CNH Industrial Teams Up With NIKOLA For Zero-Emission Trucks

CNH Industrial N.V.’s (NYSE:CNHI) brands, IVECO and FPT Industrial, recently announced the company’s collaboration with NIKOLA to transform Class 8 heavy-duty trucks into emission-neutral ones in North America and Europe through the adoption of fuel-cell technology. The agreement also includes the development and distribution of cab-over hydrogen fuel-cell and battery-electric trucks via a European joint venture.

NIKOLA is expected to advance its first all-in lease-rate disruptive business model as well as class-leading fuel-cell expertise and advanced technologies to deploy zero-emission heavy-duty trucks. Meanwhile, IVECO and FPT Industrial will provide their engineering and manufacturing know-how to industrialize the fuel-cell and battery-electric trucks.

Reportedly, IVECO, FPT Industrial and NIKOLA have already begun working on the first truck, the battery electric NIKOLA TRE. Testing of the same is anticipated to take place in mid-2020. The latest model incorporates NIKOLA’s proprietary technology, controls and infotainment, and is based on the IVECO S-WAY heavy-duty truck platform. Moreover, sales and after-sales support of the NIKOLA TRE will be extended by IVECO’s wide-ranging European dealer network.

In the past three months, CNH Industrial has gained 0.1% compared with the industry’s 7.1% growth.

The company has been constantly developing products and technologies across all its segments to remain at par with the technological advancements and new emission-control procedures. In the first three months of 2019, it launched 24 products, including Iveco’s new daily minibus — AFS Connect Magnum series tractors by agricultural equipment provider Case IH and methane-powered wheel loader idea — Project TETRA by the construction equipment segment. Upgraded product offerings will aid the company to achieve new business contracts.

For the current year, CNH Industrial projects industrial activities’ net sales at $26.5-$27 billion. The adjusted earnings per share guidance is at 84-88 cents. Net debt of industrial activities at the end of the ongoing year is expected between $400 million and $600 million.

Zacks Rank and Stocks to Consider

Currently, CNH Industrial carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Auto-Tires-Trucks sector are BRP Inc. (NASDAQ:DOOO) , Spartan Motors, Inc. (NASDAQ:SPAR) and SPX Corporation (NYSE:SPXC) . While BRP flaunts a Zacks Rank #1 (Strong Buy), Spartan Motors and SPX carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BRP has a projected earnings growth rate of 20.17% for the current year. Its shares have gained 60.3% over the past year.

Spartan Motors has an estimated earnings growth rate of 85.42% for the ongoing year. The company’s shares have surged 130.6% in a year’s time.

SPX has an expected earnings growth rate of 23.18% for 2019. The stock has appreciated 75.2% in the past year.

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