Fellow Japanese automaker Honda (HMC) is well off Toyota’s pace in terms of overall sales, and even though Honda has one of the best-selling small cars in the U.S. in the Civic, the company doesn’t do the volume worldwide that the top tier auto stocks do. Still, Honda has benefitted from Abenomics, and will likely continue to do so in 2014.
Honda is slated to report earnings on Friday, and the consensus is for a strong fiscal third quarter reflecting a 74% rise in quarterly profits. If the company exceeds expectations, HMC shares could get the boost they need to get out of their recent rut. Yet no matter how well the company performs, there’s no way Honda can keep up with the really big auto stocks.
The race to No. 1 among auto stocks is close, and it’s definitely still dominated by the global “Big 3,” of Toyota, GM and Volkswagen.
May the best carmaker win.
As of this writing, Jim Woods did not hold a position in any of the aforementioned securities.