3 Auto Stocks to Buy Before Ford
The auto giant Ford Motor Company (f) reported total revenues of $40.19 billion for the second quarter ended June 30, 2022, an increase of 50.2% year over year. Lending revenue, however, was $2.26 billion, down 13.3% year over year. Additionally, analysts expect F’s earnings per share to fall 6.3% year over year to $1.95 in 2023.
Shares of F are down 29.4% year-to-date and 9.4% over the past month to close the last trading session at $14.68.
On the other hand, the auto industry continues to record stable demand. Light vehicle in North America Sales up 3.9% Year after year in August. In addition, according to Maximize Market Research, the automotive market is forecast growing at a CAGR of 13.2% from 2022 to 2029.
Therefore, investors looking to invest in auto stocks might consider buying fundamentally sound shares in Volkswagen AG (VWAGY), Honda Motor Company, Ltd. (HMC) and Isuzu Motors Limited (ISUZY) before F
Volkswagen AG (VWAGY)
Headquartered in Wolfsburg, Germany, VWAGY manufactures and sells automobiles primarily in Europe, North America, South America and the Asia-Pacific region. The Company has four segments: Commercial Vehicles; Energy Technology; financial services; and passenger cars and light commercial vehicles.
VWAGY sales revenue was €69.54 billion (US$69.29 billion) for the second quarter of 2022, up 3.3% year over year. Additionally, the company’s cash flow from investing activities was 7 billion euros ($6.97 billion), up 48.6% year over year.
Street expects VWAGY’s revenue to grow 7.8% year over year to $300.64 billion in 2023. Earnings per share are projected to edge up slightly year over year to $3.67 in 2023. VWAGY shares were down marginally on the day, closing the last trading session at $19.64.
VWAGY’s strong fundamentals are reflected in its POWR ratings. The stock’s overall A rating is a Strong Buy in our proprietary rating system. The POWR Ratings evaluate stocks based on 118 different factors, each with its own weighting.
VWAGY has a B grade for Value, Vibes, Quality and Stability. It is number 2 of 65 stocks in the ranking car and vehicle manufacturers Industry.
Beyond the above, we also rated VWAGY for momentum and growth. Receive all VWAGY reviews here.
honda motor company ltd (HMC)
Headquartered in Tokyo, Japan, HMC designs, manufactures and sells motorcycles, automobiles, powertrain products and other products in Japan, North America, Europe, Asia and internationally. Its four segments are the motorcycle business; automobile business; financial services business; and Life Creation and other businesses.
On August 29, 2022, HMC and LG Energy Solution announced their joint venture to spend $4.40 billion on lithium-ion battery production in the United States. The cooperation should strengthen HMC’s North American market position.
In addition, on July 14, 2022, the American HMC signed a multi-year contract with Kyndryl Holdings, Inc. (KD), the world’s largest provider of IT infrastructure services. KD will support the company in the further development of the infrastructure.
HMC sales revenue was 3.83 trillion yen (US$26.72 billion) for the first quarter ended June 30, 2022, up 6.9% year-on-year. Additionally, the company’s motorcycle sales increased 9.6% year over year to 4.25 million units. Also his Cash and cash equivalents was 3.63 trillion yen (US$25.32 billion), up 45% year-on-year.
HMC revenue is projected to grow 339.4% year over year to $117.37 billion in 2023. Earnings per share are projected to rise 17.7% year over year to $3.23 in 2023. Over the past three months, the stock is up 2.3% to close the last trading session at $24.79.
HMC’s overall B rating equates to a purchase in our POWR rating system. It’s rated A for value and B for quality and stability. The stock ranks 9th in the same industry. We also ranked HMC for momentum, sentiment, and growth. Get all HMC reviews here.
Isuzu Motors Limited (ISUZY)
Headquartered in Tokyo, Japan, ISUZY manufactures and sells commercial vehicles, light commercial vehicles, and diesel engines and components worldwide.
ISUZY’s revenue was 688.20 billion yen (US$4.80 billion) for the first quarter ended June 30, 2022, up 23% year-on-year. Gross profit also came in at $129.63 billion ($0.90 billion), up 17.2% year over year.
In addition, the company’s total assets for the period ended June 30, 2022 were 2.93 trillion yen (US$20.44 billion), compared to 2.86 trillion yen (US$19.95 billion) for the period up to March 31, 2022.
ISUZY revenue is projected to grow 149.4% YoY to $21.44 billion in 2023. Over the past three months, the stock is up 5.8% to close the last trading session at $12.53.
It’s no surprise that ISUZY is rated Strong Buy in our POWR Ratings system. It also has a B grade for Value, Vibes, Quality and Stability. The stock is ranked #6 in the auto and vehicle manufacturing industry. We also rated ISUZY for momentum and growth. Get all ISUZY reviews here.
VWAGY shares traded at $19.65 per share on Friday afternoon, up $0.01 (+0.05%). Year-to-date, VWAGY is down -30.91% versus a -18.44% gain in the benchmark S&P 500 over the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions through her insightful commentary. More…