12 Best Automotive Stocks To Buy Now

Published on September 30, 2023 at 12:09 pm by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at the 12 best automotive stocks to buy now. To skip our detailed analysis of the automotive industry, you can go directly to see the 5 Best Automotive Stocks To Buy Now.

The UAW Strike

The biggest development in the automotive industry today is the United Auto Workers (UAW) strike. The union has been targeting three automakers primarily, namely General Motors Company (NYSE:GM), Stellantis N.V. (NYSE:STLA), and Ford Motor Company (NYSE:F), after its contract with these companies expired on September 14. It has put forth several demands before the companies, including a 40% wage hike with a 20% immediate increase, according to a Reuters article from September 22. While the contract negotiations continue, the strikes also carry on, a development that might continue to strain the automotive industry.

Some believe that the strikes could lead to a further escalation in car prices that are already too high for most consumers. Car prices have been on a steady rise since as far back as 2016. According to a CNBC chart from May 2023, while the average transaction price for a new vehicle in the US was about $33,200 in May 2016, this value had risen to a staggering $47,900 by May 2023. According to a CNBC report from September 22, experts now believe that consumers hoping to purchase a new car can expect to see lower discounts and fewer incentives down the road in light of the UAW strikes.

Some hypothesize that one reason why automakers are running into trouble with the UAW is that they are focusing on cost reductions to help move towards an electric-vehicle-focused future, with less reliance being placed on traditional gasoline-powered cars. These cost reductions are thought to include job cuts, which is putting major automakers in heated disagreements with auto workers. While a dedication to electric vehicles is certainly in the interests of protecting the environment and combatting climate change, such a ramification is something that cannot be ignored, especially not by the union workers most affected by it.

What Should Investors Be Looking At?

While this is the situation on the ground at present from a consumer point of view, for investors in particular, a major trend to keep an eye on in the automotive industry is, of course, the rise of electric vehicles and the companies producing them. Investors might benefit from keeping an eye on the moves and performance of an exchange-traded fund (ETF), the Solactive Pure US Electric Vehicle ETF. The ETF is focusing solely on the top electric vehicle producers and may be an interesting fund to watch for those looking to invest in this space. Sylvia Jablonski, the Chief Investment Officer at Defiance ETF, had the following to say about this ETF on CNBC on September 23:

“We realized that investors are buying a lot of ETFs for electric vehicle exposure, but if you break down what is in those ETFs, because of the diversification role, they hold stocks like Apple, Microsoft, and NVIDIA. Absolutely great stocks, but they’re not electric vehicle stocks. And we thought to ourselves, well, it’s better to be diversified than not, right, so instead of just buying Tesla, you want a little more exposure to this space. So we took the top five electric vehicle companies listed in the US by market cap.”

As Jablonski explained, this ETF can thus be an attractive investment for those only looking to invest in the electric vehicle space while also diversifying. In general, many automotive industry stocks like Tesla, Inc. (NASDAQ:TSLA) and AutoZone, Inc. (NYSE:AZO) have proven to be good investment options historically as well. For those looking for more options in the automotive sector at large, we have thus compiled a list of some of the best automotive stocks to buy now for the long term. These include some of the top electric car stocks to buy as well.

Our Methodology

To compile our list below, we used Insider Monkey’s hedge fund data for the second quarter to pick stocks in the automotive industry. We selected a mixture of automotive manufacturers and automotive parts distributors. The stocks are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest number.

Best Automotive Stocks To Buy Now

12. Stellantis N.V. (NYSE:STLA)

Number of Hedge Fund Holders: 27

Stellantis N.V. (NYSE:STLA) is an automobile manufacturer based in the Netherlands. The company designs, engineers, manufactures, and sells automobiles and light commercial vehicles, engines, transmission systems, and more.

As of July 32, Philippe Houchois, an analyst at Jefferies, maintains a Buy rating on shares of Stellantis N.V. (NYSE:STLA). The analyst also raised his price target on the stock from $22.90 to $25.30.

