The stocks of automobile designers, developers, and manufacturers are termed as auto stocks. Auto stocks have always been profitable avenues of investment; however, in recent times, the industry has experienced a slowdown, and the growth has been stagnant. For instance, automobile sales in the US in 2018 grew only by 0.3% over 2017. We’ve also seen the rise of electric car companies and other eco-friendly technologies.
The performance of the automobile sector and auto stocks are correlated to the overall economy. In times of economic slowdown, the sales of automobiles get directly impacted. This affects the returns on auto stocks to a large extent.
|PAG||Penske Automotive Group, Inc.||$159.52||58.93%||10.7B|
|LAD||Lithia Motors, Inc.||$293.43||28.17%||8.1B|
|ABG||Asbury Automotive Group, Inc.||$223.00||51.00%||4.6B|
|GPI||Group 1 Automotive, Inc.||$258.07||74.14%||3.6B|
|RUSHA||Rush Enterprises, Inc.||$40.40||37.79%||3.3B|
|SAH||Sonic Automotive, Inc.||$49.15||12.39%||1.7B|
|TM||Toyota Motor Corporation||$187.10||36.29%||307.7B|
|HMC||Honda Motor Co., Ltd.||$35.23||49.79%||64.3B|
|F||Ford Motor Company||$12.43||0.97%||49.7B|
|FCAU||Fiat Chrysler Automobiles N.V.||#N/A||#N/A||#N/A|
|TTM||Tata Motors Limited||$0.04||-33.33%||54.7M|
|JCI||Johnson Controls International plc||$55.15||8.84%||37.5B|
|WBC||WABCO Holdings Inc.||$21.14||-0.19%||74.2B|
|ALSN||Allison Transmission Holdings, Inc.||$59.12||76.79%||5.3B|
|DORM||Dorman Products, Inc.||$73.89||-11.00%||2.3B|
|DLPH||Delphi Technologies PLC||#N/A||#N/A||#N/A|
|SMP||Standard Motor Products, Inc.||$33.21||2.15%||721.5M|
|PLOW||Douglas Dynamics, Inc.||$30.06||5.55%||690.9M|
|ORLY||O'Reilly Automotive, Inc.||$936.02||36.00%||56.4B|
|AAP||Advance Auto Parts, Inc.||$57.60||-64.11%||3.4B|
|MGA||Magna International, Inc.||$53.33||6.43%||15.3B|
Examples of Auto Stocks
Auto stocks, or stocks of companies involved in the automotive industry, can be a great investment opportunity for those looking to profit from the continued growth and innovation in the automotive sector. However, with so many companies to choose from, it can be difficult to know which ones are the best to invest in.
Below are some examples of Auto stocks and brief overviews of how the companies operate.
- Tesla Inc. (TSLA) – Tesla Inc. is one of the most well-known and innovative companies in the automotive industry. The company produces electric vehicles, energy storage systems, and solar products, and has seen tremendous growth in recent years. This is due to the increasing demand for electric vehicles and the company’s ability to produce them at a lower cost than many of its competitors.
- General Motors Company (GM) – General Motors Company is a leader in the global automotive industry and produces a wide range of vehicles, including cars, trucks, and SUVs. The company has a solid track record of profitability and has been paying dividends for over 100 years, making it a great choice for long-term investors.
- Ford Motor Company (F) – Ford is one of the oldest and most established car manufacturers in the world, and it has a strong presence in the US and European markets. The company has been undergoing a major restructuring in recent years and is focused on developing more fuel-efficient and electric vehicles to meet the changing demands of the market.
- Toyota Motor Corporation (TM) – Toyota Motor Corporation is one of the largest and most successful car manufacturers in the world. The company is known for producing high-quality, reliable vehicles and has a strong presence in both the US and international markets. The company has been investing heavily in the development of electric and hybrid vehicles, and is expected to see strong growth in the coming years.
There are many great auto stocks to choose from, and each company has its own unique strengths and weaknesses. However, by considering factors such as innovation, growth potential, and financial stability, investors can make informed decisions about which auto stocks to invest in.
About the Auto Industry
The automotive industry is a broad and complex sector that includes the design, development, production, marketing, and sales of motor vehicles. It encompasses a wide range of vehicles, including cars, trucks, buses, and motorcycles, as well as the production of related parts and components. The industry is a major contributor to the global economy, and it is one of the largest employers worldwide.
This industry can be divided into several subsectors, including original equipment manufacturers (OEMs), which are the companies that design and build vehicles; and suppliers, which are the companies that provide parts and components to the OEMs. The industry also includes dealerships, which are the retail outlets where vehicles are sold to consumers.
In recent years, the automotive industry has undergone significant changes, driven by the increasing demand for fuel-efficient and electric vehicles, as well as the development of autonomous driving technology. Governments around the world have also implemented stricter emissions standards, which has led to the development of more environmentally friendly vehicles. Additionally, the industry is also facing increasing competition from ride-sharing companies, which is leading to changes in consumer behavior and impacting the traditional sales model of the industry.
Despite these challenges, the automotive industry is expected to continue to grow in the coming years, driven by the increasing global population and the growing middle class in developing countries. The demand for electric vehicles is also expected to increase as governments around the world set targets for the reduction of carbon emissions. The industry is also expected to benefit from the ongoing development of autonomous driving technology, which is expected to lead to increased safety and efficiency on the road.
Factors to Consider Before Investing in Auto Stocks
Investors must consider a variety of factors before investing in auto stocks. The sales of automobiles and, thus, the performance of auto stocks are affected by fuel prices, interest rates, insurance costs, and overall liquidity in the economy. Macroeconomic factors, including commodity prices, exchange rates, and competition, also play a crucial role.
Therefore, investors must analyze the economic, geo-political, and regulations before investing in auto stocks. The fundamental analysis of the automobile companies’ strength is also critical. Stocks of stable and established automobile companies, with strong revenues and earnings growth, are expected to generate good returns on investments.
Which Auto Stocks Should I Buy?
A large number of stocks belong to the category of auto stocks. They include the stocks of major auto manufacturers, auto dealers, auto part makers, auto part wholesalers, and auto part stores. We have aggregated a list of the top auto stocks to make the selection easier for you.
Investors must ensure that auto stocks they buy should belong to companies that have generated consistent revenues in the past. The companies should also have a market capitalization of more than $1 billion to make sure that the companies and auto stocks are able to survive economic downturns and other challenges.
If you’re looking into investing in auto stocks, you may enjoy our list of other transportation stocks. Find the stocks that you want!