Now that GM and Chrysler are mired in turnarounds and still hemorrhaging sales, a select group of auto stocks will step into the void to gain market share and see huge growth in 2010.
December sales figures show the best month for automakers since the August boom caused by "Cash for Clunkers." This is extremely significant since it shows that pent-up demand is catching up with consumers and that the worst may be over for auto stocks that weathered the downturn successfully.
Here are my three top auto stocks to buy now.
Click on each stock to learn more.
Stock #1: Ford Motor Co. (F)
Stock #2: Kandi Technologies (KNDI)
Stock #3: Thor Industries (THO)
Editor's Note: An earlier version of this post incorrectly said GM and Chrysler were still in bankruptcy.
At the time of this writing, Louis Navellier owned shares of Ford in personal or client portfolios.
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Reader Comments (Page 1 of 2)
1-17-2010 @ 10:56AM
Jim in AR said...
Here are MY three tips: Don't read any article that has a glaring error in the first sentence, like "GM is bankrupt." GM is out of bankruptcy, at least for now. Second, don't read any article that was written to push any particular stocks unless the writer swears he or she has never invested in those stocks and never will. Third, for God's sake, don't invest any money in the auto industry; take your money to Vegas where it will be much safer.
1-17-2010 @ 11:00AM
Jim in AR said...
Ooops, I forgot to add that the December sales figures are meaningless; the government's "cash for clunkers" indeed had expired, but the federal tax rebate of state sales taxes on new car purchases expired New Year's Eve.
1-17-2010 @ 11:10AM
Jim in AR said...
One more thing: Thor Industries (THO), the 3rd recommended stock in this article, makes those big, gas guzzling recreational vehicles, the kind people rented for family vacations in the 1960s. Its 2009 sales growth was -42.4%, according to the Daily Finance website (http://www.dailyfinance.com/company/thor-industries-inc/tho/nys/overview). So, on second thought, don't bother taking your money to Vegas; just go ahead and burn it.
1-17-2010 @ 11:53AM
Bob Olear said...
Its the tax that kills auto sales, and for some reason the tax is put on for the higher amount not the actual selling price. So you get a deal like paying $17,000 for a $24,000 car then bang, then they tell you its over $1,500 more with tax- END OF DEAL- WALK OUT. If they want to sell cars tax should be a flat $100. for cars that retail under $30,000. If a guy buys a car over $30,000 then he can afford to pay the tax or pay a flat $500. for up to a $50,000 car or $1,000 for a more expensive car. Governments that rely on these taxes, the gravey train is over with- live within your budget. We have to live within ours.
1-17-2010 @ 3:13PM
Pigvalve said...
I disagree with these blanket statements. Ford never took government money and now have the best selling sedan in its class in the Fusion. Ford was trading under $2.00 and now has made spectacular gains [I own Ford stock....disclosure is key as stated by others on these comment pages]. Is the run over? Maybe not. Will car sales return eventually? Probably yes. If the government steps out of the way the market will correct itself through time. Are you patient? You will need to be....investing is a long term endeavor. If you want fast bucks right away. Then go to Vegas...it is more exciting and the lighting is better
1-17-2010 @ 5:10PM
David said...
Only one automaker will make you money. Ford didn't take any bailout funds, the other two automobile "manufacturers" went begging to Obama to stay in business. Screw them and their second-rate vehicles. We lent billions to Chrysler that is owned by a hedge fund. Get real people. The scum rises very quickly to the surface.
1-17-2010 @ 5:39PM
39hagedorn said...
Pigvalve- The Ford Fusion is not the best selling car in its class. The Camry and Accord are still way ahead in sales, and I think even the Nissan Altima matches the Fusion in sales.
1-17-2010 @ 7:10PM
Sharon said...
. . but buying/investing in a Camry or Accord would be supporting a foreign economy. I would hope that most Americans would think of that, and try to buy American when possible - and keep the Americans working.
