When I wrote about Dana Holding Corp. (NYSE:DAN) back in February, I thought that the shares were undervalued and leveraged to a change in sentiment. I didn't think sentiment would change so far so fast, though, and the shares are up almost 30% since then. That's on par with fellow mixed light and commercial vehicle components company Tenneco (NYSE:TEN), and better than Allison (NYSE:ALSN) and BorgWarner (NYSE:BWA), not to mention American Axle (NYSE:AXL).
Even though commercial and off-highway vehicles are still about 40% of the business (and still pretty weak), the market seems to be feeling better about these markets now. Looking specifically at Dana, the company is leveraged to light vehicle programs like the Ford (NYSE:F) Super Duty and Jeep Wrangler that could fare relatively well in the coming years and is also skewed more toward medium-duty commercial vehicles (which have held up better than heavy duty).
These shares do still look undervalued, and the upcoming analyst day in November is a chance to "rally the troops" on Wall Street and build on the momentum that has driven the stock since the summer.
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More Optimism Driving Dana