Auto Stock Roundup: General Motors Recalls, Toyota Forms JV, Tesla Sells Bonds For Model 3
Zacks Investment Research | Aug 09, 2017 09:44PM ET
The reporting cycle is nearing its end and majority of auto companies have already announced results for the quarter ended Jun 30, 2017. Nevertheless, auto stocks are still struggling amid slowing demand, which has left auto manufacturers with high levels of glut. Auto majors such as General Motors Company (NYSE:GM) and Ford Motor Co. (NYSE:F) have plans of producing fewer vehicles in the second half of the year.
Moreover, amid declining demand in their home market, U.S. automakers are facing a slowdown in China, the biggest automotive market in the world. Here, General Motors sells more cars than it does in North America.
The Commerce Department reported that wholesale inventories increased 0.7% in May and rose 0.6% in June. This has prompted automakers to manage inventory carefully amid slow domestic demand.
(Read the previous roundup here: Lear Corporation Refinances Existing Credit Facilities ).
Currently, Lear Corporation has a Zacks Rank # 3.
Performance
Among these stocks, Tesla and General Motors recorded positive price movement in the last one week. Shares of Tesla increased 11.5% in the last week, whereas Advance Auto Parts, Inc. (NYSE:AAP) registered the maximum decrease.
In the last six months, Tesla in the only stock stocks whose price has risen, while Advance Auto Parts registered the steepest decline.
| Company | Last Week | Last 6 Months |
| GM | 1.3% | -0.6% |
| F | -1.3% | -13.0% |
| TSLA | 11.5% | 29.5% |
| TM | -1.0% | -0.9% |
| HMC | -3.4% | -13.3% |
| HOG | 0.0% | -16.4% |
| AAP | -4.6% | -32.8% |
| AZO | -1.8% | -27.6% |
What’s Next in the Auto Space?
The earnings season for the quarter ending on Jun 30, 2017 is still underway. One important auto company slated to report their earnings in the next few days include Advance Auto Parts.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.