With the tides of the market constantly shifting, three remarkable auto stocks have emerged as bright stars shining on the Zacks Rank #1 (Strong Buy) list this week.
These autos, showing optimistic earnings estimate revisions pointing to a brighter future, present an enticing proposition for those seeking value in their investments.
Cummins
Cummins strides ahead with its Zacks Automotive-Internal Combustion Engines Industry, proudly situated in the cream of the crop – among the top 1% of nearly 250 Zacks industries.
The wheels of fortune have turned favorably for Cummins, a global juggernaut in diesel and natural gas engines, with its acquisition of Meritor unlocking a Pandora’s Box of growth opportunities.
The acquisition of Meritor in 2022 for $3.7 billion proved to be a masterstroke for Cummins, catapulting the company to record highs in various metrics.
Currently experiencing a 15% year-to-date surge, Cummins shows resilience with projections for record numbers in the upcoming fiscal years, trading at an appealing 14.5X forward earnings multiple.
Ford Motor
Amidst the sea of auto giants, Ford Motor stands out as a beacon of hope for investors, boasting earnings estimates that paint an enticing picture.
With stocks priced at $11 and only 5.8X forward earnings, Ford’s valuation holds a promise of undervaluation in the market.
Projections for annual earnings and sales indicate a strong outlook, placing Ford in a prime position to grab a slice of the EV market pie outside its traditional gasoline vehicle sphere.
Bolstering its appeal, Ford offers a generous 5.09% annual dividend yield, a crowning feature for income-seeking investors.
Suzuki Motor
From overseas, Suzuki Motor zooms into focus, delivering an impressive 8% rise in stock value while trading at a modest 11.7X forward earnings.
Riding on a surge in earnings estimates for the current and following fiscal years, investor sentiment is riding high on Suzuki’s ambitious foray into the electric vehicle market.
With plans to unveil a compact electric-powered “flying car” in 2025, Suzuki is poised to revolutionize the automotive landscape with a vehicle that promises to soar both literally and figuratively.
Bottom Line
Cummins, Ford Motor, and Suzuki Motor present a trifecta of tantalizing auto stocks, offering a harmonious blend of rising earnings and attractive valuations.
These gems in the auto sector hold promising prospects for investors eyeing sustainable growth in 2024 and beyond.
