Stock of the Week Under $10: American Axle & Manufacturing

NYSE: AXL | American Axle & Manufacturing Holdings, Inc.  News, Ratings, and Charts

AXL – The recent United Auto Workers strike has taken its toll on both automakers and the large number of companies that supply them. This temporary bump in the road may provide an opportunity to pick up certain auto related stocks at prices that otherwise wouldn’t be available. American Axle Manufacturing (AXL) could be one company that has traded to the low end of its most recent trading range.

With positive noise around a possible resolution of the automobile workers (UAW) strike, it isn’t a bad time to start looking at auto related names. I’m not as excited about the automakers themselves, as they are going to have higher costs related to labor moving forward. 

But, auto suppliers who were beaten down both in anticipation of the UAW strike and as the actual strike played out, like American Axle Manufacturing (AXL), are worth a closer look here.

The company produces driveline systems and related components, and should see improvement in the next few quarters as the hangover from the strikes comes to an end.  The consensus target for AXL stock is almost 50% higher than the current stock price which is just over $7. 

From a valuation perspective AXL is trading at just 9.6x projected earnings and 4x free cash flow. The company has a PE of just under 20, and trades at only one and a half times book value. 

American Axle is moving with the industry toward providing more products for EVs, and sees the addressable market for their electric products reaching $20-30 billion by the year 2030. Along those lines, the company has recently signed EV deals with Stellantis, AMG, and Jaguar among others. 

AXL’s highest rating in our POWR Ratings is, not surprisingly given the recent pull back, in the Value category. It outperforms over 95% of the stocks tracked in the POWR Ratings in that category. 

The stock is trading much closer to the low end of a range it has been in for almost 2 years, from just under $7 to around $12. With a combination of automakers coming back online, and continued expansion of the EV space, AXL could head higher into that range.

What To Do Next?

If you like the stock shared above…then you will love this new special report sharing 3 low priced companies with tremendous upside potential.

3 Stocks to DOUBLE This Year >

AXL shares . Year-to-date, AXL has declined -8.57%, versus a 9.07% rise in the benchmark S&P 500 index during the same period.

About the Author: Jay Soloff

Jay is a former professional market maker who cut his teeth trading on the floor of the CBOE. With more than 20 years of experience trading and investing, his focus is on making professional strategies accessible to everyone, which is exactly what does in his highly profitable POWR Income and POWR Stocks Under $10 investment advisory services. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
AXLGet RatingGet RatingGet Rating

Most Popular Stories on

Christmas in July for Stock Investors!

Yes, the S&P 500 (SPY) made new highs again on Tuesday. But really it is the 6X gain for the Russell 2000 small cap index Tuesday...and 12% gain this past week that is grabbing everyone’s attention. Let’s discuss why this is happening...if it will continue...and my 12 favorite stocks to rally in the weeks ahead. Read on for more...

3 Promising Tech Stocks Under $40 for Long-Term Investment

The increasing demand for technology services worldwide fuels the tech industry. Amid this backdrop, it could be wise to buy under $40 tech stocks, such as HP Inc. (HPQ), Box, Inc. (BOX), and Teradata Corp (TDC), for long-term investment. Continue reading…

3 MedTech Stocks to Add to Your Portfolio in July

The MedTech sector’s promising future is driven by technological advances, unceasing demand for medical treatments due to an aging population, and increasing global incidence of diseases. To that end, strong MedTech stocks such as Tactile Systems Technology (TCMD), Electromed (ELMD), and Embecta (EMBC) could be wise portfolio additions in July. Read more...

3 Bank Stocks Benefiting From High Interest Rates

Amid global economic uncertainties, major U.S. banks like JPMorgan (JPM), Wells Fargo & Company (WFC), and PNC Financial Services (PNC) have defied expectations with strong revenue and earnings reports for the second quarter. Considering their robust performance, investing in these stocks could offer stable returns to your portfolio. Read more…

Investor Alert: Load Up on Small Cap Stocks!

Large caps time in the sun is now over and thus no shock that the S&P 500 (SPY) pulled back from recent highs. It is time for small caps to shine which was clear in their nearly 4% gain Thursday even as the Magnificent 7 was bathed in red. Why is this happening? What comes next? And what are the best stocks to own now? The answers to all that and more are shared in the commentary below...

Read More Stories

More American Axle & Manufacturing Holdings, Inc. (AXL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AXL News