $2.91 billion. Revenues were 0.6% lower than the year-ago quarter. During the quarter under review, comparable store sales were down 0.8% year over year.
Gross profit was $1.27 billion in the reported quarter, almost in line with the prior-year period. Gross Profit margin increased 32 basis points year over year to 44.3%.
Adjusted selling, general and administrative (SG&A) expenses totaled $1.05 billion or 36.5% of sales compared with $1.07 billion or 36.9% of sales in the year-ago period.
Financial Position
Advance Auto Parts had cash and cash equivalents of $639 million as of Apr 21, 2018, up from $547 million as of Dec 30, 2017. The total long-term debt was $1.04 billion as of Apr 21, 2018, almost unchanged from the figure released on Dec 30, 2017.
In first-quarter 2018, operating cash flow was $154 million compared with $35.1 million in the same period of 2017.
Store Update
As of Apr 21, 2018, Advance Auto Parts operated 5,044 stores and 131 Worldpac branches while serving approximately 1,225 independently-owned Carquest stores.
How Have Estimates Been Moving Since Then?
In the past month , investors have witnessed a downward trend in fresh estimates. There have been three revisions higher for the current quarter compared to five lower.
Advance Auto Parts, Inc. Price and Consensus
Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote
VGM Scores
At this time, AAP has a great Growth Score of A, though it is lagging a lot on the momentum front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for growth investors while also being suitable for those looking for value and to a lesser degree momentum.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, AAP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent positive trend continue leading up to its next earnings release, or is AAP due for a pullback? Advance Auto Parts, Inc. Price and Consensus Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote VGM Scores At this time, AAP has a great Growth Score of A, though it is lagging a lot on the momentum front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. A month has gone by since the last earnings report for Advance Auto Parts, Inc.AAP .
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Advance Auto Parts, Inc. Price and Consensus Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote VGM Scores At this time, AAP has a great Growth Score of A, though it is lagging a lot on the momentum front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. A month has gone by since the last earnings report for Advance Auto Parts, Inc.AAP .
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Advance Auto Parts, Inc. Price and Consensus Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote VGM Scores At this time, AAP has a great Growth Score of A, though it is lagging a lot on the momentum front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. A month has gone by since the last earnings report for Advance Auto Parts, Inc.AAP . Will the recent positive trend continue leading up to its next earnings release, or is AAP due for a pullback?
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A month has gone by since the last earnings report for Advance Auto Parts, Inc.AAP . Advance Auto Parts, Inc. Price and Consensus Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote VGM Scores At this time, AAP has a great Growth Score of A, though it is lagging a lot on the momentum front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Will the recent positive trend continue leading up to its next earnings release, or is AAP due for a pullback?
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11394.0
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2018-06-21 00:00:00 UTC
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Auto Stock Roundup: GM to Replace Cadillac Sedans, F & VLKAY to Form Alliance
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AAP
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-gm-to-replace-cadillac-sedans-f-vlkay-to-form-alliance-2018-06-21
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nan
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nan
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U.S. customers have recently shown a distinct shift in the preference for trucks and sports utility vehicles (SUVs), shunning the traditional sedans. Automakers have already started to reorient their programs and strategies in response to the new situation, where the demand for conventional compact and midsize cars has declined while increased for SUVs and pickup trucks.
The recent decision of General Motors Company GM to abandon three Cadillac sedans and replacing them with two new ones over the next three and a half years vindicates this trend. In 2012, shares of traditional passenger cars were more than 50% of new-vehicle sales in the United States but, it dropped to less than 37% in 2017.
In addition to General Motors' decision to dump the sedans, the week also saw other important developments. Two auto giants, Ford Motor Company F and Volkswagen AG VLKAY are exploring an alliance on a wide range of activities, including the development of commercial vehicles. In the past week, Winnebago Industries Inc. WGO reported strong earnings results, surpassing both the Zacks Consensus Estimate as well as the prior-year quarter figure.
(Read the previous roundup here: Auto Stock Roundup for Jun 14, 2018 )
Recap of the Week's Most Important Stories
1. Per Associated Press, General Motors is dumping three Cadillac sedans and replacing them with two new ones over the next three and a half years. This auto giant has announced that it is going to invest $175 million to update a plant in Lansing, MI, to manufacture replacement models for ATS compact, CTS midsize and XTS full-size cars.
