May Auto Sales Could Boost Industry Stocks
June 6, 2018—Considering U.S. auto sales grew an estimated 2 percent in May, stock analysts were left cautiously optimistic regarding multiple OEMs’ stocks.
While it remains to be seen how the auto industry will be impacted by President Donald Trump’s recently imposed higher tariffs on imported steel from Europe, Canada and Mexico, May left stock analysts nonetheless intrigued. After all, U.S. auto sales increased slightly despite rising fuel costs.
According to Autodata, May U.S. auto sales reached an annualized pace of 16.9 million, better than the 16.6 million projected by Cox Automotive. The average price of full-sized pickup trucks and SUVs increased to $48,213 and $63,349, respectively.
According to stock market website zacks.com, the following manufacturers’ stocks are worth watching in the weeks ahead:
- Fiat Chrysler Automobiles reported an 11 percent rise in its May auto sales, moving 214,294 units. What’s more, Fiat reported retail deliveries of 167,785 vehicles, its best since July 2005.
- General Motors, which recently began reporting sales figures on a quarterly basis, saw its May auto sales grow an estimately 10 percent, according to analysts.
- Ford Motor Company reported a slight increase in May auto sales, posting retail sales of 163,796 units, beating expectations of a sales decline. Total sales, including fleet customers, increased 0.7 percent for that American manufacturer.