Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Navistar International Corp (NAV), Century Aluminum Co (CENX), American Axle & Manufact. Holdings, Inc. (AXL): Should You Bet On These Turnaround Stories?

The market seems to like the story, sending the stock up more than 20% in the last month. The stock still trades at a forward price earnings multiple of 15, and at a 22% discount to its book value of $11 per share.

Auto again

Another stock related to the automotive industry that’s showing fresh signs that the worst is behind is American Axle & Manufact. Holdings, Inc. (NYSE:AXL). The company is a producer of drive line and drive train systems, and related components and chassis modules for the automotive industry. It counts several global automakers as its clients. The stock has gained more than 22% over the last quarter, as investors came to realize the company is undervalued.

In the most recent quarter, the company reported a sharp drop in profits, but revenue increased, beating the Street expectations. As markets were already expecting lower profits, this did not come as a surprise, but revenue of $755.6 million topped mean analyst expectations of $750 million. The market has taken the results positively, as continued traction in revenue growth is likely to result in better profits in quarters to come.

Foolish bottom line

Investors have rightfully bought up shares of these three companies, as they have shown signs of turning around. Despite the recent rally in share prices, all three companies trade at relatively cheap valuations, which means there could be more upside ahead.

The article Should You Bet On These Turnaround Stories? originally appeared on and is written by Jacob Wolinsky.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.