2 Car Manufacturers Under $ 10 To Buy Now

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The current global semiconductor shortage continues to affect automakers, especially electric vehicle (EV) manufacturers. However, governments have taken steps and companies have made investments to alleviate semiconductor shortages.

In addition, the chip shortage, which has driven new car prices soaring, has led to increased demand for used cars. The result is the average The transaction price for a used car rose to $ 25,410 in the second quarter of 2021 21% more than in the previous year. As the demand for vehicles is expected to remain high and people avoid local public transport to avoid COVID-19, the automotive industry is expected to continue to grow. According to Statista, 69.8 million cars are expected to be sold this year.

With this in mind, it can make sense to invest in the shares of the renowned automobile manufacturer Subaru Corporation (FUJHY) and Mazda Motor Corporation (MZDAY) that are less than $ 10 per share. Given their fundamental strength and growth prospects, they are expected to continue to recover in the short term.

Click here to read our automotive industry report for 2021

Subaru Corporation (FUJHY)

FUJHY, headquartered in Tokyo, Japan, trades in automobiles and aerospace products. The company operates in three segments: its automotive business unit; its aerospace company; and other businesses. It produces, sells and repairs passenger cars and aircraft as well as machines and components for the aerospace industry.

FUJHY net sales increased 39% to 6.35 billion yen ($ 57.72 million) for the first quarter ended June 30, 2021. Operating profit was 295 million yen ($ 336 million) compared to a loss of 157 million yen ($ 1.43 million). In addition, profit was 185 million yen ($ 1.68 million) compared to a loss of 77 million yen ($ 700,000) in the same period last year.

Analysts expect sales of FUJHY and EPS in fiscal 2022 by 107.8% or 95.3% to 30.23 billion. Over the past 10 years, the stock has gained 218.4% in price, closing yesterday’s trading session at $ 9.50.

FUJHY’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, which indicates a buy on our proprietary rating system. The POWR ratings rate stocks based on 118 different factors, each with its own weighting.

FUJHY has the grade B for value and stability. In addition, within the Car and vehicle manufacturers It ranks 10th out of 63 stocks in the industry. Click here to see the additional POWR rating for Momentum, Growth, Sentiment and Quality for FUJHY.

Mazda Motor Corporation (MZDAY)

MZDAY, based in Hiroshima, Japan, produces and sells passenger cars and commercial vehicles worldwide. The company’s main products include four-wheel vehicles, gasoline piston engines, diesel engines, and automatic and manual transmissions for automobiles.

On August 24, 2021, MZDAY restructured its China Auto joint venture with Changan and FAW. The management of MZDAY said: “The three companies want to take advantage of every strategic and administrative opportunity in the new joint investment company and aim to optimally adapt their business and management system to the needs of the expanding Chinese market.”

MZDAY’s total revenue increased 113.3% year over year to 803.4 million yen ($ 7.30 million US) for the second quarter ended June 30, 2021. The company’s gross income was 181.04 million yen ($ 1.65 million), an increase of 145.9%. Total assets were 1.57 trillion yen ($ 14.26 billion) compared to 1.49 trillion yen (13.54 billion US dollars) in the previous quarter.

For fiscal 2022, MZDAY revenue is expected to grow 60.3% year over year to $ 31.32 billion. Last year, the stock gained 40.6% in price, closing yesterday’s trading session at $ 4.33.

MZDAY’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, which equates to a buy in our proprietary rating system.

Additionally, the stock has an A rating for value and a B rating for quality. MZDAY is in 7th place on the Car and vehicle manufacturers Industry. Click here to view the additional POWR ratings for MZDAY (Growth, Stability, Sentiment, and Momentum).

Click here to read our automotive industry report for 2021


FUJHY shares traded at $ 9.41 per share on Friday afternoon, down $ 0.08 (-0.90%). Since the beginning of the year, the FUJHY is down -5.43%, compared to an increase of 18.90% in the reference index S&P 500 over the same period.

About the author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a Master in Economics, helps investors make informed investment decisions through her insightful comments. More…

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