Pivotal Q2 Profits Show Stellantis Ready to Drive Turnaround. Time to Buy the Stock?
Stellantis had a much-improved second quarter, but Wall Street still isn't buying. Should you?
Overview
Stellantis (NYSE: STLA) has had a bumpy few years that saw the company lose market share in key regions, take massive one-time charges for its pullback on electric vehicles (EVs), and lack a true overall identity with its list of overlapping brands. However, Stellantis has a global turnaround plan that includes investing heavily in key brands such as Jeep and Ram.
Stellantis stock has shed 70% of its value over the past three years. It trades with a market capitalization about one-third that of rival General Motors and less than half that of Ford Motor Company. The good news for investors is that the second quarter suggests Stellantis' turnaround is already gaining traction.
Details
Stellantis gave investors a tiny glimpse of what CEO Antonio Filosa's $70 billion turnaround plan could bring to financial results. Last week, the company turned in a Q2 profit driven by rising demand for its vehicles in North America, arguably the most important region for the automaker globally. Still, Wall Street doesn't seem impressed. The stock sold off almost 10% after announcing Q2 results, before recovering some of those losses.
Source
Originally published at www.fool.com.