The auto industry is on the rise, with recent sales in North American and China posting impressive totals. While the global economy isn’t what it once was, there’s hope that the auto industry is recovering nicely. Emerging-market demand, coupled with strong baseline sales in car-centric America, means things are looking up for the sector.
Not all automakers and auto-parts stocks are doing well right now, however. I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. This week, I’ve identified four auto stocks to sell.
Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”
Johnson Controls (NYSE:JCI) is a provider of automotive interiors. In the last 12 months, JCI stock is down 18%, compared with the Dow Jones, which is up 12%. Johnson Controls stock gets a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “D” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of JCI stock.
Honda Motor Co. (NYSE:HMC) develops, produces and manufactures a variety of motor products and is best known for its Accord and Civic lines of cars. HMC stock has posted a 2% loss since last March. Honda stock gets an “F” grade for sales growth, an “F” grade for operating margin growth, a “D” grade for earnings growth, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “D” grade for the magnitude in which earnings projections have increased over the past months, an “F” grade for cash flow and a “D” grade for return on equity. For more information, view my complete analysis of HMC stock.
Ford Motor Co. (NYSE:F) is perhaps the most famous American automotive company. In the last year, Ford stock has dropped nearly 13%. F stock gets an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “D” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of F stock.
General Motors Co. (NYSE:GM) is another American designer, builder and seller of cars, trucks and automobile parts. General Motors is the biggest loser on the list, with a 20% loss in the last year. GM stock gets a “D” grade for sales growth, an “F” grade for earnings momentum and a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street. For more information, view my complete analysis of GM stock.
Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.
