In just the last decade, the automotive industry has drastically changed, in ways that we likely haven’t really noticed. Companies like Tesla TSLA are redefining what it means to own a luxury vehicle, while Silicon Valley tech giants like Uber have not only helped create a new industry-ride-hailing-but it is also (controversially) working to further the development of self-driving vehicles.
And Uber isn’t just the only one. There is, of course, its burgeoning arch-nemesis Alphabet GOOGL and its own self-driving car unit, Waymo, in addition to the laundry list of traditional automakers like Ford F hoping to debut this technology in the near future.
While the dream of fully-functioning self-driving cars and other big technologies certainly loom both near and far, there are other facets of the auto industry that investors should make sure do not get lost in the shuffle. With this in mind, check out three top auto stocks to buy now.
SORL Auto Parts Inc. SORL
Specializing in the development, production, and distribution of air brake and hydraulic valves, SORL Auto Parts is headquartered in the Ruian District of Wenzhou City, China’s automotive manufacturing center. SORL’s customer base includes of original equipment manufacturers, aftermarket distributors, and international customers.
SORL is a #1 (Strong Buy) on the Zacks Rank, with a VGM score of ‘C.’ Looking at this year, its earnings growth estimates look promising. The company expects year-over-year earnings growth of 29%, with sales expecting to increase almost 16% in the same time frame. SORL has an average earnings surprise of over 94%, and has beaten analyst estimates in the past four consecutive quarters.
SORL could also be a solid value pick for investors, as it’s currently trading at below $10 per share. With a Value score of ‘A,’ the company has a P/E of 6.45 compared to the broader auto industry’s P/E of 12.04.
Dana Inc. DAN
Dana provides technology driveline, sealing, and thermal-management products. Headquartered in Maumee, Ohio, its operating segments include Light Vehicle Driveline Technologies, Commercial Vehicle Driveline Technologies, Off-Highway Driveline Technologies and Power Technologies.
Dana is a #1 (Strong Buy) on the Zacks Rank, with a VGM score of ‘C.’ For the current year, the company expects a slight jump in earnings of 0.26% year-over-year, but there have been six upward revisions of the last 30 days, with none lower. Sales are expected to grow over 11% in the same time frame. Dana has an average earnings surprise of nearly 36%, and has beating analyst estimates in the past four consecutive quarters.
Dana’s value metrics look good, though it’s just a bit more expensive, currently trading at around $20 per share. It has a Value score of ‘B,’ with a P/E of 10.44 compared to its broader industry’s P/E of 12.04.
Fiat Chrysler Automobiles NV FCAU
Fiat Chrysler is an international auto company, and designs, engineers, manufactures, and distributes vehicles, components, and production systems. Based in the United Kingdom, the company operates under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram brands.
FCAU is a #2 (Buy) on the Zacks Rank, with a VGM score of ‘A.’ Fiat Chrysler expects year over year earnings growth of 7.69% for the current year, with one positive estimate revision in the last 30 days compared to none lower. The automaker expects flat, about 0.35%, sales growth in the same time frame. Fiat Chrysler has an average earnings surprise of over 22%, and has beaten analyst estimates in three of the past four quarters.
Fiat Chrysler is currently trading at about $10 per share, and with its Value score of ‘A,’ the company could make for a good value pick. Its P/E is 5.40 compares to its broader industry’s P/E of 8.50.
Will You Make a Fortune on the Shift to Electric Cars?
Here’s another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It’s not the one you think. See This Ticker Free >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.