We saw 27 hedge funds holding stakes in Stellantis N.V. (NYSE:STLA) at the end of the second quarter. Their total stake value in the company was $468.2 million.

Miller Value Partners made the following comments about Stellantis N.V. (NYSE:STLA) in its second-quarter 2023 investor letter:

“We initiated a starter position in Stellantis N.V. (NYSE:STLA), which makes Jeep, Dodge and Fiat cars. The company has a nearly 8% dividend yield with enough net cash (cash minus debt) on the balance sheet to cover the dividend for almost five years. The company trades at 1.7x operating profits, which means the market is already expecting a likely drop in cash flow. Still, the shares appear to be worth meaningfully more than where they trade, and management is heavily aligned with stockholders with a 14% stake. They share our view that the valuation is compelling, as the company plans on repurchasing ~3% of shares outstanding this year.”

Like Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), and AutoZone, Inc. (NYSE:AZO), Stellantis N.V. (NYSE:STLA) is an automotive stock many hedge funds are piling into today.

11. Ferrari N.V. (NYSE:RACE)

Number of Hedge Fund Holders: 30

Ferrari N.V. (NYSE:RACE) was spotted in the 13F holdings of 30 hedge funds in the second quarter, with a total stake value of $848.9 million.

Ferrari N.V. (NYSE:RACE) designs, engineers, produces, and sells luxury performance sports cars across the globe. The company is based in Italy. It offers range, special series, Icona, and supercars, among more.

A Buy rating was maintained on shares of Ferrari N.V. (NYSE:RACE) by Susy Tibaldi, an analyst at UBS, on September 1. The analyst also raised the firm’s price target on the stock from $368 to $375.

Holding 357,181 shares in the company, Marshall Wace LLP was the largest shareholder in Ferrari N.V. (NYSE:RACE) at the end of the second quarter.

This is what Ensemble Capital Management had to say about Ferrari N.V. (NYSE:RACE) in its first-quarter 2023 investor letter:

“Ferrari N.V. (NYSE:RACE) (+26.48%): The luxury automaker’s long awaited Purosangue, their first four door, four seater vehicle, has proven so popular that the company announced that they have ceased accepting new orders as they are sold out through all of this year and into 2024. The Purosangue is designed not as copycat sports utility vehicle that many other luxury automakers sell, but as a true Ferrari car that their devoted fan base can use for more practical transportation needs. Since the average Ferrari is only driven a few thousand miles a year or less, they are best understood as mechanical works of art rather than a means of transportation. But with the introduction of the Purosangue, Ferrari enthusiasts will have a vehicle that meets transportation needs, while still delivering the extremely high end experience that you would expect from a car that costs about $500,000.”

10. LKQ Corporation (NASDAQ:LKQ)

Number of Hedge Fund Holders: 32

Baird analyst Craig Kennison reiterated an Outperform rating on shares of LKQ Corporation (NASDAQ:LKQ) on August 28. The analyst also maintained a price target of $65 on the stock.

Our hedge fund data shows 32 hedge funds long LKQ Corporation (NASDAQ:LKQ) at the end of the second quarter. Their total stake value was $318.4 million.

LKQ Corporation (NASDAQ:LKQ) is a distributor of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. The company is based in Chicago, Illinois.

9. BorgWarner Inc. (NYSE:BWA)

Number of Hedge Fund Holders: 33

Harris Associates was the largest shareholder in BorgWarner Inc. (NYSE:BWA) at the end of the second quarter, holding 10.1 million shares in the company.

BorgWarner Inc. (NYSE:BWA) is an automotive parts and equipment company based in Auburn Hills, Michigan. The company provides solutions for combustion, hybrid, and electric vehicles across the globe. It offers turbochargers, eBoosters, eTurbos, timing systems, and more.

Colin Langan, an analyst at UBS, initiated coverage on BorgWarner Inc. (NYSE:BWA) shares on September 13 with a Buy rating. The analyst also announced a price target of $52 on the stock.

