Auto Sales Surprisingly Up In 2018: ETF & Stocks To Buy

Given the challenges ahead, Edmunds predicts the industry would sell fewer cars at 16.9 million (below 17 million mark) in 2019. Though the auto sector belongs to the bottom 7% of the Zacks Industry Rank, its valuation looks appealing at the current level with a P/E ratio of 7.97 — the lowest of all the 16 Zacks sectors.

In order to tap the bargain price, investors could take a look at the pure-play ETF & few stocks that could be attractive picks this year:

First Trust Nasdaq Global Auto ETF (CARZ - Free Report)

This fund offers pure play global exposure to 34 auto stocks by tracking the Nasdaq OMX Global Auto Index. It is moderately concentrated on the firms in its basket, with each making up for no more than 8.73% share. CARZ has a lower level of $21.7 million in AUM and trades in a small average daily trading volume of about 6,000 shares. The product charges 70 basis points (bps) in fees per year and has a Zacks ETF Rank #3 (Hold) with a High-risk outlook.

BorgWarner Inc. (BWA - Free Report)

This Michigan-based company is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. It saw positive earnings estimate revision of a penny for 2019 over the past 30 days reflecting year-over-year growth of 5.62%. It has a Zacks Rank #2 and a VGM Score of A.

PACCAR Inc. (PCAR - Free Report)

This Washington-based company is a global technology company that designs and manufactures premium quality light, medium and heavy-duty commercial vehicles sold worldwide under the Kenworth, Peterbilt and DAF nameplates. It saw positive earnings estimate revision of 13 cents for this year over the past 60 days, reflecting year-over-year growth of 1.33%. The stock has a Zacks Rank #2 and a VGM Score of B.

Genuine Parts Company (GPC - Free Report)

This Georgia-based company is a distributor of automotive replacement parts in the U.S., Canada, and Mexico. The stock has seen solid earnings estimate revision of 9 cents over the past 90 days for this year with an estimated earnings growth rate of 6.19%. It has a Zacks Rank #2 and a VGM Score of A.

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