U.S. Auto Sales Still Strong In February

We continue to find more good news for auto manufacturers as the preliminary sales results indicate that they had their best February in 15 years. February was nice for big auto makers because it included an extra day--thanks to leap year, some pent up demand due to bad weather in January, and lots of President's Day sales led to great numbers for many.

Fiat/Chrysler posted a 12% gain, Nissan was similar with an 11% increase, and Ford led the way with a giant 20% leap in February sales. Ford did great thanks to sales of its hugely popular F-Series trucks and other SUVs.

On the other hand, Volkswagen is in trouble in the US due to the continued fallout from their emissions-cheating scandal. GM also had some trouble, with a slight dip in sales year-over-year--1.5%.

As we have reported over the past few months, low interest rates, a better overall labor market, and low gas prices are making the bigger cars, SUVs, and trucks popular once again. Those vehicles are the most-profitable for manufacturers, so this environment is particularly kind to the bottom line.

Of course, one wonders how long this trend can continue, given the fact that the big profits are based on vehicles which will most certainly fall out of favor as soon as gas prices return to more "normal" levels. Drivers seem to have short memories. But investors should remember the sort of angst out there when people were trying to fill the tanks of Hummers at $5/gallon.

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

1-M Forecast Retn

1-Yr Forecast Retn

P/E Ratio

Country Code

DDAIF

DAIMLER AG

67.97

N/A

-29.40%

N/A

N/A

7.66

DEU

F

FORD MOTOR CO

12.51

-21.53%

-23.44%

0.71%

8.53%

6.94

USA

FCAU

FIAT CHRYSLER

6.85

N/A

-55.55%

N/A

N/A

4.74

ITA

GM

GENERAL MOTORS

29.44

-8.28%

-21.09%

0.79%

9.44%

5.78

USA

HMC

HONDA MOTOR

25.71

-26.46%

-22.42%

0.48%

5.79%

10.31

JPN

ISUZY

ISUZU MOTORS

9.98

N/A

-31.83%

N/A

N/A

9.06

JPN

NSANY

NISSAN ADR

18.09

-12.61%

-13.98%

0.90%

10.77%

7.72

JPN

TM

TOYOTA MOTOR CP

104.1

-21.39%

-23.10%

0.60%

7.18%

8.42

JPN

TSLA

TESLA MOTORS

191.93

35.28%

-5.61%

-0.28%

-3.41%

N/A

USA

VLKAY

VOLKSWAGEN-ADR

27.42

N/A

-45.38%

N/A

N/A

6.53

DEU

Here Is complete data on one of our top Auto stocks:

Ford Motor Company (F) produces cars and trucks. The company and its subsidiaries also engage in other businesses, including manufacturing automotive components and systems and financing and renting vehicles and equipment. The company is divided up into the following four operating segments: Automotive, Visteon Automotive Systems, Ford Motor Credit Company, and The Hertz Corporation.

Recommendation: We continues the BUY recommendation on FORD MOTOR CO for 2016-02-29. Based on the information we have gathered and our resulting research, we feel that FORD MOTOR CO has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.
 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

12.60 0.71%

3-Month

12.74 1.82%

6-Month

12.72 1.65%

1-Year

13.58 8.53%

2-Year

12.72 1.67%

3-Year

12.71 1.59%

Market Overview

Summary of VE Stock Universe

Stocks Undervalued

69.81%

Stocks Overvalued

30.19%

Stocks Undervalued by 20%

35.43%

Stocks Overvalued by 20%

9.67%

Sector Overview

Sector

Change

MTD

YTD

Valuation

Last 12-MReturn

P/E Ratio

Consumer Staples

-0.29%

0.82%

-1.59%

2.93% overvalued

-4.18%

24.57

Utilities

-0.28%

1.88%

-0.36%

1.78% overvalued

-7.93%

21.77

Industrial Products

0.46%

1.84%

-5.29%

3.80% undervalued

-17.37%

16.92

Basic Materials

0.49%

8.10%

-0.62%

4.46% undervalued

-17.86%

25.84

Multi-Sector Conglomerates

0.41%

2.57%

-5.27%

5.49% undervalued

-18.92%

15.53

Aerospace

0.48%

-1.00%

-9.22%

5.79% undervalued

-18.42%

20.04

Computer and Technology

0.46%

1.86%

-1.36%

7.14% undervalued

-12.25%

25.63

Business Services

0.28%

-0.41%

-5.59%

7.98% undervalued

-15.00%

20.84

Consumer Discretionary

0.57%

2.13%

-4.29%

10.06% undervalued

-11.38%

23.59

Finance

0.40%

-0.40%

-7.01%

10.08% undervalued

-10.88%

15.00

Retail-Wholesale

0.52%

3.53%

-3.32%

13.12% undervalued

-15.22%

22.67

Construction

0.84%

2.08%

-5.99%

13.31% undervalued

-13.54%

17.98

Transportation

0.75%

2.45%

-5.97%

17.07% undervalued

-28.23%

12.21

Oils-Energy

1.50%

-3.82%

-11.48%

17.10% undervalued

-43.70%

20.84

Medical

1.06%

-0.55%

-12.44%

17.38% undervalued

-24.84%

26.59

Auto-Tires-Trucks

0.37%

0.52%

-8.21%

18.80% undervalued

-24.99%

11.17

Valuation Watch: Overvalued stocks now make up 30.1% of our stocks assigned a valuation and 6.83% of those equities are calculated to be overvalued by 20% or more. Two sectors are calculated to be overvalued.

Disclosure: None.

Disclaimer: ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, ...

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