Sedan models have struggled in the United States market as consumers are increasingly abandoning those in favor of larger, spacious SUVs and pickup trucks. In 2012, shares of traditional passenger cars were more than 50% of new-vehicle sales in the United States but, it dropped to less than 37% in 2017. In 2017, ATS sales declined 39% while CTS and XTS sales dropped 35% and 27%, respectively.
The new cars will enter the market by the end of 2021 and further details would be released later. However, there will be no change in the workforce of the Lansing Grand River factory. (Read more: General Motors to Get Rid of 3 Cadillac Sedans, Invests $175M )
General Motors currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
2. Ford and Volkswagen are mulling over forming an alliance on a range of activities, including the development of commercial vehicles, per Reuters. The alliance would aid both the companies to compete effectively in theglobal market which is increasingly demanding high-tech and efficient lower-emission vehicles.
Thomas Sedran, the head of the German automaker Volkswagen's strategy division, noted that the two companies have "strong and complementary positions in different commercial vehicle segments already." Moreover, the U.S. auto giant, Ford is a dominant player in the medium-duty truck market in the United States and its F-series pickup has been the best-selling vehicle in the country for decades. On the other hand, Volkswagen, which owns MAN and Scania truck brands in Europe, formed a commercial-vehicle alliance with the Japanese truckmaker, Hino Motors Ltd in early 2018.
In order to adapt to the challenging environment, it is important to explore alliances. In fact, several automakers have collaborated on various big projects. This particular alliance discussion is an addition to this trend. (Read more: Ford, Volkswagen Explore Alliance for Commercial Vehicles )
Currently, both Ford and Volkswagen carry a Zacks Rank #3.
3. Magna International Inc. MGA announced its decision to set up two new joint ventures (JVs) with Beijing Electric Vehicle Co. Ltd (BJEV), a subsidiary of BAIC Group, dedicated for electric vehicles (EVs). The JV will engage in developing premium EVs and complete vehicle manufacturing. Additionally, the JVs will also offer engineering and complete-vehicle production capacity to probable customers.
The production of the first batch of vehicles is anticipated to start in 2020. An existing facility of BAIC Group at Zhenjiang, Jiangsu Province, will be used to engineer and manufacture vehicles for the JVs. The facility can manufacture approximately 80,000 vehicles per year.
These two JVs mark Magna's first collaboration to provide vehicles, developed and manufactured outside its manufacturing hub at Graz, Austria. Per management, the JVs will help Magna to produce cars - enabled with conventional, hybrid and electric powertrains - for the Chinese customers. (Read more: Magna Forms JVs to Engineer & Manufacture EVs for China )
Magna currently carries a Zacks Rank #2 (Buy).
4. Winnebago registered earnings of $1.02 per share in the third quarter of fiscal 2018 (ended May 28, 2018), beating the Zacks Consensus Estimate of 91 cents. In the year-ago period, earnings were 61 cents per share. Net income soared 67.7% to $32.5 million.
Revenues in the reported quarter surged 18% to $562.3 million from $476.4 million in the prior-year quarter. The figure outpaced the Zacks Consensus Estimate of $542.4 million. This upside in the top line was driven by continued growth in the Towable segment.
Operating income in the quarter under review rose 38.5% to $48.3 million from $34.9 million in the year-ago quarter. Gross profit improved to $85.5 million, increasing from $70.8 million a year ago. (Read more: Winnebago Q3 Earnings, Revenues Beat Estimates, Up Y/Y )
Winnebago currently has a Zacks Rank #3.
5. Volkswagen's Audi AG has agreed on a deal with Hyundai Motor Company to develop fuel-cell technology. Subject to approval from regulatory authorities, both the companies will team up to develop hydrogen vehicle technology to facilitate volume production in a quicker and efficient way.
Further, in order to develop this sustainable energy solution, both the companies are exploring other extensive collaborations. Under this collaboration, the two companies can share non-competitive components and access each other's intellectual property to develop fuel cells for vehicles.
