Cyclical stocks are notoriously difficult to value, as very few analysts or investors can accurately measure the length and amplitude of the cycle. In the case of Navistar (NYSE:NAV), it gets even more difficult as the company continues to develop its own engine program and work towards better internal efficiency. While Navistar is a stock with above-average risk, a strong rebound in the truck cycle could push these shares up substantially.
A Stuttering Start to the Year Navistar's first quarterearnings were a real mess. Revenue was alright, as sales (excluding financing) rose nearly 12% from last year. Truck revenue jumped 20%, while engine revenue fell 13% and parts revenue ticked up 5%.
No comments:
Post a Comment