Bank of America names the U.S. auto stocks to own

The U.S. automotive marketplace had a chaotic 2025, acknowledgment to the uncertain clime nether President Donald Trump's mercurial tariff policy. Still, analysts astatine Bank of America judge that astatine slightest 3 U.S. car companies are worthy investing in.

Carmakers specified as Ford played the change in the U.S. economical argumentation perfectly. Ford rode trader incentives, combined with user anxiousness astir tariffs, to become the top-selling brand in the U.S. during the year’s archetypal half. Ford said full income successful the 2nd 4th roseate astatine a complaint 7 times that of the wide car industry.

It sold 1.1 cardinal units successful the archetypal six months, a 6.6% year-over-year increase.

But Ford wasn’t the lone beneficiary. GMincreased its U.S. marketplace stock supra 17%, representing the astir important beingness successful the U.S. since 2017, portion different brands besides saw income rise.

“Automakers are providing steadfast incentives to support income flowing. Prices are trending higher, but conscionable arsenic we are seeing successful the broader retail markets, there’s capable request and generous incentives retired there, and that’s driving the market,” said Cox Automotive Executive Analyst Erin Keating earlier this year.

But that was 2025.

It is simply a caller year, and analysts astatine Bank of America spot a antithetic scenery for automakers successful 2026.

On Wednesday, March 4, Bank of America reinstated its sum of the North American Automotive sector.

It picked 3 winners to which it assigned "buy" ratings: Ford, General Motors, and Tesla.

Related: Tesla proves it genuinely is simply a tech (not car) institution with latest move

"We highlight Ford & General Motors (see reports) as OEM top picks as we spot imaginable for upward estimation revisions given the displacement distant from EVs and emissions mandates that constricted profitability implicit the past respective years," the steadfast said successful a probe study emailed to TheStreet.

BofA sees upside successful U.S. sales, arsenic its forecasts for some income and accumulation are supra manufacture estimates. It says pent-up request from years of constrained proviso volition coalesce with "slowly improving" affordability to thrust much demand.

Here's what the steadfast said astir each institution successful its probe report.

• "We deliberation Ford is positioned good to capitalize connected the important displacement successful the regulatory backdrop nether the existent medication that should alteration it to displacement absorption to its astir borderline accretive trucks/SUVs. We expect near-term benefits arsenic Model E losses abate and the company's high-margin commercialized concern stabilizes. We expect Ford to make advancement toward its 8% EBIT borderline usher (from 4.8% successful 2026E), including a ample step-up successful 2027."

• "Ford improved its U.S. marketplace stock by 50bps successful 2025, and we estimation the institution is 3rd successful full stock (with 13.2% retail share, including medium/heavy-duty trucks). Ford's beardown presumption is anchored by its #2 fertile successful pickup trucks (by portion volume), wherever it holds implicit 30% share, and by its F-Series, which is the #1 U.S. nameplate. Positively, Ford's stock successful pickups is up by much than 300bps implicit the past 2 years."