4 Auto Stocks Wall Street Analysts Are Bullish About for 2026

The auto industry in 2025 navigated policy uncertainty and shifting incentives. Early tariff concerns pulled demand forward as buyers rushed to purchase vehicles ahead of possible price increases. Mid-year, EV and plug-in hybrid sales surged as consumers hurried to qualify for the $7,500 tax credit, driving a record third quarter. After incentives expired, demand softened in the fourth quarter amid higher prices and inflation. Even so, the market is proving to be more resilient than feared. According to Cox Automotive, U.S. new-vehicle sales are still expected to reach about 16.3 million units in 2025, the strongest level since 2019.

The industry appears to be moving toward a more sustainable pace. Edmunds expects sales to settle near 16 million units in 2026 as pricing, inventory and dealer supply normalize. Growth is likely to come from real consumer demand rather than short-term incentives.

Affordability will remain the key theme. Higher-income buyers continue to support demand for larger vehicles, while cost-conscious shoppers lean toward used and off-lease options. At the same time, long-term trends like electrification and autonomous driving remain in place.

Against this backdrop of uncertainty and opportunity, Wall Street analysts are focusing on companies best positioned for 2026. These broker-backed auto stocks reflect careful evaluations of market risks, structural trends and long-term growth potential.

4 Broker-Loved Auto Picks

Four auto stocks have been shortlisted with the help of the Zacks Stock Screener. These are Garrett Motion GTX, Blue Bird Corporation BLBD, Standard Motor Products SMP and WeRide Inc. WRD. These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy). More than 70% of brokers are bullish on these stocks, with Average Broker Recommendation of 2 or less on a scale of 1 to 5 (Strong Buy to Strong Sell).

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.

Four of the five brokers covering GTX stock have Strong Buy/Buy recommendations, giving the company an attractive ABR of 1.60. The Wall Street average price target of $20.75/share suggests a nearly 19% upside for the stock from the current levels. The stock currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of B.

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

Standard Motor

It is one of the leading suppliers of premium automotive replacement parts, specializing in engine management and temperature control systems. Industry fundamentals remain supportive, with demand driven by an aging vehicle fleet, a rebound in vehicle miles traveled, and the rising cost of new cars, which continues to push consumers toward repairs and replacements.

SMP’s acquisition of Nissens in November 2024 meaningfully expanded its global footprint, creating a strong platform for international growth. Management expects the integration to deliver $8-12 million in annualized cost savings within two years. More than half of SMP’s U.S. sales are sourced from North America under USMCA, limiting tariff exposure, while minimal reliance on China further protects margins.

All three brokers covering SMP stock have a Strong Buy recommendation, giving the company an attractive ABR of 1. The Wall Street average price target of $47/share suggests a nearly 25% upside for the stock from the current levels. The stock currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A.

Blue Bird

It is a leading player in low- and zero-emission school buses, with more than 20,000 propane, natural gas and electric buses operating across the United States. The company is well-positioned to benefit from a growing school-age population, an aging national bus fleet, and federal funding for clean school transportation. BLBD is also expanding services through its Blue Bird Energy Services and Clean Bus Solutions joint venture, providing fleets with complete charging infrastructure solutions.

Demand remains strong. In fiscal 2025, the company delivered a record 901 electric buses. It currently has an order backlog of 680 electric buses, supporting its 2026 sales outlook. Management expects fiscal 2026 to deliver results similar to 2025 and is targeting $1.5 billion in revenues and $220 million in adjusted EBITDA.

Six of the eight brokers covering BLBD stock have Strong Buy/Buy recommendations, giving the company an attractive ABR of 1.63. The Wall Street average price target of $56.71/share suggests a nearly 12% upside for the stock from the current levels. The stock carries a Zacks Rank #2 and has a VGM Score of A.

WeRide

It stands out as a first-mover and one of the leaders in the autonomous driving space, backed by a fleet of 1,600+ AVs, including ~750 robotaxis and driverless licenses across eight countries. Commercial, fully driverless robotaxi services are live in Guangzhou and Beijing, with rapid trip growth, and in Abu Dhabi, where a safety-officer-free permit enables breakeven unit economics.

Expansion momentum continues through planned deployments in Hong Kong, Uber-based services in Riyadh, trials in Dubai and Ras Al Khaimah, and Switzerland’s first driverless passenger permit in Zurich. Outside robotaxis, WeRide is commercializing robobuses, robosweepers, and a production-ready L2+ ADAS solution, reinforcing its multi-product global strategy.Through expanding fleets, strategic partnerships and innovative service models, the company is scaling commercial operations while shaping the future of driverless transport.

Six of the seven brokers covering WRD stock have Strong Buy/Buy recommendations, giving the company an attractive ABR of 1.42. The Wall Street average price target of $15/share suggests a nearly 72% upside for the stock from the current levels. The stock carries a Zacks Rank #2.

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

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