Our first idea is an auto parts supplier that pummeled analysts’ earnings estimates by $0.09 last quarter. We also include two sell recommendations today.
Buy: Tower International (TOWR)
From Upside
Tower International (TOWR) is being added to the Best Buy List. A leading supplier of auto parts, Tower appears to have room to run following solid September quarter results. Sales and per-share earnings outstripped Wall Street expectations, helping lift the stock 9% on the news.
In the weeks since the report, analyst estimates have risen for full-year 2017, with the consensus now projecting per-share profits of $3.72, implying 11% growth. For 2018, the consensus
has risen to $4.02, up 8%.
Shares look cheap at eight times estimated 2018 earnings, versus a median of 13 for auto parts stocks in the S&P 1500. Tower is a Best Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, December 4, 2017