We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ahead of Q2 Earnings, Which Auto Stock to Buy: GM, Tesla or Ford?
Second quarter results from the major automakers will be a highlight of this week's earnings lineup with Tesla and General Motors set to report on Tuesday, July 23.
Plus, Q2 results from Ford Motor are on tap Wednesday. That said, let's see if it's time to buy stock in these auto giants as earnings approach.
Tesla Q2 Expectations
Notably, Tesla's stock has been on a monstrous rally soaring over +20% in the last month. This comes as Tesla announced it delivered 443,956 EVs during Q2 which topped most analyst estimates although this was down from 466,140 deliveries in the prior year quarter.
Fueling the extended rally was increased deliveries from Chinese EV automakers such asNio andLi Auto with Tesla's factory in Shanghai being critical to its production as well. However, Tesla's Q2 EPS is expected at $0.62 compared to $0.91 a share in the comparative quarter. This is despite quarterly sales projected to rise to $25.13 billion versus $24.93 billion in Q2 2023.
Q2 Expectations for GM & Ford
As shown in Tesla's price performance chart above, General Motors and Ford's stock have also seen nice momentum leading up to their Q2 reports.
Both iconic automakers saw a hefty increase in elective vehicle sales with General Motors' EV deliveries spiking 40% during Q2 to 21,930. As for Ford, its Q2 EV deliveries soared 61% year over year to 23,957.
More impressively, General Motors' Q2 EPS is projected to expand 38% to $2.64 on sales of $44.94 billion, a slight increase from $44.75 billion a year ago. Following a tougher-to-compete-against prior-year quarter, Ford's Q2 EPS is expected to decline -14% to $0.62 with sales forecasted to dip -2% to $41.65 billion.
Valuation Comparisons
In terms of valuation, General Motors and Ford certainly stand out trading at just 5.1X and 6.9X forward earnings, respectively. It's noteworthy that both GM and Ford have an "A" Zacks Style Scores grade for Value.
Still commanding a noticeable premium to the broader market as an EV pioneer, Tesla's stock trades at a 96.4X forward earning multiple which is below its two-year high of 141.2X but above its median of 76.3X during this period.
Takeaway
Ahead of their Q2 reports, General Motors and Ford's stock both sport a Zacks Rank #2 (Buy). Now looks like an opportunistic time to invest in General Motors and Ford considering their EV growth and cheap P/E valuations.
Meanwhile, Tesla's stock lands a Zacks Rank #3 (Hold) after such an extensive rally over the last few months. To that point, longer-term investors may still be rewarded for holding Tesla's stock but there could certainly be better buying opportunities ahead.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Investment Ideas feature highlights: Tesla, General Motors, Ford Motor, Nio and Li Auto
For Immediate Release
Chicago, IL – July 23, 2024 – Today, Zacks Investment Ideas feature highlights Tesla (TSLA - Free Report) , General Motors (GM - Free Report) , Ford Motor (F - Free Report) , Nio (NIO - Free Report) and Li Auto (LI - Free Report) .
Ahead of Q2 Earnings, Which Auto Stock to Buy: GM, Tesla or Ford?
Second quarter results from the major automakers will be a highlight of this week's earnings lineup with Tesla and General Motors set to report on Tuesday, July 23.
Plus, Q2 results from Ford Motor are on tap Wednesday. That said, let's see if it's time to buy stock in these auto giants as earnings approach.
Tesla Q2 Expectations
Notably, Tesla's stock has been on a monstrous rally soaring over +20% in the last month. This comes as Tesla announced it delivered 443,956 EVs during Q2 which topped most analyst estimates although this was down from 466,140 deliveries in the prior year quarter.
Fueling the extended rally was increased deliveries from Chinese EV automakers such asNio andLi Auto with Tesla's factory in Shanghai being critical to its production as well. However, Tesla's Q2 EPS is expected at $0.62 compared to $0.91 a share in the comparative quarter. This is despite quarterly sales projected to rise to $25.13 billion versus $24.93 billion in Q2 2023.
Q2 Expectations for GM & Ford
As shown in Tesla's price performance chart above, General Motors and Ford's stock have also seen nice momentum leading up to their Q2 reports.
Both iconic automakers saw a hefty increase in elective vehicle sales with General Motors' EV deliveries spiking 40% during Q2 to 21,930. As for Ford, its Q2 EV deliveries soared 61% year over year to 23,957.
More impressively, General Motors' Q2 EPS is projected to expand 38% to $2.64 on sales of $44.94 billion, a slight increase from $44.75 billion a year ago. Following a tougher-to-compete-against prior-year quarter, Ford's Q2 EPS is expected to decline -14% to $0.62 with sales forecasted to dip -2% to $41.65 billion.
Valuation Comparisons
In terms of valuation, General Motors and Ford certainly stand out trading at just 5.1X and 6.9X forward earnings, respectively. It's noteworthy that both GM and Ford have an "A" Zacks Style Scores grade for Value.
Still commanding a noticeable premium to the broader market as an EV pioneer, Tesla's stock trades at a 96.4X forward earning multiple which is below its two-year high of 141.2X but above its median of 76.3X during this period.
Takeaway
Ahead of their Q2 reports, General Motors and Ford's stock both sport a Zacks Rank #2 (Buy). Now looks like an opportunistic time to invest in General Motors and Ford considering their EV growth and cheap P/E valuations.
Meanwhile, Tesla's stock lands a Zacks Rank #3 (Hold) after such an extensive rally over the last few months. To that point, longer-term investors may still be rewarded for holding Tesla's stock but there could certainly be better buying opportunities ahead.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.