For Volkswagen Group, world's largest auto seller, Audi is responsible for developing hydrogen fuel-cell technology. Per its strategy for fuel cell electric vehicles (FCEVs), Audi is collaborating with companies to develop this sustainable technology at lucrative costs.
The capacity to cover longer distances and a shorter recharge time make hydrogen an attractive alternative energy option for electric mobility, specifically for large and heavy automobiles, due to FCEV's design. However, the success of hydrogen in becoming a sustainable energy source depends on a sufficient production and availability of an established infrastructure.
Performance
Last week, the maximum increase was witnessed by Tesla, Inc. TSLA , while General Motors declined the most.
In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson, Inc. HOG have declined the most.
What's Next in the Auto Space?
Watch out for the usual news releases of other auto companies over the next week.
Will You Make a Fortune on the Shift to Electric Cars?
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Ford Motor Company (F): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Volkswagen AG (VLKAY): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Magna International Inc. (MGA): Free Stock Analysis Report
Winnebago Industries, Inc. (WGO): Free Stock Analysis Report
Harley-Davidson, Inc. (HOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson, Inc. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Winnebago Industries, Inc. (WGO): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Automakers have already started to reorient their programs and strategies in response to the new situation, where the demand for conventional compact and midsize cars has declined while increased for SUVs and pickup trucks.
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Winnebago Industries, Inc. (WGO): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson, Inc. Two auto giants, Ford Motor Company F and Volkswagen AG VLKAY are exploring an alliance on a wide range of activities, including the development of commercial vehicles.
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Winnebago Industries, Inc. (WGO): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson, Inc. Two auto giants, Ford Motor Company F and Volkswagen AG VLKAY are exploring an alliance on a wide range of activities, including the development of commercial vehicles.
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In the past six months, maximum rise has been recorded by Advance Auto Parts, Inc. AAP while shares of Harley-Davidson, Inc. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Volkswagen AG (VLKAY): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Winnebago Industries, Inc. (WGO): Free Stock Analysis Report Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Automakers have already started to reorient their programs and strategies in response to the new situation, where the demand for conventional compact and midsize cars has declined while increased for SUVs and pickup trucks.
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11395.0
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2018-06-20 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Ex-Dividend Date Scheduled for June 21, 2018
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-ex-dividend-date-scheduled-june-21-2018-2018-06-20
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Advance Auto Parts Inc ( AAP ) will begin trading ex-dividend on June 21, 2018. A cash dividend payment of $0.06 per share is scheduled to be paid on July 06, 2018. Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 20th quarter that AAP has paid the same dividend. At the current stock price of $138.3, the dividend yield is .17%.
The previous trading day's last sale of AAP was $138.3, representing a -0.63% decrease from the 52 week high of $139.17 and a 75.49% increase over the 52 week low of $78.81.
AAP is a part of the Consumer Services sector, which includes companies such as JD.com, Inc. ( JD ) and O'Reilly Automotive, Inc. ( ORLY ). AAP's current earnings per share, an indicator of a company's profitability, is $6.8. Zacks Investment Research reports AAP's forecasted earnings growth in 2018 as 26.32%, compared to an industry average of 19.1%.
For more information on the declaration, record and payment dates, visit the AAP Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAP through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAP as a top-10 holding:
John Hancock Multifactor Consumer Discretionary ETF ( JHMC )
SPDR Select Sector Fund - Consumer Discretionary ( XLY )
Invesco S&P 500 Equal Weight ETF ( RSP ).
The top-performing ETF of this group is XLY with an increase of 3.56% over the last 100 days. JHMC has the highest percent weighting of AAP at 0.49%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAP is a part of the Consumer Services sector, which includes companies such as JD.com, Inc. ( JD ) and O'Reilly Automotive, Inc. ( ORLY ). Zacks Investment Research reports AAP's forecasted earnings growth in 2018 as 26.32%, compared to an industry average of 19.1%. For more information on the declaration, record and payment dates, visit the AAP Dividend History page.
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The following ETF(s) have AAP as a top-10 holding: John Hancock Multifactor Consumer Discretionary ETF ( JHMC ) SPDR Select Sector Fund - Consumer Discretionary ( XLY ) Invesco S&P 500 Equal Weight ETF ( RSP ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Advance Auto Parts Inc ( AAP ) will begin trading ex-dividend on June 21, 2018.
