NEW YORK ( TheStreet) -- Last week the auto industry reported that June auto sales came in at the fastest pace in six years. Between July 23 and Aug. 9 the 10 auto makers I profile today report their quarterly earnings. The key will be the revenue line and forward guidance to judge whether or not the sales gains can be sustained.On July 2 when I wrote, Sector Ratings Set Asset Allocations, I gave the autos-tires-trucks sector an 'avoid-source of funds' asset allocation rating. Today, following benchmark revisions to ValuEngine data, the autos-tires-trucks sector consists of 94 stocks with only two rated buy. The number of sell-rated stocks declined to 31 from 67 which justifies an asset allocation upgrade to underweight. This assessment still justifies profit-taking on strength in the sector. Seven of the autos I profile today are rated hold, while the other three are rated sell.
Take Profits on Auto Sector Strength
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