automotive

Is Group 1 Automotive (GPI) Stock Undervalued Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system’s “Value” category. Stocks with both “A” grades in the Value category and high Zacks Ranks are among the strongest value stocks on the

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Byton and Karma Automotive among companies that received COVID-related PPP loans

EV firms Byton, Karma Automotive and Nio all received between $5 and $10 million in aid after joining the US PPP program.

In an attempt to save small businesses from falling victim to the economical side effects of the coronavirus recession, an economic downturn predicted to be the worst since the Great Depression of the 1930s, the US Small Business Association launched the Paycheck Protection Program which accepted applications until July 6. 

Also on July 6, the US Treasury released a list of companies which benefited from the program by receiving loans of $150,000 or more; the EV start-ups Byton, Nio, and Karma Automotive all got between $5 million and $10 million to keep their head above water.

Unfortunately for these companies, even millions of dollars couldn’t keep them in the clear. Last week, Byton announced that operations will be suspended for at least six months due to the outbreak;

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Automotive Industry Eyes Slow Recovery

After a long-winded lockdown, U.S. auto-manufacturers are finally reopening. 

The move to reopen comes with debate, however; for example, Tesla Inc (NASDAQ: TSLA) CEO, Elon Musk, sued Alameda County, California and threatened to move the company’s headquarters to another state after he encountered resistance against a decision to restart assembly.

Now that most other U.S. carmakers such as General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), and Fiat Chrysler Automobiles N.V. (NYSE: FCAU) are returning, sights are back on the supply and demand dynamics of the recovering market.

The following is a look at the challenges that lie ahead. 

Pandemic Deals A Heavy Blow

From 2.62 million units in February, U.S. car production in March dropped to 1.7 million, with European output falling at least 1.2 million by late April.

The WTO estimated that U.S. auto sales were almost 40% off in March after 

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How Covid-19 Is Re-Shaping the Automotive Landscape

The Coronavirus (Covid-19) pandemic continues to ravage the world, dealing significant disruptions to industries everywhere, including our beloved automotive industry.

With land travel being a major factor in ensuring that everything in the world runs smoothly, it can be said that the automotive industry is also a ‘frontliner,’ so to speak.

Unfortunately, this ‘frontliner’ is one of the most affected service provider that we have. The entire automotive supply chain has been compromised, from manufacturing, to distribution, delivery, and sales. The dramatic drop in productivity is completely changing how car brands operate. To cite a few examples, some car launches are now being held online, and the pageantry of F1 races have been relegated to the virtual world.

So, how else is the Covid-19 crisis changing the automotive landscape as we know it? Here are some of the positive and (mostly) negative forecasts from industry pundits.

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