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4 Auto Stocks Wall Street Analysts Recommend Buying Now
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Key Takeaways
U.S. auto demand stayed resilient in the first half of 2026 despite rates, fuel costs and policy uncertainty.
Cox Automotive forecasts 2026 new-vehicle sales of 15.8 million units, down 2.9% from 2025.
CMI, GM, GTX and DORM all carry favorable analyst ratings and upside potential.
The U.S. auto market held up better than many expected in the first half of 2026. June vehicle sales remain close to the pace seen over the previous three months, signaling a period of stability after a volatile start to the year. Despite geopolitical tensions, elevated fuel prices, and an uncertain policy environment, demand for new vehicles has remained surprisingly resilient, with buyers continuing to make purchases instead of pulling back sharply.
That said, affordability remains a key challenge. High interest rates, rising household expenses, and tighter budgets have made buying a new vehicle more difficult for many consumers. At the same time, strong equity markets and healthy household wealth have helped offset some of these pressures, preventing a steeper slowdown in demand.
Even so, the industry is expected to cool modestly this year. Per Cox Automotive, full-year new-vehicle sales are forecast at 15.8 million units, down 2.9% from 2025. Much of that decline reflects last year's unusually strong performance rather than a sharp deterioration in demand.
While inflation, borrowing costs and cautious consumer spending remain headwinds, the auto industry's resilience has created opportunities for companies with strong fundamentals. Against this backdrop, Wall Street sees several auto stocks as well-positioned to outperform, supported by favorable analyst ratings and upside potential.
4 Broker-Loved Auto Picks
Four auto stocks have been shortlisted with the help of the Zacks Stock Screener. These are Cummins, Inc. (CMI - Free Report) , General Motors (GM - Free Report) ,Garrett Motion Inc. (GTX - Free Report) and Dorman Products (DORM - Free Report) . Each of these stocks has a Zacks Rank #2 (Buy) with Average Broker Recommendation of 2 or less on a scale of 1 to 5 (Strong Buy to Strong Sell).
Cummins
Cummins is one of the world's leading manufacturers of engines and powertrain solutions, with a diversified business spanning commercial vehicles, industrial equipment, and power generation. The company is benefiting from robust demand for backup power systems, particularly from data centers and other mission-critical facilities, providing steady growth for its Distribution and Power Systems businesses. It has also raised its outlook for the Engine and Components segments, driven by stronger-than-expected demand for heavy- and medium-duty trucks in North America.
Beyond its core operations, Cummins continues to invest in technologies that support the transition to cleaner transportation. Its collaboration with Komatsu to develop hybrid powertrains for mining haul trucks highlights its commitment to long-term growth and decarbonization. Backed by a strong balance sheet, shareholder-friendly capital allocation, and an investment-grade credit profile, Cummins remains well-positioned to deliver sustainable value over the long run.
Out of the 20 brokers covering CMI stock, 13 have Strong Buy/Buy recommendations, giving the company an ABR of 1.75. The Wall Street average price target of $733.35/share suggests a nearly 11% upside for the stock from the current levels.
General Motors remains one of the strongest legacy automakers, backed by its leadership in the U.S. market and a highly profitable lineup of trucks and SUVs. Disciplined pricing and lower incentive spending continue to support margins, while its China business is stabilizing after restructuring efforts, with management expecting it to remain profitable in 2026.
Beyond vehicle sales, GM is rapidly expanding its high-margin software and services business through OnStar and Super Cruise. Digital revenues grew more than 20% year over year in the first quarter, and management expects it to reach about $3.1 billion in 2026 as its subscriber base continues to expand. The company also boasts a strong balance sheet, ending the first quarter with more than $19 billion in automotive cash. This financial strength gives GM the flexibility to invest in future growth while continuing share buybacks and dividend payments to reward shareholders.
Out of the 29 brokers covering GM stock, 20 have Strong Buy/Buy recommendations, giving the company an ABR of 1.84. The Wall Street average price target of $94.07/share suggests a nearly 24% upside for the stock from the current levels.
Garrett is strengthening its position as a leader in turbocharging technology while expanding into faster-growing electrification and industrial markets. The company continues to secure new program awards, supported by its strong engineering capabilities and broad technology portfolio. At the same time, Garrett is making steady progress toward its goal of generating about $1 billion in zero-emission technology revenues by 2030. Its portfolio includes high-speed e-powertrain solutions, fuel-cell compressors, and e-cooling compressors, positioning the company to benefit from the shift toward cleaner mobility.
Beyond automotive, Garrett is diversifying into HVAC, industrial cooling, and power-generation markets with its new oil-free centrifugal compressor technology, which offers meaningful energy-efficiency improvements over conventional systems. Management's upbeat 2026 outlook further reinforces confidence in the company's growth trajectory, while its expanding presence across both traditional and emerging technologies provides multiple long-term growth opportunities for investors.
Four of the six brokers covering GTX stock have Strong Buy/Buy recommendations, giving the company an ABR of 1.83. The Wall Street average price target of $35.60/share suggests a nearly 12% upside for the stock from the current levels.
Dorman is well-positioned to benefit from resilient demand in the automotive aftermarket, supported by an aging vehicle fleet and consumers keeping vehicles on the road for longer. Dorman is benefiting from its innovation-led strategy, developing replacement parts that improve on original equipment designs and help the company gain market share in the automotive aftermarket. Its expanding portfolio of complex electronic components, which management expects to grow faster than the overall business, provides another important growth driver.
Management expects margins to improve through the remainder of 2026 as tariff-related costs ease and benefits from supplier diversification, productivity, and automation initiatives begin to materialize. Dorman also reaffirmed its full-year outlook, reflecting confidence in sustained sales growth and profitability. With low leverage, ample liquidity and strong cash generation, Dorman has the financial flexibility to invest in product innovation, pursue strategic acquisitions, and continue returning capital to shareholders.
Eight of the nine brokers covering DORM stock have Strong Buy/Buy recommendations, giving the company an ABR of 1.22. The Wall Street average price target of $152.25/share suggests a nearly 11% upside for the stock from the current levels.
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4 Auto Stocks Wall Street Analysts Recommend Buying Now
Key Takeaways
The U.S. auto market held up better than many expected in the first half of 2026. June vehicle sales remain close to the pace seen over the previous three months, signaling a period of stability after a volatile start to the year. Despite geopolitical tensions, elevated fuel prices, and an uncertain policy environment, demand for new vehicles has remained surprisingly resilient, with buyers continuing to make purchases instead of pulling back sharply.
That said, affordability remains a key challenge. High interest rates, rising household expenses, and tighter budgets have made buying a new vehicle more difficult for many consumers. At the same time, strong equity markets and healthy household wealth have helped offset some of these pressures, preventing a steeper slowdown in demand.
Even so, the industry is expected to cool modestly this year. Per Cox Automotive, full-year new-vehicle sales are forecast at 15.8 million units, down 2.9% from 2025. Much of that decline reflects last year's unusually strong performance rather than a sharp deterioration in demand.
While inflation, borrowing costs and cautious consumer spending remain headwinds, the auto industry's resilience has created opportunities for companies with strong fundamentals. Against this backdrop, Wall Street sees several auto stocks as well-positioned to outperform, supported by favorable analyst ratings and upside potential.
4 Broker-Loved Auto Picks
Four auto stocks have been shortlisted with the help of the Zacks Stock Screener. These are Cummins, Inc. (CMI - Free Report) , General Motors (GM - Free Report) ,Garrett Motion Inc. (GTX - Free Report) and Dorman Products (DORM - Free Report) . Each of these stocks has a Zacks Rank #2 (Buy) with Average Broker Recommendation of 2 or less on a scale of 1 to 5 (Strong Buy to Strong Sell).
Cummins
Cummins is one of the world's leading manufacturers of engines and powertrain solutions, with a diversified business spanning commercial vehicles, industrial equipment, and power generation. The company is benefiting from robust demand for backup power systems, particularly from data centers and other mission-critical facilities, providing steady growth for its Distribution and Power Systems businesses. It has also raised its outlook for the Engine and Components segments, driven by stronger-than-expected demand for heavy- and medium-duty trucks in North America.
