Michigan Stock Report: November 2017

Ford and GM reported great 2017 2nd quarter earnings in October, let’s take a look at where the auto stocks are today.  

GM Ford
Valuation
Current Price $42.14 $12.33
P/E Ratio 9.16 11.21
Forward P/E Ratio 6.77 6.71
PEG Ratio
Morningstar Fair Value $56 $15
Dividends
Current Dividend $1.52 $0.60
Dividend Yield 3.59% 4.85%
Payout Ratio 32.0% 58.6%
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) -7.2% -13.0%
Technicals
14 day RSI Average Average
Price Distance Above SMA 200 Day Moderately Above Far Above
Price Distance Below SMA 200 Day
Price Change
Year-To-Date 21.53% 1.90%
Past 1 Month -5.76% 0.41%
Past 3 Months 20.05% 12.88%
Past 6 Months 25.38% 10.95%
Past 12 Months 36.27% 8.90%

Source:  Charles Schwab 11.5.17

General Motors

GM Nov. v.2

Source: finviz.com

GM started the month of October red hot.  First, there was an announcement by GM that they will be upping their production of electric vehicles.  Next, they reported a really strong Q2 2017 earnings report driving the stock even higher.  The stock briefly topped $46 per share before tumbling nearly 10% on the back of two analyst downgrades.  Still, GM stock is up over 21% on the year and 36% over the past 12 months.  We’ll see if GM stock can regain some of the mojo that it had just a month ago.  

GM beats earnings estimates

Morgan Stanley downgrades GM stock to equalweight

Goldman Sachs downgrades GM to sell

Cramer agrees with Goldman downgrade, but believes GM is ahead of Ford

Ford

Ford Nov. v2.png
Source: finviz.com

Much like GM, Ford stock rallied after a strong quarterly earnings report in October.  Unlike GM, Ford stock has gone nowhere this year, up only 2%.  Yet, there is hope for Ford.  Ford announced a very strong quarter for truck and SUV sales which helped boost margins and earnings. Increasing the operating margin will be key going forward, as auto sales appear to be on the decline.  Still, this chart below of past and projected future earnings growth should make any Ford investor a little nervous:  

Ford earnings

Source:  Finviz 11.6.17

Ford beats earnings, pickup trucks shine

Ford crushes October sales estimates

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