On Mar 28, 2015, Zacks Investment Research upgraded TRW Automotive Holdings Corp. TRW to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell).
Why the Upgrade?
TRW Automotive has a history of outperforming estimates. The company reported positive earnings surprises in each of the trailing four quarters with an average beat of 11.7%.
Moreover, the Zacks Consensus Estimate for TRW Automotive’s first-quarter 2015 EPS stands at $1.91, which translates into a year-over-year improvement of 5.5%.
TRW Automotive is globally recognized as one of the largest and most diversified suppliers of automotive systems, modules and components to original equipment manufacturers, and the related aftermarket. The company is constantly striving to improve its vast product portfolio. In Jan 2015, TRW Automotive announced that it is expanding the Electronics business in order to satisfy the rising demand for automated vehicles.
In Feb 2015, TRW Automotive completed a major portion of the divestiture of its engine valve business to Federal-Mogul Holdings Corporation FDML. The divestiture will generate $385 million in proceeds and allow the company to focus on its active and passive safety technology products.
Although declining revenues, weakness in many economies and the upcoming acquisition by ZF Friedrichshafen are concerns, a strong financial position, its vast product portfolio and product launches are positives for TRW Automotive.
Other Stocks to Consider
Better-ranked automobile stocks include Tata Motors Limited TTM and American Axle & Manufacturing Holdings Inc. AXL. While Tata Motors sports a Zacks Rank #1 (Strong Buy), American Axle carries a Zacks Rank #2 (Buy).
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