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CNH Industrial (CNHI) Outpaces Stock Market Gains: What You Should Know

CNH Industrial (CNHI) closed the most recent trading day at $16.48, moving +1.98% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.85%.

Prior to today's trading, shares of the truck, tractor and bus maker had lost 2.83% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 0.95% and the S&P 500's loss of 0.37% in that time.

Wall Street will be looking for positivity from CNHI as it approaches its next earnings report date. On that day, CNHI is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 109.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.49 billion, up 15.39% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.32 per share and revenue of $32.77 billion. These totals would mark changes of +371.43% and +25.9%, respectively, from last year.

Any recent changes to analyst estimates for CNHI should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CNHI is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, CNHI is holding a Forward P/E ratio of 12.23. For comparison, its industry has an average Forward P/E of 9.4, which means CNHI is trading at a premium to the group.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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CNH Industrial N.V. (CNHI): Free Stock Analysis Report
 
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