Despite Tesla’s TSLA slowing sales growth, several auto stocks have been leading the market this year. While Tesla has struggled, domestic automakers such as Toyota Motor TM have excelled due to consistent growth and appealing valuations.
Toyota Motor’s Market Edge
The reputation for reliability and durability has established Toyota Motor as a strong brand with a loyal customer base. Transitioning from budget-friendly to offering electrified vehicles priced as high as $60,000 has boosted the company’s brand value to nearly $30 billion, second only to Tesla.
Innovating early in the EV space, Toyota now offers a wide range of 26 electrified vehicle options under its Toyota and Lexus brands, the most among automakers. While predominantly hybrid electric vehicles (HEVs), electrified vehicles make up 30% of Toyota Motor’s sales, driving both revenue and profit growth.
General Motors Increased Profitability
Often underestimated as a value stock, General Motors’ GM profitability surge has caught investors’ attention, especially with a low forward earnings multiple of 4.3X. Expected earnings growth and the title of the top-selling automaker in the U.S., along with a substantial electric car delivery number, make GM an appealing choice.
PACCAR’s More Attractive Valuation
Being a leading truck manufacturer, PACCAR PCAR stands out for its innovation in hybrid and all-electric models. With a stock price rise of 96% in the last three years, PACCAR is currently trading at a reasonable forward earnings multiple of 14.1X, offering an attractive valuation compared to historical metrics.
Blazing YTD Performances
Year to date, Toyota Motor’s stock has surged 28%, while PACCAR and General Motors have seen increases of 21% and 13%, respectively. These impressive performances have overshadowed Tesla’s decline and outperformed the S&P 500, highlighting the strength of these auto stocks in the current market.
Bottom Line
Toyota Motor, General Motors, and PACCAR are all experiencing positive earnings revisions and present attractive P/E ratios, making this an opportune time for investors to consider these hot auto stocks. With a Zacks Rank #1 (Strong Buy) and an “A” Zacks Style Scores grade for Value, these stocks show promising potential.
Unveiling Top Auto Stocks Set for Early Price Surges
They label these stocks as “Most Likely for Early Price Pops.”
Since 1988, this curated list has outperformed the market by over twofold, boasting an average yearly gain of +24.2%. Delve into these hand-picked seven stocks with immediate attention.
Historical Outperformance
Throughout history, these selected auto stocks have consistently surpassed market expectations, demonstrating resilience and profitability since 1988.
Strategic Stock Selection
Analysts have meticulously analyzed trends and data to identify these auto stocks that exhibit strong potential for early price surges, offering investors a promising opportunity for substantial returns.
Featured Auto Companies
- Toyota Motor Corporation (TM)
- PACCAR Inc. (PCAR)
- General Motors Company (GM)
- Tesla, Inc. (TSLA)
- Nikola Corporation (NKLA)
Market Insight
Industry experts suggest that these auto stocks possess the qualities necessary to outpace market growth, providing investors with a strategic advantage in maximizing their investment portfolios.
Future Prospects
As the automotive sector experiences rapid changes and innovation, these selected auto stocks are positioned to capitalize on emerging trends, cementing their status as top contenders for significant price increases.