10 Best Low Priced Stocks to Invest in For the Long Term

6. Stellantis N.V. (NYSE:STLA)

Stock Price as of May 6: $9.38

Market cap as of May 6: $27.1 billion

Number of Hedge Fund Holders: 32

Stellantis N.V. (NYSE:STLA) is engaged in designing, engineering, manufacturing, distributing, and selling automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems. Notably, the commercial recovery actions included launching 3 all-new products and several updated nameplates in Q1 2025. These resulted in the increased EU30 market share as compared to Q4 2024, and an improvement in US retail order volumes. Stellantis N.V. (NYSE:STLA) highlighted that its market share in EU30 of 17.3% in Q1 2025 increased 1.9 percentage points versus Q4 2024. This was because of the continued ramp-up and expanding availability of the Citroën C3/ëC3, Peugeot 5008, and Opel/Vauxhall Grandland, which were rolled out in late 2024.

With Stellantis N.V. (NYSE:STLA) optimizing its production processes and aligning output more closely with demand, it can see a reduction in working capital requirements and improvement in cash conversion cycles. The potential restructuring and reshoring efforts, while costly, can result in long-term improvements in FCF. Moving forward, through optimizing global production footprint and decreasing dependency on imported vehicles for the broader US market, Stellantis N.V. (NYSE:STLA) can mitigate tariffs’ impact and improve its cost structure.

Ariel Investments, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Lastly, shares of multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA) declined following a significant earnings miss. The company attributed the performance to lower sales, production disruptions from a product overhaul and weak performance in North America. Muted demand for electric vehicles in Europe also weighed on performance. In response, STLA is implementing operational improvement initiatives to bring down U.S. inventory levels through production cuts, consumer incentives and gradual price adjustments. Despite these results, management maintained its previous buyback and dividend commitments. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA’s strong global footprint and commitment to industry leading profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.”