There has never been a more transformative time to be a part of the automotive industry than now with the proliferation of electric vehicles.
Everyone has an idea of what they think are the most excellent new vehicles and trucks, and they are generally familiar with the major manufacturers.
The value in the auto industry is evident, attracting investors for decades and will continue for the foreseeable future.
Here’s our list of the top 5 auto stocks to buy in 2022.
The Volkswagen Group (AG) is a German car manufacturer. It produces and sells cars for the general public, commercial vehicles and power engineering tools. In addition, financial services such as financing, leasing and insurance are also offered to dealers and customers.
As a result, after-tax profits for the first quarter of 2022 have nearly quadrupled, despite a sales increase of only 1%. Currency effects, better price positioning, product mix and solid activity in the company’s financial services division contributed to the expansion.
BYD Co., Ltd.
Electric cars, rechargeable batteries, solar parks and battery energy storage systems are all products of BYD Co., a Chinese manufacturer. In addition, mobile phone components are among the many electrical appliances manufactured by the company.
On April 27, BYD announced that its Q1 2022 revenue and net profit attributable to shareholders have increased significantly annually. However, the company did not provide an analysis of the results.
Stellantis is a car manufacturer initially known as Fiat Chrysler Automobiles and now headquartered in the Netherlands. Chrysler, Fiat, Jeep, Ram, Alfa Romeo and Peugeot are some of the names under which it develops, manufactures and distributes cars, auto parts and auxiliary systems.
The US Department of Justice’s criminal investigation against the company’s subsidiary, FCA US LLC, was settled on June 3, according to an announcement from FCA US LLC.
More than 101,000 cars with 2nd generation EcoDiesel V-6 engines were included in the diesel emissions probe. A $96.1 million fine and the forfeiture of nearly $203 million in revenue are all part of the settlement.
When earnings season arrives, people expect exceptional results from Tesla. The past quarter was the third consecutive quarter in which sales were above forecasts and three of the four quarters in which profits were above estimates.
The latest quarterly results show revenue of $11.96 billion, up 98% year over year. Earnings per share of $1.02 represented a staggering 920% growth over the prior year.
A high P/E ratio is more than justified for the stock, as the company nearly doubled its available cash, tripled its operating income and increased its profit margins by more than 455%.
The Mercedes-Benz Group was founded in Germany. It designs, manufactures and markets Mercedes-Benz vehicles and vans. The company offers additional services including leasing, rental and financing. Mercedes-Benz and battery materials company Sila entered into a partnership on May 17 to allow batteries for future Mercedes-Benz G-Class electric cars to take advantage of Sila’s silicon anode chemistry.
In other words, the method improves the range of the battery by a factor of two to four times compared to commercially available battery cells of similar size.
When it comes to sales and profit, GM consistently delivers impressive performance. For example, the company’s revenue was higher than expected in three of its last four earnings releases. Furthermore, results in each of those four quarters were higher than expected by industry watchers.
Corporate profits and sales were above forecasts in the second quarter. Earnings reached $34.17 billion, up nearly 103% from the same period last year. Earnings per share of $1.90 were also excellent, up more than 474% from a year earlier.
Operating profit, net operating margin and revenue expenses exceeded GM’s expectations.
Ford Motors (NYSE: F)
Like many other companies, Ford is known for delivering impressive financial results during the earnings season. In the past four quarters, Ford has exceeded earnings estimates in each of those periods, and in three of those periods, it has also exceeded sales forecasts.
The company’s recent quarterly results beat expectations on all fronts, with sales up 38.2 percent to $26.75 billion. Earnings per share, however, came in at $0.14, down from $0.15 last year.
This decline was anticipated due to a global semiconductor shortage, which has led to reduced production capacity for Ford and other automakers.