Tuesday, March 2, 2021

CNH Industrial Early In Its Self-Help Story, With A Cyclical Boost Today

Between the hiring of a new CEO and a broader run in heavy machinery stocks, I can't say that CNH Industrial (CNHI) hasn't performed over the past year, with the shares up over 55%. With the shares only just back to where they were in early 2018, though, there have certainly been some issues with the business in recent years, including inconsistent execution in agriculture and more structural challenges in the construction business.

I believe the new CEO, Scott Wine, has a good plan for improving the ongoing ag and construction operations (the on-highway operations are going to be spun off or sold), and it's important to remember that CNH doesn't have to catch up to Caterpillar (CAT) or Deere (DE) in terms of operational performance for the shares to still work from here. Between internal self-improvement opportunities and stronger markets for heavy machinery in the ag and construction markets, I believe CNH shares still have some upside after this big move, and it's a name worth considering.


Read the full article at Seeking Alpha: 

CNH Industrial Early In Its Self-Help Story, With A Cyclical Boost Today

No comments: