The auto industry is one of the longest-living sectors in stocks, and almost everyone knows the major players. As they are visible to the general public, auto companies are some of the first stocks investors contemplate. However, automotive companies are also some of the first to feel the effects of economic conditions like inflation on their performances.
That is not to mention the surge of popularity and attention surrounding electric vehicles (EVs). Their impact on the auto sector is undeniable as companies race to produce their EV models. Despite the stiff competition and grueling climate, some automakers stand above the rest in stock performance.
Let’s find out about the top three auto stocks to purchase in April. These stocks have had extraordinary quarterly performances and surging momentum that will likely continue.
Ford Motor Company (F)
Source: JuliusKielaitis / Shutterstock.com
Ford Motor Company (NYSE:F) is one of the oldest American auto companies. Despite its long history, Ford remains one of the best-performing auto stocks, reporting $46 billion in income in Q4 and a free cash flow of almost $7 billion for 2023. Also, sales increased by over 180,000 units compared to 2022, driving a jump in price this year. So far, Ford has reported an incredible 86% jump year-over-year (YOY) in EV sales this quarter, further propelling the stock upwards.
With numbers like these, many are hoping for even more promising earnings in the upcoming earnings report and are making their buys now. In addition to the estimated boost in revenue and sales for the rest of this year, Ford is making strides to cut expenses by $2 billion and increase YOY income.
If you are worried about sales slowing down, you might be happy to hear that Ford is making efforts to accelerate sales of its popular EV models. Earlier this month, Ford announced that it would be cutting the price of its F-150 lightning model by more than $5,500 to make it more affordable.
Ford is on track to set historic numbers for this year, and investors should buy as soon as possible.
General Motors (GM)
Source: Jonathan Weiss / Shutterstock.com
General Motors (NYSE:GM) is another proven American automotive stock. It has consistently held solid quarterly performances leading up to this year. Shares have risen in 2024 due to solid momentum after a profitable Q4 in 2023. However, GM released its Q1 earnings for this year on April 23. The company reports a massive earnings beat that will carry this momentum even further.
GM smashed revenue and adjusted EPS estimates and has already climbed by 5% as a result. Further, the report is triggering a slight boost to the company’s expectations for the rest of this year. Increasing are free cash flow and adjusted EPS estimates by 150%.
Net income has risen 26% this quarter compared to last year, and GM attributes this success to the fantastic numbers reported in North American sales. Also, the company notes the astonishing sales helped less than satisfactory performance in the Chinese market.
Finally, GM is set to ramp up EV production this year, staying ahead of the game to continue magnificent momentum off the back of a strong earnings beat. Investors should not hesitate to buy GM as the stock soars with impressive sales this year.
Ferrari (RACE)
Source: Konstantin Egorychev / Shutterstock.com
Unlike the other stocks on this list and many different auto stocks, Ferrari (NYSE:RACE) is a luxury automotive brand producing high-end vehicles. While stocks that target such niche markets are often less appealing, you may be surprised by Ferrari’s performance over the last five years.
In fact, the price has risen by more than 300% over the past five years. And, the company has consistently reported rock-solid financials. In Q4 of 2023, diluted EPS was up 33.88%, and the profit margin increased by nearly 20% year over year.
Slightly dipping this year, the company will announce first-quarter results on May 7. Given Ferrari’s incredibly consistent history, this quarter will likely bring some excellent momentum back to the stock.
While the stock is expensive, there is no question about the company’s quality and ability to produce consistent results and returns. Investors can watch and consider adding it to their portfolio before it skyrockets in price.
On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Lim is a finance freelance writer who writes content for several companies like LTSE and Realtor, along with financial publications, including Mises Institute and Foundation for Economic Education.
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The post The Top 3 Auto Stocks to Buy in April 2024 appeared first on InvestorPlace.
