Does Honda Stock Have Upside After Its Plant Shutdowns?

Honda’s stock (NYSE: HMC) has risen by 1% over the last five trading days. In comparison, the broader S&P500 rose by 1.8% over the last five trading days. Last month, the stock fell after the company announced that it will halt production at some of its U.S. and Canadian auto plants for the next one week due to supply-chain issues. The shutdown was set to start at its five auto plants in the U.S. and Canada on March 22, 2021. A global shortage of semiconductors and weak demand for cars amid the coronavirus pandemic and lockdowns are continuing to hurt many automakers. Previously multiple companies including GM, Ford, Honda, Toyota, Volkswagen, Daimler, and Fiat Chrysler warned about cuts or temporary plant shutdowns to deal with the issues. Now, is HMC’s stock poised to grow? We believe that there is a 52% chance of a decline in HMC’s stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on Honda’s Stock Chances Of Rise for more details.

5D: HMC 1%, vs. S&P500 1.8%; Underperformed market

(36% likelihood event)

• Honda Motor stock rose 1% over a five day trading period ending 4/13/2021, compared to the broader market (S&P500) decline of 1.8%
• A change of 1% or more over five trading days is a 36% likelihood event, which has occurred 899 times out of 2516 in the last ten years

10D: HMC -1.1%, vs. S&P500 4.5%; Underperformed market

(41% likelihood event)

• Honda Motor stock declined 1.1% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 4.5%
• A change of -1.1% or more over ten trading days is a 41% likelihood event, which has occurred 1018 times out of 2500 in the last ten years

21D: HMC 0.5%, vs. S&P500 5.2%; Outperformed market

(46% likelihood event)

• Honda Motor stock rose 0.5% over the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 5.2%
• A change of 0.5% or more over twenty-one trading days is a 46% likelihood event, which has occurred 1142 times out of 2458 in the last ten years

While Honda stock may have moved, electric vehicles are the future of transportation, but picking the right EV stocks can be tricky. Investing in Electric Vehicle Component Supplier Stocks can be a good alternative to play the growth in the EV market..

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams