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Best car stocks to buy in June

Best car stocks to buy in June

Key insights

  • Auto stocks have begun to recover after a prolonged slump.

  • Analysts’ estimates have fallen in recent weeks, but the pace of this decline has been modest.

  • Ford and General Motors are trading at about 6 forward P/E, which could attract value-oriented investors.

Several auto stocks found support in May and are trying to gain upward momentum as traders and investors are drawn to their cheap valuation levels.

Ford

Ford stocks had a tough year as it came under pressure in mid-January after hitting multi-year highs. Right now, the stock is down nearly 50% from these highs.

Analysts’ estimates have fallen in recent months, but their decline was not as dramatic as the decline in Ford’s stock price. Currently, the company is expected to report earnings of $1.93 per share in 2022 and $2.16 per share in 2023, so the shares are trading at just 6 forward P/E.

While markets worry about the health of the economy in the second half of this year, Ford stocks are trading at attractive valuation levels and could attract speculative traders willing to bet the concerns are overblown.

General engines

The situation is similar in General engines‘ case. Analysts’ estimates have fallen in recent weeks and the company is expected to report earnings of $6.73 per share next year.

Like Ford, the stock trades at about 6 forward P/E, so the market remains skeptical about the potential performance of legacy automakers.

However, it remains to be seen whether General Motors stock will continue to trade at such levels once earnings estimates stabilize. In addition, traders concerned about rising interest rates can offer additional support to low PE stocks, such as General Motors.

To keep up to date with the latest earnings updates, visit our income calendar

This one article was originally posted on FX Empire

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