July 11, 2020

It’s time to invest? Stock markets believe that the car will emerge stronger from the crisis



The collapse of international stock markets due to the coronavirus crisis has fully affected the motor industry, which has had three months of sharp falls in its share price. However, it seems that with the economic measures put in place by some European governments and the United States, together with the reopening of the facilities in China, these values ​​have bottomed out and are already showing a recovery.

The general impression is that, after the months of crisis, the global car market will recover and sales will normalize to remain at the same levels as in 2019 or slightly below. The 2019 figures are not easy to repeat in this exercise. But since the stock collapse has been so strong in the last quarter, investors are beginning to look at some stocks that are very low compared to their price of a very short time ago. They think it is time to enter.

A review of the value of the shares of the world’s leading automobile companies shows that they are investments that can be very profitable in the medium term. For example, the world number one, the Volkswagen group, was trading on January 10 at 185.52 euros and today’s opening is at 113.2, having risen almost twenty percent in yesterday’s session. That same day, one Bayerische Motoren Werke share was worth 74.37 and today opened at 47.2 after also climbing in Tuesday’s session. His compatriot Mercedes on January 8 was bought at 49.47 and is now trading at 30.0 after rising nearly 15 percent in yesterday’s session.

The French PSA, owner of Peugeot, Citroën, Opel and DS, was trading on December 18 at 22.41, compared to the current 12.58. On the same day, its now-associated FCA (Fiat Chrysler Automobiles) was worth 13.60, and today only 7.05. For its part, Ford on February 4 cost 9.18 and today it is purchased at 4.95, while Toyota traded on the Tokyo market at 7,914 yen compared to the current 6,919. These are just a few examples, but there are more within this sector.

More speculative are other securities such as Tesla, at 887.0 on February 4 and currently at 505.0 or Aston Martin, which on December 6 paid 630.0 and today is trading at 255 despite the sharp increases in the last two days. For all these reasons, some analysts think that securities in automobile companies may be a good investment for savers right now.



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