2 Commercial Vehicle Stocks to Buy, 2 to Sell By StockNews
Despite the global semiconductor chip shortage, the integration of technologies and growing demand from the infrastructure, construction, and mining industries should drive the commercial vehicles industry’s growth. Hino Motors and Volvo are both well-positioned for the sector’s tailwinds. Their weak financials may lead to Proterra (PTRA), and Workhorse Groups (WKHS), experiencing a slowdown in the short term. So, let’s examine all four names.Rebounding demand from the resumption of infrastructure, construction, and mining activities has propelled commercial vehicle sales this year. Major automakers announced production cuts in response to the shortage of semiconductor chips worldwide. However, the sector should be buoyed by increased capital investment and higher vehicle prices.
Furthermore, in addition to rising demand, efforts to integrate technologies and electrification should keep driving the industry’s growth. By 2028, the global market for commercial vehicles is forecast to expand at a 5.2% CAGR and reach $1.82 Trillion.
We believe Volvo AB (OTC) and Hino Motors, Ltd., (HINOY), have strong foundations and can capitalize on industry tailwinds. Proterra Inc., (PTRA), and Workhorse Group Inc.(WKHS) may not be able to take advantage of the increasing demand because they are under-competitive and have weak fundamentals.
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