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4 Auto Stocks with Great Value for the EV Race

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In order to tackle air pollution problems, many countries are focusing on usage of electric cars. In fact, this ground reality has prompted many automakers to shift their attention from gasoline and diesel-automobiles to electric cars.

4 Auto Stocks with Great Value for the EV RacePer a report by International Energy Agency, the number of on-road electric vehicles rose to 2 million in 2016, which was almost non-existent even a few years back. This trend is expected to continue with aggressive targets to address climatic changes and reduce urban congestion in many countries.

At the same time, automakers are launching or planning to unveil new, practical and affordable versions of electric cars to cater to growing demand.

In Europe, demand of these vehicles is expected to rise owing to advanced technological changes, declining battery costs and strong government support. Per a report by Dutch bank ING Group, between 2017 and 2024, European customers will prefer buying more electric vehicles over other conveyance types.

Notably, China — the largest automotive market — will soon put a deadline to stop production and sale of gasoline-run cars with an aim to end carbon emissions by 2030. This plan is in line with the government’s mandate in June that compelled automakers to manufacture more electrically powered vehicles.

Currently, U.S. auto market is trailing among others but is expected to flourish with several electric vehicles being introduced in the market. As a matter of fact, the U.S. electric vehicle market witnessed a 32% annual growth rate between a period of 2012 and 2016 and will likely reach 40% in the next six years, per some published estimates Among other new vehicles, Tesla Inc (NASDAQ:TSLA) recently unwrapped the Model 3 sedan specifically for the U.S. market might play a major role in doubling electric car sales in the country.

Screening the Stocks

Overall, the auto sector has been bearish so far this year. Considering the volatile environment of the sector, value stocks may prove to be most beneficial. It is important to find the right kind of stocks to capitalize on ample opportunities.

We have chosen the probable best bets with strong fundamentals to increase potential returns with the help of our VGM Score. A value stock implies stocks trading lower than its fair price or intrinsic value and thus, offers a significant upside potential. For this particular strategy, stocks with a VGM Score of A or B have been selected.

In addition, we have zeroed in on stocks with a low price/earnings (P/E) ratio as these can prove to be great bargains. A low P/E indicates decline in a stock’s price or an improvement in its earnings performance.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/09/4-auto-stocks-great-value-ev-race-ggsyn/.

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