4 Auto Stocks Wall Street Analysts Are Bullish About for 2026

Industry Overview - The auto industry in 2025 is navigating policy uncertainty and shifting incentives, with U.S. new-vehicle sales expected to reach about 16.3 million units, the strongest level since 2019 [1] - Sales are projected to settle near 16 million units in 2026 as pricing, inventory, and dealer supply normalize, with growth driven by real consumer demand rather than short-term incentives [2] - Affordability remains a key theme, with higher-income buyers supporting demand for larger vehicles while cost-conscious shoppers lean towards used and off-lease options [3] Company Insights Garrett Motion - Garrett Motion develops advanced turbocharging and zero-emission technologies, securing new light-vehicle turbo programs and expecting over $40 million in lifetime revenues from turbochargers used in data-center backup power systems [6][7] - The company raised its 2025 profit outlook and approved a $250 million share repurchase program for 2026, with a Wall Street average price target of $20.75/share suggesting a nearly 19% upside [8] Standard Motor Products - Standard Motor Products specializes in premium automotive replacement parts, with demand driven by an aging vehicle fleet and long-term growth themes like electrification and affordability [9] - The acquisition of Nissens in November 2024 is expected to deliver $8-12 million in annualized cost savings, with a Wall Street average price target of $47/share suggesting a nearly 25% upside [11][12] Blue Bird Corporation - Blue Bird is a leader in low- and zero-emission school buses, with a record delivery of 901 electric buses in fiscal 2025 and an order backlog of 680 electric buses supporting its 2026 sales outlook [13][14] - The company targets $1.5 billion in revenues and $220 million in adjusted EBITDA for fiscal 2026, with a Wall Street average price target of $56.71/share suggesting a nearly 12% upside [15] WeRide Inc. - WeRide is a leader in the autonomous driving space with a fleet of over 1,600 AVs, including robotaxis and driverless licenses across eight countries, and is expanding its commercial operations [16][17] - The company has an attractive average broker recommendation of 1.42, with a Wall Street average price target of $15/share suggesting a nearly 72% upside [18]