GM and Ford: Bank of America Names 2 Top Auto Stocks to Buy for 2026

Group 1: General Motors (GM) - GM's total auto sales reached 2.85 million vehicles in the previous year, marking a 6% increase year-over-year, with the Chevy Silverado and GMC Sierra leading the market for the sixth consecutive year with combined sales of 940,000 units [1] - The company has a market capitalization of $71 billion and held over 17% market share in the US automotive industry as of 2025 [2] - Bank of America identifies GM as a top auto stock for 2026, benefiting from a favorable regulatory environment that allows a focus on high-margin trucks and SUVs while reducing electric vehicle production [3][4] - Recent regulatory changes, including the rollback of greenhouse gas standards and fuel economy measures, are expected to enhance GM's profitability by shifting focus to more profitable vehicle segments [5][9] - GM's revenue for Q4 2025 was $45.3 billion, down 5% year-over-year, but non-GAAP EPS increased by 30% to $2.51, exceeding forecasts [8] - Bank of America analyst Alexander Perry rates GM as a Buy with a price target of $105, indicating a potential upside of 34% [9] Group 2: Ford Motor Company - Ford's sales report for February 2026 showed a 5.5% year-over-year decline, primarily due to a nearly 38% drop in electric vehicle sales, while combustion engine vehicle sales remained relatively stable [12][13] - The company reported $45.9 billion in revenue for Q4 2025, also down 5% year-over-year, with non-GAAP earnings of 13 cents per share missing expectations [14] - Ford is well-positioned to benefit from the regulatory changes, focusing on high-margin trucks and SUVs, with expectations of improved EBIT margins in the coming years [15] - Bank of America rates Ford as a Buy with a price target of $17, suggesting a 33% upside potential [15]