Even though Ford (F) is one of the well-known names in the auto manufacturing industry, its vehicle sales declined last month, and its near-term prospects don’t look very promising. It might be wiser to place your bets on solid auto manufacturing stocks instead Toyota (TM) and Honda (HMC) to capitalize on the industry’s gradual recovery.Ford Motor Company (NYSE:), in Dearborn, Mich., operates through three segments: Automotive; Mobility; and Ford Credit, and it also holds an ownership position in Argo AI, a developer of autonomous driving systems. Ford’s shares have surged to a seven-year high on investors’ optimism surrounding its third-quarter earnings. The stock has gained more than 28% in price over the past month to close yesterday’s trading session at $19.36.

However, Wall Street analysts expect the stock to hit $18.08 in the near term, which indicates a potential 6.6% decline.. F’s total vehicle sales fell 4% year-over-year to 175,918 in October 2021. Furthermore, analysts expect the company’s revenue and EPS to decline 0.4% and 47.2%, respectively, year-over-year to $33.41 billion and $0.47 for the quarter ending March 31, 2022. Therefore, it may be a good idea to wait until the stock has a more attractive entry point.

The ongoing shortage of semiconductor chips continues to impact the auto industry. According to Yahoo Finance, the auto industry should recover due to rising demand. We believe it would be smart to instead invest in high-quality auto manufacturing stocks Toyota Motor Corporation, (NYSE:), and Honda Motor Co., Ltd., (HMC). In our proprietary POWR Ratings, they both receive an overall rating of A (Strong Buy) / B (Buy).

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