7 Auto Parts Stocks for the Scrap Heap

by Louis Navellier | November 16, 2011 6:45 am

It’s no surprise that car sales continue to remain a shadow of their prerecession levels. Americans are relying on older vehicles longer to delay big-ticket purchases amid weak consumer confidence and high unemployment. As a result, many companies that make auto components are facing headwinds.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I have designated seven auto parts stocks for the scrap heap.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F,” according to my research, meaning it is a “sell” or “strong sell.”

American Axle & Manufacturing (NYSE:AXL[1]) is involved with driveline and drivetrain systems and related components, and chassis modules for light trucks, SUVs, passenger cars and other vehicles. AXL stock has declined 30% year-to-date.

Autoliv Inc. (NYSE:ALV[2]) supplies a variety of products for automotive safety systems. Year-to-date, ALV stock has dropped 31%, compared to a gain of 4% by the Dow Jones.

Cooper Tire & Rubber (NYSE:CTB[3]) manufactures and markets replacement tires. A 39% drop, year-to-date, for CTB stock has many shareholders second-guessing their original purchases.

Federal-Mogul (NASDAQ:FDML[4]) supplies power train and other safety technologies. Like other large auto parts companies, FDML has watched its stock dip significantly — 27% in this case — since the start of 2011.

Johnson Controls Inc. (NYSE:JCI[5]) is a provider of automotive interiors. Down 17% year-to-date, JCI stock has had a forgettable run in 2011.

Magna International Inc. (NYSE:MGA[6]) is a designer, developer and manufacturer of technologically advanced automotive systems, assemblies, modules and components for light trucks and cars. MGA stock has steadily declined in 2011, dropping nearly 34% overall.

Modine Manufacturing (NYSE:MOD[7]) manufactures and markets heat exchangers and systems for on-highway and off-highway original equipment manufacturer vehicular applications. Since the start of 2011, MOD stock has dipped 32%.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[8] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

  1. AXL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AXL
  2. ALV: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALV
  3. CTB: http://studio-5.financialcontent.com/investplace/quote?Symbol=CTB
  4. FDML: http://studio-5.financialcontent.com/investplace/quote?Symbol=FDML
  5. JCI: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCI
  6. MGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=MGA
  7. MOD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MOD
  8. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

Source URL: http://investorplace.com/2011/11/auto-parts-stocks-to-sell-axl-alv-ctb-fdml-jcl-mga-mod/
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