3 Automotive Stocks To Consider
In 2015, the sales of automobiles in the U.S. have peaked at historic levels, setting a sales record of nearly 17.5 million vehicles, a 5.7% growth compared to the previous milestone of 17.4 million vehicles in 2000. In spite of the turbulent macroeconomic environment globally, the trend suggests improved margins, strong leverage in multiple regions globally and new capital investments. Through 2018, U.S. sales of vehicles are expected to be in line due to higher interest rates and an anticipated increase in the used cars. This article discusses a small-cap and two mid-cap companies trading in the Automotive industry. Over the past 6 months, all three stocks performed great, suggesting high investor confidence and an upward trend. Their average debt-to-equity ratio is 0.27, indicating financially healthy companies with effective debt management, whereas their average beta 1.43 makes up for a safe investment. All three companies yield 1.73% on average, which is higher than the average yield 1.61% of the industry. Similarly, their average payout ratio of 28% is higher than the average payout ratio 15.2% of the Auto & Truck Manufacturers industry.











