5 Automotive Stocks To Watch In The Stock Market This Week
The past few years in the automotive industry have been the rise of multiple trends. The growing importance of electric vehicles (EVs) and autonomous vehicles (AVs) has brought the industry back into the limelight. Hence, investors are often on the lookout for top automotive stocks in the stock market. Well, Tesla (NASDAQ: TSLA) recently set the tone for the industry as it announced its first-quarter financials. The company reported better-than-expected revenue and earnings across the board. These electrifying gains were also accompanied by a bold prediction by the company CEO, Elon Musk. He believes that Tesla’s vehicle production will exceed expectations this year despite supply-chain bottlenecks and disruptions in China.
With that said, other automotive giants are also stepping up their game. For instance, BMW (OTCMKTS: BMWYY) seems to be motivated to regain its crown as the top luxury vehicle seller in the U.S. The company unveiled its all-new top-of-the-line 7 Series, with three new models, including an electric version. The i7 xDrive60 will feature two electric motors with a combined output of 536 horsepower. Overall, the automotive industry appears to be trending in the right direction despite the multiple challenges that it faces today. With that in mind, here are some of the top automotive stocks in the stock market today.
Automotive Stocks To Watch In April 2022
- Honda Motor Co Ltd (NYSE: HMC)
- Toyota Motor Corp (NYSE: TM)
- Ferrari NV (NYSE: RACE)
- Magna International Inc. (NYSE: MGA)
- Volvo (OTCMKTS: VLVLY)
Honda is a Japanese company that principally engages in the automotive and financial services businesses. Its Automotive segment is responsible for the research and development, production, and sales of automobiles and related parts. Besides that, the company also provides sales financing and leasing of its products. Despite several exciting future developments in place, HMC stock has still been relatively flat since the start of the year. Could things be improving soon?
Recent reports are suggesting that Honda will be building millions of EVs by the end of the decade. The plan includes three new dedicated platforms, with one to be jointly developed with its U.S. partner, General Motors (NYSE: GM). Not to mention, the company’s global head of electrification, Shinji Aoyama claims that Honda plans to build two million EVs globally by 2030. Its current target in North America and China is approximately 750,000 to 800,000, and another 400,000 to 500,000 in Japan and other markets. Considering this, would you add HMC stock to your watchlist?
Similar to Honda, Toyota is another major Japanese automotive company. Its Automotive segment designs, manufactures and sells sedans, minivans, and many other vehicles. Much like Honda, Toyota also has a Finance segment that provides vehicle leasing services. Last week, the company announced the launch of its all-electric bZ4X in the U.S. The battery-EV will come with a new AWD system with X-MODE. Thus, providing an exhilarating yet comfortable experience suitable for everyday driving and off-pavement exploration.
Besides that, Toyota continues to show commitment to electrifying its vehicles. The company recently announced that it will invest $383 million in four of its U.S. manufacturing plants. Thus, supporting the production of its four-cylinder engines, including options for hybrid EVs. As it stands, Toyota’s U.S. plants produce half of the vehicles it sells in the country. So, the company believes that these investments will allow it to meet its customers’ needs and quickly respond to an evolving market. With that said, do you think TM stock will have more room to grow?
Another automotive giant that should be no stranger to most is the luxury sports car manufacturer, Ferrari. Besides its flashy sports and special series cars, it also provides racing cars, spare parts, and engines. Due to the stature of its brand, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. For instance, there is a Ferrari World theme park in Abu Dhabi and Ferrari Land Portaventura in Europe. As such, investors and auto enthusiasts are always keeping a close eye on new developments from the company.
Well, the company rarely disappoints. On Tuesday, Ferrari unveiled its new 296 GTS convertible. This is its fourth plug-in hybrid model as the company continues to pursue its electrification strategies. Also, another new model is planned for release in the coming months, the Purosangue (Thoroughbred). The company CEO is confident that the company’s first-ever sports utility vehicle will exceed its customers’ expectations. With this new launch, would you consider RACE stock a top automotive stock to watch?
When looking at the automotive industry, the suppliers also play a significant role. Magna is a mobility technology company that has vehicle and contract manufacturing operations around the world. Some of its products include body structures, chassis structures, active aerodynamics, energy storage systems, and many more. On a sense of scale, the company’s global network includes more than 345 manufacturing operations and 87 product development, engineering, and sales centers in 28 countries.
On Thursday, Magna announced that it will be expanding its ADAS and electrification footprint with the opening of a new plant in Kechnec, Slovakia. The facility is estimated to be approximately 22,000 square meters and will likely begin operations in the fourth quarter of this year. Magna plans to produce some of its most innovative Level 2 ADAS solutions and technologies for the EV market in this facility. Moving forward, the facility will support two European automakers and a new global entrant. Given the pivotal roles that Magna plays in the industry, would you add MGA stock as a viable long-term investment?
Lastly, we have the Swedish company Volvo. Essentially, it is a manufacturer of trucks, buses, diesel engines, and marine and industrial engines. In addition to vehicles and machines, its offering includes a range of services, such as insurance, rental services, spare parts, and many more. With such a broad list of products and portfolio, the company is committed to shaping the future landscape of sustainable transport and infrastructure solutions.
Yesterday, Volvo reported better-than-expected first-quarter financials despite a challenging supply chain situation. The company reported net sales of $11.1 billion, up 12% compared to the prior year’s quarter. Meanwhile, its adjusted operating profit improved to $1.33 billion, an increase of 7.2% year-over-year. While this may not be a significant jump, it far exceeds the estimated $1.11 billion by analysts in a Refinitiv poll. As such, could VLVLY stock be worth a closer look right now?