The Zacks Analyst Blog Highlights: General Motors, General Motors, Toyota Motor and Honda Motor

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Nov 14, 2014, 09:30 ET

CHICAGO, Nov. 14, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the

General Motors Co. (NYSE:GM-Free Report), Advance Auto Parts Inc. (NYSE:AAP-Free Report), Toyota Motor Corp. (NYSE:TM-Free Report) and Honda Motor Co., Ltd. (NYSE:HMC-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

Auto Stock Roundup

Last week saw disappointing news stories for most auto stocks although impact of the positive movement in the overall market prevented any major losses in stock value. A negative twist emerged in General Motors Co.'s (NYSE:GM-Free Report) ignition switch recall fiasco. Meanwhile, Advance Auto Parts Inc.'s (NYSE:AAP-Free Report) weak fiscal guidance generated enough bearish sentiment to drag the stock despite its earnings beat.

Ford Motor Co.'s October China sales results were weak, although some positive media coverage was garnered as the company started producing the much hyped new F-150 truck. Meanwhile, Toyota Motor Corp.'s (NYSE:TM-Free Report) triple recalls pulled down its shares.

(Read last to last week's recap here: Auto Stock Roundup: Tesla Falls, Toyota Rises on Earnings Impact.)

Recap of the Week's Most Important Stories

1. According to the emails recently showcased by a Texas attorney, General Motors had ordered about half a million replacement ignition switches almost two months before announcing the recall of vehicles for faulty ignition switches. Legally, automakers are supposed to alert the National Highway Traffic Safety Administration (NHTSA) about any safety concern related to vehicles within five business days of identifying the problem.

The emails were not mentioned when CEO Mary Barra testified before the Congress. It is expected that the emails may lead to further congressional hearings with Barra. (Read more: GM Alleged of Ordering Parts Long Before Recall.)

2. Ford sold 93,179 vehicles in China in Oct 2014. This reflects a 0.8% year-over-year decline from 93,969 units sold in Oct 2013. Year-to-date sales of Ford in the world's largest automobile market amounted to 906,613 units, up 22.2% from 741,818 vehicles sold in the first 10 months of 2013. (Read more: Ford's China Sales Decline in October 2014, Rise YTD.)

3. Advance Auto Parts reported a 27.7% rise in adjusted comparable earnings to $1.89 per share in the third quarter of fiscal 2014 (ended Oct 4, 2014) from $1.48 in the prior-year quarter. The figure also exceeded the Zacks Consensus Estimate of $1.87. Revenues went up 50.6% year over year to $2.29 billion and came in line with the Zacks Consensus Estimate.

Sales benefited from the General Parts takeover, increase in comparable same-store sales and addition of new stores over the last 12 months. Advance Auto Parts affirmed its earnings expectation of $7.50–$7.60 per share for fiscal 2014. (Read more: Advance Auto Parts Down on Weak Outlook; Earnings Beat.)

4. Toyota Motor Corp. has announced three separate recalls, covering a total of 361,800 vehicles worldwide. The largest among the three recalls covers 170,000 Camry sedans that have a defective ball joint, which can drive the vehicle out of control. The second largest recall covers 105,800 vehicles, mostly in Japan. These vehicles need fuel pipe replacement.

The last of the three recalls covers 86,000 Crown and Crown Majesta vehicles in Japan. Toyota will replace the outer seat belt assemblies of these vehicles. (Read more: Toyota Announces 3 Recalls for 361,800 Vehicles Globally.)

5. Honda Motor Co., Ltd. (NYSE:HMC-Free Report) announced that it will start selling the new Legend flagship sedan in Japan from Jan 22, 2015. The new vehicle will introduce Honda's new driver-assistive system, Honda SENSING. Key features of the system include the world's first Pedestrian Collision Mitigation Steering System, along with Collision Mitigation Braking System, Road Departure Mitigation system, Lane Keeping Assist System, Adaptive Cruise Control with Low-Speed Follow, Traffic Sign Recognition, False Start Prevention Function and Lead Car Departure Notification System.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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