Tenneco Offers Modules for Jaguar's First All-Electric SUV
Tenneco Inc. TEN is providing suspension components for the new Jaguar I-PACE all-electric luxury crossover SUV. Tenneco’s passive front and rear dampers along with coil and air spring suspension modules will enhance the new Jaguar model’s performance and stability.
For efficient functioning of electric powertrains, e-vehicles should have a reduced amount of overall weight compared with combustion engine vehicles. Tenneco’s suspension module consists of plastic spring seats, aluminum top mount and light-weight components that will cut the weight of electric motors and battery, thus, improving performance.
Tenneco is supplying suspension components and modules from production hubs situated at Sint-Truiden, Belgium, Hodkovice, the Czech Republic and Birmingham, U.K. Each facility manufactures a specific component for customers. The plant at Belgium is providing front passive dampers while the Czech Republic manufactures rear passive dampers and rear modules, and front air & coil module assembly at the U.K. facility.
Tenneco Inc. Price and Consensus
Tenneco Inc. Price and Consensus | Tenneco Inc. Quote
This is not the first time when Tenneco is supplying auto components for Jaguar’s vehicles. In October 2018, the company provided suspension technology for Jaguar E-PACE compact SUVs. Apart from Jaguar, Tenneco is also a regular component supplier for Ford Motor Company, BMW AG, AB Volvo and Daimler AG.
Varied product range offered to numerous end-markets and geographical regions are the major revenue drivers for Tenneco. Additionally, the acquisition of Federal-Mogul at the beginning of the fourth quarter and Ohlins Racing in January 2019 will support Tenneco to create two separate entities and benefit from synergies.
In its preliminary results for 2018, the company reported total revenues of $11.8 billion, which includes the Federal-Mogul synergy. For the current year, Tenneco expects revenues to improve year over year, backed by growth drivers. On a pro-forma basis, it anticipates constant-dollar revenues to grow 4-5% in 2019, exceeding the light-vehicle industry production by 6-7 percentage points.
Over the past six months, shares of Tenneco have underperformed the industry it belongs to. During the period, shares of the company have lost 22.7% compared with the industry’s decrease of 12.3%.
Zacks Rank & Stocks to Consider
Tenneco currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are General Motors Company GM, CarGurus, Inc. CARG and Fox Factory Holding Corporation FOXF, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Motors has an expected long-term growth rate of 8.5%. Shares of the company have gained 12.3% in the past three months.
CarGurus has an expected long-term growth rate of 5%. Share price of the company has increased 13.5% in the past three months.
Fox Factory has an expected long-term growth rate of 15.1%. Over the past month, shares of the company have gained 4.8%.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Motors Company (GM) : Free Stock Analysis Report
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
Tenneco Inc. (TEN) : Free Stock Analysis Report
CarGurus, Inc. (CARG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
