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Best Auto Stocks to Buy Now (2025)

Top auto stocks in 2025 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:

Ferrari Nv (NYSE:RACE) is the #1 top auto stock out of 34 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 Ferrari Nv (NYSE:RACE) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: A, and AI: A.

Ferrari Nv (NYSE:RACE) has a Due Diligence Score of 31, which is 8 points higher than the auto industry average of 23.

RACE passed 13 out of 38 due diligence checks and has average fundamentals. Ferrari Nv has seen its stock return 15.18% over the past year, overperforming other auto stocks by 115 percentage points.

Ferrari Nv has an average 1 year price target of $510.00, an upside of 3.87% from Ferrari Nv's current stock price of $491.01.

Ferrari Nv stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Ferrari Nv, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Blue Bird (NASDAQ:BLBD) is the #2 top auto stock out of 34 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 Blue Bird (NASDAQ:BLBD) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: D, Financials: A, and AI: C.

Blue Bird (NASDAQ:BLBD) has a Due Diligence Score of 52, which is 29 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 lose -4.04% over the past year, overperforming other auto stocks by 96 percentage points.

Blue Bird has an average 1 year price target of $53.33, an upside of 18.28% from Blue Bird's current stock price of $45.09.

Blue Bird stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Blue Bird, 66.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Xpeng (NYSE:XPEV) is the #3 top auto stock out of 34 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 Xpeng (NYSE:XPEV) is: Value: D, Growth: A, Momentum: C, Sentiment: A, Safety: C, Financials: D, and AI: C.

Xpeng (NYSE:XPEV) has a Due Diligence Score of 29, which is 6 points higher than the auto industry average of 23.

XPEV passed 10 out of 33 due diligence checks and has average fundamentals. Xpeng has seen its stock return 135.02% over the past year, overperforming other auto stocks by 235 percentage points.

Xpeng has an average 1 year price target of $24.83, an upside of 40.7% from Xpeng's current stock price of $17.65.

Xpeng stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Xpeng, 50% have issued a Strong Buy rating, 16.67% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 16.67% have issued a Strong Sell.

Out of 1 auto stocks that have issued dividends in the past year, the 1 auto stocks with the highest dividend yields are:

General Motors Co (NYSE:GM) has an annual dividend yield of 0.97%, which is -2 percentage points lower than the auto industry average of 3.02%. 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 6.6% indicates that its dividend yield is sustainable for the long-term.

Auto stocks were up 0.33% in the last day, and down -1.41% over the last week.

We couldn't find a catalyst for why auto stocks are up.

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 A. 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 53 points higher than the auto industry average of 18. It passed 5 out of 7 valuation due diligence checks.

General Motors Co's stock has gained 13.64% in the past year. It has overperformed other stocks in the auto industry by 114 percentage points.

Stellantis Nv (NYSE:STLA) 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.

Stellantis Nv has a valuation score of 71, which is 53 points higher than the auto industry average of 18. It passed 5 out of 7 valuation due diligence checks.

Stellantis Nv's stock has dropped -47.15% in the past year. It has overperformed other stocks in the auto industry by 53 percentage points.

Blue Bird (NASDAQ:BLBD) is the third 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 29, which is 11 points higher than the auto industry average of 18. It passed 2 out of 7 valuation due diligence checks.

Blue Bird's stock has dropped -4.04% in the past year. It has overperformed other stocks in the auto industry by 96 percentage points.

46.15% of auto stocks rated by analysts are a buy right now. On average, analysts expect auto stocks to rise by 7.37% over the next year.

0% of auto stocks have a Zen Rating of A (Strong Buy), 0% of auto stocks are rated B (Buy), 47.83% are rated C (Hold), 39.13% are rated D (Sell), and 13.04% are rated F (Strong Sell).