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Forget Volkswagen (VLKAY), Buy these Cheap Auto Stocks Instead

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Ever since Volkswagen got caught for cheating emissions tests on over 11 million of its vehicles, auto stocks across the globe have been suffering. Volkswagen ( VLKAY ) is no longer the second largest car manufacturer in the world because of this scandal. In fact, the auto maker has lost over a third of its market value since it became known that the company was engaged in manipulating emissions tests. The car maker even had to give back its "Green Car of the Year" awards that it received in 2009 and 2010.

From a competitive standpoint, this should help other auto companies who were previously losing customers to the largest auto manufacturer in Germany. Since auto stocks have taken a particularly large hit compared to the overall market in the last week, now may be the right time to stock up on some buy ranked car companies. It's worth noting that each of these stocks have an "A" for value in our style scores.

Ford Motor Company- F

This car and truck manufacturer is currently doling out a generous 4.56% dividend yield. It holds a Zacks Rank #2 (Buy). Ford's EPS is projected to grow by 46.69% this year. Our EPS consensus estimate has been moving up over the last three months, from $0.44 to $0.46.

Ford is trading at a nice forward PE of just 7.78. Its PEG is also attractive at just 0.44. F stock is trading at a price to sales of just 0.37. The car company has beaten on our EPS consensus estimate in three of the last four quarters. Just last quarter, Ford beat our earnings consensus by 34.29%. Ford Motor Company reports its earnings on 10/27/15.

Nissan Adr- NSANY

Nissan manufactures and sells vehicles across the world. The company is a Zacks Rank #2 (Buy). The company has over 1500 Nissan and Infiniti dealerships across North America. The company has a reasonable debt/capital of 42.24%. It also has a current ratio of 1.62.

Nissan is a great buy from a value perspective. The stock trades at a price to book of 0.92. A price to book below one is pretty hard to find in today's markets where stocks are already fully valued. The Japanese auto maker trades at a forward PE of 8.72. It has an attractive PEG of 0.67 to complement the low PE. The price to sales ratio of Nissan is just 0.4. NSANY has beaten our earnings consensus in each of the last four quarters by an average of 13.63% per quarter. Nissan reports its earnings on 11/3/15.

Volvo Adr- VOLVY

Volvo is a Swedish auto manufacturer with sales and products in over 100 countries. Volvo, like every stock in this article, is a Zacks Rank #2 (Buy). The company has straight "A's" in each of our style scores (growth, value, and momentum). The company's EPS is projected to grow by 65.63% this year.

Volvo has a PEG of 1.16 and trades at a forward PE of 11.46. The stock trades at a price to sales below 0.49. In the last 12 weeks, VOLVY shares have lost over a quarter of their value. It may be wise to buy up shares now to lock in an attractive 3.54% dividend yield. In the last 60 days, two analysts have revised their earnings estimates higher. In the same time frame, no analysts have revised their estimates lower. Volvo reports its earnings on 10/23/15.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

VOLKSWAGEN-ADR (VLKAY): Free Stock Analysis Report

VOLVO AB ADR B (VOLVY): Free Stock Analysis Report

FORD MOTOR CO (F): Free Stock Analysis Report

NISSAN ADR (NSANY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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