Why Dana Inc. (DAN) Surged on Friday

We recently compiled a list of the 10 Firms Defy Market Pessimism. In this article, we are going to take a look at where Dana Inc. (NYSE:DAN) stands against the other firms.

Ten companies finished firmer on Friday, bucking an overall market pessimism, over a series of catalysts sparking buying appetite.

Wall Street’s main indices all finished in the red territory, with the Dow Jones down by 0.32 percent, the S&P 500 dropped 0.29 percent, and the Nasdaq down 0.50 percent.

In this article, let’s take a look at which companies defied broader market pessimism and explore the reasons behind their growth.

Friday’s top advancers only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A modern commercial vehicle on the road, its engine powered by the company’s drive system.

Dana Inc. (NYSE:DAN)

Dana Inc. (NYSE:DAN) grew its share prices on Friday by 14.89 percent to finish at $15.20 apiece after an optimistic 2025 guidance and preliminary earnings results for the full year 2024.

According to Dana Inc., preliminary adjusted EBITDA for the full year 2024 was at $885 million, higher by 5 percent than the $845 million in 2023.

Meanwhile, Dana Inc. said it expects sales to settle between $9.5 billion to $10.02 billion; adjusted EBITDA between $925 million to $1.02 billion; and a free cash flow between $175 million to $275 million.

“Improved working capital efficiency and reduced capital expenditures will increase free cash flow. Primarily due to the annualized benefit of our cost reduction actions, we expect a 2026 adjusted EBITDA margin of between 9.5 to 10.5 percent. Over the business cycle we expect free cash flow to be approximately four percent of sales and maintain one times net leverage,” said Dana Inc. Chief Finance Officer Timothy Kraus.

Overall DAN ranks 3rd on our list of the firms that defy market pessimism. While we acknowledge the potential of DAN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.