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAP Dividend History page. The following ETF(s) have AAP as a top-10 holding: John Hancock Multifactor Consumer Discretionary ETF ( JHMC ) SPDR Select Sector Fund - Consumer Discretionary ( XLY ) Invesco S&P 500 Equal Weight ETF ( RSP ).
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AAP's current earnings per share, an indicator of a company's profitability, is $6.8. The following ETF(s) have AAP as a top-10 holding: John Hancock Multifactor Consumer Discretionary ETF ( JHMC ) SPDR Select Sector Fund - Consumer Discretionary ( XLY ) Invesco S&P 500 Equal Weight ETF ( RSP ). Advance Auto Parts Inc ( AAP ) will begin trading ex-dividend on June 21, 2018.
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11396.0
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2018-06-19 00:00:00 UTC
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Ex-Dividend Reminder: Advance Auto Parts, H & R Block and Hill-Rom Holdings
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AAP
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https://www.nasdaq.com/articles/ex-dividend-reminder-advance-auto-parts-h-r-block-and-hill-rom-holdings-2018-06-19
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , on 6/21/18, Advance Auto Parts Inc (Symbol: AAP), H & R Block, Inc. (Symbol: HRB), and Hill-Rom Holdings, Inc. (Symbol: HRC) will all trade ex-dividend for their respective upcoming dividends. Advance Auto Parts Inc will pay its quarterly dividend of $0.06 on 7/6/18, H & R Block, Inc. will pay its quarterly dividend of $0.25 on 7/2/18, and Hill-Rom Holdings, Inc. will pay its quarterly dividend of $0.20 on 6/29/18. As a percentage of AAP's recent stock price of $137.91, this dividend works out to approximately 0.04%, so look for shares of Advance Auto Parts Inc to trade 0.04% lower - all else being equal - when AAP shares open for trading on 6/21/18. Similarly, investors should look for HRB to open 1.07% lower in price and for HRC to open 0.22% lower, all else being equal.
Below are dividend history charts for AAP, HRB, and HRC, showing historical dividends prior to the most recent ones declared.
Advance Auto Parts Inc (Symbol: AAP) :
H & R Block, Inc. (Symbol: HRB) :
Hill-Rom Holdings, Inc. (Symbol: HRC) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.17% for Advance Auto Parts Inc, 4.27% for H & R Block, Inc., and 0.89% for Hill-Rom Holdings, Inc..
In Tuesday trading, Advance Auto Parts Inc shares are currently off about 0.2%, H & R Block, Inc. shares are down about 0.5%, and Hill-Rom Holdings, Inc. shares are off about 0.9% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a percentage of AAP's recent stock price of $137.91, this dividend works out to approximately 0.04%, so look for shares of Advance Auto Parts Inc to trade 0.04% lower - all else being equal - when AAP shares open for trading on 6/21/18. Looking at the universe of stocks we cover at Dividend Channel , on 6/21/18, Advance Auto Parts Inc (Symbol: AAP), H & R Block, Inc. (Symbol: HRB), and Hill-Rom Holdings, Inc. (Symbol: HRC) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for AAP, HRB, and HRC, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel , on 6/21/18, Advance Auto Parts Inc (Symbol: AAP), H & R Block, Inc. (Symbol: HRB), and Hill-Rom Holdings, Inc. (Symbol: HRC) will all trade ex-dividend for their respective upcoming dividends. As a percentage of AAP's recent stock price of $137.91, this dividend works out to approximately 0.04%, so look for shares of Advance Auto Parts Inc to trade 0.04% lower - all else being equal - when AAP shares open for trading on 6/21/18. Advance Auto Parts Inc (Symbol: AAP) : H & R Block, Inc. (Symbol: HRB) : Hill-Rom Holdings, Inc. (Symbol: HRC) : In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel , on 6/21/18, Advance Auto Parts Inc (Symbol: AAP), H & R Block, Inc. (Symbol: HRB), and Hill-Rom Holdings, Inc. (Symbol: HRC) will all trade ex-dividend for their respective upcoming dividends. Advance Auto Parts Inc (Symbol: AAP) : H & R Block, Inc. (Symbol: HRB) : Hill-Rom Holdings, Inc. (Symbol: HRC) : In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of AAP's recent stock price of $137.91, this dividend works out to approximately 0.04%, so look for shares of Advance Auto Parts Inc to trade 0.04% lower - all else being equal - when AAP shares open for trading on 6/21/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 6/21/18, Advance Auto Parts Inc (Symbol: AAP), H & R Block, Inc. (Symbol: HRB), and Hill-Rom Holdings, Inc. (Symbol: HRC) will all trade ex-dividend for their respective upcoming dividends. As a percentage of AAP's recent stock price of $137.91, this dividend works out to approximately 0.04%, so look for shares of Advance Auto Parts Inc to trade 0.04% lower - all else being equal - when AAP shares open for trading on 6/21/18. Below are dividend history charts for AAP, HRB, and HRC, showing historical dividends prior to the most recent ones declared.
