SUBSCRIBE

CATEGORIES

3 Cheap Auto Stocks with Over 30% Upside, According to Wall Street

imageStock Markets20 minutes ago (Jul 01, 2021 05:30PM ET)

(C) Reuters 3 Cheap Auto Stocks with Over 30% Upside, According to Wall Street

The automotive sector is expected to recover in the coming months in equal measures due to government and private investments to address a semiconductor shortage issue and rising consumer demand. Given this backdrop, Wall Street expects cheap auto stocks Penske (PAG), Asbury (NYSE:ABG), and Group 1 (GPI) to gain significantly in the near-term. So, let’s take a closer look at these names.
The automotive industry has been recovering from its pandemic-driven lows, as evidenced by its solid sales growth in the first quarter. While the industry is currently grappling with a global semiconductor shortage, President Biden’s proposed $50 billion investment in semiconductor manufacturing and research and development, under the CHIPS for America Act, should boost the production levels significantly. There have also been private investments to address the semiconductor shortage issue.

Global automotive sales are expected to rise 8%-10% year-over-year to 83-85 million units in 2021.

Given this backdrop, Wall Street analysts expect cheap automotive stocks Penske Automotive Group, Inc. (NYSE:PAG), Asbury Automotive Group Inc . (ABG), and Group 1 Automotive, Inc. (NYSE:GPI) to rally in the coming months.

Continue reading on StockNews

3 Cheap Auto Stocks with Over 30% Upside, According to Wall Street

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.