4 Auto Stocks Up More Than 50% YTD & Still Worth Buying for 2026

From tariff headlines to shifting EV incentives, the U.S. auto industry navigated sharp swings in sentiment and demand this year. Yet, despite the noise, consumer appetite for new vehicles has remained resilient—and a handful of auto stocks like General Motors GM, Strattec Security STRT, Garrett Motion GTX and REV Group REVG have delivered standout gains of more than 50% year to date, outperforming the sector.

YTD Price Performance Comparison 

After such strong rallies, these stocks still make sound investment options for 2026 on the back of solid fundamentals. But before diving into the stocks, let’s see how 2025 unfolded for the auto industry—and what the road ahead looks like.

2025: A Volatile but Resilient Year for Autos

Policy uncertainty played a big role early this year, as trade and tariff discussions under the Trump administration created concern around vehicle pricing and supply chains. That uncertainty didn’t freeze demand—instead, it pulled it forward. Many buyers rushed to dealerships in the spring to lock in purchases before potential price increases due to tariffs, giving new-vehicle sales an unexpected boost.

Another major turning point came mid-year around electric vehicles. In early July, sales of EVs and plug-in hybrids accelerated as consumers hurried to qualify for the $7,500 federal tax credit before it expired at the end of September. That rush helped make the third quarter the strongest ever for EV sales and a very solid period for the overall auto market.

Once those incentives expired, the slowdown that many had been expecting finally arrived. The fourth quarter is showing softer demand, with higher prices, inflation, tariff pressures and reduced EV incentives weighing on buyers. Even so, the market is proving to be more resilient than feared. According to Cox Automotive, U.S. new-vehicle sales are still on track to reach about 16.3 million units in 2025—nearly 2% higher than last year and the strongest result since 2019.

What 2026 Could Look Like

Looking ahead to 2026, the market appears to be moving toward a more sustainable pace. Edmunds expects sales to settle near 16 million units as pricing, inventory levels and dealer supply normalize. Growth is likely to be driven by real consumer demand rather than temporary incentives.

Affordability will remain the defining theme. Higher-income buyers continue to support demand for larger, higher-priced vehicles, while many cost-conscious shoppers are being pushed toward used and off-lease options. Moderating interest rates, evolving EV demand, and improving used-car supply should help create a more balanced auto market in 2026.

4 Auto Outperformers With More Upside Potential

General Motors: It is the top-selling automaker in the United States, with strong demand for its leading brands—Chevrolet, Buick, GMC, and Cadillac—fueling sales growth.Upcoming launches, including the next-generation Cadillac CT5, a redesigned XT5, and the relaunch of the Orion Assembly plant in early 2027 to produce the Cadillac Escalade and new full-size pickups, reinforce GM’s focus on meeting domestic demand.

The company’s restructuring efforts in China have started paying off. It is also gaining momentum in software and services, which are becoming meaningful growth drivers. GM notified on its last earnings call that it has recognized about $2 billion in revenues from Super Cruise, OnStar and other software offerings year to date. Solid automotive liquidity and aggressive buybacks are further instilling investor confidence.

GM stock has gained 55% so far in 2025. The Zacks Consensus Estimate for 2026 EPS implies an uptick of 13% from projected 2025 levels. The stock currently sports a Zacks Rank #1 (Strong Buy) and a VGM Score of A.

You can see the complete list of today’s Zacks #1 Rank stocks here. 

Strattec Security: It is a key player in vehicle access and security systems, serving major automakers worldwide. The company is steadily moving beyond traditional mechanical locks toward smarter, integrated electro-mechanical solutions, keeping it relevant as vehicles become more software-driven. At the same time, Strattec Security is simplifying its operations and organizational structure to improve efficiency.

Ongoing automation projects are helping lift gross margins, while recent restructuring in its Mexico operations is expected to generate about $1 million in annual cost savings. With a solid cash position and a strong balance sheet, Strattec Security is well-positioned to stay resilient and continue executing its long-term strategy.

STRT stock has jumped 95% so far in 2025. The Zacks Consensus Estimate for fiscal 2026 EPS has moved 99 cents north to $5.24 over the past 60 days. The stock currently sports a Zacks Rank #1 and has a VGM Score of A.

Garrett Motion: It develops advanced turbocharging and zero-emission technologies, helping vehicles become more fuel-efficient while supporting the transition to hybrid, electric, and hydrogen-powered transportation. Garrett Motion has secured several new light-vehicle turbo programs, including awards tied to range-extended EVs, and multiple commercial and industrial wins.

Notably, the company expects over $40 million in lifetime revenues from turbochargers used in data-center backup power systems. Interest in its electric powertrain and e-cooling solutions is also growing, with new proof-of-concept projects underway with OEMs and industrial customers. Reflecting this progress, Garrett Motion raised its 2025 profit outlook and approved a $250 million share repurchase program for 2026.

GTX stock is up 93% so far in 2025. The Zacks Consensus Estimate for 2026 EPS implies an uptick of 19% from projected 2025 levels. The stock currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B.

REV Group: It designs and manufactures specialty vehicles such as buses, fire trucks and emergency vehicles, mainly serving customers in the United States. The company recently agreed to merge with Terex, creating a larger and more diversified specialty equipment manufacturer. The deal brings together complementary brands and targets resilient, less cyclical end markets.

Management expects the merger to unlock about $75 million in annual cost and operating synergies by 2028, with roughly half realized within the first year. REV Group generated record free cash flow in fiscal 2025 and returned significant cash to shareholders through buybacks and dividends.

REVG stock is up around 96% so far in 2025. The Zacks Consensus Estimate for fiscal 2026 EPS implies year-over-year growth of 38%. The stock currently carries a Zacks Rank #2 and has a VGM Score of A.

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This article originally published on Zacks Investment Research (zacks.com).

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