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11397.0
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2018-06-19 00:00:00 UTC
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Advance Auto Parts Focuses on Expansion, Expenses a Woe
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-focuses-on-expansion-expenses-a-woe-2018-06-19
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nan
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nan
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On Jun 18, we issued an updated research report on Advance Auto Parts, Inc.AAP .
This leading automotive parts provider of North America is focusing on growth through store openings, collaborations and widening of online presence. The company rolled out an e-commerce engine known as Advance Pro, dedicated specifically to professional customers. During first-quarter 2018, the company's website helped it access 20,000 orders.
Further, to increase traffic at its stores and websites, the company has partnered with Uber Technologies in April. Under the partnership, Advance Auto Parts will serve as an exclusive aftermarket auto parts supplier for the Uber Visa Debit Card program to cater driver partners.
Advance Auto Parts, Inc. Price and Consensus
Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote
In first-quarter 2018, the company witnessed a year-over-year increase in adjusted earnings while revenues plunged. Moreover, earnings surpassed the Zacks Consensus Estimate while revenues missed the mark.
The company is also taking several initiatives to strengthen and streamline its supply chain with improving inventory positioning. Advance Auto Parts is also closing stores, depending upon the location, competency and real estate costs. As of Apr 21, 2018, it closed or consolidated 15 stores.
However, the company is incurring huge capital expenditure for expansion. In first-quarter 2018, the figure was $34 million. In the coming quarters, several ongoing or new projects might lead to an increase in the figure. For 2018, the company projects capital expenditure of $200-$250 million compared with roughly $189 million in 2017.
Also, Advance Auto Parts' dependence on seasonality and weather conditions for business is a headwind. In first-quarter 2018, the company was partially impacted by delayed spring in North, Central and northeast markets. This partly contributed to 0.6% year-over-year decline in revenues.
Over the past month, the company's stock has seen the Zacks Consensus Estimate for second-quarter 2018 earnings being revised 1.1% downward.
Price Performance
In the past three months, Advance Auto Parts' stock has moved up 19.3%, outperforming 11.9% increase of the industry it belongs to.
Zacks Rank & Stocks to Consider
Currently, Advance Auto Parts has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Magna International Inc. MGA , Yamaha Motor Co. Ltd. YAMHF and Toyota Motor Corporation TM , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Magna has an expected long-term growth rate of 8.5%. Shares of the company have risen 47.7% over the past year.
Yamaha Motor has an expected long-term growth rate of 4.5%. Shares of the company have risen 3.8% over the past year.
Toyota has an expected long-term growth rate of 5.6%. Shares of the company have risen 31.5% over the past year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toyota Motor Corporation (TM): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Magna International Inc. (MGA): Free Stock Analysis Report
Yamaha Motor Co., Ltd. (YAMHF): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Jun 18, we issued an updated research report on Advance Auto Parts, Inc.AAP . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Yamaha Motor Co., Ltd. (YAMHF): Free Stock Analysis Report To read this article on Zacks.com click here. This leading automotive parts provider of North America is focusing on growth through store openings, collaborations and widening of online presence.
