We recently published a list of Why These 15 Automotive Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Group 1 Automotive, Inc. (NYSE:GPI) stands against other automotive stocks that are skyrocketing so far in 2025.
The automotive industry is starting to shift gears this year as supply chains continue to improve and the worldwide rate-cut cycle stimulates more demand. In addition, Trump’s election is also changing things with loosened regulations helping legacy automotive companies, and tariffs helping domestic companies, though it hurts companies abroad.
Regardless, the electrification megatrend has continued, and electric vehicle shipments are projected to surge by 17% this year. Also, the European automotive sector is showing signs of recovery with a projected 2.1% growth.
The broader sector could get a lot hotter this year if macroeconomic metrics cooperate and rates come down more. Let’s take a look at the stocks that have already started to climb.
Methodology
For this article, I screened the top-performing automotive stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A line of new and used cars in a large auto dealership’s showroom.
Group 1 Automotive, Inc. (NYSE:GPI)
Number of Hedge Fund Holders In Q3 2024: 40
Group 1 Automotive, Inc. (NYSE:GPI) is an automotive retailer.
The stock is up significantly so far this year due to it reporting solid financial results in Q4 2024. Revenue grew 11.5% year-over-year to $19.9 billion and Q4 revenue grew 23.8% to $5.5 billion.
Vehicle sales growth was also solid, with Q4 growth at 24%.
The company acquired 59 U.K. dealerships (Audi, BMW, Porsche, etc.) with a potential annual revenue of $2.9 billion. Plus, it restructured charges of $16.7 million in Q4, which are expected to yield over $50 million in annual savings.
The consensus price target of $447.83 implies 4.37% downside.
GPI stock is up 11.17% year-to-date.
Overall, GPI ranks 12th on our list of automotive stocks that are skyrocketing so far in 2025. While we acknowledge the potential of GPI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GPI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
