For Immediate Release
Chicago, IL - October 07, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Tesla Motors, Inc. (NASDAQ: TSLA - Free Report ), Toyota Motor Corporation (NYSE: TM - Free Report ), Penske Automotive Group, Inc. (NYSE: PAG - Free Report ) and Winnebago Industries, Inc. (NYSE: WGO - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Auto Stock Roundup
A fall in U.S. auto sales for the second month in a row brought despair for the auto sector last week, although there were several positive developments to balance the scales. Tesla Motors, Inc. (NASDAQ: TSLA - Free Report ) posted strong production and delivery figures for the third quarter, while Toyota Motor Corporation (NYSE: TM - Free Report ), along with its fully owned subsidiary, Daihatsu, announced plans to establish an internal company that will cater to the compact vehicles' sector in emerging markets.
Penske Automotive Group, Inc. (NYSE: PAG - Free Report ) announced the acquisition of six franchises. Further, Winnebago Industries, Inc. (NYSE: WGO - Free Report ) announced a planned acquisition and reported strong preliminary results.
(Read the previous roundup here: Auto Stock Roundup for Sep 29, 2016 )
Recap of the Week's Most Important Stories
1. U.S. light-vehicle sales dropped 0.7% year over year to 1.43 million units in Sep 2016, per Autodata. This is the fourth of the nine reported months this year in which sales declined. Moreover, sales on a seasonally adjusted annualized rate ("SAAR") basis fell to 17.74 million units in the month from 18.04 million units in Sep 2015. Nevertheless, SAAR for September was higher than 16.97 million units in Aug 2016 (read more: US Auto Sales Fall in September: Will 2016 Tally Top 2015?).
2. Tesla delivered 15,800 Model S and 8,700 Model X vehicles in the third quarter of 2016. The total of 24,500 vehicles delivered during the quarter is significantly higher than 14,402 units delivered in the second quarter of 2016. Nearly 5,500 vehicles were in transit to customers at quarter end. These vehicles will be delivered in the fourth quarter.
Tesla produced 25,185 vehicles in the third quarter, representing a 37% improvement from the second quarter. The company expects to marginally increase production and delivery volume in the fourth quarter (read more: Tesla Improves Deliveries in Q3; Q4 to be Slightly Better ).
Tesla currently carries a Zacks Rank #3 (Hold).
3. Toyota and Daihatsu plan to establish an internal company aimed at developing and launching competitive compact vehicles in the emerging markets where the potential for growth remains high. The new company will be responsible for all aspects of the business from product planning to preparation of production (read more: Toyota to Form Internal Company for Emerging Markets ).
Currently, Toyota carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
4. Winnebago announced its decision to acquire privately held, towable recreation vehicles (RVs) producer, Grand Design Recreational Vehicle Company, for roughly $500 million. The deal is expected to close by the end of Winnebago's first-quarter fiscal 2017, subject to regulatory approvals and customary closing conditions. The combined company will generate roughly $1.4 billion in pro forma revenue, in addition to enhancing growth, profit margins and earnings per share of Winnebago.
Winnebago also announced preliminary results for fourth-quarter fiscal 2016. Revenues are expected to rise 4.9% year on year to roughly $263.3 million from $251 million in the prior-year quarter. Earnings per share are projected to increase 14% year over year to 49 cents. The expected earnings also include a charge of a penny per share in relation to the impending merger with Grand Design.
Winnebago currently carries a Zacks Rank #3.
5. Penske Automotive announced the acquisition of six franchises in Bologna in northern Italy. Three of these are Porsche franchises, while the rest are Audi, Land Rover and Volvo franchises. These acquisitions are expected to augment the company's annual revenues by $200 million.
Penske Automotive carries a Zacks Rank #4 (Sell).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://twitter.com/zacksresearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.