4 Auto Stocks to Trade In

by Louis Navellier | March 20, 2012 11:27 am

The auto industry is on the rise[1], 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[2] 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[3]) 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[4].

Honda Motor Co. (NYSE:HMC)[5] 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[6].

Ford Motor Co. (NYSE:F[7]) 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[8].

General Motors Co. (NYSE:GM[9]) 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[10].

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[11] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

Endnotes:
  1. auto industry is on the rise: http://investorplace.com/2012/03/automakers-are-riding-a-rising-market/
  2. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  3. JCI: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCI
  4. 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
  5. HMC): http://studio-5.financialcontent.com/investplace/quote?Symbol=HMC%29
  6. For more information, view my complete analysis of HMC stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=hmc&submit=submit&type=site
  7. F: http://studio-5.financialcontent.com/investplace/quote?Symbol=F
  8. For more information, view my complete analysis of F stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=f&submit=submit&type=site
  9. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  10. For more information, view my complete analysis of GM stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=gm&submit=submit&type=site
  11. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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