Are These Automotive Stocks On Your 2020 Watchlist?
Automotive stocks have been a struggling sector of the market since the pandemic started. Car sales fell and dealerships were forced to close. In addition to this, many people are struggling to earn money at the moment. This means that not all people have the opportunity to purchase a car. The state of the economy badly affected all types of automotive companies.
It seems like things could be turning around for top automotive stocks though. Many automotive companies are reporting an increase in vehicle sales. If vehicle sales continue to rise up then many automotive stocks will rise with them. Automotive production will speed up if sales begin to increase once again. In time automotive stocks will increase when the world reaches a normal state again. But this is not a reality that seems to be soon.
While the market for best automotive stocks to watch is volatile there is still room to make a profit. Some automotive stocks related to recreational vehicles are gaining. This could be the same for construction vehicles as well. Since people are just sitting around, jet skis, ATVs, dirt bikes, and more are being purchased by consumers. And it is the perfect time for construction companies to operate without interference since less people are out. Let us look at two automotive stocks that have been trending upwards in the market.
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Top Automotive Stocks To Buy [Or Sell] In 2020: BRP, Inc.
The first automotive stock to watch is BRP Inc. (DOOO Stock Report) due to its upcoming earnings reports. BRP Inc., which stands for Bombardier Recreational Products Inc., is a Canadian automotive company. The company produces many different types of vehicles. BRP produces snowmobiles, ATVs, jet skis, motorcycles, and more. Some of the company’s products include Ski-Doo, Can-Am, Lynx, Rotax, and many more. In 2019, BRP produced $5 billion Canadian dollars in revenue.
BRP has earnings reports coming rather soon. Investors seem to have high hopes for these reports. On August 11, DOOO stock was at $42.84 a share on average. When August 12th came around, DOOO stock rose to $46.59 a share. This rise in DOOO stock price is because of rumors of good reports coming from BRP. DOOO stock price was at $56 before the pandemic, so it has not quite recovered yet.
With that being said, it seems like if earnings reports from BRP are positive then DOOO stock could rise. The world of recreational vehicles seems to be on the rise during these dark times. People have more time to ride fun vehicles during the pandemic. That very reason is why DOOO stock is on this list of potential automotive stocks to buy.
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Top Automotive Stocks To Buy [Or Sell] In 2020: Fiat Chrysler
The next automotive stock to watch is Fiat Chrysler Automobiles N.V. (FCAU Stock Report). Fiat Chrysler is an automotive company that produces a variety of different vehicles. Some of its companies include Chrysler, Dodge, Alfa Romeo, Jeep, Maserati, Fiat, and many more. That is why it has become one of the largest automotive companies in the world. In 2019, Fiat Chrysler’s revenue was € 108 billion euros.
FCAU stock was at $13 a share on average before the pandemic started. In March FCAU stock price fell as low as $6.35 a share on average. This was bad for investors of FCAU stock. Since then, FCAU stock price has been on the rise. As of August 12th, FCAU stock reached $11.66 a share. That places FCAU stock price 83.62% higher than its March low. This means that FCAU stock is currently 10.30% lower than it was before the pandemic started. On August 7th, FCAU stock price was at $10.90 a share. So up to August 12th, FCAU stock has gone up nearly 7% in share price.
If Fiat Chrysler can keep up this positive momentum it could potentially recover. The automotive industry is in a volatile state because of the economy. When news related to a COVID-19 vaccine is released then automotive stocks can sometimes go up. That is why it is important to do research before investing in automotive stocks. That is why DOOO stock and FCAU stock are two potential automotive stocks to buy.