New cars can report instant diagnostics.
You can see your car’s location in real time through GPS.
The technology that makes this all happen is called telematics.
Telematics systems provide real-time vehicle information (tire pressure, for instance) to apps we can use to track vehicle performance.
The technology is also instrumental in helping freight companies track all their shipments in one location.
The chart above shows the number of vehicles with installed telematics worldwide.
You can see the projected growth of 120% from 2021 to 2026.
Today’s Power Stock distributes telematics: Ituran Location and Control Ltd. (Nasdaq: ITRN).
Ituran partners with auto manufacturers to install technology that shows your vehicle’s health and diagnostics.
It also works with distribution companies to track cargo and driver safety in real time.
Ituran Location and Control stock scores a “Strong Bullish” 95 on our Stock Power Ratings system, and we expect it to beat the broader market by 3X in the next 12 months.
ITRN Stock: Top Quality + Strong Momentum
Ituran started the year strong.
Take a look at this inside information:
- In the first quarter, ITRN reported total revenue of $72.1 million — a 7% increase over the same quarter a year ago.
- Increased subscribers to 1.9 million worldwide — a gain of 43,000 in the first quarter alone.
ITRN is a terrific quality stock, as you can see from its Stock Power Ratings above.
Its return on equity is a healthy 26.3%. The telecommunications industry average, on the other hand, is negative 6.4%.
Ituran’s operating margin is 20.3%, while the industry average is in the red.
ITRN is also a smart momentum play:
After hitting a 52-week low in February 2022, ITRN stock jumped 30.2% into August.
Over the last 12 months, ITRN is up 10.1%. It blows away its industry peers (the blue line in the chart above), which are down 22.4%.
Ituran Location and Control stock scores a 95 overall on our proprietary Stock Power Ratings system.
That means we’re “Strong Bullish” and expect it to beat the broader market by at least three times in the next 12 months.
Our vehicles are getting smarter.
They can communicate with smartphone apps to show the health and maintenance of their systems.
Maps can show us our cars’ real-time locations.
Ituran provides the technology to make all that happen. ITRN is an excellent candidate for your portfolio.
Bonus: Ituran’s forward dividend yield of 2.1% translates to a $0.56 per share, per year payout for shareholders.
Stay Tuned: Minnesota-Based Energy Co.
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
Stay tuned for the next issue, where I’ll share all the details on an American energy provider that makes PVC pipes for municipal water, storm drainage and water reclamation systems.
Matt Clark, CMSA®
Research Analyst, Money & Markets
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