Why is Mercedes stock falling?
Mercedes sees profits slump by more than half amid US tariff turmoil. Mercedes-Benz said in an earnings update on Wednesday that its net profit had plummeted from €6. BLEAK OUTLOOK After a 30% slump in earnings in 2024, and 40% in its cars division, this year will see earnings fall even further, Mercedes-Benz said, expecting a rate of return in its car division of just 6-8%.
Why is Mercedes stock so cheap?
Mercedes, like all luxury cars, sell for way below the original msrp because of supply and demand. The people who regularly buy luxury cars generally buy or lease them constantly. So if someone buys a new Mercedes every year thats a used Mercedes coming on the market every year. This steep depreciation is because of their higher price tags and high-tech features. Luxury car owners are more likely to trade their vehicles in as soon as the tech becomes outdated, and the used-car market becomes saturated with them. Used-car buyers don’t want to pay high prices for a dated model.
Is Mercedes a good company to invest in?
MBGYY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7. For comparison, its industry sports an average P/E of 9. Over the last 12 months, MBGYY’s Forward P/E has been as high as 8. The financial health and growth prospects of MBGYY, demonstrate its potential to outperform the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.
Is it worth buying a 7 year old Mercedes?
Depreciation. Due to the faster depreciation rate of luxury cars, buying a used Mercedes can be more attractive than you think. The value of a Mercedes will see the biggest hit within the first 5 years of its life, this makes the initial purchase price less of a concern if you are looking at a vehicle 5+ years old. While both BMW and Mercedes-Benz produce high-quality, luxury vehicles, Mercedes-Benz has a slight edge in terms of overall reliability. Mercedes’ focus on durability and comfort contributes to fewer maintenance needs, longer-lasting components, and potentially lower repair costs.Audi is a better automaker for those who want to save some money without compromising on features, safety or performance. Audi is highly competitive in the luxury small car and luxury electric SUV classes. Mercedes sets the bar high when it comes to interior luxury.Historically, both brands maintain strong resale values, but Mercedes-Benz tends to edge out BMW slightly in this regard. As you weigh your options, consider how these factors align with your budget and long-term ownership plans.In recent years, the cheapest car from the three to maintain would not have been Audi, though times have now changed. A recent study from the repair network WhoCanFixMyCar showed that Audi cars are now cheaper to maintain than BMW and Mercedes.