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Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Yamaha Motor Co., Ltd. (YAMHF): Free Stock Analysis Report To read this article on Zacks.com click here. On Jun 18, we issued an updated research report on Advance Auto Parts, Inc.AAP . Advance Auto Parts, Inc. Price and Consensus Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote In first-quarter 2018, the company witnessed a year-over-year increase in adjusted earnings while revenues plunged.
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Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Yamaha Motor Co., Ltd. (YAMHF): Free Stock Analysis Report To read this article on Zacks.com click here. On Jun 18, we issued an updated research report on Advance Auto Parts, Inc.AAP . Advance Auto Parts, Inc. Price and Consensus Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote In first-quarter 2018, the company witnessed a year-over-year increase in adjusted earnings while revenues plunged.
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On Jun 18, we issued an updated research report on Advance Auto Parts, Inc.AAP . Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Magna International Inc. (MGA): Free Stock Analysis Report Yamaha Motor Co., Ltd. (YAMHF): Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. Price and Consensus Advance Auto Parts, Inc. Price and Consensus | Advance Auto Parts, Inc. Quote In first-quarter 2018, the company witnessed a year-over-year increase in adjusted earnings while revenues plunged.
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11398.0
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2018-05-24 00:00:00 UTC
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Auto Stock Roundup: AZO, AAP, CPRT Earnings Beat, F Resumes F-150 Production
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AAP
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https://www.nasdaq.com/articles/auto-stock-roundup%3A-azo-aap-cprt-earnings-beat-f-resumes-f-150-production-2018-05-24
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nan
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Auto companies across the globe continue to focus on electric vehicles (EVs). Government regulations have led to an increased preference for EVs over other combustion-engine vehicles.
China witnessed strong demand for EVs among the major automotive markets. Further, the country is providing subsidies for encouraging buyers to opt for more such environment-friendly vehicles. Increased demand in the mainland prompted many automakers in China to manufacture and launch EVs.
With an intention to challenge the dominance of domestic players, many foreign automakers are collaborating with China's national companies to offer EVs.
This week saw earnings beats from a few companies, including AutoZone, Inc.AZO , Advance Auto Parts, Inc.AAP and Copart, Inc.CPRT .
(Read the previous roundup here: Auto Stock Roundup for May 17, 2018 )
Recap of This Week's Most Important Stories
1. Ford Motor CompanyF announced the production restart of its F-150 pickup truck at its Dearborn, MI facility on Friday. The production of the same model will resume at its facility in Kansas City, MO and its F-series truck hub in Louisville, KY on Monday.
The production of the F-150 truck was stopped on May 7. An explosion on May 2 at its parts supplier, Meridian Magnesium plant, led to a shortage of parts for manufacturing the F-150 pickup trucks. The disaster at Eaton Rapids, MI hub caused major manufacturing disturbance in the automotive industry, forcing many automakers to make alterations or halt production.
In order to help Meridian from the disaster, Ford, along with suppliers and contractors, removed 19 dies from the damaged facility. This included shifting an 87,000-pound die from Eaton Rapids to Nottingham, U.K. by using one of the largest cargo planes, Antonov. A die is a tool that is used to cut or shape material, using a press. The company also examined and repaired dies to restart the production at Meridian Magnesium's Eaton Rapids facility. (Read more: Ford Beats Odds to Restart F-150 Pickup-Truck Production )
Ford currently carries a Zacks Rank #3 (Hold).
2. AutoZone reported earnings of $13.42 per share in the third quarter of fiscal 2018 (ended May 5, 2018), beating the Zacks Consensus Estimate of $12.99. The figure was $11.44 in third-quarter fiscal 2017.
Revenues improved 1.6% year over year to $2.66 billion in the reported quarter. However, the figure missed the Zacks Consensus Estimate of $2.71 billion. Domestic same-store sales (sales of stores open at least for a year) rose 0.6% year over year.
Gross profit increased to $1.42 billion from $1.38 billion in the prior-year quarter. Operating profit (EBIT) rose to $545.8 million from $529.6 million registered in the third quarter of fiscal 2017.
Operating expenses, as a percentage of sales, increased to 33% from 32.4% a year ago.
During the reported quarter, AutoZone opened 26 new stores and relocated one in the United States. The company also opened four new stores in Mexico. As of May 5, the company had 5,540 stores across 50 states in the United States, the District of Columbia and Puerto Rico; 536 in Mexico and 16 in Brazil. The total store count was 6,092 as of that date.
