Ford Motor Company (F), General Motors Company (GM): These Three Stocks All Offer Different Plays on the Recovering Auto Market

Bigger could be better

Currently valued at $205 billion, Toyota Motor Corporation (ADR) (NYSE:TM) is bigger than both Ford and General Motors Company (NYSE:GM) combined and the company could be a good looking prospect for risk investors. Like Ford and GM, Toyota Motor Corporation (ADR) (NYSE:TM) noted a 10% uptick in sales for June this year and the company could be set for a huge profit boost following the weakening of the yen which has already spurred analysts to upgrade EPS forecasts for this year by nearly 53%!

These upgrades take the consensus estimate for Toyota Motor Corporation (ADR) (NYSE:TM)’s year-on-year EPS growth up to 237%, which puts the company on a Price/Earnings to Growth (PEG) ratio of 0.8 indicating that the stock could offer growth at a reasonable price.

Foolish summary

All in all there are currently some very good companies trading at very cheap valuations in the auto sector. Ford’s stock still looks like it could move higher as the company returns to profitability in Europe, while sales in the US remain strong and the company’s finance division rakes in the cash.

Having said that, GM looks like it could be approaching value territory and its sales are expanding as well. Toyota Motor Corporation (ADR) (NYSE:TM) is benefiting from the weaker yen and its sales are rapidly expanding.

Overall, all three companies offer opportunities. Ford has growth, GM has value and Toyota Motor Corporation (ADR) (NYSE:TM) offers growth at a reasonable price, three different reasons for investment in three different companies.

The article These Three Stocks All Offer Different Plays on the Recovering Auto Market originally appeared on Fool.com is written by Rupert Hargreaves.

Fool contributor Rupert Hargreaves has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Rupert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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