When a Sector Bewilders
When it comes to evaluating automobile manufacturers, there is virtually no agreement about what they are worth. Macroeconomic factors weigh heavily on the rate of sales, and also dictate crucial incentive levels (rebates and special financing) that are needed to move the metal. Profitability can swing from massive to nonexistent in short periods of time.
Earnings predictability, the key metric needed to predict future share-price movements, is among the lowest of any industry group. Value Line rates the 1,700 companies in their main research universe from 5th to 100th percentile in this quality, with 100th being best, and here are its ratings for Ford (F), Honda (HMC) and Toyota (TM) as of their latest full page reviews....262 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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