2024-07-26 13:03:39 ET
Summary
- Stellantis is down over 10% after 1H 2024 earnings.
- The stock dropped 40% in four months, scaring investors with a bearish pattern.
- Stellantis faces challenges in the automotive industry due to supply chain constraints and declining demand for BEVs.
- However, looking at the whole picture, I strongly believe we are once again before an unjustified undervaluation.
As expected, the second round of a tough semester closed with another 8% after-earnings drop for Stellantis ( STLA ). Just four months ago, the stock touched its ATH just below $30. In the next four months, it dropped 40%, creating a visible head and shoulder bearish pattern which has further spooked investors.
Until this earnings season, only GM appeared to be truly going countertrend, while many other automakers - such as Ford ( F ), BMW ( OTCPK:BMWYY ), or Tesla ( TSLA )- have been punished, although not to the extent Stellantis has....
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For further details see:
Stellantis: From ATH To Bearish Pattern, Here's What I'm Doing During The Turbulence