Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Navistar On Better Footing, But Still Shaky

Turnaround stories rarely ever follow a smooth upward arc and Navistar (NYSE:NAV) is proving no exception. Management has laudable progress with cost reductions, design improvements, and a generally more realistic approach to running this business, and Wall Street has noticed - taking the shares up about 50% over the past year.

As a look at the chart will reveal, though, that hasn't been a stepwise progression and shares have both risen and fallen sharply on quarterly results. This quarter looks like no exception, as investors aren't liking the shortfall in revenue or quarterly market share, nor the reduced EBITDA guidance for the next quarter. Navistar shares look like an iffy value prospect today, and investors who wish to...

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