Is this the right to invest in General Motors, Ford stocks? Here's what Wall Street analysts are waving a red flag about

General Motors and Ford stocks are relatively cheaper than all the other stocks in the S&P 500, but Wall Street analysts are of the opinion that this would not be the right time to invest in these automobile stocks, according to a GuruFocus report. Nearly 9% of analysts are advising 'sell' for General Motors over concerns of increased risk around investing in the automobile giant.

Analysts advising 'sell' for Ford

Meanwhile, the case of Ford is even more complex as nearly 27% of Wall Street analysts are advising 'sell' for it. Reports claim that General Motors' profit outlook has done little to impress US investors and analysts likewise, and Ford has not been able to reap good profits recently, owing to new model launches and declining car prices.

Trump tariffs posing a problem for automobile stocks?

Moreover, the threat of Donald Trump's tariffs on China is a big factor for the automobile industry stocks, as there are many parts that are manufactured in China, which when shipped to the US, will face increased prices due to the imposed tariffs, leading to increased prices of vehicles. Meanwhile, there was a similar fear with Canada and Mexico, but as of now, those tariff decisions have been delayed by new US President Trump. Therefore, the threat factor is still under a controllable ratio as of now.

FAQs:

Is Ford's stock present in the S&P 500?
Yes, Ford's stock is present in the S&P 500 and is one of the cheapest on the list.

What are some top automobile companies in the US?
Some of the top automobile companies in the United States include Ford, Tesla, Rolls Royce, General Motors, and others.