In this article, we will look at the 13 Best Automotive Stocks to Buy According to Hedge Funds.
On August 25, CNBC’s Phil LeBeau appeared on CNBC’s ‘Power Lunch’ to talk about the hiking automotive prices and the reason behind this trend.
He stated that auto prices are continuing to rise, and it is the upper end of the market that is experiencing the most growth. He corroborated this claim with data from Cox Automotive looking at the increase in prices of automotives and the willingness of buyers to purchase them.
The data showed that the percentage of new car sales over $50,000 was 25.5% in 2019, rising to 44.2% in 2025.
Similarly, the percentage of new car sales over $60,000 rose from 7.0% in 2019 to 27.1% in 2025, while that of over $70,000 grew from 3.9% in 2019 to 14.1% in 2025. The average new auto transaction price, according to the data, stood at $48,841.
READ ALSO: 10 Best Affordable Growth Stocks to Buy and 11 Hot Large Cap Stocks to Buy According to Hedge Funds.
LeBeau reasoned that this started during the chip crisis: when automakers were restricted in the number of semiconductors they could get, they prioritized making the most profitable vehicles as smart business operators. These included the higher-priced and higher-end vehicles, which sold primarily because there was a limited supply out there.
He thus stated that this trend marked the beginning of the shift within the market. The reality, according to LeBeau, is that the automakers are in this business to make money, and with higher-income households buying a greater percentage of vehicles, the market has shifted to the upper end.
With these trends in view, let’s look at the best automotive stocks to buy according to hedge funds.
Our Methodology
We used stock screeners to compile a list of top automotive stocks and chose the top 13 most popular among hedge funds as of Q2 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on September 2.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Best Automotive Stocks to Buy According to Hedge Funds
13. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 28
Stellantis N.V. (NYSE:STLA) is one of the best automotive stocks to buy according to hedge funds. In a report released on August 28, Thomas Besson from Kepler Capital maintained a Buy rating on Stellantis N.V. (NYSE:STLA), setting a price target of €12.00.
Stellantis N.V. (NYSE:STLA) reported financial results for the first half of 2025 on July 29, with net revenues of €74.3 billion, down 13% compared to H1 2024.
The drop was primarily driven by year-over-year declines in North America and enlarged Europe, partially offset by growth in South America.
The company also reported a net loss of €2.3 billion, which includes €3.3 billion of net charges excluded from adjusted operating income, down compared to the first half of 2024. Stellantis N.V. (NYSE:STLA) also reported net profit of €5.6 billion.
Stellantis N.V. (NYSE:STLA) designs, manufactures, distributes, and sells vehicles. The company offers products under various brands, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Opel, Peugeot, Ram, and Vauxhall.
12. Asbury Automotive Group, Inc. (NYSE:ABG)
Number of Hedge Fund Holders: 30
Asbury Automotive Group, Inc. (NYSE:ABG) is one of the best automotive stocks to buy according to hedge funds. On August 14, Morgan Stanley raised the firm’s price target on Asbury Automotive Group, Inc. (NYSE:ABG) to $230 from $225, keeping an Equal Weight rating on the shares.
The firm told investors that the intra-quarter data is continually reflecting stability in auto and consumer data, and dealers are well-positioned to continue to deliver on earnings into H2.
Similarly, Stephens analyst Jeff Lick upgraded Asbury Automotive Group, Inc. (NYSE:ABG) to Overweight from Equal Weight on August 13, raising the price target to $277 from $225.
The firm told investors that after spending two weeks integrating the Chambers acquisition into its model, it concluded that the company has $35+ in 2028 EPS power based on the items under its control and assets currently on its balance sheet.
Asbury Automotive Group, Inc. (NYSE:ABG) is a franchised automotive retailer. The company’s operations are divided into the Dealerships and Total Care Auto (TCA) segments.
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