In this article we are going to present you with the five best auto stocks to buy now based on the hedge fund sentiment, a metric that Insider Monkey is using to identify the best bets. For a more comprehensive list, you can follow this link to see 10 best auto stocks to buy now.
5. Nio Inc – ADR (NYSE:NIO)
Nio Inc – ADR (NYSE:NIO) saw an increase in popularity during the third quarter, as the number of funds bullish on the company went up by five to 35 during the third quarter, and the aggregate value of their holdings surged to $1.40 billion from $567.82 million at the end of June. Among the top shareholders of Nio are Jim Simons‘ Renaissance Technologies and D. E. Shaw’s D E Shaw, which reported stakes worth $295.76 million and $242.22 million, respectively.
The stock of the Chinese ev manufacturer surged by nearly tenfold since the beginning of the year as the company continued to show growing sales. In the third quarter, Nio Inc – ADR (NYSE:NIO) said it delivered 12,206 vehicles, up from 4,799 vehicles a year earlier and 10,331 in the second quarter. At the same time, the company’s revenue of $666.6 million topped the estimates by $50.32 million and net loss of $0.14 per share was higher than the expected loss of $0.17 per share.
4. Ford Motor Company (NYSE:F)
In Ford Motor Company (NYSE:F), there were 38 funds holding $1.08 billion worth of stock at the end of September, substantially higher compared to 30 funds and $791.59 million a quarter earlier. Among these funds, Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the top shareholder with a stake containing 49.43 million shares, up by 44% on the quarter. Other investors include Richard S. Pzena’s Pzena Investment Management, Edgar Wachenheim’s Greenhaven Associates, and Ken Griffin’s Citadel Investment Group.
At the beginning of December, Ford Motor Company (NYSE:F) disclosed its sales for the last month, reporting a decline of 20.9% on the year to 149,931 vehicles. Nevertheless, Ford’s third-quarter sales topped expectations with EPS of $0.65 an revenue of $34.71 billion beating the consensus estimates by $0.47 and $1.81 billion, respectively.
3. Navistar International Corp (NYSE:NAV)
Navistar International Corp (NYSE:NAV) is the third best auto stock to buy now and the most popular truck manufacturer among the funds tracked by Insider Monkey. At the end of September, 43 funds disclosed owning shares of the company, up by 10 compared to three months earlier. Billionaire activist investor Carl Icahn is one of the top shareholders of Navistar International Corp. In its latest 13F filing, Icahn reported holding 16.73 million shares worth $728.42 million, the position being the seventh largest in the portfolio. Icahn’s former protégé Mark Rachesky’s MHR Fund Management is also largest, reporting ownership of 16.23 million shares.
Icahn and Rachesky have recently been involved in a feud involving Navistar. In February, Volkswagen subsidiary Traton offered to acquire Navistar International Corp (NYSE:NAV) for $35 per share, a deal that Rachesky thought was much too low according to reports. Nevertheless, around a month ago, Traton and Navistar signed a definitive merger agreement for $44.50 per share and both Icahn and Rachesky agreed to support the deal. It is expected to close sometime next year.
2. General Motors Company (NYSE:GM)
Even though the number of investors bullish on General Motors Company (NYSE:GM) declined by nine, it still is the second most popular auto stock among the funds tracked by Insider Monkey, as 60 of them reported holding shares in their latest 13F filings. Billionaire Warren Buffett‘s Berkshire Hathaway continues to remain one of the top shareholders of General Motors, reporting ownership of 80 million shares in its latest 13F filing.
Recently, GM said it would recall 7.0 million SUV and pickup truck models worldwide to replace potentially faulty Takata air bag inflaters. The company had estimated that the costs for replacing the inflators would amount to $1.2 billion. In addition, General Motors have been of late committed to expand its electric vehicle lineup, saying it would raise spending on EVs by 35% to more than 27 billion. By 2025, General Motors Company (NYSE:GM) plans to have 30 electric vehicles offered across the world.
1. Tesla Inc (NASDAQ:TSLA)
Probably unsurprisingly, but Tesla Inc (NASDAQ:TSLA) is the most popular auto stock among the funds tracked by Insider Monkey as 67 funds held in aggregate $8.18 billion worth of its stock at the end of the third quarter, versus 63 investors with $5.56 billion worth of shares at the end of the previous quarter. Among the top shareholders of Tesla in our database are Philippe Laffont’s Coatue Management, which upped its stake by 903% to 3.11 million shares worth $1.33 billion and Alex Sacerdote’s Whale Rock Capital Management, which raised its position by 178% to 1.70 million shares worth $731.28 million.
The stock of the largest EV maker in the world has surged by nearly 600% so far this year as the company has been growing aggressively, launching production of Model 3 in China and announcing the highly expected Model Y and Cybertruck. Recently, the Model Y received the approval to start selling in China. The vehicle will be produced at Tesla Inc (NASDAQ:TSLA)’s facility in Shanghai. Tesla started production at the Shanghai factory last December and in October alone it sold more than 13,000 vehicles in the country. The company also has started exporting Chinese-built Model 3 vehicles to Europe and has built additional capacity in Shanghai for the Model Y production.
Please also see 10 best cheap stocks to buy now according to Ray Dalio and 11 best lithium and battery stocks to buy now.
Disclosure: None.
