Blog Introduction: If you’re looking for growth potential in 2020, the automobile industry might be a good place to start. By some estimates, the global automotive market is expected to reach $981 billion by 2025. And with technological advancements like electric vehicles and autonomous driving on the horizon, there’s no shortage of opportunity in this sector. So, without further ado, here are five car stocks to buy in 2020.
Toyota Motor Corporation (TM)
With a market capitalization of nearly $265 billion, Toyota is by far the largest company on this list. But size isn’t everything—Toyota is also one of the most profitable automakers in the world. In its most recent fiscal year, the company generated over $32 billion in operating profit on revenue of $275 billion. And with a strong balance sheet and healthy cash flow, Toyota should have no problem weathering any short-term challenges that come its way.
Tesla Inc (TSLA)
Tesla is arguably the most exciting company in the automotive space right now. The company has lofty ambitions to not only produce electric vehicles but also autonomous vehicles that can drive themselves. And while Tesla has had more than its fair share of struggles over the years, there’s no denying that it has been a major disruptor in the auto industry. For better or worse, Tesla is here to stay—and its stock should continue to be a volatile but exciting ride for investors in 2020.
BMW AG (BMW)
BMW is another automaker that’s been at the forefront of innovation in recent years. The company has been investing heavily in electric vehicles and autonomous driving technology, and it’s already starting to see the fruits of those investments pay off. In 2019, BMW sold over 140,000 electric vehicles—a significant increase from previous years. With more advances on the horizon, BMW looks like a solid pick for 2020.
Daimler AG (DDAIF)
Daimler is the parent company of Mercedes-Benz, one of the world’s most popular luxury automobile brands. And like BMW, Daimler has also been investing heavily in electric and autonomous vehicles. In 2019, Mercedes-Benz launched its first all-electric SUV—the EQC—to much fanfare. With more models set to launch in the coming years, Daimler looks poised to benefit from the continued shift towards electric vehicles.
Ford Motor Company (F)
While Ford may not be as flashy as some of its competitors, it’s still a solid pick for 2020. The company has been working hard to restructure its business in recent years and it appears to be paying off. Ford reported strong results in its most recent quarter, with revenue and profit both coming in ahead of analyst expectations. With a new CEO at the helm and a renewed focus on efficiency, Ford looks positioned for a comeback in 2020.
Conclusion: These are five car stocks that look like attractive picks for 2020. Of course, no investment recommendation is ever guaranteed to be successful—so make sure to do your own research before making any decisions about where to put your money. Happy investing!