Auto Sales – Big Beat
Auto sales today were excellent across the board:
- GM: +3.0% (+0.1% expected)
- Ford: -1.3% (-3.1% expected)
- Fiat Chrysler: +4.0% (+2.6% expected)
- Nissan: -0.8% (-2.4% expected)
- Toyota: -0.3% (-1.8% expected)
A simple derivative play would be to look at Goodyear Tire & Rubber (GT). It stands to reason that increasing automotive sales are good for this supplier. With that in mind, GT looks cheap at the moment, with P/S 0.47, and forward PE 10.36, both under industry average, and we like GT at this point.