Wednesday, September 5, 2012

6 Auto Industry Stocks Heading for a Crash

The auto industry seems to be on the mend, thanks lately to both record imports and exports. Consumer spending has firmed up and strong emerging market sales seem to indicate growth. Just today we learned auto sales surged in March, led by small cars.

However, not all auto stocks are revved up. There are winners and losers in this sector, spanning both major manufacturers and parts suppliers, and investors need to be discerning about which car makers and parts suppliers they kick the tires on.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I am looking at six auto stocks to sell.

Here they are, in alphabetical order. Each one of these stocks gets a �D� or �F� according to my research, meaning it is a �sell� or �strong sell.�

Federal-Mogul (NASDAQ:FDML) is a global supplier of powertrain and safety technologies. In the last year, Federal-Mogul stock has posted a loss of 33%, compared to a gain of 7% for the Dow Jones in the same time. FDML stock gets an �F� grade for operating margin growth, an �F� grade for earnings growth, an �F� grade for earnings momentum, and an �F� grade for cash flow. For more information, view my complete analysis of FDML stock.

General Motors (NYSE:GM) is an American designer, builder and seller of cars, trucks and automobile parts. GM stock is down 17% since last April. GM stock gets a �D� grade for sales growth, an �F� grade for earnings momentum, and a �D� grade for its ability to exceed the consensus earnings estimates. For more information, view my complete analysis of GM stock.

Gentex (NASDAQ:GNTX) is a supplier of automatic-dimming rear-view mirrors, and other lighting products. In the last year, Gentex stock has dropped 18%. GNTX stock gets a �D� grade for its ability to exceed the consensus earnings estimates on Wall Street, and a �D� grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of GNTX stock.

Goodyear (NYSE:GT) is one of the most well-known tire producers and has watched its stock value sink 25% since this time last year. Goodyear stock gets an �F� grade for its ability to exceed the consensus earnings estimates on Wall Street, an �F� grade for the magnitude in which earnings projections have increased over the past months, and a �D� grade for cash flow. For more information, view my complete analysis of GT stock.

Johnson Controls (NYSE:JCI) is a provider of automotive interiors. A 22% drop for JCI stock in the last year has shareholders questioning their purchases. Johnson Controls stock gets a �D� grade for operating margin growth, a �D� grade for earnings momentum, and a �D� grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of JCI stock.

Visteon (NYSE:VC) supplies climate, electronics, interiors and lighting systems. VC stock rounds out the list with a loss of 15% in the last 12 months. Visteon stock gets a �D� grade for sales growth, an �F� grade for operating margin growth, an �F� grade for earnings growth, an �F� grade for earnings momentum, a �D� grade for operating margin growth, a �D� grade for earnings momentum, and an �F� grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of VC stock.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier�s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors

 

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