JPMorgan’s Top 2 Auto Stocks to BUY NOW

Ryan Brinkman is an analyst at JPMorgan.

And in a note to clients…

He shared two automotive-industry stocks that could hand you a +30% gain.

The first one is Kar Auction Services (NYSE: KAR)… 

A leader in the world’s second-hand car auction market.

Here’s what Brinkman said about it:

“KAR has a strong position in this market: it is the second-largest provider of whole car auction services. The resulting limited competition and high barriers to entry result in strong pricing and margins and strong free cash flow given low working capital requirements. We expect solid profit growth over the next several years, driven by cyclical recovery in currently depressed commercial consignor volumes and the firm’s push into the digital Dealer-to-Dealer space along with expected continued cost containment and exploration of numerous adjacencies, including retail reconditioning.”

His price target suggests the stock could rise 46%.

Nothing to sneeze at…

But before sharing the details about this little-known opportunity…

Here’s the second auto stock that is getting Brinkman’s love: Camping World Holdings (NYSE: CWH).

This is an Illinois-based company that specializes in selling recreational vehicles, recreational vehicle parts, and recreational vehicle service.

They also sell supplies for camping.

Why does the JPMorgan analyst see it rise 33%?

In his own words:

“Camping World’s much greater scale provides it with numerous benefits relative to its smaller competitors, including (1) gross margin-enhancing volume discounts; (2) more favorable terms with financiers; (3) the ability to offer consumers a wider assortment by tapping into the inventory available across its greater number of stores; and (4) an informational advantage in terms of consumer demand and pricing in the marketplace. The combination of the fragmented nature of the market and the significant benefits provided by scale in our view provides ample opportunity to create value by further consolidating the industry, and Camping World has historically been highly acquisitive.”

Now, these two stocks could be a good profit opportunity for you.

But in my view, they don’t offer you the MASSIVE profit opportunity that Elon Musk’s new Master Plan for Tesla gives you.

Here’s why.

Elon Musk has been planning to be the leader in the EV revolution for years in advance.

In fact, he first started by releasing his Master Plan 1 on August 2, 2006…

Where published a blog post titled “The Secret Tesla Motors Master Plan (just between you and me)” – with its core principle being laid out in four steps:

  1. Build a sports car
  2. Use that money to build an affordable car
  3. Use that money to build an even more affordable car
  4. While doing the above, also provide zero emission electric power generation options

Needless to say…

He managed to do it all with Roadster, Model S and then the Model 3.

Moreover, just $2,500 invested when Master Plan 1 was released would’ve multiplied to a whopping $602,941.

Then he released the “Tesla Master Plan Part 2,” which aimed at:

  1. Creating stunning solar roofs with seamlessly integrated battery shortage
  2. Expanding the electric vehicle product line to address all major segments
  3. Developing a self-driving capability that is 10X safer than manual via massive fleet learning, and…
  4. Enabling your car to make money for you when you aren’t using it

He also mentioned “a new kind of pickup”…

Which ended up being the Cybertruck.

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