Revving Up with Cummins
Currently occupying a prime spot on the Zacks Rank #1 list, Cummins is driving high on positive earnings estimate revisions, signaling a promising future. Their strong presence in the Automotive-Internal Combustion Engines sector places them in the top 1%, riding the wave of escalating business demand. The recent acquisition of Meritor has been a strategic key unlocking new growth prospects, expanding their repertoire in mobility, braking, and electric powertrain solutions. Cummins’ financial engines are firing on all cylinders, with record-breaking stats in operating cash flow, EBITDA, sales, net income, and EPS. Despite a projected slight dip, the horizon looks bright for 2025 as stock trades at an appealing 14.5X forward earnings multiple.
Accelerating with Ford Motor
While other stocks may drift, Ford Motor’s stock stands as a bright beacon of value, trading cheap at just 5.8X forward earnings. Projections indicate annual earnings climbing to $2.02 per share in FY24 and FY25, with sales figures in the ballpark of $170 billion. Ford’s ambitious push into the EV domain, alongside their legacy in traditional gasoline vehicles, places them in a competitive stance against industry giants. Moreover, the appealing 5.09% annual dividend yield adds an extra shine to this stock, drawing in income-oriented investors seeking refuge in a generous payout compared to their counterparts.
Steering Towards Growth with Suzuki Motor
A foreign contender making waves, Suzuki Motor’s stock is on the rise, trading at a modest 11.7X forward earnings despite an 8% surge. Inciting further investor enthusiasm, Suzuki’s plans to dive into the EV market, including a futuristic compact electric-powered “flying car” by 2025, has lit a fire under its stock’s trajectory. With earnings estimates for FY25 and FY26 climbing steadily, Suzuki’s journey into innovative automotive territory positions them as a promising prospect for investors looking for a taste of the future.
Bottom Line
Cummins, Ford Motor, and Suzuki Motor present tantalizing prospects for auto stock investors, with rising earnings estimates counterbalancing their attractive P/E valuations. These top contenders are poised to rev up investor portfolios well into 2024 and beyond.
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