Is Douglas Dynamics, Inc. (PLOW) The Top Auto Parts Stock That Could Surge On Trump’s Auto Tariff Relaxation?
We recently published a list of Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation. In this article, we are going to take a look at where Douglas Dynamics, Inc. (NYSE:PLOW) stands against other top auto parts stocks that could surge On Trump’s auto tariff relaxation.
The corporate earnings season is about to kick off, but investors have something else on their minds: Donald Trump’s tariffs. Since the beginning of his term, Trump has wreaked havoc on the markets with repeated tariffs, resulting in the S&P index being down nearly 8% for the year.
We have observed that some of the most aggressive tariff policies are soon revoked or relaxed, resulting in a rally that brings back the stock prices to reasonable levels. We saw this recently when Donald Trump hinted that Big Tech companies may not bear the brunt of the tariffs as badly as previously thought. As a result, investors poured their money into these companies, thinking they may be critical for the US infrastructure.
A similar development is forming in the auto sector, with Trump likely to offer some relaxation when it comes to importing auto parts or manufacturing vehicles outside the US. Since auto parts companies are critical to the supply chain of this industry, we decided to take a look at the auto parts stocks that could surge following any news of relaxation in tariffs.
To come up with our list of Top 10 Auto Parts Stocks that could surge following Trump’s auto tariff reprieve, we looked at companies in the auto parts industry with a minimum market cap of $300 million that were outperforming their peers.
An upfitted commercial work truck parked in a municipal office parking lot.
Douglas Dynamics, Inc. is an upfitter and manufacturer of equipment and commercial work truck attachments. The company operates in the Work Truck Solutions and Work Truck Attachments segments. It supplies its products under different brands, including SNOWEX, SWEEPEX, BRINEXTREME, FISHER, and others.
In the most recent quarter’s earnings, the firm reported mixed results. It managed to beat the consensus estimates of Non-GAAP EPS but missed revenue expectations. Despite this miss, revenue growth came in at 6.9% YoY. Significant improvement was seen in the free cash flow for 2024 as compared to 2023.
According to the guidance, the company expects net sales to be in the range of $610 million and $650 million. Adjusted EPS is anticipated to be between $1.30 to $2.10.
The company is covered by 2 Wall Street analysts with price targets of $30 and $39. At current levels, the stock is undervalued, and to lock in future gains, investors should not let go of this compelling investment opportunity.
