ISUZY - Isuzu Motors: An Under-the-Radar Electric Vehicle Stock

Isuzu Motors (ISUZY) is a legitimate electric vehicle stock, yet you might not know it if you strictly consume your financial news from the talking heads on CNBC. ISUZY recently partnered with Hino to make electric vehicles and connectivity technologies, setting the stage for streamlined logistics that greatly benefit its bottom line.

Ask owners of ISUZY vehicles about their performance, and you will likely be inundated with praise. ISUZY cars run well, last longer than expected, and prove reliable even when subjected to heavy workloads. This is the type of company you should feel fantastic about investing in.

Will ISUZY's entry into the electric vehicle market catapult the stock to new heights? Will ISUZY break through its 52-week high of $11.41? Let's find out.

Isuzu's Background

ISUZY cars were once synonymous with cool. Though ISUZY vehicles are not uber-popular in the United States, they are popular in Japan and several other countries. Vehicles made by ISUZY are sold in the majority of the world's top commercial markets. ISUZY has pivoted away from everyday passenger vehicles in recent years, choosing to focus on commercial vehicles and diesel engine manufacturing. ISUZY's strengths are now buses, trucks powered by diesel, and construction. As noted below, ISUZY's entry into the electric vehicle space has the potential to transform the company.

Click here to check out our Automotive Industry Report for 2021

Isuzu Goes Electric

ISUZY's alliance with Hino is reminiscent of the 2016 collaboration between Mitsubishi, Nissan, and Renault. ISUZY's relationship with Hino will lead to electric vehicles hitting the market, many of which will be highlighted by autonomous and fully connected driving technologies. The reliance on Hino is notable as this group is the official truck division of Toyota (TM), an automaker that had been one of ISUZY's top rivals for decades.

ISUZY will spearhead the push for carbon neutrality in Japan while helping other countries achieve the same feat in the years ahead. These auto industry trailblazers will develop a hydrogen network throughout Japan that empowers electric vehicles to seamlessly drive across the country without reliance on fossil fuels. It is particularly interesting to note ISUZY and TM will obtain around a 5% stake of each's stock due to the deal. This is one of those rare moments in capitalism when enemies become allies in the context of overarching utilitarianism that has the potential to preserve the planet's integrity for future generations.

Isuzu POWR Ratings

ISUZY has a B POWR Ratings grade with an A grade in the Value component and a B grade in the Stability component. Click here to learn more about how ISUZY fares in the rest of its grades. Of the 50+ publicly traded companies in the Auto & Vehicle Manufacturers industry, ISUZY is ranked 9th. You can find other top stocks in this industry by clicking here.

Isuzu is Marching Toward Its 2018 High

It might not be long until ISUZY returns to its 5-year high set in 2018 at $17.89. Though the stock is currently priced at $10.48, it has been on fire of late, primarily due to its foray into the electric vehicle market.

Reasonable investors are willing to overlook the fact that ISUZY dropped down to $5 and change back in March of 2020 during the start of the coronavirus pandemic. The stock has steadily moved back up in the year following the pandemic in anticipation of growing consumer demand for automobiles. 

Take a close look at ISUZY's one-year chart, and you will find the stock has nearly doubled in this period of time. Though ISUZY declined in late July, it bounced right back in August, hitting $9.90 and moved up to $11.30 in February.

Interest in ISUZY will spike even more now that the automaker is shifting its sights to the electric vehicle market. 

ISUZY shares were unchanged in premarket trading Thursday. Year-to-date, ISUZY has gained 14.94%, versus a 9.41% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.

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