The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes discusses topics across the investing world.
In today's edition, Brendan looks at five automakers traded on major U.S. exchanges, and picks out the one he thinks is the best buy. The strength of the yen is Brendan's biggest worry for Japanese automakers Toyota and Honda, while Tesla still seems like a speculative bet on the future of electric vehicles, despite the fact that the company has done an admirable job ramping up production of its flagship Model S sedan. Overall, Brendan rates the two big domestic automakers, Ford and GM, as his top buys. He likes GM because it's insanely cheap and holds the market share lead in both the U.S. and China. But Brendan likes Ford a bit more right now. The company is further along in its recovery from the financial crisis, and has plenty of room for growth in Asia.
With Ford and GM both currently losing money in Europe, some investors might be nervous about investing in companies that focus internationally. But emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover three American companies poised to take advantage of these trends today, we invite you to read a copy of our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to click here to get your copy today!
Brendan Byrnes owns shares of Ford. The Motley Fool owns shares of Ford and Tesla Motors. Motley Fool newsletter services recommend Ford, General Motors Company, and Tesla Motors . Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.