At the height of his fame, one of history’s top investors, Peter Lynch, regularly marveled at how often one good stock could lead to another in the same industry. And that’s just what happened to me recently while reading up on one of my own holdings, Toyota (NYSE: TM). #-ad_banner-#This other “automobile stock” isn’t a household name like Toyota, but maybe it should be. It’s up about 135% in the past 12 months. And it still has plenty of attractive upside left to offer. One reason I believe this: The company has very robust sales, which have been climbing more… Read More
At the height of his fame, one of history’s top investors, Peter Lynch, regularly marveled at how often one good stock could lead to another in the same industry. And that’s just what happened to me recently while reading up on one of my own holdings, Toyota (NYSE: TM). #-ad_banner-#This other “automobile stock” isn’t a household name like Toyota, but maybe it should be. It’s up about 135% in the past 12 months. And it still has plenty of attractive upside left to offer. One reason I believe this: The company has very robust sales, which have been climbing more than 10% a year, from $2.9 billion in 2009 to $4.3 billion last year. Also, the firm’s earnings per share (EPS) growth has been rallying strongly since the nasty $7.19-a-share loss of 2009, when the recession was really raging. Now that the auto industry is on a roll again, consensus estimates are for EPS to rise 24% a year to $6.63 in 2019 from the current $2.26. However, this “auto stock” could earn $1,000 a share and still never threaten Toyota’s position as the world’s #1 automaker. Indeed, the company hasn’t sold one car in its 35-year existence. That’s because… Read More