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.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| CPRT | Copart, Inc. | $151.94 | 40.08% | 36.0B |
| KMX | CarMax, Inc. | $134.88 | 53.48% | 21.9B |
| CVNA | Carvana Co. | $293.06 | 44.36% | 50.6B |
| IAA | IAA, Inc. | $57.37 | 3.20% | 7.7B |
| AN | AutoNation, Inc. | $119.16 | 108.72% | 7.8B |
| PAG | Penske Automotive Group, Inc. | $104.55 | 102.89% | 8.4B |
| CARG | CarGurus, Inc. | $34.08 | 67.88% | 4.0B |
| LAD | Lithia Motors, Inc. | $313.46 | 34.25% | 9.5B |
| ABG | Asbury Automotive Group, Inc. | $196.88 | 84.85% | 3.8B |
| GPI | Group 1 Automotive, Inc. | $179.93 | 65.09% | 3.2B |
| RUSHA | Rush Enterprises, Inc. | $52.35 | 43.58% | 2.9B |
| SAH | Sonic Automotive, Inc. | $50.02 | 35.04% | 2.1B |
| TM | Toyota Motor Corporation | $176.20 | 35.47% | 289.0B |
| HMC | Honda Motor Co., Ltd. | $29.76 | 27.94% | 54.7B |
| TSLA | Tesla, Inc. | $1,068.42 | 163.14% | 1058.3B |
| F | Ford Motor Company | $16.86 | 118.96% | 66.2B |
| RACE | Ferrari N.V. | $237.66 | 34.18% | 39.4B |
| FCAU | Fiat Chrysler Automobiles N.V. | #N/A | #N/A | #N/A |
| TTM | Tata Motors Limited | $32.28 | 264.75% | 23.7B |
| NIO | NIO Inc. | $39.78 | 44.60% | 65.2B |
| JCI | Johnson Controls International plc | $73.44 | 78.51% | 52.3B |
| APTV | Aptiv PLC | $171.50 | 83.29% | 46.4B |
| LKQ | LKQ Corporation | $55.76 | 87.30% | 16.4B |
| BWA | BorgWarner Inc. | $45.07 | 22.97% | 10.8B |
| LEA | Lear Corporation | $170.12 | 39.01% | 10.2B |
| ALV | Autoliv, Inc. | $96.33 | 28.05% | 8.4B |
| GNTX | Gentex Corporation | $35.20 | 28.51% | 8.4B |
| WBC | WABCO Holdings Inc. | $26.23 | 46.13% | 72.0B |
| ALSN | Allison Transmission Holdings, Inc. | $34.16 | -5.66% | 3.6B |
| DORM | Dorman Products, Inc. | $104.95 | 22.06% | 3.3B |
| MNRO | Monro, Inc. | $61.49 | 51.45% | 2.1B |
| VC | Visteon Corporation | $108.76 | 31.99% | 3.0B |
| ADNT | Adient plc | $41.63 | 86.68% | 3.9B |
| DAN | Dana Incorporated | $22.46 | 56.95% | 3.3B |
| VNE | Veoneer, Inc. | $35.20 | 134.51% | 3.9B |
| MTOR | Meritor, Inc. | $24.50 | -2.97% | 1.7B |
| THRM | Gentherm Incorporated | $80.00 | 80.18% | 2.7B |
| DLPH | Delphi Technologies PLC | #N/A | #N/A | #N/A |
| SMP | Standard Motor Products, Inc. | $48.47 | 5.32% | 1.1B |
| TEN | Tenneco Inc. | $13.25 | 60.41% | 1.1B |
| PLOW | Douglas Dynamics, Inc. | $40.87 | 19.82% | 939.2M |
| ORLY | O'Reilly Automotive, Inc. | $631.97 | 42.85% | 43.6B |
| AZO | AutoZone, Inc. | $1,798.48 | 59.32% | 37.7B |
| AAP | Advance Auto Parts, Inc. | $229.17 | 56.56% | 14.4B |
| MGA | Magna International, Inc. | $80.84 | 62.82% | 24.3B |
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!
