Navistar (NAV) Launches LT-RH Truck Series With A26 Engine

Navistar Internal Corporation’s (NYSE:NAV) truck brand, International Truck, announced that it has started shipping its first International LT and RH series vehicles with the company’s newly launched A26 engine. Initial product testing shows that these trucks have the capacity to deliver 9% fuel economy over other comparable models, manufactured a year ago. These newly launched models come under the Class 8 segment of Navistar.

The Class 8 segment includes A26 engine with a 12.4-liter capacity, developed through a project known as Project Alpha earlier in Mar 2017. A26 has the capability to produce up to 475 horsepower and 1,750 lb.-ft. of torque from a design that’s 600-700 lbs. lighter than a traditional 15L big bore engine. Its parts have been carefully engineered to supply an uncompromising uptime, class-leading fuel efficiency, reduced weight and a quiet operation. This new engine was developed from the MAN D26 engine crankcase.

The new lightweight A26 engine will provide a competitive edge to the company in the 13 liter segment, constituting about 50% of the Class 8 market.

Navistar is benefiting from the launch of new products which improves the quality and performance of its vehicles. To further strengthen its competitive presence in the Class 8 market, it has hastened the deliveries of new International LT Series with the Cummins ISX 15 liter engine as well as introduced the RH Series of Class 8 regional haul tractors.

Price Performance

Navistar has outperformed the Zacks categorized Auto/Truck Original Equipment industry in the last one year. The company’s shares have rallied 124% compared with the industry’s gain of 36.7%.

Zacks Rank & Key Picks

Navistar currently carries a Zacks Rank #3 (Hold).

Navistar International Corporation Price and Consensus

Navistar International Corporation Price and Consensus | Navistar International Corporation Quote

Some better-ranked companies in the auto space are Cummins Inc. (NYSE:CMI) , Ferrari N.V. (NYSE:RACE) and Dana Incorporated (NYSE:DAN) . Both Cummins and Ferrari sport a Zacks Rank #1 (Strong Buy), while Dana carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Expected long-term growth rate for Cummins, Ferrari and Dana are 11.7%, 14.1% and 3% respectively.

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