Why Dana Holding's Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of auto-parts supplier Dana Holding (NYS: DAN) rose 10% today after reporting better-than-expected earnings.
So what: First-quarter revenue rose 10% to $1.98 billion, just barely beating estimates. Earnings per share were also strong, reaching $0.44 per share, $0.03 better than estimates. Commercial and off-highway vehicle sales were the drivers of this quarter's results.
Now what: The U.S. truck market appears to be on the comeback, and sales to companies making these trucks has helped Dana Holding. The commercial vehicle segment grew 16% in the quarter, just another sign that the economy is getting back on its feet. Shares are trading at just seven times forward estimates, and I think this is the time to jump in before the stock starts to take off.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.