Chicago, IL – November 25, 2013 – Zacks Equity Research highlights BitAuto Holdings (BITA–Free Report) as the Bull of the Day and Chart Industries (GTLS–Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Tesla Motors, Inc. (TSLA–Free Report), General Motors Company (GM–Free Report) and Volkswagen AG (VLKAY–Free Report).
Here is a synopsis of all five stocks:
BitAuto provides Internet content and marketing services for the automotive industry in China. Its bitauto.com and ucar.cn websites provide consumers new and used automobile pricing information, specifications, reviews and consumer feedback.
New Name, Experienced Player
Since China overtook the US as the world’s largest automobile market in 2010, Chinese companies have of course been scrambling to capitalize on the boom. While you may have never heard of BitAuto and you may be skeptical about “another Chinese Internet company,” their roots in the auto industry go back more than a decade.
BitAuto was originally an advertising agency focusing on the automobile sector before they expanded into an integrated online vertical/portal model. They operate bitauto.com and taoche.com websites for dealers, automotive advertisers and consumers to converge.
According to analysts at Oppenheimer, “With China’s emerging auto sector coupled with strong secular tailwinds of increasing Internet ad spend, rising domestic consumption, Internet penetration growth, and greater reliance by consumers on the Internet for car information, BITA is positioned to maintain its leading position in the automotive online advertising and agency business.”
Bear of the Day:
Chart Industries (GTLS–Free Report) is a $2.7 billion global engineering company that specializes in equipment primarily used in energy processing applications such as liquefied natural gas (LNG) and in the purification and storage of industrial gases for medical fields.
But its 3rd-quarter earnings report on October 31, which included a miss and guide lower, left investors and the stock completely out of fuel as shares dropped over 27% in the last three weeks.
Chart Industries, which was seen on the forefront of systems required to support trucks that run on LNG, operates in three segments: Energy and Chemicals, Distribution and Storage, and Biomedical. The latter segment wasn’t the problem area last quarter.
According to analysts at Global Hunter Securities, “GTLS printed a disappointing quarter in issues in its two banner segments. The DS segment missed on the top line due to projects moving out the door slower than anticipated and EC missed as margins came in lower due to pricing issues.”
The Chart for Chart
After the disappointing report, the stock and its Zacks Rank tell a story that any investor caught with a “miss and lower” quarter — as opposed to “beat and raise” — can relate to.
Tesla Leads Consumer Reports Survey
Tesla Motors, Inc.’s (TSLA–Free Report) Model S led the scoreboard in a consumer satisfaction survey by the Consumer Reports magazine. This came as a respite from the recent onslaught of bad news. The electric sports sedan scored 99 out of 100, which is the highest in the last few years.
Tesla’s score surpassed Porsche Boxster, which stood second with a score of 95. The Porsche 911 and General Motors Company’s (GM–Free Report) Chevrolet Volt were tied at the third spot with a score of 91. Meanwhile, Volkswagen AG’s (VLKAY–Free Report) Audi brand had the highest number of high-scoring cars compared to other luxury brand. The Audi A6 was the best scoring Audi car.
The results are based on the response of 350,000 Consumer Reports subscribers who own a car. More than 600 of them were owners of the 2012 or 2013 versions of Model S. The survey enquired whether the owners were ready to make a repeat purchase of the car they own.
However, the survey was carried out before the three Model S fires. Thus, it does not consider the impact of the mishap on the consumers’ mindset.
Tesla’s Model S scores high on product design, performance and practicality. According to the magazine, cars that are fun to drive and environment friendly tend to receive high scores. Fuel economy, technological superiority and luxury also affect the ratings.
Tesla currently retains a Zacks Rank #3 (Hold).
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