by Louis Navellier | January 25, 2012 1:35 pm
The president may have lauded the American auto industry for its successful revitalization in his State of the Union address[1]. However, I’m still skeptical of any investments made in the major automobile companies due to their lackluster growth potential. These companies may create machines with four wheels and an engine but, as of right now, I can’t see them going anywhere.
I watch more than 5,000 publicly traded companies with my Portfolio Grader[2] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve got five auto and auto component stocks to sell.
Here they are, in alphabetical order. Each one of these stocks gets a “D” or an “F” according to my research, meaning it is a “sell” or “strong sell.”
Ford Motor (NYSE:F[3]) is perhaps the most famous American auto maker. In the past year, F is down almost 28%, compared to a gain of 6% for the Dow. F stock gets a “D” for operating margin growth, a “D” for earnings growth and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of F stock[4].
General Motors (NYSEL:GM[5]) is another American automotive maker that has lost 35% since this time last January. GM stock gets an “F” for earnings growth, an “F” for earnings momentum and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of GM stock[6].
Honda Motor (NYSE:HMC[7]) is a Japanese automaker known best for its Civic and Accord lines of cars. HMC is down a significant 15% in the past year. HMC stock gets an “F” for sales growth, a “D” for operating margin growth, an “F” for earnings growth, an “F” for earnings momentum, an “F” for its ability to exceed the consensus earnings estimates on Wall Street, an “F” for the magnitude in which earnings projections have increased over the past month, a “D” for cash flow and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of HMC stock[8].
Johnson Controls (NYSE:JCI[9]) is a provider of automotive interiors. JCI is down 17% since this time last year, compared to small gains by the broader markets. JCI stock gets a “D” for operating margin growth, a “D” for its ability to exceed the consensus earnings estimates on Wall Street and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of JCI stock[10].
Toyota (NYSE:TM[11]) is another Japanese automaker to make the list with a drop of almost 12% in the last 12 months. TM stock gets an “F” for sales growth, an “F” for operating margin growth, an “F” for earnings growth, a “D” for earnings momentum, a “D” for its ability to exceed the consensus earnings estimates on Wall Street, an “F” for the magnitude in which earnings projections have increased over the past month, a “D” for cash flow and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of TM stock[12].
Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[13] tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.
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