Click here to close now.




















Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: General Motors, Ford Motor, Toyota Motor, Honda Motor and PACCAR

CHICAGO, Aug. 25, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the General Motors Co. (NYSE:GM-Free Report), Ford Motor Co. (NYSE:F-Free Report), Toyota Motor Corp. (NYSE:TM-Free Report), Honda Motor Co. Ltd. (NYSE:HMC-Free Report) and PACCAR Inc. (Nasdaq:PCAR-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Rising Subprime Auto Loans: Reason to Worry?

The dollar value of subprime auto loan originations has nearly doubled since 2009 to reach $20.6 billion, or 22.2% of total auto loan originations, in the second quarter of 2014, per the Quarterly Report on Household Debt and Credit for the quarter released by the Federal Reserve Bank of New York last week. While the proportion of subprime loans to total auto loans is significantly lower than 25–30% in the pre-recession period, it is still a concern due to the fact that auto loans rank third among loan groups, following mortgages and student loans, in terms of America's outstanding debt.

Moreover, originations of subprime auto loans (loans to borrowers with credit scores below 620) are increasing at a faster pace compared to the rest of the auto loans. Originations of loans to the other credit score groups increased merely 50% since 2009. In fact, auto loan originations to the super-prime group (borrowers with credit scores above 759) increased only 43.1% to $27.9 billion in the second quarter of 2014 from $19.5 billion at the end of 2009.

A majority of the subprime auto loan originations can be attributed to auto finance companies. In fact, these companies issued three times the dollar value of subprime loans issued by banks during the second quarter of 2014. Needless to say, this is helping boost sales of the associated auto companies.

Easy availability of auto loans with lower interest rates and longer repayment periods is one of the chief reasons for the rising U.S. auto sales. Auto loan balances (including leases) have been increasing consistently in the past 13 quarters and auto loan originations in the second quarter of 2014 climbed to an eight-year high. Buoyed by this, U.S. auto sales on a seasonally adjusted annualized rate (SAAR) remained above the 16 million mark in the last 5 months. In fact, in Jun 2014, the SAAR of sales reached 17 million for the first time since Jul 2006.

As the automobile industry is a major contributor to the U.S. economic growth, improving auto sales is also benefiting the overall U.S. economy. However, concerns about the subprime auto loans are rising.

Recently, federal prosecutors started a civil investigation into the matter. They are concerned that auto loans are possibly being issued without adequate background checks and adherence to standards. They are also looking into possible violations of the Financial Institutions Reform, Recovery, and Enforcement Act.

Earlier this month, General Motors Co. (NYSE:GM-Free Report) received a subpoena as a part of this investigation, requesting documents related to the origination and the securitization of subprime loan contracts since 2007. The United States attorney for the Southern District of New York will consider other auto companies as a part of the investigation as well, per media reports. Most major auto and truck manufacturers such as General Motors, Ford Motor Co. (NYSE:F-Free Report), Toyota Motor Corp. (NYSE:TM-Free Report), Honda Motor Co. Ltd. (NYSE:HMC-Free Report), PACCAR Inc. (Nasdaq:PCAR-Free Report) and others provide financing and leasing to customers.

Should We Be Worried?

While subprime auto loan originations are increasing rapidly, so are the total auto loan originations. Consequently, the proportion of subprime auto loan originations to total auto loan originations has not increased significantly. Moreover, the 90-day delinquency rates for auto loans is only 3.3%, on par with home equity lines of credit and lower than all the other loan groups as well as the average delinquency rate.

In fact, economists from the Federal Reserve Bank of New York believe that the increase in subprime auto loans is not extreme, given the rising auto sales. They also reason that since subprime auto loans witnessed the maximum decline during the recession, the present rise in this loan group is more pronounced than other groups.

Thus, the increasing subprime auto loans should not pose any abnormal risk unless their proportion to total auto loans starts increasing significantly or the civil investigation reveals any major negligence in conforming to loan standards.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; 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.

Get the full Report on GM - FREE

Get the full Report on F - FREE

Get the full Report on TM - FREE

Get the full Report on HMC - FREE

Get the full Report on PCAR - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Scrum Alliance has announced the release of its 2015 State of Scrum Report. Almost 5,000 individuals and companies worldwide participated in this year's survey. Most organizations in the market today are still leading and managing under an Industrial Age model. Not only is the speed of change growing exponentially, Agile and Scrum frameworks are showing companies how to draw on the full talents and capabilities of those doing the work in order to continue innovating for success.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at @DevOpsSummit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, presented a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mocku...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Graylog, Inc., has added the capability to collect, centralize and analyze application container logs from within Docker. The Graylog logging driver for Docker addresses the challenges of extracting intelligence from within Docker containers, where most workloads are dynamic and log data is not persisted or stored. Using Graylog, DevOps and IT Ops teams can pinpoint the root cause of problems to deliver new applications faster and minimize downtime.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.