4 Foreign Auto Stocks To Buy Ahead Of Q3 Earnings
Zacks Investment Research | Oct 09, 2017 10:51PM ET
The third-quarter 2017 earnings season has already started. About 5% of the S&P 500 companies have come up with their results for the quarter ending on Sep 30. However, for the auto sector, which is presently facing myriad challenges, earnings season will begin next week.
Per the latest Zacks Auto sector has reported third-quarter 2017 results yet.
The S&P 500 companies are expected to report year-over-year earnings and revenues growth of 2.3% and 5%, respectively. However, for the Zacks Auto sector, the projected picture for third-quarter 2017 is not at all rosy with year-over-year earnings and revenues growth projection of -18.2% and -2.3%, respectively.
Despite auto sales rising in September, prompted by high demand for replacement of damaged or destroyed vehicles due to the impact of hurricanes Harvey and Irma, the problems affecting the sector still persist. In fact, auto companies are witnessing a dramatic shift in their operations.
The intensity at which consumers’ preferences are changing, has prodded a number of automakers to reorient their strategies. Added to this is the necessity of manufacturing electric and green vehicles, which will surely bring numerous changes in the industry. Moreover, in order to lure customers and lower inventories, auto manufacturers are offering huge discounts, thereby straining their profit margins.
That said, currently, in terms of Zacks Industry Rank, the Zacks Zacks Investment Research
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