AutoZone's inventory improved 3.7% year over year in the quarter under review, driven by store openings and increased product placement, partially offset by the sale of two business units. Inventory per location increased to $658,000 from the year-ago figure of $653,000. (Read more: AutoZone's Q3 Earnings Beat Estimates, Revenues Miss )
AutoZone currently carries a Zacks Rank #3.
3. Advance Auto Parts reported adjusted earnings of $2.10 per share in first-quarter 2018 (ended Apr 21, 2018), up from $1.60 in the prior-year quarter. Also, the figure surpassed the Zacks Consensus Estimate of $1.98. Adjusted operating income increased to $224.1 million from $204.9 million in first-quarter 2017.
Advance Auto Parts reported net revenues of $2.87 billion, missing the Zacks Consensus Estimate of $2.91 billion. Revenues were 0.6% lower than the year-ago quarter. During the quarter under review, comparable store sales were down 0.8% year over year.
Gross profit was $1.27 billion in the reported quarter, almost in line with the prior-year period. Gross profit margin increased 32 basis points year over year to 44.3%.
Adjusted selling, general and administrative (SG&A) expenses totaled $1.05 billion or 36.5% of sales compared with $1.07 billion or 36.9% of sales in the year-ago period. (Read more: Advance Auto Parts Q1 Earnings Beat Estimates, Up Y/Y )
Advance Auto Parts currently carries a Zacks Rank #3.
4. Meritor, Inc.MTOR reported the opening of the Eastern Canada Regional Distribution Center in Mississauga, Ontario. This marks the company's fourth distribution facility in the North American aftermarket. The new facility will cater to dealers and warehouse distributors of seven provinces.
Per management, the addition of Mississauga center shows Meritor's commitment to simplify business transactions and enhance customer satisfaction. This addition is expected to help east Canadian customers to receive their orders in shorter lead times, with mostly unchanged ordering and processing practices. Orders, which will be placed before 4 p.m. ET, will be shipped on the same day. Further, customers can opt for a product-pickup option.
The newly added hub stocks Meritor's Aftermarket brand portfolio to cater its customers in Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Quebec. (Read more: Meritor Opens New North American Distribution Hub in Canada )
Meritor currently carries a Zacks Rank #2 (Buy).
5. Copart reported adjusted earnings per share of 52 cents in third-quarter fiscal 2018 (ended Apr 30, 2018), beating the Zacks Consensus Estimate of 48 cents. The bottom line improved 36.8% from 38 cents recorded in the year-ago quarter.
Net income was $127.3 million, reflecting a surge of 40.6% or $36.8 million from third-quarter fiscal 2017.
Copart's revenues rose 27.9% to $478.2 million from the year-ago quarter and surpassed the Zacks Consensus Estimate of $435 million. Service revenues went up 24% year over year to $410.8 million, while revenues from vehicle sales gained 62% to $67.4 million in comparison with the prior-year quarter.
Gross profit improved 27% to $219.1 million from $173 million a year ago. Total operating expenses increased to $303.6 million from $237 million recorded in the prior-year period.
Operating income increased to $174.6 million from $136.8 million a year ago.
Copart had cash and cash equivalents of $204.3 million as of Apr 30, 2018, compared with $210 million as of Jul 31, 2017. Long-term debt, revolving loan facility and capital lease obligations were $399 million as of Apr 30, 2018, which recorded a decline from $550.8 million as of Jul 31, 2017.
In third-quarter fiscal 2018, Copart generated net cash flow of $377.2 million from operations compared with $347.8 million a year ago. (Read more: Copart's Q3 Earnings & Revenues Surpass Estimates )
Copart currently carries a Zacks Rank #3.
Performance
Last week, Advance Auto Parts, Inc. AAP recorded the maximum increase. The maximum decline was registered by AutoZone.
In the past six months, the maximum rise has been recorded by Advance Auto Parts, while General Motors Company's GM shares have declined the most.
What's Next in the Auto Space?
