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What Analysts Are Saying about Auto Stocks in March

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The US auto industry

According to the data compiled by MarkLines Data Center, February 2019 US auto sales (IYK) stood at 1.30 million vehicle units, ~2.8% higher than US auto sales of ~1.27 million vehicle units in February 2018. 

Nonetheless, February’s total US vehicle sales figure was higher than the 1.15 million vehicle units sold in January 2019.

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Auto stocks in March

In March, the broader market has largely traded on a mixed note due to fears of a slowing US economy and uncertainties about US-China trade negotiations. On the interest rate front, the Federal Reserve’s dovish tone couldn’t help boost investors’ sentiments for long, as its recent statements have signaled the possibility of an economic slowdown.

As of March 28, the S&P 500 Index had risen 1.1% so far in March. Meanwhile, General Motors (GM) was trading with a 6.1% loss, while the stocks of Ford Motor Company (F) and Fiat Chrysler Automobiles (FCAU) were nearly unchanged from their previous month’s closing prices.

US electric carmaker Tesla (TSLA) and its Chinese peer NIO (NIO) had fallen 12.9% and 47.6% to date in the month, respectively, as of March 28. Japanese automakers (XLY) Toyota Motor (TM) and Honda Motor Company (HMC) had seen 1.6% and 3.4% falls, respectively, in the same period.

According to the consensus data compiled by Reuters, Wall Street analysts expect most auto stocks, including GM, FCAU, TSLA, TM, and HMC, to yield decent positive returns in the next 12 months.

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