The second-quarter earnings season for the Auto-Tires-Trucks sector is in full swing, with Tesla, Ford, GM, Aptiv, and O’Reilly Automotive surpassing estimates. However, the sector’s earnings are expected to decline by 27.7% year-over-year, with revenues down 6%. U.S. vehicle sales saw modest growth in Q2, driven by gasoline-powered and hybrid vehicles.

Cummins, Rivian, Lucid, and American Axle are potential winners in the auto sector. Cummins, the world’s largest engine manufacturer, is set to release second-quarter results on Aug. 8. Rivian aims to broaden its reach with upcoming models and cost efficiencies. Lucid’s recent partnerships and tech updates signal long-term growth. American Axle’s focus on electrification and strategic portfolio optimization are driving growth.

Cummins, Rivian, Lucid, and American Axle all have positive Earnings ESP and favorable Zacks Ranks, increasing the odds of an earnings beat. Cummins is positioned for long-term growth in electrification and clean energy. Rivian’s lower-priced models and cost-saving measures boost profitability. Lucid’s recent partnerships and tech updates enhance its growth prospects. American Axle’s focus on electrification and strategic portfolio optimization drive growth.

The global semiconductor market is set to explode by 2028, creating opportunities for companies like Cummins, Rivian, Lucid, and American Axle to capitalize on the growing demand for AI, ML, and IoT technologies. With strong earnings growth and expanding customer bases, these companies are well-positioned for future success.

Read more at Nasdaq MarketSite: 4 Auto Stocks Likely to Outperform Q2 Earnings Estimates