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Tigress Financial CIO: Auto Industry Is 'Hitting On All Cylinders,' Will See Strong Growth In 2015 And 2016

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Tigress Financial CIO: Auto Industry Is 'Hitting On All Cylinders,' Will See Strong Growth In 2015 And 2016

Speaking to Benzinga, Tigress Financial Partners Chief Investment Officer Ivan Feinseth said that the improving economy and decrease in unemployment are all driving the replacement and demand cycle for the new cars.

He added that this is the upswing in the auto sales cycle.

Implications Of Good Auto Sales

In addition, the auto industry is “hitting on all cylinders,” which Feinseth said is a good indicator for both the auto industry and the overall U.S. economy.

“People don’t commit to buying new cars unless they’re secure about their jobs and their financial position because a car is a big commitment,” he said.

Big Winner

General Motors Company (NYSE: GM) had extremely strong numbers, Feinseth said. He thinks this had to do with the automaker’s “phenomenal line-up of cars,” in addition to the success of its full-size SUV and Cadillac lines.

Tigress has a Strong Buy on General Motors.

Lagging Behind

While the numbers for Ford Motor Company (NYSE: F) came in a little lower than expected, Feinseth thinks the transition to the new F150 will ultimately be positive for the company. Tigress has a Buy rating on Ford.

Tesla Motors Inc (NASDAQ: TSLA) also had a big disappointment with the delay of the Model X.

Looking Forward

Feinseth had been predicting the auto sector would be very strong in 2014. He thinks this will continue through 2015, especially since the average age of a car on the road is almost 10 years old.

For 2015, he said the market wants to see see follow-through from the sector. He believes the industry will see strong growth continue into 2015 and 2016.

Latest Ratings for F

DateFirmActionFromTo
Apr 2021Wolfe ResearchUpgradesPeer PerformOutperform
Apr 2021Wells FargoInitiates Coverage OnOverweight
Mar 2021BarclaysUpgradesEqual-WeightOverweight

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