Beyond its core operations, Cummins continues to invest in technologies that support the transition to cleaner transportation. Its collaboration with Komatsu to develop hybrid powertrains for mining haul trucks highlights its commitment to long-term growth and decarbonization. Backed by a strong balance sheet, shareholder-friendly capital allocation, and an investment-grade credit profile, Cummins remains well-positioned to deliver sustainable value over the long run.
Out of the 20 brokers covering CMI stock, 13 have Strong Buy/Buy recommendations, giving the company an ABR of 1.75. The Wall Street average price target of $733.35/share suggests a nearly 11% upside for the stock from the current levels.
Cummins Inc. Price and Consensus
Cummins Inc. price-consensus-chart | Cummins Inc. Quote
General Motors
General Motors remains one of the strongest legacy automakers, backed by its leadership in the U.S. market and a highly profitable lineup of trucks and SUVs. Disciplined pricing and lower incentive spending continue to support margins, while its China business is stabilizing after restructuring efforts, with management expecting it to remain profitable in 2026.
Beyond vehicle sales, GM is rapidly expanding its high-margin software and services business through OnStar and Super Cruise. Digital revenues grew more than 20% year over year in the first quarter, and management expects it to reach about $3.1 billion in 2026 as its subscriber base continues to expand. The company also boasts a strong balance sheet, ending the first quarter with more than $19 billion in automotive cash. This financial strength gives GM the flexibility to invest in future growth while continuing share buybacks and dividend payments to reward shareholders.
Out of the 29 brokers covering GM stock, 20 have Strong Buy/Buy recommendations, giving the company an ABR of 1.84. The Wall Street average price target of $94.07/share suggests a nearly 24% upside for the stock from the current levels.
General Motors Company Price and Consensus
General Motors Company price-consensus-chart | General Motors Company Quote
Garrett
Garrett is strengthening its position as a leader in turbocharging technology while expanding into faster-growing electrification and industrial markets. The company continues to secure new program awards, supported by its strong engineering capabilities and broad technology portfolio. At the same time, Garrett is making steady progress toward its goal of generating about $1 billion in zero-emission technology revenues by 2030. Its portfolio includes high-speed e-powertrain solutions, fuel-cell compressors, and e-cooling compressors, positioning the company to benefit from the shift toward cleaner mobility.
Beyond automotive, Garrett is diversifying into HVAC, industrial cooling, and power-generation markets with its new oil-free centrifugal compressor technology, which offers meaningful energy-efficiency improvements over conventional systems. Management's upbeat 2026 outlook further reinforces confidence in the company's growth trajectory, while its expanding presence across both traditional and emerging technologies provides multiple long-term growth opportunities for investors.
Four of the six brokers covering GTX stock have Strong Buy/Buy recommendations, giving the company an ABR of 1.83. The Wall Street average price target of $35.60/share suggests a nearly 12% upside for the stock from the current levels.
Garrett Motion Inc. Price and Consensus
Garrett Motion Inc. price-consensus-chart | Garrett Motion Inc. Quote
Dorman
Dorman is well-positioned to benefit from resilient demand in the automotive aftermarket, supported by an aging vehicle fleet and consumers keeping vehicles on the road for longer. Dorman is benefiting from its innovation-led strategy, developing replacement parts that improve on original equipment designs and help the company gain market share in the automotive aftermarket. Its expanding portfolio of complex electronic components, which management expects to grow faster than the overall business, provides another important growth driver.
Management expects margins to improve through the remainder of 2026 as tariff-related costs ease and benefits from supplier diversification, productivity, and automation initiatives begin to materialize. Dorman also reaffirmed its full-year outlook, reflecting confidence in sustained sales growth and profitability. With low leverage, ample liquidity and strong cash generation, Dorman has the financial flexibility to invest in product innovation, pursue strategic acquisitions, and continue returning capital to shareholders.
Eight of the nine brokers covering DORM stock have Strong Buy/Buy recommendations, giving the company an ABR of 1.22. The Wall Street average price target of $152.25/share suggests a nearly 11% upside for the stock from the current levels.
Dorman Products, Inc. Price and Consensus
Dorman Products, Inc. price-consensus-chart | Dorman Products, Inc. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here