Sectors & IndustriesConsumer CyclicalAuto Manufacturers

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:

Blue Bird (NASDAQ:BLBD) is the #1 top auto stock out of 34 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% 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 27 points higher than the auto industry average of 25.

BLBD passed 17 out of 33 due diligence checks and has strong fundamentals. Blue Bird has seen its stock return 19.48% over the past year, overperforming other auto stocks by 47 percentage points.

Blue Bird has an average 1 year price target of $68.25, an upside of 35.52% from Blue Bird's current stock price of $50.36.

Blue Bird stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Blue Bird, 75% have issued a Strong Buy rating, 25% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Niu Technologies (NASDAQ:NIU) is the #2 top auto stock out of 34 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 Niu Technologies (NASDAQ:NIU) is: Value: C, Growth: A, Momentum: C, Sentiment: C, Safety: D, Financials: C, and AI: C.

Niu Technologies (NASDAQ:NIU) has a Due Diligence Score of 28, which is 3 points higher than the auto industry average of 25.

NIU passed 9 out of 33 due diligence checks and has average fundamentals. Niu Technologies has seen its stock return 73.8% over the past year, overperforming other auto stocks by 101 percentage points.

General Motors Co (NYSE:GM) 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 General Motors Co (NYSE:GM) is: Value: A, Growth: C, Momentum: B, Sentiment: B, Safety: C, Financials: C, and AI: C.

General Motors Co (NYSE:GM) has a Due Diligence Score of 34, which is 9 points higher than the auto industry average of 25.

GM passed 12 out of 38 due diligence checks and has average fundamentals. General Motors Co has seen its stock return 54.67% over the past year, overperforming other auto stocks by 82 percentage points.

General Motors Co has an average 1 year price target of $77.69, a downside of -3.96% from General Motors Co's current stock price of $80.89.

General Motors Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 16 analysts covering General Motors Co, 62.5% have issued a Strong Buy rating, 25% have issued a Buy, 6.25% have issued a hold, while 0% have issued a Sell rating, and 6.25% have issued a Strong Sell.

Out of 2 auto stocks that have issued dividends in the past year, the 2 auto stocks with the highest dividend yields are:

Ford Motor Co (NYSE:F) has an annual dividend yield of 4.36%, which is 2 percentage points higher than the auto industry average of 2.53%. Ford Motor Co's dividend payout is not stable, having dropped more than 10% seven 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 63.6% indicates that its high dividend yield is sustainable for the long-term.

General Motors Co (NYSE:GM) has an annual dividend yield of 0.7%, which is -2 percentage points lower than the auto industry average of 2.53%. 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 10.2% indicates that its dividend yield is sustainable for the long-term.

Auto stocks were up 1.23% in the last day, and down -1.06% over the last week. Polestar Automotive Holding Uk was the among the top gainers in the auto manufacturers industry, gaining 19.32% yesterday.

Polestar shares are trading higher after the company's ADS ratio went into effect on Dec. 9.

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 52 points higher than the auto industry average of 19. It passed 5 out of 7 valuation due diligence checks.

General Motors Co's stock has gained 54.67% in the past year. It has overperformed other stocks in the auto industry by 82 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 29, which is 10 points higher than the auto industry average of 19. It passed 2 out of 7 valuation due diligence checks.

Blue Bird's stock has gained 19.48% in the past year. It has overperformed other stocks in the auto industry by 47 percentage points.

Niu Technologies (NASDAQ:NIU) 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.

Niu Technologies has a valuation score of 14, which is -5 points higher than the auto industry average of 19. It passed 1 out of 7 valuation due diligence checks.

Niu Technologies's stock has gained 73.8% in the past year. It has overperformed other stocks in the auto industry by 101 percentage points.

42.86% of auto stocks rated by analysts are a strong buy right now. On average, analysts expect auto stocks to rise by 10.89% over the next year.

3.7% of auto stocks have a Zen Rating of A (Strong Buy), 3.7% of auto stocks are rated B (Buy), 55.56% are rated C (Hold), 22.22% are rated D (Sell), and 14.81% are rated F (Strong Sell).