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Meritor Introduces Braking Options for Off-Highway Market

Zacks Equity Research

Meritor, Inc. MTOR has introduced the range of braking solutions to cater to multiple off-highway applications. The recently added brake options boost the company’s modular brake portfolio and wheel-ends for various market segments. A few of the newly added brake solutions include a high-capacity hydraulic disc brake, a full line of wet disc brakes and a 500 mm drum brake.

The Troy, MI-based automotive parts manufacturer and supplier’s wet disc brakes are available in numerous configurations, with diameters ranging from 228 mm to 460 mm, making these suitable for vehicles that function in extreme conditions. Further, the new 500-mm drum brake comprises Meritor’s S-cam design and lining materials that will support delivering good performance in a compressed package. The brake is eligible for off-highway trucks that have large wheel and tire combinations, and vehicles that require higher brake torque.

Meritor supplies a wide range of equipment that is vital to manufacturing robust and competent commercial vehicles. It offers drivetrain, mobility, braking and aftermarket solutions. The new brake lineup in combination with the company’s global carriers and wheel-ends are expected to fulfill customer requirements worldwide. Additionally, regional manufacturing hubs combined with its vertically integrated short lead times will support Meritor to deliver world-class products in a short span of time.

Meritor, Inc. Price and Consensus

 

Meritor, Inc. Price and Consensus | Meritor, Inc. Quote

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Per M2019 and M2022 plans, this equipment supplier is focusing to grow off-highway and specialty businesses. Apart from frequent product launches, this supply agreement with The Manitowoc Company, Inc. announced in December to supply a variety of drivetrain products supported Meritor’s aim to establish it as a leader in the commercial off-highway industry in North America.

In the last reported quarter, Meritor’s sales and adjusted earnings per share surpassed the respective estimates, driven by higher truck production and increased market share. However, the recent decline in truck orders, owing to moderate freight demand, is expected to hamper the company’s sales. In March, Class 5-7 truck orders plummeted 23% sequentially while dropping 32% compared with March 2018.

Over the past three months, shares of Meritor have outperformed the industry it belongs to. During the said period, shares of the company have gained 20.6% compared with its industry’s growth of 8%.

 


Zacks Rank & Other Key Picks

Meritor currently carries a Zacks Rank #1 (Strong Buy). A few other top-ranked stocks in the broader auto sector are Ferrari N.V. RACE, Fox Factory Holding Corporation FOXF and Magna International Inc. MGA, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ferrari has an expected long-term growth rate of 18.5%. The stock has gained 23.2% in the past three months.

Fox Factory has an expected long-term growth rate of 15.1%. The stock has gained 14.5% in the past three months.

Magna has an expected long-term growth rate of 6%. Over the past three months, shares of the company have gained 5.3%.

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