The auto industry is one of the longest-living sectors in stocks, and almost everyone knows the major players. As they are visible to the general public, auto companies are some of the first stocks investors contemplate. However, automotive companies are also some of the first to feel the effects of economic conditions like inflation on their performances.
That is not to mention the surge of popularity and attention surrounding electric vehicles (EVs). Their impact on the auto sector is undeniable as companies race to produce their EV models. Despite the stiff competition and grueling climate, some automakers stand above the rest in stock performance.
Let’s find out about the top three auto stocks to purchase in April. These stocks have had extraordinary quarterly performances and surging momentum that will likely continue.
Ford Motor Company (F)
Source: JuliusKielaitis / Shutterstock.comFord Motor Company (NYSE:F) is one of the oldest American auto companies. Despite its long history, Ford remains one of the best-performing auto stocks, reporting $46 billion in income in Q4 and a free cash flow of almost $7 billion for 2023. Also, sales increased by over 180,000 units compared to 2022, driving a jump in price this year. So far, Ford has reported an incredible 86% jump year-over-year (YOY) in EV sales this quarter, further propelling the stock upwards.
With numbers like these, many are hoping for even more promising earnings in the upcoming earnings report and are making their buys now. In addition to the estimated boost in revenue and sales for the rest of this year, Ford is making strides to cut expenses by $2 billion and increase YOY income.
If you are worried about sales slowing down, you might be happy to hear that Ford is making efforts to accelerate sales of its popular EV models. Earlier this month, Ford announced that it would be cutting the price of its F-150 lightning model by more than $5,500 to make it more affordable.
Ford is on track to set historic numbers for this year, and investors should buy as soon as possible.
General Motors (GM)
Source: Jonathan Weiss / Shutterstock.comGeneral Motors (NYSE:GM) is another proven American automotive stock. It has consistently held solid quarterly performances leading up to this year. Shares have risen in 2024 due to solid momentum after a profitable Q4 in 2023. However, GM released its Q1 earnings for this year on April 23. The company reports a massive earnings beat that will carry this momentum even further.
GM smashed revenue and adjusted EPS estimates and has already climbed by 5% as a result. Further, the report is triggering a slight boost to the company’s expectations for the rest of this year. Increasing are free cash flow and adjusted EPS estimates by 150%.
Net income has risen 26% this quarter compared to last year, and GM attributes this success to the fantastic numbers reported in North American sales. Also, the company notes the astonishing sales helped less than satisfactory performance in the Chinese market.
Finally, GM is set to ramp up EV production this year, staying ahead of the game to continue magnificent momentum off the back of a strong earnings beat. Investors should not hesitate to buy GM as the stock soars with impressive sales this year.
Ferrari (RACE)
Source: Konstantin Egorychev / Shutterstock.comUnlike the other stocks on this list and many different auto stocks, Ferrari (NYSE:RACE) is a luxury automotive brand producing high-end vehicles. While stocks that target such niche markets are often less appealing, you may be surprised by Ferrari’s performance over the last five years.
In fact, the price has risen by more than 300% over the past five years. And, the company has consistently reported rock-solid financials. In Q4 of 2023, diluted EPS was up 33.88%, and the profit margin increased by nearly 20% year over year.
Slightly dipping this year, the company will announce first-quarter results on May 7. Given Ferrari’s incredibly consistent history, this quarter will likely bring some excellent momentum back to the stock.
While the stock is expensive, there is no question about the company’s quality and ability to produce consistent results and returns. Investors can watch and consider adding it to their portfolio before it skyrockets in price.
On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Lim is a finance freelance writer who writes content for several companies like LTSE and Realtor, along with financial publications, including Mises Institute and Foundation for Economic Education.More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
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It doesn’t matter if you have $500 or $5 million. Do this now.
The post The Top 3 Auto Stocks to Buy in April 2024 appeared first on InvestorPlace. Read MoreNYSE:F,NYSE:GM,NYSE:RACE, Stocks to Buy
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