Are These 2 Automotive Stocks On Your June 2020 Watchlist?
Many automotive stocks have been trending in the market lately. Many automakers were recently forced to stop all car production. Due to dealerships and manufacturing plants closing, sales are down as well. Further hurting the industry, people are not buying cars due to the economic crash.
Automotive stocks can still strive in the market though. Tesla (TSLA stock report) is a great example of a top automotive stock that can strive during these times. TSLA stock made a full recovery and reached a new high. New developments in the automotive sector can cause stock prices to rise as well. For example, announcing a new technology or vehicle that is expected to sell well.
Things are getting closer to reopening and car sales are already starting to increase once again. Automotive companies reporting positive forward-looking statements are seeing an increase in stock price. Good financials and new expansions can cause an automotive stock to rise exponentially. The two automotive stocks to watch on this list are trending for a reason, so let’s talk about why.
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Top Automotive Stocks To Watch In June 2020: Ideanomics
We must talk about the automotive stock that is Ideanomics Inc. (IDEX stock report). IDEX stock has seen a lot of positive momentum in the market recently. Ideanomics was founded in 2004 and is a New York based company. This automotive company focuses on the adaptation to commercial electric vehicles, and associated entities to electric vehicles.
On June 19th Ideanomics announced that its company Mobile Energy Global ordered 42 vehicles from Tianjim Zhongcheng Jiaye Automobile Trading Co. This order was for a total of $4.4 million USD. It also received an order ON June 16th from Didi City CP, 300 electric vehicles at $4.2 million USD. IDEX stock has soared in price since these announcements were released to the public.
IDEX stock price was around $1.20 a share on June 16th. Shares of IDEX stock have now gone up to $2.20 a share on June 19th. This 83.3% increase for IDEX stock price is a big deal for the company. This is the highest IDEX stock has been at since July 2019. It is clear these recent advancements have had a grand effect on IDEX stock price. If Ideanomics continues to receive orders, IDEX stock will continue to rise with it. These orders will potentially bring IDEX stock to a new high if positive news continues to be released.
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Top Automotive Stocks To Watch In June 2020: CarMax
An automotive stock showing a strong drive in the market is CarMax Inc. (KMX stock report). CarMax is currently the largest used car dealer in North America. CarMax was founded in 1993 and has grown to become a Fortune 500 company. The company operates as more of a car retail store than a traditional dealership. There is no negotiation process, and the salesmen make a flat commission fee on every car. This means there is no competitive dealership environment a traditional automotive shop may have.
KMX stock has been on the rise despite its crash due to the economic state of the US. On June 19th, CarMax released its quarterly earnings report. Taken from Zacks.com, the consensus estimate was a loss of $0.06 a share of KMX stock. But CarMax came out with quarterly earnings of $0.23 a share of KMX stock. This is a difference of 483.33% percent which shocked investors. CarMax was still affected by the economic crash though. Its sales fell to $3.23 billion from $5.37 billion due to closing locations caused by this pandemic.
KMX stock price has been back up on the rise recently. On May 21st KMX stock was at $80.48 a share. On June 19th though, KMX stock price has reached $93.46 a share. In addition, KMX stock was around $98 a share on June 18th. The reason KMX stock price went down on the 19th is due to the financial reports. While the reports were still more positive than expected, CarMax still reported large revenue loss. CarMax reporting the positive news can be good for KMX stock in the future despite this.
Bottom Line
KMX stock and IDEX stock are two automotive stocks to watch due to their recent movement in the market. If these automotive companies continue to release positive statements and financials, stock prices could rise.
