Here’s Why Auto Maker Stocks are Speeding Higher Now
Morgan Stanley (NYSE:MS) moved bullish on the auto industry, with General Motors (NYSE:GM) replacing Ford (NYSE:F) as the firm’s top pick. Morgan Stanley cites low market expectations due to supply disruptions and subsequently falling share prices as positives, improving the industry’s 12-month risk-reward outlook. Investors can get in at low prices now while the industry should begin to pick up later in the year. Morgan Stanley also cites the current gas price “sweet spot”, with prices high enough to urge consumers to buy more fuel efficient vehicles, but not so high as to discourage buying.
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Take a look at how automakers are faring in today’s trading:
Toyota (NYSE:TM) shares are up 0.62% to $84.13, Honda (NYSE:HMC) shares are up 0.96% to $39.79, Nissan (PINK:NSANY) shares are up 1.27% to $21.47, Volkswagen (PINK:VLKAY) share are up 1.12% to $38.02, General Motors (NYSE:GM) shares are up 2.20% to $31.54, and Ford (NYSE:F) shares are down 0.82% to $13.98, despite the general industry upswing, after being ousted from Morgan Stanley’s top spot by GM.