Auto industry so far in 2017
In the first five months of 2017, US auto sales have fallen YoY (year-over-year). Dismal sales figures have hit the majority of mainstream automakers’ stocks, which are underperforming the broader market (SPY).
On the positive side, low oil prices are continuing to boost US truck sales, which are diminishing the negative impact of lower car sales. Let’s take a quick look at auto stocks and how they’ve traded so far in 2Q17.
Auto stocks in 2Q17
Fiscal 2Q17 began on a mixed note for most auto stocks. As of June 13, 2017, General Motors (GM), the largest US automaker, has fallen about 2.4% on a QTD (quarter-to-date) basis. GM’s weakening US market sales and investors’ concerns about a possible downturn in the US auto demand could be the primary reasons for this dismal performance on Wall Street. These losses were against a 3.3% rise in the S&P 500 Index so far in 2Q17.
In this series, we’ll take a look at Wall Street analysts’ recommendations for auto and auto parts companies in June 2017. We’ll also look at some key recent developments for these companies in the last few months.