The company has seen adjusted EPS grow from $2.97 in 2013 to $6.89 in 2017 while the stock has fallen from $58 to $48. The reason being fears about the move to electric cars and the impact that this will have on Tenneco’s clean air products.
FPA says thats naive and that and that electric cars will only make up a small proportion of vehicles for years and that increasing restrictions on emisions will drive strong demand for Tenneco's products.
FPA bought stock in Q1 and the CEO added his holding last week. With an adjusted PE of 7.2 those who think the discount for EVs is overdone may want to join them.
This post is not a recommendation to buy or sell any security or derivative. Stocks are not suitable for all investors. Please do your own research.
Submitted May 17, 2018 at 02:26PM by InterestingNews1 https://ift.tt/2LbLRwr
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