As the ice roads of commerce thaw, more people and businesses
are hitting the highway with the demand for automotive essentials
in tow. Last week, original equipment manufacturing for
automotive and trucking was coasting at #48 on the Zack's Industry
Rank list, but this week it found high gear.
Automotive/Trucking Original Equipment now enjoys a Zack's Industry
Rank of #36.
This industry of 31 companies has recently seen 88 positive
revisions to annual earnings estimates compared to 38 negative
revisions. Positive estimate revisions have been averaging a
strong +24%. Of course, downward earnings surprises are
present, however, the sector has signaled a turn for the positive
and a couple key businesses seem to have the green light.
We've also seen this trend reflected in corresponding sectors,
including positive movement in Retail/Wholesale Automotive and
Trucking, up five on the Zacks Industry Rank this week.
With continued spending, there are important indicators that this
demand will drive future positive earnings estimate revisions.
Additional favorable analysis of the industry as a whole would
reflect this development.
Significant revision of the Zacks Rank within a sector, changing
from a Hold to either a Buy or Strong Buy rank is fundamental when
looking for advantages. Using this information and knowledge
of recent positive estimate activity can provide more insight into
the direction of a particular company.
Look closely at the following summaries of two recent earnings
surprise candidates. Each was selected based on its current
Zacks Rank #1 (Strong Buy) and revision from Zacks Rank #3 (Hold)
just one week ago.
Your profits could mirror these successes and may be closer than
FDML is a Zacks Rank #1 (Strong Buy). It moved up from Zacks
Rank #3 (Hold) just last week. This company reports quarterly
earnings on July 25, 2013.
Federal Mogul Corporation is a leading global supplier of
powertrain, chassis and safety technologies, serving original
equipment manufacturers of automotive, light commercial,
heavy-duty, agricultural, marine, rail, off-road and industrial
vehicles. Their most recent earnings surprise was +165% for
VC is a Zacks Rank #1 (Strong Buy). It was raised to its #1 rating
within the last week from Zacks rank #3 (Hold). It reports earnings
on August 8, 2013.
Visteon Corp. operates as an automotive supplier engaged in the
design, engineering and manufacturing of climate, electronic,
interior and lighting products for vehicle manufacturers. It
broke estimates in Q1 with +75% earnings surprise.
FEDERAL MOGUL-A (FDML): Free Stock Analysis
VISTEON CORP (VC): Free Stock Analysis Report
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