Numerous automotive stocks fell in share price when the pandemic began this year. Car production was slowed or stopped altogether by most automotive companies. Dealerships were also forced to close their doors for an extended period of time during the peak due to the lack of sales, production, and active guidelines. Another contributor bringing down top automotive stocks is the loss of sales due to people not having money to spare for a car this year.
But how are things in October of this year? Well, it seems like the automotive industry has been able to gain some traction back. Some of the best automotive stocks to buy still have the potential to do well in the market. Some automotive companies like Tesla (TSLA Stock Report) and NIO (NIO Stock Report) were able to make a full recovery in the share price. This is due to the electric car trend in the automotive industry. This means that some automotive stocks have been able to start increasing in price once again. So let’s look at three automotive stocks that are performing well, or trying to recover in the stock market.
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First up on this list of automotive stocks to watch is Ferrari N.V. (RACE Stock Report). Since its conception, Ferrari has grown to be a widely known luxury supercar automaker. Ferrari currently produces luxury sports cars and participates in a variety of different racing leagues. Generally, the company will produce about 9000 vehicles per year. But shares of RACE stock fell with the rest of the automotive sector back in February to March. RACE stock price was at $171 a share on average at the start of 2020. But then, RACE stock fell under $130 a share. This 23% decrease in RACE stock price is not as significant as some other automotive stocks experience.
In Ferrari’s second-quarter results, it announced that its total shipments fell 49%. This occurred due to the “disruptions of the COVID-19 pandemic” that the company reported. The company’s net revenue was down 42.6% as well. Ferrari experienced a production suspension that resulted in lower deliveries and lower personalizations. Formula 1 revenue was down due to the season being suspended and lower visitors and such as well. It is clear that the company has been struggling in 2020.
But could things turn around? Well, RACE stock price is higher than it was before the pandemic. In fact, RACE stock is up 7.7% from January, from $168 a share to $181 a share on October 9th. Being such an exclusive company it was not hurt as much as mass-producing vehicle companies. The clientele for Ferrari did not change much, resulting in this recovery.Top Automotive Stocks To Buy [Or Avoid] This Week: Fiat Chrysler Automobiles N.V.
Next up on this list of automotive stocks is Fiat Chrysler Automobiles N.V. (FCAU Stock Report). Fiat Chrysler is an automotive corporation that was formed in 2014 when Fiat and Chrysler merged into one company. Fiat Chrysler is an automotive company that produces a variety of different vehicles. Some of its companies include Chrysler, Dodge, Alfa Romeo, Jeep, Maserati, Fiat, and many more. Holding these brands has made this one of the largest automotive companies in the world. So let’s now discuss some recent news for this large automotive company. FCAU stock was at $13 a share on average back in February of this year. In March, FCAU stock price fell as low as $6.35 a share on average. Clearly, this was not a good thing for investors of this automotive stock.
In Fiat Chrysler’s second-quarter reports, its net loss was 1 billion euros. Additionally, its worldwide combined shipments were down 63%. FCA’s revenue was also down 53%.
The CEO of the company, Mike Manley said, “Our second quarter showed that decisive actions and extraordinary contributions from our workforce enabled FCA to contain the impact of the COVID-19 crisis. While the company remains vigilant about the health and safety of employees, our plants are up and running, dealers are selling in showrooms and online, and we have the flexibility and financial strength to push ahead with our plans.”
FCAU stock price is at $12.61 a share as of October 9th. That is why FCAU stock is on this list of automotive stocks to watchTop Automotive Stocks To Buy [Or Avoid] This Week: CarMax Inc.
Last but not least on this list of automotive stocks comes CarMax Inc. (KMX Stock Report). CarMax is currently the largest used car dealer in North America. The company operates as a car retail store rather than a traditional dealership. There is no negotiation process, and the salesmen make a flat commission fee on every car.
This means there is no competitive dealership environment a traditional automotive shop may have. Well just like many other dealerships and automotive companies, KMX stock price was hurt by the pandemic.
On June 19th, CarMax released its quarterly earnings report. The company stated quarterly earnings of $0.23 a share. This is a surprise to analysts of 483.33% percent which shocked investors. CarMax was still affected by the state of the economy still. Its sales fell to $3.23 billion from $5.37 billion due to closing locations caused by this pandemic. But now, KMX stock has been able to recover. As of October 9th, KMX stock price is at $95 a share, higher than the $87 a share it started in 2020 at. That is why CarMax has made this list of automotive stocks to watch.