In the first quarter of 2024, several auto giants began to show signs of strength. Undoubtedly, shares of numerous traditional automakers have lost considerable ground in recent years at the hands of macro headwinds. However, with newfound momentum and the potential for further upside recovery, these auto stocks could lead the charge as their buzzier electric vehicle (EV) pure-play counterparts look to rest.

Indeed, it was all about EV stocks just two years ago. Nowadays, traditional automakers are starting to make up for lost time with electric ambitions of their own and the ability to meet the needs of prospective customers who see the value of going electric but aren’t quite ready to shift to full-electric anytime soon. Indeed, EVs have come a long way in recent years, but until charging stations become as commonplace as gas pumps, hybrid vehicles may have their moment to shine.

Toyota Motor (TM)

Toyota Motor (NYSE:TM) has been a surprisingly stellar performer in the auto scene so far this year. Year to date, TM stock is up a whopping 34.6%, a gain that’s more impressive when you compare it to EV king Tesla (NASDAQ:TSLA), which was down more than 30% in the same time span. With new vehicle launches looming, including the Tacoma pickup, TM stock seems to have enough horsepower (forgive the pun) to take it even higher from here.

The Japanese automaker, known for delivering top-notch quality vehicles that last decades at a time, has seen its parabolic melt-off cool a bit since March. I view the modest slip as an intriguing entry point for investors looking to shift gears from the cooling EV pure plays.

Though Toyota has fully electric offerings today, it seems to be playing the long game in its electrification strategy, targeting 70% of global sales to come from EVs by 2030.

Sure, that’s not the most ambitious electrification plan in the world, but it’s a realistic one that could help it steadily capture a growing portion of the EV market in the coming years. As Toyota gives itself enough time to innovate in areas such as next-generation solid-state battery tech, I do not doubt the firm will be successful in 2030.

At this pace, I’m not so sure TM stock’s boom days are ending, as it looks to keep winning the hearts of investors while gradually easing into the EV waters. At 11.1 times trailing price-to-earnings (P/E), I view TM stock as a potential bargain.

General Motors (GM)

General Motors (NYSE:GM) is another long-time auto firm positioning itself from the EV age. Like TM stock, GM shares have been heating up, with 23% gains posted yearly. As the firm accelerates its EV efforts over the coming years, with a number of intriguing new electrified models (think the Silverado EV), GM seems like a prime candidate to take market share away from the current EV leaders, most notably Tesla.

Indeed, there’s plenty of runway for GM to catch up in the EV market. However, whether or not the firm can expand into the space in a reasonably profitable fashion remains a big question. For now, GM expects its American EV portfolio to be profitable in the second half of this year based on its prior expectations. Indeed, demand dynamics in the auto scene can shift gears rather quickly. Still, even if they work against GM in its bid to push into electrified profitability, I expect management will be agile enough to adjust accordingly.

At 6.04 times trailing P/E, GM stock just looks too cheap, with such low expectations built in that I think the stock could have room to gain if it can hit (or top) goals moving forward.

Ford (F)

Ford (NYSE:F) is another old-time automaker roaring this year, with just over 10% gained year to date. Undoubtedly, Ford has its own electric dreams as it aims to shift away from gas guzzlers to EVs gradually. That said, it seems like Ford is willing to walk, not sprint, to catch up to the EV leaders. By doing such, I think the firm drastically reduces its risk of slipping and falling on its face. Indeed, the game has hefty costs and high risks of shifting gears to electric too soon.

Ford still seems to be a long way from becoming a serious EV challenger to Tesla as it pulls the brakes ever so slightly on its EV timeline. Indeed, Ford may be wise to play the EV long game while it looks to go heavier on the hybrid market to play what could be a more gradual shift towards mass electrification.

As exciting as going fully electric is, the hybrid could be key to better results over the medium term, as non-electrified consumers look to gradually ease into the EV scene with something they’re a bit more familiar with. There’s a reason many non-EV drivers haven’t yet made the jump to full electric quite yet! Hybrids may be akin to the VCR-DVD combo players that give consumers a more leisurely time transitioning technologies.

On the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.