Should you buy auto stocks now?

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  • (1:15) – What is the impact of semiconductors on the automotive industry?

  • (6:45) – Are automakers a good place to start investing?

  • (3:00 PM) – How to navigate Tesla’s stock?

  • (20:35) – Is the car rental market making a comeback?

  • (26:00) – Does the service industry have the most benefits?

  • (32:50) – Summary of episodes: GM, F, TM, RACE, TSLA, CAR, R, AAP, AZO, ORLY

  • [email protected]

Welcome to episode # 285 of the Zacks Market Edge podcast.

Each week, Zacks host and securities strategist Tracey Ryniec will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how they impact your life.

This week, she is joined by David Bartosiak, Zacks Stock Strategist and editor of the Zacks Surprise Trader newsletter, who is also a resident automotive expert at Zacks, to talk about what’s happening in the booming auto industry. boiling.

People have been rushing to buy cars since the start of the pandemic to avoid public transportation which has increased demand for cars. But a semiconductor shortage is also wreaking havoc on inventory. It pushed up the prices.

How should investors play this industry?

Stocks rebounded sharply from their 2020 coronavirus lows, but some of them corrected again in 2021.

Is this a buying opportunity?

5 automotive stocks for 2021

1. General Motors GM has always been a fan favorite for investors. The shares have sold 17% in the past 3 months, making them even cheaper. GM has a front P / E of just 8.2. Is it high on Dave’s list?

2. Ford F is also a fan favorite and it is also inexpensive, with a forward P / E of 8. It has also sold in the last 3 months, dropping 15%. It’s time to buy ?

3. Ferrari RACE stocks have gone the other way, up 5% in the past 3 months. This luxury car maker will soon launch its highly anticipated SUV. With a forward P / E of 46, is it too hot to manage or priced for growth?

4. Tesla TSLA is one of those actions that you either love or hate. While stocks have only risen 5% since the start of the year, they have risen 22% in the past 3 months. It’s the most expensive of the automakers, with a forward P / E of 145. But if you believe the argument that this is really a “tech company”, has the valuation of importance ?

5. AAP Advanced Auto Parts take advantage of the fact that people keep their cars even longer and get them repaired, rather than buying a new car at these record high prices. It is trading with a futures P / E of just 17.5, making it one of the cheapest auto stock games this year.

What else do you need to know about cars, the auto industry, and the stocks to keep on your wishlist?

Tune in to this week’s podcast to find out.

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

Ford Motor Company (F): Free Inventory Analysis Report

Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report

General Motors Company (GM): Free Inventory Analysis Report

Tesla, Inc. (TSLA): Free Stock Analysis Report

Ferrari NV (RACE): Free Stock Analysis Report

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