AB Volvo: NA Truck Lines Are Just About To Scale
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Valkyrie Trading SocietyInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryAB Volvo (VOLAF) (VLVLY) delivered resilient performance with some segments looking up, compensating for pressure on trucks as capacity gets setup.Service revenues grew 6% organically (adjusted for considerable USD FX headwind), outpacing flat overall vehicles growth driven by trucks underperformance. Service mix helped defend margins.Production stops and model changeovers in North American trucks pressured results but are resolved, positioning VLVLY for operating income improvement as starts in earnest.At ~20x annualized PE based on penalised Q1 results, VLVLY trades at a discount to peers like Paccar, with profitability set to rebound as temporary pressures abate.Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More » jetcityimage/iStock Editorial via Getty Images AB Volvo (VOLAF)(VLVLY) put in a relatively resilient performance in organic terms, ignoring the FX effects from having a significant North American presence and reporting in SEK. While there was some moderation ofThis article was written byValkyrie Trading Society5.55K FollowersFollowThe Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.