Automaker stocks have taken a hit as inflation, rising interest rates, and semiconductor shortages are expected to impact their profitability in the near term. But their slumping stock prices reflect a buying opportunity, particularly for automakers in the premium segment of the market.
Consider BMW Group (OTC: BMWYY), a brand that may not be the first one to spring to mind among automakers, but one that merits consideration.
A casual investor might only think of the company's namesake brand, a premium marque with products that, in the U.S. market, start with the $37,400 BMW 230i Coupe and top out with the $145,000 Alpina XB7. This means the majority of BMW models fall well above the cost of an average new car of $48,281. While its products cater to higher-income consumers, this makes the company somewhat less affected, but not impervious, to a softening economy.
Source Fool.com