Fiat Chrysler (FCAU) Invests $1.5 Billion in Truck Plant, Stock Advances
NEW YORK (TheStreet) -- Shares of Fiat Chrysler (FCAU) - Get Report are rising 1.24% to $6.97 in afternoon trading today as the automaker announced it is investing $1.5 billion in a Detroit truck plant to retool it to produce trucks and SUVs instead of midsize cars.
The factory will produce more of its Jeep and Ram models, a change that comes as truck models gain favor in the U.S. market, according to Bloomberg.
Fiat Chrysler is expected to post fiscal 2016 second quarter results on Wednesday. Analysts expect the company to post earnings of 50 cents per share on revenue of $31.77 billion.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate FIAT CHRYSLER AUTOMOBILES NV as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, disappointing return on equity and poor profit margins.
You can view the full analysis from the report here: FCAU
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