Are These automotive stocks on your watchlist this month?
The sector for automotive stocks has been rather volatile since the pandemic began. Many automotive companies had to halt all production due to guidelines in place. This meant that dealerships had to close as well. So top automotive stocks were in a rather dark state for a while. The future of automotive stocks seemed unknown for investors during the March and April months.
In the current state of automotive stocks, there are many automotive stocks rebounding in the second half of 2020. Production has started back up for many automotive companies. This means that more sales can be made and dealerships can open back up. Automotive parts suppliers can produce their products again knowing that the market for them is more open. The automotive industry can not completely recover before the economy does.
Generally, when there is news released related to a coronavirus vaccine, automotive stocks jump. This is because once a vaccine is found automotive sales will rise. The economy may take years to recover with that being said. That is why the current state of automotive stocks is volatile. So now it is time to look at two automotive stocks that have been trending in the market.
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Top Automotive Stocks To Watch In August 2020: Blink Charging
The first automotive stock to watch is Blink Charging Co. (BLNK Stock Report) due to its recent rise up in the market. Blink Charging is an automotive retail company based in Miami Beach, Florida. The company has many subsidiaries in which it produces product. Blink Charging owns, operates, and provides electric vehicle charging equipment. The company also offers EV charging services in the US. Blink’s equipment is used both residentially and commercially. As of the end of 2019, Blink Charging had 14,778 electric vehicle charging stations across the United States.
With electric vehicles on the rise, it is no surprise that BLNK stock has been on the rise. Before this pandemic began, BLNK stock price was at $2.86 a share on average. Until June, BLNK stock did not change much in price. That’s when BLNK stock price began to rise. By the end of June, BLNK stock reached $5.68 in stock price. As of August 13th, BLNK stock price has hit $11.46 a share. BLNK stock’s recent 52 week high at $12.60 was great for investors of the company. BLNK stock price has achieved a total 340.55% increase since February.
If Blink can keep up this positive momentum, it could reach even more new highs. Electric cars are proving to be an industry that is taking the automotive world by storm. For example, Tesla(TSLA Stock Report) the largest electric vehicle maker has grown to new heights during the pandemic. In a world that is constantly advancing with technology, electric cars seem to be the future of the automotive sector.
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Top Automotive Stocks To Watch In August 2020: Vroom
The next automotive stock to watch is Vroom Inc. (VRM Stock Report) because of its recent rise in the market. Vroom is an automotive company with a focus on e-commerce. The company sells used cars through its online website platform. The company was founded in 2013 and has grown quite a lot since. In 2019, Vroom brought in $1.19 billion USD in revenue. Vroom’s website offers financing and can deliver cars anywhere in the nation. So rather than operating as a dealer, it operates as a true e-commerce website.
Vroom is perfect for those who want to purchase a vehicle but do not want to risk going outside. Since it offers an easy to use an e-commerce platform, consumers can purchase the desired vehicle and have it delivered. This has made Vroom a very useful service to consumers during the pandemic. VRM stock has gone up 57.67% since July 14th. On the duration of August 12th, VRM stock price rose 3.6% in the share price. Vroom is in a bit of trouble though. Analysts predicted Vroom’s revenue is at $344 million in the second quarter. Vroom reported $268 million to $290 million as its anticipated numbers.
What Now
This has caused VRM stock to drop 20% in extended market trading. Could this mean it is possible for VRM stock price to rise from here? That is unsure as automotive stocks are volatile in the current market. What we do know is that VRM stock has been on the rise for most of 2020. This could potentially just be a dip in the road for VRM stock price. Whether the stocks are down or reaching new heights, there are many reasons investors will watch a company. That is why BLNK stock and VRM stock are two automotive stocks to watch.
