The long-term slump in the automotive industry is worsening. Stellantis (STLA) risks testing new lows despite trading at a price-to-earnings multiple of 2.86 times.
Stellantis CEO Carlos Tavares plans to reshuffle management. However, the Board of Directors may re-evaluate the CEO’s pay level relative to the firm’s under-performance.
The North American operation is in trouble. During the pandemic, the firm hiked prices and sold mostly high-end trucks and SUVs. As inflation accelerated, interest rates increased, raising loan costs. Consumers refuse to buy a Stellantis until prices fall. The firm will need to sell 100,000 vehicles at a discount as a result.
Consumers may question the quality of Honda Motor (HMC). The firm is recalling nearly 1.7 million vehicles. Increased friction between the worm gear and worm wheel could compromise steering.
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Piper Sandler surveyed teenagers. Using over 63 million data points, the firm determined that Nike (NKE) and elf Beauty (ELF) are preferred apparel and beauty products. In addition, On Holdings (ONON) and Deckers Outdoor (DECK) have promising products that teens like.
Lululemon (LULU) is still a strong brand among teens with strong purchasing power.
In the drink market, teens liked energy drinks over coffee. This is good news for Celsius (CELH) and Monster Beverage (MNST). They make take Starbucks’s (SBUX) market share.
