Stocks to Watch: Honda, Nissan, Micron, General Mills

The global automotive and semiconductor sectors have been making waves in the stock market, with companies like Honda, Nissan, Micron, and General Mills reporting strong earnings and growth prospects. This article explores the recent earnings growth, new products, and market trends of these companies, providing investors with valuable insights into their potential as stocks to watch.

Honda and Nissan, both major players in the automotive industry, have reported impressive earnings growth. Honda's Q2 FY2023 earnings surged 125% year-over-year (YoY), while Nissan's Q1 FY2024 earnings jumped 114% YoY. Both companies are investing heavily in the electric vehicle (EV) sector, with Honda planning to launch 30 new EV models by 2030 and Nissan aiming to make all its new vehicles EVs by the end of the decade. Their growth prospects in the EV sector are promising, given the increasing demand for sustainable vehicles and their established brands.



Micron, a leading semiconductor company, has also seen robust earnings growth. Its earnings per share (EPS) grew by 25% YoY in Q1 2024, reflecting strong demand for memory and storage solutions, particularly in data centers and AI applications. Micron's revenue growth of 20% outpaced Intel's 14% and AMD's 17% during the same period. Additionally, Micron's gross margin of 48% in Q1 2024 was higher than Intel's 45% and AMD's 46%. These factors indicate that Micron's performance is robust and competitive within the semiconductor industry.



General Mills, a consumer goods company, has faced challenges due to inflation and supply chain disruptions. The company reported a 12% increase in costs in its fiscal 2023 Q1. However, General Mills has implemented strategies such as price increases, cost-cutting measures, and expanding its portfolio of value-added products to maintain growth. Despite these headwinds, General Mills' earnings per share grew by 1% in Q1, demonstrating the company's resilience in the face of inflation and supply chain disruptions.



When comparing the current earnings growth rates of these companies to the CAN SLIM system's recommended 25% growth, only Micron meets this criterion. Honda's earnings growth is 15%, Nissan's is 18%, and General Mills' is 22%. However, all four companies have strong institutional support, with over 40% of their shares held by funds.

In conclusion, Honda, Nissan, Micron, and General Mills are stocks to watch, given their recent earnings growth and growth prospects in their respective sectors. While only Micron meets the CAN SLIM system's recommended 25% earnings growth, all four companies have strong institutional support and are well-positioned to capitalize on market trends. Investors should closely monitor these companies and consider their potential as part of a diversified portfolio.