Michigan Stock Report: October 2017

We will eventually explore more companies that have a large presence in Michigan but want to start with two of the biggest.  

GM Ford
Valuation
Current Price $45.33 $12.34
P/E Ratio 7.12 12.96
Forward P/E Ratio 7.03 7.34
PEG Ratio 1.02
Morningstar Fair Value $51 $15
Dividends
Current Dividend $1.52 $0.60
Dividend Yield 3.35% 4.86%
Payout Ratio 23.6% 68.0%
3-year Dividend Growth 14.5%
Financials
EPS Growth Rate (3-year) 36.1% -26.9%
EPS Growth Rate (5-year) 5.6% -25.3%
Estimated EPS Growth Rate (1-year) -3.6% -12.8%
Technicals
14 day RSI Overbought Overbought
Price Distance Above SMA 200 Day Moderately Above Far Above
Price Distance Below SMA 200 Day
Price Change
Year-To-Date 28.96% 1.48%
Past 1 Month 21.43% 8.36%
Past 3 Months 28.59% 9.33%
Past 6 Months 33.28% 9.62%
Past 12 Months 38.12% -0.65%

Source:  Charles Schwab 10.9.17

General Motors

GM 10.9.17Source: finviz.com

After years of going virtually nowhere GM stock broke out in the past month gaining over 20%.  This is the first time since December 2013, that GM stock crossed the $40 mark and hit new all time highs which was previously $41.  September auto sales were hurricane aided but can we see this momentum continue?  

GM September auto sales crush estimates

GM stock increases on news of increased EV production

Barron’s likes GMs autonomous vehicle future

Ford

Ford 10.9.17.png
Source: finviz.com

Over the past 3 years, Ford has been on a steady downward trajectory going from nearly $18 per share to hitting a near 5 year low of $10.47 at the end of August.  This stock trajectory should come as little surprise as we have seen earnings steadily deteriorate from $1.82 per share in 2013 to just $0.96 in the previous 12 months.  For the first time in years we are finally seeing some positive momentum for Ford stock as its stock has increased in value by over 17% since the end of August.  Can we see this positive trend continue, and most importantly can we see earnings finally start to improve?  

Ford beats September auto sales estimates

Jim Cramer’s “The Street” loves Ford’s new CEO

Ford plans $14b in cost cuts and will focus on EVs and trucks

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