News – US – Should You Sell Tesla And Buy These 3 Auto Manufacturing Stocks Instead?

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The electric car juggernaut Tesla, Inc (TSLA – Get Rating) finished 2020 with a robust performance in the face of unforeseen global challenges by rapidly expanding manufacturing capabilities, but the stock lost 7.5% in the last month and it has struggled to keep up with its strong competitors who are deeper in penetrate the field of electric vehicles (EV) and trade with relatively low ratings

TSLA Missed Earnings Estimates for the last quarter of its report Adjusted earnings per share for the fourth quarter of 2020 was $ 080, falling 223% short of consensus estimate.This, along with the stretched valuation, could lead to another short-term stock price decline

In contrast, General Motors Company (GM – Get Rating), Tata Motors Limited (TTM – Get Rating), and Mazda Motor Corporation (MZDAY – Get Rating) are likely to outperform with their strong long-term and reasonable earnings prospects

GM, headquartered in Detroit, Michigan, develops and sells trucks, crossovers and auto parts worldwide. The company operates in the following segments: GM North America, GM International, Cruise and GM Financial. It also offers related services that support mobile applications Electric vehicle owners to find charging stations include

This month, GM partnered with OneH2 and Navistar, Inc Collaborated to Launch a Hydrogen Truck Ecosystem Using Hydrogen Fuel Cell Technology With hydrogen being the future of zero emission renewable energy in the heavy truck market, this partnership could help GM develop a zero emission long distance transportation system and differentiate itself from the market

In January, GM and Cruise partnered with Microsoft (MSFT) to accelerate the commercialization of self-driving vehicles, which should help GM take even more advantage of cloud computing as it brings 30 new electric vehicles to market and new companies worldwide by 2025 and creates services to drive growth

GM’s net sales and revenue in the GMNA segment increased 329% year over year to $ 3017 billion in the fourth quarter, ended Jan. December 2020 ended Cash flow from operating activities increased 5818% year over year to $ 5.24 billion. The company reported net income of $ 2.85 billion, compared to a net loss of $ 194 million for the year-ago quarter

An EPS consensus estimate of $ 0.97 for March 31 The current quarter ending March 2021 is 565% more than last year GM also has an impressive earnings surprise history The company surpassed the Street’s EPS estimates for each of the past four quarters The consensus revenue estimate of $ 335 billion for the current quarter represents a 24% increase over the same period last year. The stock gained 505% over the past year / p>

In terms of forward non-GAAP P / E ratio, GM is currently trading at 1009x, which is well below TSLA 18641x

GM’s POWR ratings reflect this promising outlook The stock has an overall rating of B, which equates to Buy in our proprietary rating system The POWR ratings are calculated using 118 different factors, with each factor being optimally weighted

GM has a grade of B for growth and value Of the 52 stocks in the C-rated industry of auto & vehicle manufacturers, GM ranks 18th

Overall, we rate GM on eight different levels. In addition to what has been said above, we have also given GM grades for stability, feel, dynamism and quality

Note that GM is one of the few stocks currently handpicked in the Reitmeister total return portfolio, learn more here

TTM is a designer, manufacturer and seller of passenger cars, sport utility vehicles, small commercial vehicles and pickups, buses and heavy commercial vehicles.The company operates in India, China, the USA, Europe and internationally and sells its products under the Tata brand name, Daewoo, Fiat, Jaguar and Land Rover

Jaguar Land Rover, TTM’s luxury automotive brand, recently launched its “Reimagine” strategy that will result in the brand becoming an all-electric offering by 2025 The first all-electric Land Rover model will be unveiled for the first time in 2024, which will create a new benchmark in the global automotive industry designed to help the company realize its potential and make the brand more attractive to its customers

TTM sales are up 55% year over year to £ 7565000 crores in the third quarter ending Jan. December 2020 ended EBITDA increased 540 basis points to 148% while EBIT increased 450 basis points to 6.4% Revenue for the company’s JLR segment increased 131% sequentially to 128469 vehicles, and TTM reported positive free cash flow of GBP2K crores under the TML segment

Analysts expect EPS growth of 69% per year over the next five years. The stock also gained 927% in the past year

In terms of Forward Ev / Sales ratio, TTM is currently trading at 073x which is much lower than TSLA 1548x

It’s no surprise that TTM has an overall rating of B, which translates into a purchase on our POWR rating system.TTM has an A rating for sentiment and a B rating for growth and value in the same industry in 10th place

In addition to the POWR ratings just highlighted, you can view the TTM ratings for stability, quality and momentum here

Headquartered in Hiroshima, Japan, MZDAY is a manufacturer and seller of passenger and commercial vehicles in Japan, North America, Europe, China and internationally. The company’s main products include four-wheel vehicles, gasoline engines, diesel engines, and automatic and manual transmissions for vehicles

MZDAY ordinary income is up 383% year over year to 22 yen17 billion in the third quarter that ended Jan. December 2020 ended Gross profit increased 2% year-over-year to 176 yen31 billion while its cash and cash equivalent increased 313% from the end of the previous fiscal year to ¥ 7456 billion and the company’s extraordinary income increased 15,265 year-over-year to 384 million yen / p>

A consensus revenue estimate of $ 27 billion for the current quarter ended Jan. March 2021 ends, corresponds to a 122% more than the same period last year The stock has gained 2.8% in the past year

In terms of Forward EV / Sales ratio, MZDAY is currently trading at 026x, which is much lower than TSLA 1548x

MZDAY’s strong fundamentals are reflected in POWR ratings The stock has an overall rating of B, which equates to a buy on our POWR rating system. MZDAY has a B rating for value and stability. It ranks number 12 among the 52 stocks in the industry of auto & vehicle manufacturer

The POWR ratings are calculated taking into account 118 different factors, with each factor being optimally weighted

Tesla, Inc, Stock, Auto Industry, General Motors

News – USA – Should You Sell Tesla and Buy These 3 Auto Manufacturing Stocks Instead?
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Source: https://www.entrepreneur.com/article/365853