1-17-2010 @ 8:43PM
Pigvalve said...
I may stand corrected but I know for a fact that Accord and Camry sales are down 20+ per cent and the Fusion is up about 15 per cent year over year sales. As far as the comment someone made about buying American alot of Hondas and Toyotas ARE made in America in factories in the south putting Americans to work away from the crushing influence of the unions in the north. Wake up America it's been a money grab for years and besides the government trying to control the riches they are partnering with deep union participation to centralize their power base. Doesn't matter who is in power just don't give any one party ALL the power.
1-17-2010 @ 9:08PM
Bob said...
Considering the pedegree of Chysler Jeep, the remains of Kaiser Jeep, the renamed failed Willeys Overland bought by Kaiser before it failed. Then their is the AMC branch, with the remains of Nash, which contains the rements of Hudson. Chrysler, the conglomerate of generations of failure.
1-17-2010 @ 9:47PM
Sharon said...
Well, I'm still a proud American and prefer to drive a car from an America Company rather than Asian. Even though some are assembled here, the profit goes back to Japan or wherever.
1-17-2010 @ 10:08PM
Brandon E. Depp said...
last time i looked GM wasnt in bankruptcy, and Ford did take govt. monies just years prior... hence why they didnt need it this time. get your facts straight all before you post nonsense!
1-17-2010 @ 10:13PM
Brandon E. Depp said...
after all is said and done, the govt will have made money from their "bailout" of GM, plus why so much hatred for the auto industry? the banks did the same and most have yet to either pay or finish paying back any of that money! is it because of unions and the jealousy most people have toward those people who essentially created the middle class in this country?!
1-18-2010 @ 12:27AM
gtxtra84 said...
Ford didnt take Govt funds, nor did take take it in prior years because they were smart enough to see the problems ahead. They took out regular loans using what they owned as collateral instead of cowering to the government. Working smarter, not harder and look at the reward. Stock that went as low as $1.05 has been as high as $12.00 recently because people have confidence in Ford while the other two went into bankruptcy. And how long will they owe billions to the tax payers? Ford always claimed to have a better idea. I guess you can say they proved it! As for GM and Chrysler, the Govt is always going to dump money on the problem because they cant admit failure! Stock and bonholders got screwed though!
1-18-2010 @ 6:51AM
Pigvalve said...
BRANDON---Ford never took government money you must get YOUR facts straight that is one of the reasons they are emerging stronger. They are not beholding to a massive government nightmare.
1-18-2010 @ 10:00AM
Brandon E. Depp said...
oh really?!?!? Ford took $5.9 billion of "the original" bailout, from the Pelosi Energy Act of 2007, to build government-approved cars. THANK YOU! That help them come last yr when GM/Chrysler got there, just made a lil more public this time around!
1-18-2010 @ 12:09PM
RON said...
i would hope that all of you are aware that the japanese, korean, and german car companies got tax dollars to build plants in usa.
1-18-2010 @ 1:16PM
uaintnodazee said...
they make over priced junk designed to cost an arm & a leg to upkeep with rip off dealers who replace a fuse or a sensor and charge you ungodly costs for repairing something else they never touched ! the braking systems always suck calibers wear ezly (sqeaks )stick rotors warp master cylinders ha ha ha thats a good one ! theyre junk and these auto makers arent changing anything unless of course it leads to more costly repairs and parts ! 30yrs and we still dont get 100 miles per gal should of let them go bankrupt ! good riddence & take the terrorist delivering air lines with em !
1-18-2010 @ 1:19PM
uaintnodazee said...
why did they ever turn the motor sideways under the hood ? to make it harder for owners to repair themselves and need special expensive tools some metric some in inches and star shaped screws or to force you into using theyre snake pit ripoffs services
1-18-2010 @ 3:38PM
experienced said...
Going to move to Asia to find a job? think about it. Maybe we all better invest in American products