TheStreet Ratings quantitative stock model maintains a Buy recommendation on Fiat Chrysler Automobiles NV (FCAU) - Get Report . Since the stock was upgraded to Buy from Hold on Dec. 2, 2016, the stock has been driven up by 154%.
The grade of B puts Fiat Chrysler on the lead lap with Honda Motor (HMC) - Get Report , Ferrari (RACE) - Get Report , Toyota Motor (TM) - Get Report , and General Motors (GM) - Get Report . To learn the name of the surprising stock currently winning the pole position, check out TheStreet Ratings list of Top-Rated Automotive Stocks at https://www.thestreet.com/topic/29202/top-rated-equity-automobiles.html.
Recently, 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 Buy with a ratings score of B. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the analysis by TheStreet Ratings goes as follows:
- Powered by its strong earnings growth of 81.81% and other important driving factors, this stock has surged by 62.07% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FCAU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- FIAT CHRYSLER AUTOMOBILES NV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FIAT CHRYSLER AUTOMOBILES NV increased its bottom line by earning $2.69 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($3.38 versus $2.69).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 83.7% when compared to the same quarter one year prior, rising from $681.46 million to $1,251.71 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.7%. Since the same quarter one year prior, revenues rose by 12.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Automobiles industry and the overall market, FIAT CHRYSLER AUTOMOBILES NV's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- You can view the full analysis from the report here: FCAU
-- Reported by Kevin Baker in Palm Beach Gardens, FL
Disclosure: Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet, Inc. or any of its contributors.