Tenneco’s first-quarter results met lowered expectations, but the performance relative to underlying build rates was not impressive, and margins remain lack luster. Recent board changes in response to activist investor agitation may prove meaningful, but management is currently sticking to a plan that I’m unconvinced will generate meaningful long-term value.
Assessing Tenneco’s prospects as an investment is complicated the very large debt positions; small changes in modeling assumptions or valuation multiples drive large changes to fair value. Tenneco shares could potentially be worth much more than today’s price, but the company could also spiral into bankruptcy or forced asset sales, and I don’t have confidence in management.
How Does Dana’s (NYSE: DAN) P/E Compare To Its Industry, After Its Big Share Price Gain?
Those holding Dana (NYSE: DAN) shares at https://www.webull.com/newslist/nyse-dan must be pleased that the share price has rebounded 40% in the last thirty days. But unfortunately, the stock is still down by 34% over a quarter. But shareholders may not all be feeling jubilant since the share price is still down 26% in the last year. Assuming no other changes, a sharply higher share price makes a stock less attractive to potential buyers.
In the long term, share prices tend to follow earnings per share, but in the short term prices bounce around in response to short term factors (which are not always obvious). So some would prefer to hold off buying when there is a lot of optimism towards a Dan stock. One way to gauge market expectations of a stock is to look at its Price to Earnings Ratio (PE Ratio). A high P/E ratio means that investors have a high expectation about future growth, while a low P/E ratio means they have low expectations about future growth.
How Does Dana’s P/E Ratio Compare To Its Peers?
Dana’s P/E of 9.89 indicates relatively low sentiment towards the Dan stock. If you look at the image below, you can see Dana has a lower P/E than the average (13.4) in the auto components industry classification
How Growth Rates Impact P/E Ratios
When earnings fall, the ‘E’ decreases, over time. That means unless the share price falls, the P/E will increase in a few years. Then, a higher P/E might scare off shareholders, pushing the share price down.
Enabling the propulsion of conventional, hybrid, and electric-powered vehicles, Dana equips its customers with critical drive and motion systems; electrodynamic technologies; and thermal, sealing, and digital solutions. You can also check lone stock at https://www.webull.com/newslist/nasdaq-lone.