Tesla, Ferrari and Honda – the main auto stocks to buy


Ferrari, Tesla, and Honda Motor Corporation top the list of the best auto stocks to buy at the start of the new business year.

The auto industry is going through a big transformation as the transition to green energy forces automakers to focus on electric vehicles in the years to come. While costly, the process will reward those companies best positioned to take advantage of the green race.

Here are three names to consider: Ferrari, Tesla, and Honda Motor Corporation.

Ferrari

Ferrari is one of the most famous luxury car brands in the world. Listed on the New York Stock Exchange (NYSE) under the ticker RACE, Ferrari is headquartered in Maranello, Italy, and employs more than 4,500 people.

Ferrari’s share price has risen 12.77% over the past twelve months and the company pays an annual dividend which is expected to reach € 1.36 in 2022 and reach € 2.14 by 2024. The company is in the process of unveiling a new organizational structure. in January, and EPS is expected to increase by 50% over the next four years.

One of the most attractive metrics is the gross profit margin, which is 43.73% much higher than the industry median. This may be one of the reasons why most analysts are bullish on stock prices. Of the 20 analysts covering the stock, 17 issued buy ratings and 2 neutral ratings. Only 1 analyst issued a sales note. More recently, Morgan Stanley maintained its buy rating for the Ferrari stock price with a price target of $ 350.

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Tesla announced this week that it delivered more cars than the market expected in the fourth quarter, and the stock price rose from just over $ 1,050 to nearly $ 1,200.

The company does not pay a dividend, but it is the market leader in electric vehicles. While Tesla’s valuation is very high, investors are not afraid to buy stocks even if the P / E ratio exceeds the industry median by more than 1600%.

Tesla was recently on Morgan Stanley’s auto stock list and so far the stock price has encountered resistance at $ 1,200.

Honda Motor Corporation

Honda is based in Tokyo, Japan, and has listed its shares on the NYSE under the symbol HMD. While the stock price was almost stable last year, Honda is paying a large dividend, as evidenced by the dividend yield of 4.22% for the past twelve months and the payout ratio of 37.46%.

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