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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:

Blue Bird (NASDAQ:BLBD) is the #1 top auto stock out of 33 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: B, Momentum: C, Sentiment: C, Safety: D, Financials: A, and AI: C.

Blue Bird (NASDAQ:BLBD) has a Due Diligence Score of 46, which is 21 points higher than the auto industry average of 25.

BLBD passed 15 out of 33 due diligence checks and has strong fundamentals. Blue Bird has seen its stock return 21.97% over the past year, overperforming other auto stocks by 34 percentage points.

Blue Bird has an average 1 year price target of $67.50, an upside of 34.03% 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 2 analysts covering Blue Bird, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Toyota Motor (NYSE:TM) is the #2 top auto stock out of 33 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 Toyota Motor (NYSE:TM) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Toyota Motor (NYSE:TM) has a Due Diligence Score of 53, which is 28 points higher than the auto industry average of 25.

TM passed 21 out of 38 due diligence checks and has strong fundamentals. Toyota Motor has seen its stock return 13.19% over the past year, overperforming other auto stocks by 25 percentage points.

General Motors Co (NYSE:GM) is the #3 top auto stock out of 33 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: C, Sentiment: B, Safety: C, Financials: C, and AI: B.

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 27.73% over the past year, overperforming other auto stocks by 40 percentage points.

General Motors Co has an average 1 year price target of $73.38, an upside of 3.71% from General Motors Co's current stock price of $70.75.

General Motors Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 16 analysts covering General Motors Co, 56.25% have issued a Strong Buy rating, 25% have issued a Buy, 12.5% 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 3.41%, which is 1 percentage points higher than the auto industry average of 2.08%. 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 dividend yield is sustainable for the long-term.

General Motors Co (NYSE:GM) has an annual dividend yield of 0.76%, which is -1 percentage points lower than the auto industry average of 2.08%. 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 down -0.93% in the last day, and down -1.85% over the last week. Tesla was the among the top losers in the auto manufacturers industry, dropping -3.68% yesterday.

Tesla shares are trading lower despite shareholders approving CEO Elon Musk's compensation package. Stocks across sectors are down amid macro uncertainty and weak consumer sentiment.

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 27.73% in the past year. It has overperformed other stocks in the auto industry by 40 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 21.97% in the past year. It has overperformed other stocks in the auto industry by 34 percentage points.

Honda Motor Co (NYSE:HMC) 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.

Honda Motor 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.

Honda Motor Co's stock has gained 7.46% in the past year. It has overperformed other stocks in the auto industry by 19 percentage points.

42.86% of auto stocks rated by analysts are a hold right now. On average, analysts expect auto stocks to rise by 9.77% 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), 48.15% are rated C (Hold), 25.93% are rated D (Sell), and 18.52% are rated F (Strong Sell).