General Motors Company
) will be replacing
H.J. Heinz Co.
) in the Standard & Poor's 500 and Standard & Poor's 100
indices after the close of trading on Jun 6, 2013. The automaker
was removed from the S&P 500 index in 2009 due to bankruptcy
filing and $50 billion government bailout. General Motors
returned to the New York Stock Exchange in 2010.
Heinz on the other hand will be acquired by Warren Buffett's
Berkshire Hathaway Inc. and a private equity firm of Jorge Paulo
Lemann's 3G Capital.
The return of the automaker in the America's benchmark stock
market indicates that the automaker has been able to enhance
investor value. Recently, shares of General Motors hit new
52-week high of $33.77 on May 17, above its previous level of
$32.44 as well as the Initial Public Offering (IPO) price of
$33.00 (held in Nov 2010).
Shares of the company started escalating following its
announcement of revival plan in Europe and U.S. Treasury
department's announcement of selling a significant stake in the
company as well as improvements in the U.S. and Chinese markets.
GM reported a 28.0% fall in earnings to 67 cents per share in the
first quarter of the year from 93 cents in the same quarter of
2012 (all excluding special items) due to lower profits generated
from the company's all geographic operations except Europe.
Despite this, the automaker's earnings exceeded the Zacks
Consensus Estimate by 11 cents per share.
Revenues in the quarter slid 2.4% to $36.9 billion, despite a
3.6% rise in retail unit sales to 2.4 million vehicles globally.
Nevertheless, revenues were higher than the Zacks Consensus
Estimate of $36.4 billion.
General Motors is gearing up for more than 40 major vehicle
launches in 2013 across the globe in order to drive sales and
revenues. In addition, the company expects its European results
will improve further based on its cost reduction measures.
Currently, shares of GM retain a Zacks Rank #3 (Hold). While we
remain on the sidelines about General Motors,
STRATTEC Security Corp
) are currently performing well in the auto industry and carry a
Zacks Rank #1 (Strong Buy).
GENERAL MOTORS (GM): Free Stock Analysis
HEINZ (HJ) CO (HNZ): Free Stock Analysis
STRATTEC SEC CP (STRT): Free Stock Analysis
VISTEON CORP (VC): Free Stock Analysis Report
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