Some investors in auto stocks aim to focus on two variables right now: They want to avoid exposure to Europe, and they want to capitalize on an expected upturn in demand for light trucks here in the U.S. as homebuilding construction finally starts to rebuild after multi-decade lows. Construction workers have been mostly patching up their old trucks to conserve cash, and this upgrade cycle may be huge.
American Axle (AXL) not only has minimal exposure to the troubles in Europe, but it's a key supplier for GM and Chrysler in their large pick-up truck programs. Along with Ford's F-Series pickups, GM and Chrysler's trucks remain among the top-selling vehicles in North America.Analysts expect American Axle's sales to rise almost 10% this year to around $2.8 billion, and on the heels of a newly-launched GM truck in 2013, anticipate sales rising nearly 15% in 2013 to around $3.2 billion. Meanwhile, shares trade for less than five times projected 2013 profits. American Axle shows up on a list of Stocks in Bottoming Sectors Primed for a 2012 Bounce. Follow @stockpickr
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV