5 Best Auto Stocks To Buy Now

3. Navistar International Corp (NYSE:NAV)

Navistar International Corp (NYSE:NAV) is the third best auto stock to buy now and the most popular truck manufacturer among the funds tracked by Insider Monkey. At the end of September, 43 funds disclosed owning shares of the company, up by 10 compared to three months earlier. Billionaire activist investor Carl Icahn is one of the top shareholders of Navistar International Corp. In its latest 13F filing, Icahn reported holding 16.73 million shares worth $728.42 million, the position being the seventh largest in the portfolio. Icahn’s former protégé Mark Rachesky’s MHR Fund Management is also largest, reporting ownership of 16.23 million shares.

Icahn and Rachesky have recently been involved in a feud involving Navistar. In February, Volkswagen subsidiary Traton offered to acquire Navistar International Corp (NYSE:NAV) for $35 per share, a deal that Rachesky thought was much too low according to reports. Nevertheless, around a month ago, Traton and Navistar signed a definitive merger agreement for $44.50 per share and both Icahn and Rachesky agreed to support the deal. It is expected to close sometime next year.