TSLA - Top Auto Stocks To Invest In 2024? 2 For Your Watchlist
2024-04-24 10:40:58 ET
The automotive sector represents a major component of the global economy, comprising companies that design, manufacture, and sell vehicles. This sector includes some of the most recognized brands worldwide, such as Tesla ( NASDAQ: TSLA ). It also encompasses a wide array of vehicle types, including passenger cars, trucks, and increasingly, electric vehicles (EVs). Innovations in technology and growing environmental concerns have propelled the rise of EVs, reshaping the industry’s focus and investment.
Investing in automotive stocks offers potential benefits like capital growth and dividends, especially from well-established companies. These stocks are closely tied to economic cycles. During periods of economic growth, they often perform well as consumer confidence and spending increase. However, the automotive industry faces challenges such as regulatory changes, fluctuating raw material costs, and global supply chain disruptions. Furthermore, the shift towards electric vehicles requires significant investment in new technologies, which can be a risk for traditional automakers slow to adapt.
The sector’s performance can be volatile, influenced by factors like oil prices, technological advancements, and geopolitical events. Investors interested in automotive stocks should consider the industry’s cyclical nature and the impact of technological shifts on long-term viability. That said, here are two auto stocks to keep an eye on in the stock market now.
Motor Vehicle Stocks To Watch Today
General Motors (GM Stock)
Beginning with, General Motors Company (GM) is a global automotive company. GM designs, manufactures, and markets cars, trucks, and automobile parts worldwide. It is known for its major brands such as Chevrolet, Buick, GMC, and Cadillac. General Motors is also actively investing in emerging automotive technologies, including electric and autonomous vehicles.
This week, General Motors reported a beat for its first-quarter 2024 financial results. Specifically, the company posted Q1 2024 earnings of $2.62 per share, along with revenue of $43.01 billion. This is in comparison with analysts’ consensus estimates for the quarter which were an EPS estimate of $2.08, and revenue estimates of $40.61 billion. Additionally, the company has raised its 2024 full-year guidance.
So far this year, shares of General Motors stock have moved higher by 24.99% YTD. Moreover, during Wednesday’s mid-morning trading session, GM stock is trading slightly red by 0.08%, trading at $45.07 a share.
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Ford Motor (F Stock)
Second, Ford Motor Company (F) is one of the largest automobile manufacturers globally. Ford is popular for its significant contributions to the automotive assembly line and mass production techniques. It produces a wide range of vehicles, including cars, trucks, and commercial vehicles, under the Ford and Lincoln brands. In response to the shifting industry landscape, Ford is increasing its focus on electric vehicles.
Today, following the close of the U.S stock market, Ford will report its first quarter 2024 financial and operating results. To briefly recap, last quarter, Q4 2023, Ford Motor Company reported better-than-expected results, notching in an EPS of $0.29 per share, with revenue of $46.00 billion.
Year-to-date, shares of Ford stock have jumped higher by 6.50%. While, during Wednesday’s mid-morning trading session, F stock is trading flat on the day, currently trading at $12.94 a share.
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