After facing six straight years of falling sales, Jeep is trying to make a comeback by bringing back a brand-new version of its Cherokee SUV. On Thursday, automaker Stellantis (STLA), Jeep’s parent company, revealed the redesigned 2026 Cherokee, which comes equipped with Stellantis’ new 1.6-liter turbocharged four-cylinder hybrid engine that delivers over 500 miles per tank. It is worth noting that the Cherokee was discontinued in 2023 as part of earlier cost-cutting measures. However, the company hopes that its return will breathe new life into its lineup and reconnect with loyal customers.
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Interestingly, Jeep describes the 2026 Cherokee as a tech-filled SUV with a modern interior and a 30% boost in cargo space compared to the previous model. It also fits neatly between the Jeep Compass and Grand Cherokee in size, thereby giving buyers a mid-size option that combines comfort and practicality. The base price is $36,995, including destination fees, and vehicles are expected to arrive at dealerships by the end of this year or early next year.
This launch is especially important for Jeep as it tries to reverse its long-term sales decline while Stellantis deals with bigger challenges, which include President Trump’s tariffs that are estimated to cost the company $1.74 billion this year. Despite the added costs, Jeep CEO Bob Broderdorf says that the brand’s global operations give it the flexibility to adapt. In addition, new Stellantis CEO Antonio Filosa, who previously led Jeep, has made reviving the Cherokee a key priority. Indeed, he believes that new products like the 2026 Cherokee position Stellantis for a turnaround.
Is STLA Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on STLA stock based on four Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average STLA price target of $10.51 per share implies 4% upside potential.
