12 Best Automotive Stocks to Invest in According to Analysts

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10. Toyota Motor Corp. (NYSE:TM)

Upside Potential: 21%

Number of Hedge Fund Holders: 18

Toyota Motor Corp. (NYSE:TM) is a global automobile manufacturer. It produces a wide range of vehicles, including sedans, SUVs, and trucks, with popular models like the Corolla, Camry, and RAV4. The company pioneered mass-produced hybrid technology with the Prius and continues to expand its electric and hydrogen-powered vehicle lineup, including the Mirai fuel cell car and the bZ4X electric SUV. The company is also investing in autonomous driving, AI, and mobility services.

On February 5, Toyota Motor Corp. (NYSE:TM) reported its Q3 FY 2025 results (FY ending March 2025), where it witnessed a 4% year-over-year (YoY) decline in global vehicle unit sales for the first nine months of FY 2025. Japan unit sales were down over 10% whereas overseas units were down 2.1%. Despite this, total sales increased around 5%. Moreover, profit also increased due to ongoing cost-saving initiatives and improvement in product competitiveness which are supporting earnings. As per Statista, Toyota Motor Corp. (NYSE:TM) had 10.7% global automobile market share in 2024 and thus holds the top position globally. The company continues to solidify its position as the global leader in the automotive industry, leveraging its diversified powertrain strategy, including hybrid, electric (EV), hydrogen fuel cell, and internal combustion vehicles.

On February 6, Macquarie analyst upgraded Toyota Motor Corp. (NYSE:TM) from Neutral to Outperform. The analyst anticipated the company would report weaker earnings due to a slower-than-expected volume recovery. However, they also projected that Toyota’s production would stabilize, resulting in less exciting earnings, but improved quarters ahead.

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