5 Best Undervalued Automobile Stocks to Buy Now

3. Volkswagen AG (OTC:VWAGY)

PE Ratio as of July 8: 5.14

Number of Hedge Fund Holders: N/A

Volkswagen AG (OTC:VWAGY) manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific. The company operates through four primary segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. Some of Volkswagen AG’s (OTC:VWAGY) most prominent brands are Audi, Bentley, Porsche, Lamborghini, Ducati, and Bugatti.

Analysts are bullish on Volkswagen AG (OTC:VWAGY). On May 31, HSBC analyst Edoardo Spina raised his price target on Volkswagen AG (OTC:VWAGY) to EUR 234 from EUR 230 and upgraded the stock to Buy from Hold. On July 7, UBS analyst Patrick Hummel trimmed his price target on Volkswagen AG (OTC:VWAGY) to EUR 230 from EUR 280 and reiterated a Buy rating on the shares.

As of July 8, Volkswagen AG (OTC:VWAGY) has a trailing-twelve-month PE ratio of 5.14 and is offering a forward dividend yield of 4.11%, which makes it an undervalued dividend-paying automobile stock to invest in now.