U.S. stock futures were higher this morning, with the Dow futures gaining around 400 points on Wednesday.
The Japanese automaker cut its annual forecasts for car sales and net profit after posting a drop in first-half earnings due partly to weakness in its auto business in China.
Japan's Honda Motor reported a 15% decline in second-quarter operating profit at 257.9 billion yen ($1.68 billion), on Wednesday, missing analysts' expectations while keeping its full-year profit forecast.
Honda (HMC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Honda is committed to an all-electric fleet by 2040, focusing on North American production and innovative manufacturing processes like megacasting. Despite ending a low-cost EV partnership with GM, Honda continues investing heavily in electrification, aiming for 100% EV and FCEV sales by 2040. Honda's stock is undervalued with a P/E ratio lower than Toyota's, making it a solid choice for long-term investors in a diversified portfolio.
A fuel leak in the presence of an ignition source could increase the risk of a fire, the automaker said.
Honda is recalling over 720,800 vehicles in the U.S. as a high pressure fuel pump may crack and leak fuel, the U.S. National Highway Traffic Safety Administration said on Tuesday.
These three high-yield dividend stocks offer attractive valuations and potential for long-term income growth.
HMC introduces new technologies for its upcoming Honda 0 Series, a fresh line of EVs set to launch globally in 2026.
Honda is recalling about 1.7 million vehicles in the U.S. as difficulty in steering can increase the risk of a crash, the National Highway Traffic Safety Administration said on Wednesday.
Honda Motor Co. is trading at a significant discount with a price/book value of 0.63 and a P/E ratio of 6.80. Despite industry changes, Honda's strong earnings growth and low valuation metrics make it a compelling value investment. Dividends are attractive but inconsistent, with a yield over 4%, dependent on continued strong earnings and potential capital reallocation to electric vehicles.
Honda stock's price is right with an exceptionally low valuation. The company's future looks bright, especially with its hybrid and electric vehicle strategy.