You are using an older browser version. Please use a supported version for the best MSN experience.

5 Undervalued Auto Stocks to Buy Before They Zoom Higher

InvestorPlace logo InvestorPlace 8/10/2022 Faisal Humayun
Along with the broad market correction, auto stocks have declined in 2022. The S&P 500 Automobile Manufacturers Sub Industry Index has corrected by more than 20% during this period. This correction presents a good opportunity to accumulate some undervalued auto stocks.  The industry faces near-term headwinds that include inflation and a possible recession. Supply chain challenges have also impacted the auto industry. However, the long-term outlook remains robust. This is particularly true as the electric vehicle segment continues to grow at a healthy pace.  It’s worth noting that the global automotive market is expected to grow at a CAGR of 3.7% through 2030. For the same period, the electric vehicle market is expected to grow at a CAGR of 21.7%. It’s not surprising that traditional automakers are making a big shift toward electric vehicles.  With impending growth opportunities, it’s a good time to accumulate some undervalued auto stocks. My focus is on pure-play electric vehicle companies as well as traditional automakers that are positioned for growth.    LI Li Auto $30.87   TSLA Tesla $850   F Ford $15.19   GM General Motors $36.62   RIVN Rivian $36.70    © Provided by InvestorPlace
Along with the broad market correction, auto stocks have declined in 2022. The S&P 500 Automobile Manufacturers Sub Industry Index has corrected by more than 20% during this period. This correction presents a good opportunity to accumulate some undervalued auto stocks. The industry faces near-term headwinds that include inflation and a possible recession. Supply chain challenges have also impacted the auto industry. However, the long-term outlook remains robust. This is particularly true as the electric vehicle segment continues to grow at a healthy pace. It’s worth noting that the global automotive market is expected to grow at a CAGR of 3.7% through 2030. For the same period, the electric vehicle market is expected to grow at a CAGR of 21.7%. It’s not surprising that traditional automakers are making a big shift toward electric vehicles. With impending growth opportunities, it’s a good time to accumulate some undervalued auto stocks. My focus is on pure-play electric vehicle companies as well as traditional automakers that are positioned for growth. LI Li Auto $30.87 TSLA Tesla $850 F Ford $15.19 GM General Motors $36.62 RIVN Rivian $36.70
These undervalued auto stocks are positioned for a strong reversal in the medium to long term with electric vehicle segment growth.More From InvestorPlace
AdChoices
AdChoices
AdChoices

More from InvestorPlace

image beaconimage beaconimage beacon