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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 35 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 55, which is 32 points higher than the auto industry average of 23.

BLBD passed 18 out of 33 due diligence checks and has strong fundamentals. Blue Bird has seen its stock return 12.05% over the past year, overperforming other auto stocks by 112 percentage points.

Blue Bird has an average 1 year price target of $54.67, a downside of -2.8% from Blue Bird's current stock price of $56.24.

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.

Niu Technologies (NASDAQ:NIU) is the #2 top auto stock out of 35 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 Niu Technologies (NASDAQ:NIU) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: D, Financials: C, and AI: C.

Niu Technologies (NASDAQ:NIU) has a Due Diligence Score of 17, which is -6 points lower than the auto industry average of 23.

NIU passed 5 out of 33 due diligence checks and has weak fundamentals. Niu Technologies has seen its stock return 127.62% over the past year, overperforming other auto stocks by 228 percentage points.

Xpeng (NYSE:XPEV) is the #3 top auto stock out of 35 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: C, Growth: A, Momentum: C, Sentiment: C, Safety: C, Financials: D, and AI: C.

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

XPEV passed 11 out of 33 due diligence checks and has average fundamentals. Xpeng has seen its stock return 139.13% over the past year, overperforming other auto stocks by 239 percentage points.

Xpeng has an average 1 year price target of $26.28, an upside of 23.21% from Xpeng's current stock price of $21.33.

Xpeng stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Xpeng, 60% have issued a Strong Buy rating, 20% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 20% 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 5.14%, which is 2 percentage points higher than the auto industry average of 3.03%. 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 94.9% indicates that its high dividend yield might not be sustainable for the long-term.

General Motors Co (NYSE:GM) has an annual dividend yield of 0.92%, which is -2 percentage points lower than the auto industry average of 3.03%. 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 7.7% indicates that its dividend yield is sustainable for the long-term.

Auto stocks were up 1.03% in the last day, and up 5.02% over the last week. LI Auto was the among the top gainers in the auto manufacturers industry, gaining 6.9% yesterday.

Shares of US-listed Chinese stocks are trading higher ahead of President Trump's meeting with President Xi on Friday. President Trump has hinted that Friday's meeting may include a deal regarding TikTok.

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 54 points higher than the auto industry average of 17. It passed 5 out of 7 valuation due diligence checks.

General Motors Co's stock has gained 25.77% in the past year. It has overperformed other stocks in the auto industry by 126 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 12 points higher than the auto industry average of 17. It passed 2 out of 7 valuation due diligence checks.

Blue Bird's stock has gained 12.05% in the past year. It has overperformed other stocks in the auto industry by 112 percentage points.

Ford Motor Co (NYSE:F) 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.

Ford Motor Co has a valuation score of 71, which is 54 points higher than the auto industry average of 17. It passed 5 out of 7 valuation due diligence checks.

Ford Motor Co's stock has gained 8.15% in the past year. It has overperformed other stocks in the auto industry by 108 percentage points.

42.86% of auto stocks rated by analysts are a buy right now. On average, analysts expect auto stocks to fall by -3.69% over the next year.

4% of auto stocks have a Zen Rating of A (Strong Buy), 0% of auto stocks are rated B (Buy), 48% are rated C (Hold), 28% are rated D (Sell), and 20% are rated F (Strong Sell).