Are These 2 Top Automotive Stocks On Your Watchlist For 2020?
Many automotive stocks fell when the current economic crisis started. Car production was slowed or stopped altogether by many automotive companies. Dealerships were also forced to close their doors for an extended period of time during the peak. Another thing bringing down automotive stocks is the loss of sales due to people not having money for a car.
Top automotive stocks still have the potential to do well in the market. Some automotive companies like Tesla (TSLA stock report) were able to make a full recovery in the share price. This is due to the electric car trend in the automotive industry. This means that some automotive stocks have been able to start rising back up. New deals or advancements can also cause automotive stocks to rise in the market.
The economy is still down but could recover if the coronavirus pandemic ends soon. There are worries about a second wave which could make things worse. Many automotive companies are thinking positively at the moment. Sales have started to incline once again. So let’s look at two automotive stocks that have some momentum in the market.
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Top Automotive Stocks To Buy [Or Avoid] In 2020: Ford
The first automotive stock to watch, Ford Motor Company (F stock report), is well known across the world. Ford was founded in 1903 and has grown to be the second-largest US automaker. Ford is also the 5th largest automaker in the world. In 2019 it brought in $155 billion in revenue and produced over 5 million vehicles. Ford was largely affected by the pandemic as the stock market began to crash.
Before the pandemic began F stock was at around $9 a share on average. Then, F stock price fell as low as $4 a share. Since this fall, F stock has rose back up to around $6 a share as of July 1st. The initial 55% decrease was very bad for investors of F stock. There could be some hope for F stock price if Ford can start producing and selling more vehicles once again.
We have seen how the crisis affected F stock. Vehicle orders are very low at the moment which is hurting June sales. This could mean F stock price will be on the rise once the economy opens up. Reopening will help F stock as well, as more dealerships are able to open now.
Top Automotive Stocks To Buy [Or Avoid] In 2020: Ferrari
The second automotive stock to watch, Ferrari N.V. (RACE stock report) is another well-known company to the world. Ferrari was founded in 1939 and has become a racing and automotive icon since. It currently produces luxury sports cars and participates in different racing leagues. Ferrari reported revenue of 3.4 billion Euros back in 2017. Its production numbers were over 9,000 cars in 2018.
Shares of RACE stock fell with the rest of the economy back in February. The RACE stock price was at $171 a share on average before the economic crash. RACE stock then fell under $130 a share. This 23% decrease in RACE stock price is not as much as some other automotive stocks. This is still a significant dip for RACE stock though. In the last year RACE stock has increased by 2.96%. As of July 1st, RACE stock price is at $172 a share which is higher than its previous average. This is due to Ferrari being able to keep sales afloat during these dark times. They don’t produce a ton of vehicles every year like many other automakers.
So it is clear that in dark times some automotive stocks can still strive. F stock has the potential to rise back up when things clear up in the world. And RACE stock has already managed to make a full recovery. This proves that there are definitely some potential automotive stocks to buy even in this economic mess. Financials and sales reports could drive these automotive stocks up or down, which is why it is important to stay informed.
