The automotive sector offers a promising landscape for investors, particularly those eyeing top auto stocks to buy.
Despite the headwinds over the past year, the current market dynamics and emerging trends create an opportune time to wager on auto stocks. According to the leading auto services provider, Cox Automotive’s projections indicate a shift with higher supply and lower prices, fueling expectations for new vehicle sales to surpass 2023 figures.
Consequently, these three stocks stand out amidst this intricate landscape, providing investors with a blend of resilience and upside. As uncertainties persist, strategic consideration of these savvy opportunities positions portfolios favorably within the ever-evolving dynamics of the auto sphere.
Li Auto (LI)
Li Auto (NASDAQ:LI) is one of the top automotive powerhouses, fueled by a stellar 77.64% surge in its stock price over the past year. The positivity surrounding the business is linked to the company’s ambitious strategy to expand its electric model lineup from four to eleven by 2025. Adding to the anticipation is the recent launch of the Li MEGA flagship vehicle, which garnered over 10,000 reservations in less than two hours, underscoring the faith customers place in Li’s cars.
Beyond market sentiment, LI’s financial performance is nothing short of extraordinary. With an outstanding 136.4% year-over-year (YOY) surge, the EV player’s sales shot up to an impressive $5.88 billion. Additionally, LI experienced a substantial uptick in vehicle deliveries, reaching 131,805 units, reflecting a robust 184.6% YOY increase.
Furthermore, with projections targeting an ambitious 800,000 deliveries this year, the anticipated surge holds the potential to foster greater brand equity, while initiating a positive feedback loop.
General Motors (GM)
Facing significant industry shifts, General Motors (NYSE:GM) asserts its standing as an automotive stalwart with a strong emphasis on EVs. Moreover, GM stock has proven resilient, registering a remarkable 12% year-to-date (YTD) price surge.
Meanwhile, GM’s robust financial standing is evident, with revenues of $43 billion, surpassing expectations by $3.51 billion. Its earnings-per-share of $1.59 beat forecasts by 43 cents, reflecting the company’s operational prowess.
Moreover, GM solidified its presence in the growing automotive market by selling 75,883 EVs last year, marking a substantial 93% increase from 2022. Also, GM’s Super Cruise network now spans 750,000 hands-free miles, which is the largest achievement of its kind in North America.
Furthermore, GM’s collaboration with Tesla’s (NASDAQ:TSLA) Supercharger network enhances EV accessibility, benefiting smaller manufacturers. This strategic transition, financially fuels an annual $11 to 13 billion capital spending plan until 2025, offering patient investors an opportunity to tap into significant value.
Toyota Motor (TM)
Toyota Motor (NYSE:TM) stands out with an unwavering commitment to continuous improvement in design and offerings, emphasizing quality and customer perception. This dedication is evident in its remarkable 80% YOY stock price surge. This then makes it one of those top auto stocks to buy.
Moreover, TM’s shares surged on the heels of a robust fiscal third-quarter (Q3) report, revealing a near-doubled profit of $9 billion, a substantial leap from $4.82 billion in the same quarter. Additionally, TM revised its bottom-line guidance for the full fiscal year to $30 billion from $27 billion, attributing the positive outlook to lower costs, effective marketing initiatives, and favorable currency fluctuations.
Furthermore, investors are impressed with Toyota’s strategic emphasis on hybrid-electric vehicles, exemplifying the firm’s focus on practical, high-performance features. With its fifth-generation Hybrid System embodying top-notch electric motor performance, TM positions itself for a promising future in the automotive sphere.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines