Why 2017 Was Such a Wonderful Year for Fiat Chrysler Stock



Auto industry

Calendar 2017 is about to end, and the auto industry has witnessed a fairly good year on Wall Street. Notably, legacy automakers General Motors (GM)Ford Motor (F), and Italian-American automaker Fiat Chrysler Automobiles (FCAU) make a substantial portion of their revenues from the US market. Below, we’ll take a quick look at its Wall Street performance in 2017.

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Fiat Chrysler stock in 2017

As of December 26, 2017, Fiat Chrysler stock was trading at $18.50, with about 103.7% YTD (year-to-date) gains on Wall Street. FCAU has emerged as the top gainer auto stock (IYK) of 2017.

Meanwhile, GM, Ford, and Ferrari (RACE) have risen 20.0%, 3.9%, and 84.0%, respectively, YTD, while the S&P 500 Index (SPY) (SPX-INDEX) has risen 19.7% YTD.

Tesla (TSLA), the American electric vehicle maker, also has stayed in positive territory in 2017 and is now trading with 48.5% YTD gains.

Consistent YoY (year-over-year) positive growth in Fiat Chrysler’s profit margins and its improving debt condition help explain its outstanding Wall Street performance in 2017.

Series overview

In the next few parts of this series, we’ll explore some possible reasons for this optimism toward FCAU stock. We’ll take a look at Fiat Chrysler’s fiscal 2017 financial year highlights, including recent earnings trends, revenues, and profitability in the first three quarters of 2017. We’ll also examine how FCAU’s valuation multiples look going into 2018 and explore some key technical levels for the stock.


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