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Although the industry is facing an acute semiconductor chip shortage, the supply of semiconductors is anticipated to improve in the coming months based on measures taken by governments and businesses. Investors’ interest in the auto industry is evident in First Trust NASDAQ Global Auto Index Fund’s (CARZ) 9.6% increase over the past three months.
Given this backdrop, we think shares of auto manufacturing leaders Volkswagen (DE:VOWG_p) AG (VWAGY), Daimler AG (DE:DAIGn) (DDAIF), Honda Motor Co. Ltd (HMC), and Mazda Motor Corporation (MZDAY) could be wise bets now. Our proprietary POWR Ratings system currently has an A rating for these stocks.
