With shares of Honda Motor (NYSE:HMC) trading around $38.13, is the automaker an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
Honda ended 2012 on a strong note. The company increased its year-over-year December U.S. market share by 1.3 percentage points to 9.8 percent, making it the fifth-largest auto company operating in America. Total 2012 sales grew 24 percent compared to 2011, showing some acceleration toward the end of the year.
What’s more, the company’s domestic units did phenomenally — domestic car sales were up 67 percent and domestic truck sales were up 22.5 percent. This also more than offset huge reductions in imports and was a reflection of Honda’s focus on broadening its manufacturing footprint in the United States. The company recently rolled its 1 millionth U.S.-made car off a line.
T = Technicals on the Stock Chart Currently Show an Uptrend
As of January 15, Honda’s stock price was 4.01 percent above its 20-day simple moving average, or SMA; 12.63 percent above its 50-day SMA; and 14.95 percent above its 200-day SMA.
Since the beginning of 2013, the stock price has been in an upward trend, rising 3.22 percent this year-to-date and rising 17.54 percent year-over-year. It’s hard to hide the fact that Honda’s stock has climbed tremendously since November — over 31 percent between November 13 and January 15 — and is currently trading near its 52-week high of $39.35.
As a benchmark, the S&P 500 has risen 3.24 percent year-to-date and 14.22 percent year-over-year.