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Best Auto Stocks to Buy Now (2026)

Top auto stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best auto stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best car stocks to buy right now are:

Blue Bird (NASDAQ:BLBD) is the #1 top auto stock out of 32 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Blue Bird (NASDAQ:BLBD) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: D, Financials: A, and AI: C.

Blue Bird (NASDAQ:BLBD) has a Due Diligence Score of 53, which is 30 points higher than the auto industry average of 23.

BLBD passed 17 out of 33 due diligence checks and has strong fundamentals. Blue Bird has seen its stock return 84.2% over the past year, overperforming other auto stocks by 148 percentage points.

Blue Bird has an average 1 year price target of $68.00, an upside of 7% from Blue Bird's current stock price of $63.55.

Blue Bird stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Blue Bird, 83.33% have issued a Strong Buy rating, 16.67% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Nio (NYSE:NIO) is the #2 top auto stock out of 32 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Nio (NYSE:NIO) is: Value: C, Growth: A, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Nio (NYSE:NIO) has a Due Diligence Score of 33, which is 10 points higher than the auto industry average of 23.

NIO passed 11 out of 33 due diligence checks and has average fundamentals. Nio has seen its stock return 59.8% over the past year, overperforming other auto stocks by 124 percentage points.

Nio has an average 1 year price target of $6.00, a downside of -4.46% from Nio's current stock price of $6.28.

Nio stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Nio, 60% have issued a Strong Buy rating, 0% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 20% have issued a Strong Sell.

General Motors Co (NYSE:GM) is the #3 top auto stock out of 32 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for General Motors Co (NYSE:GM) is: Value: B, Growth: D, Momentum: C, Sentiment: B, Safety: B, Financials: C, and AI: C.

General Motors Co (NYSE:GM) has a Due Diligence Score of 41, which is 18 points higher than the auto industry average of 23.

GM passed 15 out of 38 due diligence checks and has strong fundamentals. General Motors Co has seen its stock return 71.29% over the past year, overperforming other auto stocks by 135 percentage points.

General Motors Co has an average 1 year price target of $94.06, an upside of 19.79% from General Motors Co's current stock price of $78.52.

General Motors Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 18 analysts covering General Motors Co, 55.56% have issued a Strong Buy rating, 27.78% have issued a Buy, 11.11% have issued a hold, while 0% have issued a Sell rating, and 5.56% have issued a Strong Sell.

Out of 3 auto stocks that have issued dividends in the past year, the 3 auto stocks with the highest dividend yields are:

Ford Motor Co (NYSE:F) has an annual dividend yield of 3.61%, which is 2 percentage points higher than the auto industry average of 1.87%. Ford Motor Co's dividend payout is not stable, having dropped more than 10% six times in the last 10 years. Ford Motor Co's dividend has not shown consistent growth over the last 10 years.

Ford Motor Co's dividend payout ratio of -36.4% indicates that its dividend yield might not be sustainable for the long-term.

Ferrari Nv (NYSE:RACE) has an annual dividend yield of 1.2%, which is -1 percentage points lower than the auto industry average of 1.87%. Ferrari Nv's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Ferrari Nv's dividend has shown consistent growth over the last 10 years.

Ferrari Nv's dividend payout ratio of 32.5% indicates that its dividend yield is sustainable for the long-term.

General Motors Co (NYSE:GM) has an annual dividend yield of 0.8%, which is -1 percentage points lower than the auto industry average of 1.87%. General Motors Co's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. General Motors Co's dividend has not shown consistent growth over the last 10 years.

General Motors Co's dividend payout ratio of 17.1% indicates that its dividend yield is sustainable for the long-term.

Auto stocks were down -2.08% in the last day, and down -2.8% over the last week. Tesla was the among the top losers in the auto manufacturers industry, dropping -3.56% yesterday.

Tesla shares are trading lower after the company reported mixed Q1 financial results. CEO Musk told investors during a conference call to expect a "substantial increase in CapEx."

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued auto stocks right now are:

General Motors Co (NYSE:GM) is the most undervalued auto stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

General Motors Co has a valuation score of 71, which is 56 points higher than the auto industry average of 15. It passed 5 out of 7 valuation due diligence checks.

General Motors Co's stock has gained 71.29% in the past year. It has overperformed other stocks in the auto industry by 135 percentage points.

Blue Bird (NASDAQ:BLBD) is the second most undervalued auto stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Blue Bird has a valuation score of 57, which is 42 points higher than the auto industry average of 15. It passed 4 out of 7 valuation due diligence checks.

Blue Bird's stock has gained 84.2% in the past year. It has overperformed other stocks in the auto industry by 148 percentage points.

Toyota Motor (NYSE:TM) is the third most undervalued auto stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Toyota Motor has a valuation score of 43, which is 28 points higher than the auto industry average of 15. It passed 3 out of 7 valuation due diligence checks.

Toyota Motor's stock has gained 8.07% in the past year. It has overperformed other stocks in the auto industry by 72 percentage points.

37.5% of auto stocks rated by analysts are a hold right now. On average, analysts expect auto stocks to rise by 19.52% over the next year.

0% of auto stocks have a Zen Rating of A (Strong Buy), 4.35% of auto stocks are rated B (Buy), 52.17% are rated C (Hold), 30.43% are rated D (Sell), and 13.04% are rated F (Strong Sell).