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Zacks Industry Outlook Highlights: Autoliv, American Axle, CarMax, Lear Corp. And TRW Automotive - Mar 20 2009 11:52PM
Friday, March 20, 2009 11:52 PM


(Source: BUSINESS WIRE)trackingZacks.com

Mark Vickery

Web Content Editor

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Visit: www.zacks.com

Zacks.com announces the latest Industry Outlook. Today's outlook from Zacks Equity Research analyst Paul Raman discusses the Auto & Auto Parts sector. Highlighted stocks include: Autoliv (NYSE: ALV), American Axle and Manufacturing (NYSE: AXL), CarMax (NYSE: KMX), Lear (NYSE: LEA) and TRW Automotive (NYSE: TRW).

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Here is the latest on the Auto & Auto Parts sector:

Earnings are below expectations and have been for some time. Some of these companies may be bailout candidates, which would leave equity holders with no value. Demand for autos is down (15)% due to a weak economy and weakening real estate market.

Demand is also hurt by weakening employment. The recent credit crunch is crippling to auto sales, and this has a trickle-down effect throughout the industry.

Autoliv (NYSE: ALV) is a Sell due to the slowdown in the auto market and weak pricing. American Axle and Manufacturing (NYSE: AXL) is a sell due to the slowdown in the auto market and costs related to the new UAW agreement. CarMax (NYSE: KMX) is a Sell due the weak auto market and falling prices. Lear (NYSE: LEA) is a bankruptcy candidate. TRW Automotive (NYSE: TRW) is a Sell due to the weak auto market.

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http:/ /at.zacks.com/?id=4581.

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