There were 33 hedge funds long BorgWarner Inc. (NYSE:BWA) in the second quarter, with a total stake value of $392.4 million.

Ariel Investments said the following about BorgWarner Inc. (NYSE:BWA) in its first-quarter 2023 investor letter:

“Several stocks in the portfolio had strong returns in the quarter. Leading supplier of solutions for combustion, hybrid and electric vehicles BorgWarner Inc. (NYSE:BWA) increased following a top- and bottom-line earnings beat, as well as a solid financial guidance for 2023, despite foreign currency headwinds. Meanwhile, BWA continues to successfully execute on its Charging Forward initiative and remains on track to deliver $4 billion in electric vehicle sales by 2025. In our view, BWA’s electric motor and driveline technology offerings position the company to grow intrinsic value throughout the evolution in the hybrid and electric vehicles market.”

8. Mobileye NV (NYSE:MBLY)

Number of Hedge Fund Holders: 36

Mobileye NV (NYSE:MBLY) is another automotive parts and equipment company on our list. It is based in Israel. The company develops and deploys advanced driver assistance systems and autonomous driving technologies and solutions across the globe.

Mobileye NV (NYSE:MBLY) was seen in the portfolios of 36 hedge funds at the end of the second quarter. Their total stake value was $609.3 million.

UBS analyst Joseph Spak initiated coverage on shares of Mobileye NV (NYSE:MBLY) with a Buy rating on September 13. The analyst also announced a price target of $48 on the stock.

7. Rivian Automotive Inc. (NASDAQ:RIVN)

Number of Hedge Fund Holders: 37

A Buy rating was reiterated on shares of Rivian Automotive Inc. (NASDAQ:RIVN) on August 24 by Chris Pierce, an analyst at Needham. The analyst also maintained a price target of $31 on the stock.

Rivian Automotive Inc. (NASDAQ:RIVN) is a manufacturer of electric vehicles and accessories. The company is based in Irvine, California. It offers five-passenger pickup trucks and seven-passenger sports utility vehicles, among more.

A total of 37 hedge funds were long Rivian Automotive Inc. (NASDAQ:RIVN) in the second quarter, with a total stake value of $782.9 million.

D1 Capital Partners was the most prominent shareholder in Rivian Automotive Inc. (NASDAQ:RIVN) at the end of the second quarter, holding 13.9 million shares in the company.

Here’s what Baron Funds said about Rivian Automotive Inc. (NASDAQ:RIVN) in its second-quarter 2023 investor letter:

“During the second quarter, we also added to our position in EV manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN). After a complex period since the company’s IPO, in which Rivian tried to ramp multiple vehicles simultaneously while struggling to overcome unprecedented supply-chain bottlenecks, the company seems to have turned the corner. Production is now starting to scale up, which should help the company improve its plant utilization and subsequently help gross margins. The company is making notable progress in cost improvements by renegotiating with its suppliers, utilizing its larger scale to get better pricing, as well as, incorporating various technological advancements that would improve its cost structure while also improving the vehicles’ performance (for example it’s Enduro drive unit which is progressing ahead of plan).”

6. Autoliv Inc. (NYSE:ALV)

Number of Hedge Fund Holders: 38

There were 38 hedge funds long Autoliv Inc. (NYSE:ALV) in the second quarter. Their total stake value in the company was $901.2 million.

Autoliv Inc. (NYSE:ALV) is an automotive parts and equipment company that develops, manufactures, and supplies passive safety systems to the automotive industry. The company is based in Sweden. It offers modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and more.

Vijay Rakesh, an analyst at Mizuho, maintained a Buy rating on shares of Autoliv Inc. (NYSE:ALV) on July 24. The analyst also raised his price target on the stock from $96 to $106.

Like Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), and AutoZone, Inc. (NYSE:AZO), Autoliv Inc. (NYSE:ALV) is a highly popular automotive stock this year.

Click to continue reading and see the 5 Best Automotive Stocks To Buy Now.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up