100s of titles, one news app for just $10 a month.
Dive Deeper:
3 Chemical Stocks to Add to Your Portfolio
The U.S. chemicals market has experienced a strong recovery since 2021. And with analysts expecting a full recovery this year,…
Is TRI Pointe Group a Smart Residential Construction Stock to Add to Your Portfolio?
Shares of leading homebuilding company Tri Pointe Homes (TPH) have been retreating in price this year due to cooling housing…
Warren Buffett Owns Shares of Nu Holdings, Should You?
Warren Buffet’s Berkshire Hathaway (BRK.A, BRK.B) has made a hefty investment in Brazilian fintech company Nu Holdings (NU). The company…
Down More than 50% YTD, Is Unity Software Stock Now a Good Investment?
Software development company Unity Software's (U) stock has dipped more than 50% in price so far this year. In addition,…
One subscription that gives you access to news from hundreds of sites
2 Cannabis Stocks to Avoid After Stifel Cuts Their Price Targets
Surging inflation and the Fed’s hawkish monetary policy stance could keep the stock market under pressure in the near term.…
Down 80% in 2022, Is Now a Good Time to Scoop Up Shares of Skillz?
The shares of gaming company Skillz (SKLZ) have plummeted 80% in price this year, indicating investor pessimism. Also, analysts expect…
Get all your news in one place
Latest Business news:
Russian oil's Achilles' heel: insurance
Russia has so far deflected much of the impact of sanctions on its oil trade but the insurance industry threatens…
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
Malaysian palm oil giant seeks to repair image after abuse claims
Sime Darby Plantation Berhad is fighting a US ban on its products after reported labour violations at its plantations.
Notorious Vietnamese hacker turns government cyber agent
Ho Chi Minh City (AFP) - At the height of his career, Vietnamese hacker Ngo Minh Hieu made a fortune…
India to limit sugar exports to meet domestic demand
India is restricting its sugar exports to 10 million tons in the current season to help maintain domestic availability and…
OECD chief sees global digital tax deal pushed back to 2024
The Organisation for Economic Cooperation and Development (OECD) on Tuesday acknowledged for the first time that a global digital tax…
From analysis to good news, read the world’s best news in one place
Shanghai: world's biggest port is returning to normal, but supply chains will get worse before they get better
Shanghai is slowly emerging from a gruelling COVID lockdown that has all but immobilised the city since March. Although Shanghai’s…
Hotels want to use NFTs to screw over travelers
Adding crypto to the travel industry will only make things less accessible and worse for the planet.

Is Aurora Innovation a Good Autonomous Vehicle Stock to Add to Your Portfolio?

By Anushka Dutta

Aurora Innovation, Inc. (AUR) in Pittsburgh, Pa., is a self-driving technology company that operates in the United States. The company is focused on the development of Aurora Driver, a platform that provides self-driving hardware, software, and data services to interoperate passenger and light commercial vehicles and trucks.

AUR signed up its third truckload carrier this year for the potential deployment of its technology. AUR collaborated with Covenant Logistics Group, Inc. (CVLG) after similar partnerships with Werner Enterprises, Inc. (WERN) in April and U.S. Xpress Enterprises, Inc. (USX) in February.

AUR’s stock has declined 70.2% in price year-to-date to close yesterday’s trading session at $3.36. The stock has declined 27.4% in price over the past month and 17.3% over the past five days.

Here are the factors that could affect AUR’s performance in the near term:

Stretched Valuations

In terms of its forward EV/Sales, AUR is currently trading at 64.69x, which is 4,033.1% higher than the 1.57x industry average. The stock’s 80.61 forward Price/Sales multiple is 6,432.3% higher than the 1.23 industry average.

Negative Profit Margins

AUR’s negative 271.61% trailing 12-month levered FCF margin is substantially lower than its 3.88% industry average.

The stock’s respective negative 33.75%, 13.61%, and 18.21% trailing 12-month ROE, ROTC, and ROA compare to their 14.30%, 7.19%, and 5.40% industry averages.

Bleak Analysts Expectations

The $48.62 million consensus revenue estimate for its  fiscal year 2022 indicates a 41.1% year-over-year decrease. And the Street’s  $2.80 million revenue estimate for its fiscal 2023  reflects a 94.2% decline from the prior year.

Furthermore, analysts expect its EPS to remain negative at least until next year (fiscal 2023).

POWR Ratings Reflect Bleak Prospects

AUR’s POWR Ratings reflect this bleak outlook. The stock has an overall F rating, which equates to a Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

AUR has a Value grade of F, which is in sync with its lofty valuations. The stock has a D grade for Quality, which is consistent with its negative profit margins.

In the 80-stock, C-rated Technological – Services industry, it is ranked #77.

Click here to see the additional POWR Ratings for AUR (Growth, Momentum, Stability, and Sentiment).

View all the top stocks in the Technological – Services industry here.

Click here to checkout our Electric Vehicle Industry Report for 2022

Bottom Line

Its recent logistics partnerships might benefit AUR. However, analysts expect its top line to decline this year. Moreover, the stock looks overvalued at current prices. Also, considering its negative ROE, I think it might be wise to avoid the stock now.

How Does Aurora Innovation, Inc. (AUR) Stack Up Against its Peers?

While AUR has an overall POWR Rating of F, one might consider looking at its industry peers, PC Connection, Inc. (CNXN) and Fujitsu Limited (FJTSY), which have an overall A (Strong Buy) rating, and Serco Group plc (SCGPY) and NetScout Systems, Inc. (NTCT), which have an overall B (Buy) rating.


AUR shares were trading at $3.63 per share on Thursday afternoon, up $0.27 (+8.04%). Year-to-date, AUR has declined -67.76%, versus a -17.24% rise in the benchmark S&P 500 index during the same period.



About the Author: Anushka Dutta


Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.

More...

Is Aurora Innovation a Good Autonomous Vehicle Stock to Add to Your Portfolio? StockNews.com
The post appeared first on
What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
3 Chemical Stocks to Add to Your Portfolio
The U.S. chemicals market has experienced a strong recovery since 2021. And with analysts expecting a full recovery this year,…
Is TRI Pointe Group a Smart Residential Construction Stock to Add to Your Portfolio?
Shares of leading homebuilding company Tri Pointe Homes (TPH) have been retreating in price this year due to cooling housing…
Warren Buffett Owns Shares of Nu Holdings, Should You?
Warren Buffet’s Berkshire Hathaway (BRK.A, BRK.B) has made a hefty investment in Brazilian fintech company Nu Holdings (NU). The company…
Down More than 50% YTD, Is Unity Software Stock Now a Good Investment?
Software development company Unity Software's (U) stock has dipped more than 50% in price so far this year. In addition,…
One subscription that gives you access to news from hundreds of sites
2 Cannabis Stocks to Avoid After Stifel Cuts Their Price Targets
Surging inflation and the Fed’s hawkish monetary policy stance could keep the stock market under pressure in the near term.…
Down 80% in 2022, Is Now a Good Time to Scoop Up Shares of Skillz?
The shares of gaming company Skillz (SKLZ) have plummeted 80% in price this year, indicating investor pessimism. Also, analysts expect…
Get all your news in one place