10 Best Car Stocks To Invest In Now

7. Group 1 Automotive, Inc. (NYSE:GPI)

Number of Hedge Fund Holders: 40

Group 1 Automotive, Inc. (NYSE:GPI) is an international automotive retailer that sells new and used vehicles and spare parts. It also provides repair and maintenance services. According to CNBC, the company operates around 260 dealerships, 338 franchises, and 44 collision centers in the US and UK.

Group 1 Automotive, Inc. (NYSE:GPI) in July announced the expansion of its operations in the UK with the acquisition of four Mercedes-Benz dealerships in Hertfordshire County, north of London. These locations are expected to sell over 2,800 units annually and generate $105 million in revenue.

Earlier in the year in February, Group 1 Automotive, Inc. (NYSE:GPI) expanded its US portfolio in the greater Baltimore/Washington DC area. The acquisitions included new vehicle dealerships for Toyota, Honda, Hyundai, and Kia, a Toyota Certified pre-owned center, and three collision centers. These dealerships are projected to earn over $500 million in annual revenue.

During its recent Q3 2024 earnings call on October 30, the company reported strong results for the quarter. Total revenue reached an all-time quarterly record of $5.2 billion and quarterly records across all business lines. New vehicle sales generated $2.6 billion in revenue, while used vehicle sales were logged at $1.7 billion. Parts and service revenues stood at $660 million, and F&I at $214 million.

The recent integration of 54 dealerships in the UK from Inchcape added $2.7 billion in revenue. Adjusted net income for the quarter was $133.5 million, translating to an EPS of $9.9, beating expectations of $9.87 per share.

Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating. Hedge fund sentiment around Group 1 Automotive, Inc. (NYSE:GPI) continues to improve as well. According to Insider Monkey’s database for Q3 2024, 40 hedge funds had investments in the company, up from 37 at the end of Q2. It is one of the best car stocks to invest in now.