Five Best Auto Manufacturing Stocks To Buy This Year

#2 Ford Motor Company (NYSE:F)

– Investors with Long Positions (as of December 31): 39

– Aggregate Value of Investors’ Holdings (as of December 31): $1.03 billion

Moving on, the number of funds covered by us with long positions in Ford Motor Company (NYSE:F) inched up by one and the aggregate value of their positions jumped by $124 million during the fourth quarter. Ken Heebner‘s Capital Growth Management was among the few funds that reduced their stakes in the company during that period, it cut its holding by 52% to 3.73 million shares. Though the company has performed exceedingly well in the past few quarters, its shares have gone nowhere during that time and are currently trading down by 7% year-to-date. Most analysts feel that due to lack confidence among investors, Ford Motor Company (NYSE:F)’s stock has become very cheap as it trades at a forward P/E of 6.47 and at a price-to-sales multiple of only 0.35. For its fiscal 2016 first quarter, analysts project Ford to deliver EPS of $0.47 on revenue of $35.56 billion, significantly above the EPS of $0.23 on revenue of $33.90 billion it reported for the same quarter of the previous year.

#1 General Motors Company (NYSE:GM)

– Investors with Long Positions (as of December 31): 84

– Aggregate Value of Investors’ Holdings (as of December 31): $4.93 billion

Despite its ownership among smart money investors from our database inching down by four and the aggregate value of their holdings in it dwindling by $180 million during the fourth quarter, General Motors Company (NYSE:GM) remained the favorite auto stock among hedge funds going into 2016. With ownership of 50 million shares of the company, Warren Buffett‘s Berkshire Hathaway was the largest shareholder of General Motors Company (NYSE:GM) at the end of December among funds we track. At the beginning of 2016, the auto giant boosted its stock repurchase program to $9 billion and extended it through 2017. However, this move hasn’t helped its stock, which has depreciated by over 9% so far this year. The company currently pays a quarterly dividend of $0.38, which at its current stock price translates into an attractive annual dividend yield of 5%. The stock currently sports an average rating of ‘Overweight’ and an average price target of $38.11.

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