Trucking is a cyclical industry, and truck manufacturers like Navistar (NYSE: NAV) have certainly seen significant volatility in revenue and earnings over time. With 2020 set to be a down year for the industry -- the latest results from Navistar only served to confirm this expectation -- it's understandable if the market decides to take a dim view of prospects. That said, there's a strong case for the argument that stocks in the sector remain a good value. Here it is.
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The uncertainty in the timing of the cycle of trucking demand makes guidance very hard to formulate. It's a common feature of investing in such stocks that guidance can turn out to be too optimistic on the way down and too pessimistic on the way up.
Source Fool.com