Why Dana Incorporated (DAN) Received Analyst Approval This Week?

We recently published a list of 10 Stocks That Received Analyst Approval This Week. In this article, we are going to take a look at where Dana Incorporated (NYSE:DAN) stands against other stocks that received analyst approval this week.

The US market performance in the last week was quite bullish, with the S&P, DOW, and NASDAQ boasting weekly gains of 3.71%, 3.73%, and 3.84% respectively. The week marked the last full week of the outgoing Democratic government, with Donald Trump set to be sworn in early next week.

Just like the last time he became President, Donald Trump is set to make some drastic changes once he takes over. His energy policy and stance on crypto will continue to be of focus for most traders. During the outgoing week, a lot of companies received the backing of Wall Street analysts, among them quite a few energy and automobile companies.

We looked at a few of those companies that received a boost from analysts this week. To come up with the list of 10 stocks that received analyst approval this week, we only considered companies with a market cap of at least $1 billion.

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

Dana Incorporated (NYSE:DAN)

Dana Incorporated is an auto parts supplier that was up 14% this week. The reason for the surge: analyst optimism stemming from internal restructuring at the company. In November last year, Dana engaged financial advisors to help it sell the Off-Highway business. According to the company, the step was intended to help the company unlock shareholder value.

That sentiment now seems to be shared by UBS analysts, who believe the potential sale could help the business de-lever, allowing more value to be added to the company’s equity. Analysts see the company as having a cleaner capital structure as a result of the sale.

Despite spending most of the last year in a downtrend, DANA shares seem to have turned a corner since the announcement of the sale. The stock is up 45% since the sale announcement and with UBS changing the stock rating from neutral to buy, more upside can be expected.

Overall, DAN ranks 3rd on our list of received analyst approval this week. While we acknowledge the potential of DAN as a leading AI investment, our conviction lies in the belief that some 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 as promising as 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.