While auto sales did experience a significant drop during the economic shutdown, several industry analysts believe they will rise in the coming months as the economy recovers. Not only are sales likely to increase, but production of both commercial and personal automobiles is also predicted to increase as a result of the shutdown. With that in mind, let’s look at the 5 BEST Auto Stocks To Buy Right Now.
Number 5. Sonic Automotive (SAH)
Sonic Automotive (SAH) is the 5th-largest automotive retailer in the USA, with operations in 14 states and over a hundred dealerships covering various international and local vehicle brands, both new and used.
While Sonic, like the rest of the sector, has been affected by layoffs, analysts expect a recovery. The firm claimed that it still sees increasing purchase activity in the majority of its areas. It went on to say that “new and used car sales and fixed operations gross profit have performed at or above our expectations and continue to rise week after week.” Meanwhile, the stock has performed well in comparison to the larger auto sector. It has increased by 17% year to date and by 53% in the previous 12 months.
Number 4. Thor Industries (THO)
Because of the COVID epidemic, there has been a rise of interest in recreational vehicles (RVs) among those who prefer not to stay in hotels or air travel. Last summer, various studies from throughout the US attested to an increase in RV sales as buyers acclimated to a “socially distant” summer. RV Rental Company (RVShare) announced record reservations, citing a poll that found 93% of respondents wanted to avoid crowds last summer, a trend that we expect to continue to some extent this summer.
Number 3. Nio Inc. (NIO)
In China, Nio Inc. (NIO) is a prominent maker of luxury smart EVs. In addition, the firm invests in next-generation technology such as connectivity, self-driving vehicles, and artificial intelligence.
The business previously issued an update on its April 2021 delivery. In April, the business supplied 7,102 automobiles, an increase of 125.1% year on year. The ES6s, the company’s five-seater high-performance premium smart electric SUV, accounted for the vast majority of deliveries. It also celebrated a significant milestone with its users and partners as its 100,000th production car rolled off the line.
Number 2. Honda Motor (HMC)
Honda Motor (HMC) stock fell during the pandemic as vehicle sales temporarily fell. From January to March of 2020, the stock plunged 32%. After a year of slow but steady recovery, it is now trading at fresh highs.
The firm has not provided any prediction for 2021, but experts foresee a profit and revenue turnaround for the firm as economies across the world recover and pent-up vehicle demand begins to emerge. Honda’s passenger vehicles and bikes are in strong demand, so the business has every reason to predict a return to profitability.
Number 1. Tesla (TSLA)
Tesla (TSLA) continues to dominate the majority of Wall Street’s attention among big automakers, and for a good reason: the electric vehicle maker is at the forefront of fascinating technology and potentially massive growth sector.
Tesla made the news when it announced that it would lower pricing on three of its most popular models, reportedly to encourage demand as the economy recovers. Another positive news for Tesla investors was the disclosure of significant battery advancements for the Model 3, which may give drivers greater range and reduce production costs and boost the company’s overall addressable market.
Despite some recent consolidation following a historic run in 2020, when TSLA stock skyrocketed from $88 per share upto $880 per share, Tesla remains a great growth story and a terrific company to invest in for the long term. Tesla’s Shares appears to be a buy now that it is trading around $600.