STLA - 2 Incredibly Cheap Auto Stocks to Buy Now
2024-01-31 06:59:00 ET
From a stock investment standpoint, the auto industry has been dominated by electric vehicles (EV) and Tesla (NASDAQ: TSLA) for years. It's clear the long-term future of the industry is electric and the companies that were there first have been rewarded while the legacy companies have lagged the market.
But electric vehicle sales growth is slowing and profits, where they existed, are dwindling. Ironically, overinvestment in electric vehicles could lead to low profitability in the industry over the next few years. At the same time, internal combustion engine vehicle manufacturers are raking in cash and that's where the value is for investors.
Two stocks stick out as completely overlooked by the market today. General Motors (NYSE: GM) and Stellantis (NYSE: STLA) are profitable, but trade for single-digit price-to-earnings multiples.
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2 Incredibly Cheap Auto Stocks to Buy Now