5 Auto Stocks Receiving Poor Grades

by Louis Navellier | February 24, 2012 2:16 pm

5 Auto Stocks Receiving Poor Grades

Last month, readers vehemently disagreed with the grades I gave various auto stocks[1] — I seemed to have struck a major chord with the Ford (NYSE:F[2]) and GM (NYSE:GM[3]) faithful. Get ready to be riled up again, because many of the same companies are still getting unsatisfactory grades from me for a number of fundamental and quantitative factors. And, before you think I’ve gone soft, I may have added two new companies to replace Ford[4] and GM[5] on my list, but they both still receive “D” grades in my Portfolio Grader[6] tool.

Like last month, each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

CarMax (NYSE:KMX[7]) is a retailer of used cars. In the past year, KMX stock has posted a loss of 10%. KMX stock gets 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 KMX stock[8].

Honda Motor (NYSE:HMC[9]) develops, produces and manufactures a variety of motor products, including the Civic and Accord. Since last February, HMC stock has slid 9%, compared to a 7% gain for the broader markets. While it may be true that Honda has made significant gains since the beginning of 2012, HMC stock gets an “F” for sales growth, an “F” for operating margin growth, a “D” for earnings growth, 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, an “F” for cash flow and a “D” for return on equity in my Portfolio Grader tool. F[10]or more information, view my complete analysis of HMC stock[11].

Johnson Controls (NYSE:JCI[12]) provides automotive interiors and has posted a loss of 16% in the past year. JCI stock gets an “F” for its ability to exceed the consensus earnings estimates on Wall Street and an “F” 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[13].

Lear (NYSE:LEA[14]) is a supplier to the global automotive industry. Since last February, LEA stock is down 9%. Despite the significant gains YTD, LEA stock gets an “F” for operating margin growth, a “D” 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 LEA stock[15].

Toyota Motor (NYSE:TM[16]) is another major Japanese automaker that finds room on this list. While things are starting to look up for Toyota since last year’s major earthquake[17], TM stock is still down 7% over the past year, and they aren’t receiving good grades on a number of factors in my book. For instance, TM stock gets a “D” for sales growth. They also get an “F” for operating margin growth, a “D” for earnings growth, 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[18].

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[19] tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.

Endnotes:
  1. readers vehemently disagreed with the grades I gave various auto stocks: http://investorplace.com/2012/01/auto-stocks-not-worth-the-gas-money-f-gm-hmc-jci-tm/
  2. F: http://studio-5.financialcontent.com/investplace/quote?Symbol=F
  3. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  4. Ford: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=f&submit=submit&type=site
  5. GM: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=gm&submit=submit&type=site
  6. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  7. KMX: http://studio-5.financialcontent.com/investplace/quote?Symbol=KMX
  8. For more information, view my complete analysis of KMX stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=kmx&submit=submit&type=site
  9. HMC: http://studio-5.financialcontent.com/investplace/quote?Symbol=HMC
  10. F: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=hmc&submit=submit&type=site
  11. or more information, view my complete analysis of HMC stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=hmc&submit=submit&type=site
  12. JCI: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCI
  13. For more information, view my complete analysis of JCI stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=jci&submit=submit&type=site
  14. LEA: http://studio-5.financialcontent.com/investplace/quote?Symbol=LEA
  15. For more information, view my complete analysis of LEA stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=lea&submit=submit&type=site
  16. TM: http://studio-5.financialcontent.com/investplace/quote?Symbol=TM
  17. things are starting to look up for Toyota since last year’s major earthquake: http://investorplace.com/2012/02/toyota-boosts-rental-corporate-sales-tm/
  18. For more information, view my complete analysis of TM stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=tm&submit=submit&type=site
  19. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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