Top Car Stocks for Q3 2022

STLA, TSLA, and BYDDY are top for value, growth, and momentum, respectively

The auto industry is made up of companies that manufacture and distribute vehicles and vehicle parts. The automobile sector has been undergoing significant change since the advent of electric and hybrid technologies, especially in the retail vehicles segment. Major automakers such as General Motors Co., Toyota Motor Corp., and Daimler AG continue to have considerable market share globally and in local markets, but newer electric vehicle entrants are growing rapidly and reshaping the sector.

The automobile sector outperformed the broader market over the past year. As of June 17, 2022, the S&P 1500 Automobiles Industry Index posted -5.2% in one-year trailing return compared with the Russell 1000's return of -14.3%.

Here are the top three car stocks with the best value, the fastest growth, and the most momentum. All numbers below are as of June 17, 2022.

Best Value Car Stocks

These are the car stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

Best Value Car Stocks
  Price ($) Market Capitalization (Market Cap) ($B) 12-Month Trailing P/E Ratio
Stellantis NV (STLA) 12.69 39.8 2.4
Mercedes-Benz Group AG (DMLRY) 16.12 69.0 2.7
Porsche Automobil Holding SE (POAHY) 7.12 21.8 3.3

Source: YCharts

  • Stellantis NV: Stellantis, formerly Fiat Chrysler Automobiles, is a Netherlands-based automotive company. It designs, builds, and sells vehicles, components, and related systems under brands including Chrysler, Fiat, Jeep, Ram, Alfa Romeo, and Peugeot. On June 3, the company's subsidiary FCA US LLC announced that it had agreed to a settlement that resolves a U.S. Department of Justice criminal investigation. The diesel emissions investigation involved over 101,000 vehicles with second-generation EcoDiesel V-6 engines. The agreement includes a guilty plea and a fine of $96.1 million, as well as the forfeiture of over $203 million in gains.
  • Mercedes-Benz Group AG: Mercedes-Benz Group is a Germany-based vehicle manufacturer. It develops, produces, and distributes cars and vans under the Mercedes-Benz brand. The company also provides financing, leasing, rental, and other related services. On May 17, Mercedes-Benz announced that it would partner with battery materials firm Sila to utilize Sila's silicon anode chemistry in batteries for upcoming electric Mercedes-Benz G-Class vehicles. The technology increases energy density by 20-40% compared to similar commercially available battery cells, significantly increasing the battery's driving range.
  • Porsche Automobil Holding SE: Porsche Automobil is a Germany-based holding company that specializes in the manufacture of cars, SUVs, and sedans. The company has a major investment in Volkswagen AG, and manages major brands including Volkswagen passenger cars, Audi, Skoda, Bentley, Bugatti, Lamborghini, Porsche, and Ducati.

Fastest Growing Car Stocks

These are the top food stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings per share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.

Fastest Growing Car Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Tesla Inc. (TSLA) 639.30 662.3 633.3 80.5
BYD Co. Ltd. (BYDDY) 72.82 106.0 257.3 66.4
Volkswagen AG (VWAGY) 19.14 113.0 102.3 0.6

Source: YCharts

  • Tesla Inc.: Tesla, the world’s largest automaker by market value, designs, manufactures, and sells electric vehicles, including sedans, SUVs, and trucks. It is also in the business of energy generation and storage products for residential and commercial use.
  • BYD Co. Ltd.: BYD Co. is a China-based company that manufactures and sells transportation equipment such as electric vehicles, rechargeable batteries, solar farms and battery energy story stations. The company also produces mobile phone parts and a variety of other electronic devices. On April 27, BYD reported a sharp increase in revenue and net profit attributable to shareholders (YOY) for Q1 2022. The company did not provide commentary on the performance figures.
  • Volkswagen AG: Volkswagen AG is a Germany-based automotive company. It manufactures and sells passenger cars, commercial vehicles, and power engineering products. It also provides financial services such as dealer and customer financing, leasing, and insurance. For Q1 2022, earnings after tax nearly doubled YOY on revenue growth of less than 1%. Factors driving growth included exchange rate effects, improved price positioning and product mix, and strong performance by the company's financial services business.

Car Stocks with the Most Momentum

These are the car stocks that had the highest total return over the last 12 months.

Car Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
BYD Co. Ltd. (BYDDY) 72.82 106.0 36.5
Li Auto Inc. (LI) 31.80 30.7 12.0
Tesla Inc. (TSLA) 639.30 662.3 5.7
Russell 1000 N/A N/A -14.3
S&P 1500 Automobiles Industry Index N/A N/A -5.2

Source: YCharts

  • BYD Co. Ltd.: See company description above.
  • Li Auto Inc.: Li Auto is a China-based company that designs, manufactures, and sells electric vehicles. Its flagship vehicle is the Li ONE, a six-seater premium electric SUV. In May 2022, the company delivered nearly 11,5000 Li ONE vehicles, up nearly 166% YOY.
  • Tesla Inc.: See company description above.

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Article Sources
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  1. FTSE Russell. “Russell US Indexes.”

  2. Stellantis NV. "FCA US LLC Reaches Agreement with U.S. Attorney’s Office to Resolve Diesel Emissions Investigation."

  3. Mercedes-Benz Group AG. "Mercedes-Benz and Sila achieve breakthrough with high silicon automotive battery."

  4. Volkswagon. "Shareholder Structure."

  5. BYD Co. Ltd. "2022 FIRST QUARTERLY REPORT," Page 2.

  6. Volkswagen AG. "January-March 2022 Interim Report," PDF pages 2, 20, 41.

  7. Li Auto Inc. "Li Auto Inc. May 2022 Delivery Update."

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