Watch out for the usual news releases of other auto companies over the next week.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis Report
Meritor, Inc. (MTOR): Free Stock Analysis Report
Copart, Inc. (CPRT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week saw earnings beats from a few companies, including AutoZone, Inc.AZO , Advance Auto Parts, Inc.AAP and Copart, Inc.CPRT . Performance Last week, Advance Auto Parts, Inc. AAP recorded the maximum increase. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here. This week saw earnings beats from a few companies, including AutoZone, Inc.AZO , Advance Auto Parts, Inc.AAP and Copart, Inc.CPRT . Performance Last week, Advance Auto Parts, Inc. AAP recorded the maximum increase.
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here. This week saw earnings beats from a few companies, including AutoZone, Inc.AZO , Advance Auto Parts, Inc.AAP and Copart, Inc.CPRT . Performance Last week, Advance Auto Parts, Inc. AAP recorded the maximum increase.
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This week saw earnings beats from a few companies, including AutoZone, Inc.AZO , Advance Auto Parts, Inc.AAP and Copart, Inc.CPRT . Performance Last week, Advance Auto Parts, Inc. AAP recorded the maximum increase. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here.
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11399.0
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2018-05-23 00:00:00 UTC
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Company News For May 23, 2018
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AAP
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https://www.nasdaq.com/articles/company-news-for-may-23-2018-2018-05-23
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nan
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nan
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Micron Technology, Inc.'s MU shares jumped 6.4% after the chip maker announced a $10 billion share buyback, representing 16% of the company's market value
Shares of Adobe Systems Inc. ADBE increased 0.3% after the company announced that it will buy Magento Commerce from Permira for $1.68 billion in cash.
Fifth Third Bancorp's FITB shares surged 3.2% after it agreed to acquire MB Financial, Inc. MBFI for $54.70 per share in cash and stock
Shares of Advance Auto Parts, Inc. AAP declined 3.2% after reporting fiscal first-quarter 2018 net revenues of $2.87 billion, missing the Zacks Consensus Estimate of $2.91 billion
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fifth Third Bancorp (FITB): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
MB Financial Inc. (MBFI): Free Stock Analysis Report
Adobe Systems Incorporated (ADBE): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fifth Third Bancorp's FITB shares surged 3.2% after it agreed to acquire MB Financial, Inc. MBFI for $54.70 per share in cash and stock Shares of Advance Auto Parts, Inc. AAP declined 3.2% after reporting fiscal first-quarter 2018 net revenues of $2.87 billion, missing the Zacks Consensus Estimate of $2.91 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report Fifth Third Bancorp (FITB): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report MB Financial Inc. (MBFI): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Micron Technology, Inc.'s MU shares jumped 6.4% after the chip maker announced a $10 billion share buyback, representing 16% of the company's market value Shares of Adobe Systems Inc. ADBE increased 0.3% after the company announced that it will buy Magento Commerce from Permira for $1.68 billion in cash.
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Fifth Third Bancorp's FITB shares surged 3.2% after it agreed to acquire MB Financial, Inc. MBFI for $54.70 per share in cash and stock Shares of Advance Auto Parts, Inc. AAP declined 3.2% after reporting fiscal first-quarter 2018 net revenues of $2.87 billion, missing the Zacks Consensus Estimate of $2.91 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report Fifth Third Bancorp (FITB): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report MB Financial Inc. (MBFI): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fifth Third Bancorp's FITB shares surged 3.2% after it agreed to acquire MB Financial, Inc. MBFI for $54.70 per share in cash and stock Shares of Advance Auto Parts, Inc. AAP declined 3.2% after reporting fiscal first-quarter 2018 net revenues of $2.87 billion, missing the Zacks Consensus Estimate of $2.91 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report Fifth Third Bancorp (FITB): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report MB Financial Inc. (MBFI): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fifth Third Bancorp's FITB shares surged 3.2% after it agreed to acquire MB Financial, Inc. MBFI for $54.70 per share in cash and stock Shares of Advance Auto Parts, Inc. AAP declined 3.2% after reporting fiscal first-quarter 2018 net revenues of $2.87 billion, missing the Zacks Consensus Estimate of $2.91 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report Fifth Third Bancorp (FITB): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report MB Financial Inc. (MBFI): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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