While the big automakers compete with each other for market dominance, it looks like Volvo could have been the sleeper pick all along. The Swedish car and truck manufacturer had an outstanding earnings report on Friday morning according to CNBC:
“These are blow-out numbers,” said analyst Hampus Engellau at Handelsbanken Capital Markets, which rates the stock “buy”. Shares in Volvo rose 7.0 percent by 0800 GMT, leaving the stock up 56 percent so far this year.
The earnings were bolstered by stronger than expected truck demand says CNBC.
While Volvo’s efficient trucks may be driving forward growth now, there are many reasons to be excited about the Swedish company’s future.
One such reason, according to the Toronto Star, is the relatively new direction the company has been taking since it was acquired by its Chinese owners, Geely Holding. They have started the high performance division known as “Polestar” which could bring Volvo more in line with its price point competitors such as BMW, Audi and Mercedes.
Yet, the most interesting card up Volvo’s sleeve has to be its newly revealed “Polestar 1,” a luxury electric car to compete with the Tesla Model S. The car has some serious style making it one of the more hotly anticipated models to come out of the electric car industry since the Model 3 was announced. To make things even worse for Tesla, the Toronto Star reports that Volvo will also be introducing the “Polestar 2” to compete with the Model 3. Clearly, Volvo is looking at becoming a competitor in this market instead of resting on its trucking laurels.
Investors may want to consider if Volvo is the right investment for them. The company’s tremendous growth over the past year coupled with its aggressive plans to break into the electric car market seem quite promising. CNBC even says that “[truck] order intake is extremely strong and it seems demand will accelerate even further ahead.” This means the company will likely continue its strong performance going forward.
With so much to be excited for, Volvo looks like a company ready for lift-off. Will you get on board?
To read CNBC’s article on Volvo’s earnings, click here.
To read the Toronto Star’s article on the “Polestar 1,” click here.
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