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7 Best Used Car Stocks To Buy According to Hedge Funds

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In this article, we will look at the 10 Best Used Car Stocks To Buy According to Hedge Funds.

The US automotive retail market was on edge as it was forced to defy extraordinary disruptions in 2025. The sector had to contend with supply chain snarls, unpredictable tariffs, and the removal of electric vehicle tax credits.

“To say it’s been a sales roller coaster of a year would be an understatement,” said Thomas King, president of OEM solutions at J.D. Power.

Likewise, analysts have warned that sustaining growth in 2026 could be an uphill task, given the soaring concerns over economic uncertainty and tariff-related costs. Cox Automotive has already warned that auto sales could drop by 2.4% as slower economic growth dampens consumer demand.

Nevertheless, there is growing optimism that lower interest rates could be the biggest tailwind for demand, thereby restoring stability in the embattled sector. “These dynamics set the stage for a more balanced and potentially stronger performance as 2026 progresses,” said J.D. Power’s King.

In its quarterly review, CarGurus points out that price-conscious customers on a budget are likely to buy high-mileage, older used cars. On the other hand, big spender premium buyers are likely to stick with new products.

Demand for used cars has been skyrocketing, in part because they last longer than they did in the past. Price-conscious customers accounted for a 73% year-over-year increase in used-car purchases in 2025. Most customers focused on a sticker price under $30,000 and vehicles aged 7 years or older.

“For used cars, the growth is really happening in under-$30,000 vehicles,” Roberts said. “Traditionally the used-car market concentrated on people looking for three-to-four-year-old vehicles. That was the sweet spot but, realistically, that’s the age group which is hardest to find right now.”

Source: Unsplash

Our Methodology

To compile our list of the 10 best used car stocks to buy according to hedge funds, we used the Finviz and Yahoo stock screeners to find the largest used car companies. We focused on companies favored by institutional investors. The stocks are ranked in ascending order based on the number of hedge funds holding stakes in them in the third quarter of 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

Best Used Car Stocks To Buy According to Hedge Funds

7. Cars.com Inc. (NYSE:CARS)

Number of Hedge Fund Investors: 21

Cars.com Inc. (NYSE:CARS) is one of the best used-car stocks to buy, according to hedge funds. Analysts remain bullish on Cars.com Inc. (NYSE:CARS). Over the past three months, five Wall Street firms set 12‑month targets averaging $17.75, ranging from $13 to $25, implying a potential 56% upside from the current price of $11.36.

On January 29, Cars.com Inc. (NYSE:CARS) launched a new powerful tech and advertising solution for its dealer customers. Built based on consumer demand and inventory data, the AI-powered inventory video solution is designed to create VIN-specific video advertisements for dealer inventory. On the other hand, the Market Area Expansion tool will allow dealers to display inventory beyond their local market and to offer vehicle shipping and delivery services to customers.

The company is leveraging proprietary consumer demand and inventory data to power the new AI video solution. The ultimate goal is to unlock new shipping and delivery options and enable customers to enjoy new integrated wholesale options.

“By putting AI-powered technology and market expansion tools in the hands of our customers, Cars.com is connecting highly-engaged shoppers with the right inventory, driving twice the lead conversion, and ensuring our partners grow faster and more profitably,” said Lisa Gosselin, Chief Commercial Officer for Cars.com Inc.

Cars.com has also integrated its wholesale tools through the AccuTrade and DealerClub platforms to accelerate wholesale transactions for aging units.

Cars.com Inc. (NYSE:CARS) is a digital automotive marketplace connecting car shoppers with dealers and private sellers. It serves as an advertising and lead-generation platform, reaching about 26-27 million monthly visitors.

6. Penske Automotive Group, Inc. (NYSE:PAG)

Number of Hedge Fund Investors: 27

Penske Automotive Group Inc. (NYSE:PAG) is one of the best used-car stocks to buy, according to hedge funds. On January 26, Penske Automotive Group Inc. (NYSE:PAG) affirmed plans to expand its presence in Florida with the acquisition of two Lexus dealerships.

The company has inked an agreement to acquire Lexus of Orlando and Lexus of Winter Park in the Orlando metropolitan area of central Florida. With the acquisition, the company is poised to add $450 million in annualized revenue. It is to fund the acquisition using cash flow from operations and availability under its US credit agreement.

North American Operations Officer Rich Shearing said, “The acquisition of these premier Lexus dealerships represents another strategic addition to the Penske Automotive Group portfolio. The acquired dealerships will expand the Company’s scale in one of the fastest growing states in the country while leveraging the Company’s existing infrastructure in Central Florida.”

Earlier on January 9, Benchmark reiterated a Buy rating and a $190 price target on Penske Automotive Group. The positive stance comes despite analyst Michael Albanese making “modest reductions” to forecasts for new vehicle sales, aftersales, and G&A leverage for the automotive retailer. The research firm expects the company to deliver EBITDA of $341 million and earnings per share of $3.10 for Q4.

Penske Automotive Group, Inc. (NYSE:PAG) is a diversified international transportation services company that operates as one of the world’s premier automotive and commercial truck retailers. It sells new and used vehicles, provides maintenance and repair services, and offers financing and insurance products across the US, UK, Canada, Germany, Italy, and Japan.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

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If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!