Stocks to buy

With artificial intelligence and optical technologies accelerating, investors looking for their next big opportunity should consider the top autonomous driving stocks to buy. Fundamentally, autonomy on the roads may help significantly improve safety. Even the best drivers can’t monitor every little detail, which is where tech steps into the picture.

In addition, high-potential autonomous driving stocks may facilitate the unlocking of economic value. Data from Inrix – billed as the world leader in mobility analytics and connected car services – claimed that Americans lost an average of 97 hours a year due to traffic congestion. In 2018, delays on the road imposed a cost of nearly $87 billion to commuting workers.

Further, the sector itself presents an unignorably compelling opportunity for forward-thinking investors. According to McKinsey & Company, road autonomy could create $300 billion to $400 billion in revenue by 2035. Therefore, it’s well worth planning ahead with autonomous driving stocks with explosive growth. To be sure, it’s a growing arena and that implies growing pains. However, if you’re a patient speculator, these may be the best autonomous driving stocks to buy.

APTV Aptiv $100.16
AUR Aurora Innovation $2.42
OUST Ouster $5.55

Aptiv (APTV)

Source: Aptiv

A global technology firm, Aptiv (NYSE:APTV) develops safer, greener and more connected solutions enabling the future of mobility, according to its public profile. One of the least speculative top autonomous driving stocks, Aptiv features a market capitalization of over $27 billion. While it might not yield blistering gains, APTV should help with consistent performance, keeping you in the game.

Primarily, Aptiv ranks among the high-potential autonomous driving stocks thanks to its Gen 6 ADAS platform. Under this innovative architecture, vehicle manufacturers benefit from a proven software stack integrated with myriad features and services. More importantly, ADAS integrates a next-generation sensor suite, which incorporates radar, vision and lidar technologies. Theoretically, this combination should lend a competitive edge for Aptiv.

Finally, Wall Street analysts peg APTV a consensus strong buy. This assessment breaks down as 10 buys, three holds and significantly zero sell ratings. Overall, the experts’ average price target lands at $127.09, implying over 25% upside potential. Thus, it’s a solid idea for best autonomous driving stocks to buy that likely won’t leave you on the road.

Aurora Innovation (AUR)

Source: Shutterstock

Based in Pittsburgh, Pennsylvania, Aurora Innovation (NASDAQ:AUR) is an American self-driving vehicle technology company. According to its corporate profile, Aurora is known for developing the Aurora Driver, a computer system that can be integrated into cars for autonomous driving. As with Aptiv above, the company sports a respectable market cap of nearly $2.7 billion. Since the start of the year, AUR shares nearly doubled, thus making a strong case for top autonomous driving stocks.

Notably, its website states that next year, Aurora plans to launch Horizon, the first autonomous service powered by the aforementioned Aurora Driver platform. Per its directive, Horizon should bring safety, value and efficiency to carriers and fleet owners.

Though an enticing narrative for autonomous driving stocks with explosive growth, Aurora presents an aspirational profile in its financials. Notably, it has a long way to profitability. Nevertheless, its cash-to-debt ratio pings at just over 7 times, which beats out 61.54% of its peers. Lastly, analysts peg AUR a consensus moderate buy. Their average price target clocks in at $3.13, implying over 39% upside potential. Thus, it’s one of the promising autonomous driving stocks for speculators.

Ouster (OUST)

Source: temp-64GTX / Shutterstock.com

For folks who really want to ramp up their risk-reward profile, Ouster (NYSE:OUST) just might fit the bill. As a lidar technology specialist, Ouster builds high-resolution, digital 3D lidar sensors for use in autonomous vehicles, industrial, robotics, drones, mapping, defense and security systems. Further, its sensors produce images from ambient infrared, with software that enables a vehicle’s sensing and mapping functions.

That sounds great on a marketing brochure. And on paper, OUST seemingly makes a robust case for top autonomous driving stocks. However, investors will look at the reality of the situation, which is that OUST hemorrhaged over 43% of equity value since the January opener. Even worse, over the trailing one-year period, the security fell slightly more than 72%.

Nevertheless, the occasional positive news items have previously skyrocketed OUST. So, it’s not a complete loss when it comes to best autonomous driving stocks to  buy (for extreme speculators). In closing, analysts peg OUST a moderate buy. For the believers ,their average price target stands at $10.63, implying over 94% upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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