Barron's: The State Of The U.S. Auto Industry

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  • The cover story in this weekend's Barron's takes a look at the headwinds and the untapped potential of the two largest automakers in the United States.
  • The special report on the auto industry also examines the hottest all-electric vehicles.
  • And check out Barron's latest ranking of the top 100 financial advisors for 2016.
After years of struggle, the big U.S. automakers have come roaring back, according to this week's cover story in Barron's. See why investors can expect to see shares of Ford Motor Company F and General Motors Company GM surge as much as 25 percent. "General Motors and Ford Shares Have 25% Upside" by Richard Rescigno points out that in the United States, overseas and even in the luxury and electric categories, vehicle sales, profitability and financial strength are back. The two companies are leaner, nimbler and more disciplined than they have been in decades, and both sport generous dividends. New models are eye-catching, desirable and dynamic. And the economy in China, the world's largest car market, may be sluggish but is still expanding. That all bodes well for shareholders, says Barron's. While these two auto-making titans have many similarities, they also have distinct strengths and challenges, and the article takes a closer look. Find out what the likely impact is of the fading of the baby boomers from the car-buying scene and the rise of the millennials. See how the companies have positioned themselves with regard to the once-crushing weight of health-care costs for retired unionized workers. And take a peek at the trends in the car markets in Europe and South America. The article includes a chart that compares Ford and GM by the numbers, including sales volume and rank, revenue, earnings estimates and recent stock performance. Another graph shows how overall vehicle sales have fared since before the Great Recession, along with a forecast for a healthy years-long plateau. And yet another shows how Cadillac and Lincoln stack up against other luxury automakers, with a look at their untapped potential in China. See also: Barron's Picks And Pans: Ford, Intel, Sealed Air And More

Other Feature Stories

Check out the latest Barron's ranking of the top 100 financial advisors. Five of the top 100 offer insights into navigating the bull market, and they share why they now are pivoting toward value. A top institutional consultant explains why retail investors should care about the management of pension funds, foundations and other large investment pools. In addition, see why the new fiduciary standard is good for investors but complicates the lives of many financial providers. In addition, see what Barron's feels are the prospects for Intel Corporation INTC as personal computers become ever more marginalized, Sealed Air Corp SEE after a recent stock pullback and Aerojet Rocketdyne Holdings, Inc AJRD as it soars past recent turbulence. At the time of this writing, the author had no position in the mentioned equities. Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.
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