October 18, 2012
Zipcar’s (Nasdaq: ZIP ) earnings are a few weeks out, and investors are undoubtedly looking for impressive numbers. In the following video, Fool.com analysts Isaac Pino and Blake Bos discuss aspects of Zipcar's story that investors should be aware of leading up to the company's earnings report. Most important are efforts to reinvest cash flow in new opportunities, namely, foreign markets. A recent critical step in Europe was Zipcar's announcement of the final-stage integration of Spain's largest car-sharing service, Avancar.
International expansion is critical for Zipcar from here on out, as its growth story is beginning to stagnate in the U.S. They've made all the right moves, fine-tuned operations, established alliances with automakers like Ford (NYSE: F ) , and hit the biggest markets. Now, in order to keep moving up, Zipcar needs to move out. Watch the video below for the full story and more, including an overview of the company's new global technology platform, and Isaac's take on how the competitive landscape compares internationally.
If you're bullish on the U.S. auto industry and looking for a great investment opportunity, you might want to hold off on Zipcar until its international presence has time to mature. Zipcar partner Ford, on the other hand, has been performing incredibly well as a company over the past few years — it's making good vehicles, is consistently profitable, recently reinstated its dividend, and has done a remarkable job paying down its debt. However, the company's stock still seems stuck in neutral. Does this create an incredible buying opportunity, or are there hidden risks that investors need to know about? To answer these questions, Fool.com Industrials Analyst Brendan Byrnes has authored a premium research report with in-depth analysis on whether Ford is a buy or a sell, and why. Simply click here now to access your copy today.