How to Buy Volkswagen (VWAGY) Stock

Read our Advertiser Disclosure.
Contributor, Benzinga
May 24, 2021
Open14.800Close15.010
Vol / Avg.135.934K / 236.277KMkt Cap74.743B
Day Range14.800 - 15.03052 Wk Range11.160 - 17.530

Volkswagen is a globally-known brand committed to its values. the company offers employees good working conditions, and it conserves resources and the environment.

The auto manufacturer has taken a leading position in China and is transforming into 1 of the top automotive software players. Learn more about Volkswagen and how you can buy Volkswagen stock today.

How to Buy Volkswagen Stock:

  • Pick an online broker to use. Find out what you value as a trader and pick a broker that provides you with this. Do you need educational resources or do you prefer low fees?
  • Open your account and install the platform. Once you've selected your broker, you can begin setting up your trading environment. If you want to trade on the go, make sure you download your broker's mobile app.
  • Analyze the stock and trade. Once you have your account set up, you can begin watching the VW stock and decide when you want to purchase.

A Brief History of Volkswagen

Volkswagen is a German car manufacturer that was founded in 1937. The name Volkswagen comes from the 2 German words:

  • “Volk” - nation, people
  • “Wagen” - car, automobile

Volkswagen - the car of the nation.

Volkswagen is an icon in the automobile industry and 1 of the biggest companies in the world. The company name is synonymous with innovation in the automobile industry at an accessible price.

Pros and Cons of Volkswagen Stock

Volkswagen experienced a rapid price drop of stock in 2015 after the accusation it was lying about values of the harmful emissions its cars produce.

Screen Shot 2019-06-04 at 10.27.07 AM
Source: www.tradingview.com/chart/

Ever since the stock has attempted to recover. Volkswagen is trading above $30 per share with a 52 week low of $10.64 and a 52 week high of $48.72.

Pros of the Volkswagen Stock

  • Potential to recover. Volkswagen lost around 60% of its value as a result of the Dieselgate. It proved it can recover, and there is a vision for further expansion.
Screen Shot 2019-06-04 at 10.28.14 AM
Source: www.tradingview.com/chart/
  • P/E ratio. The current P/E ratio of the Volkswagen stock is 11.94. The higher the number, the higher expect higher growth from the company compared to the overall market.
  • Trending earnings and revenue. Volkswagen has been accounting for increasing earnings and revenue during the past 3 years. This way we identify a trend, which shows the company’s ability to recover from Dieselgate.
  • Ambitious goals. Volkswagen has announced its goal to produce 3.5 million electric vehicles by 2025, which is very ambitious. If Volkswagen starts pursuing this goal, they will become one of the top players in the electric car industry, which will put them next to Tesla. Such an outcome is likely to bring growth to Volkswagen’s stock price.

Cons of the Volkswagen Stock

  • Dieselgate still bubbles. A slip up like the Dieselgate saga doesn’t exclude a scenario where Volkswagen drops even further in price.
  • High beta. The beta of the Volkswagen stock is 1.58, which is relatively high. Normal beta values are between -1 and 1. The stock price of Volkswagen is somehow correlated to the benchmark but at the same time very volatile. This puts the stock with a risk above the intermediate level.

How to Purchase Volkswagen Stock

If you want to purchase a Volkswagen stock, you'll need to get in touch with a reputable online broker. Look for a broker with the following traits:

  • U.S.-based
  • Highly regulated
  • Listed on stock exchanges
  • Advanced trading platforms
  • Low-to-standard commissions on stock trading
  • Rich on research offerings
  • Great customer support

  1. Pick an Online Broker

    This is 1 of the most important steps to conduct successful trading. You need to define what is the most important thing for you when trading.

  2. Open a Trading Account

    Once you’ve decided on your broker, open your account. You'll receive a confirmation email. Navigate to this email and click the link inside. This way you will confirm your email address.

    Your broker is likely to ask you for further account confirmation. This will include a copy of a personal document. Notice that in some cases they might ask you to provide proof of income. After all, reputable brokers care about your financial condition and they want to make sure that you are not risking money you cannot afford to lose.

  3. Install the Trading Platform

    Now that you confirmed your trading account, you need to move on to installing the trading software. If you are going to use a web platform, then you need to navigate to the website of the broker and then to the platform.

    If you want to use the desktop platform of the broker, then you need to download it and conduct the installation locally on your computer. The installation is standard for software.

    If you plan to trade on a mobile device, then you navigate to the Play Market for Android or to the App Store for iOS. Use the search to find your broker’s mobile app and install it.

    When you have access to the platform, use the login details provided by your brokers to enter your account. Now you are in the account on the respective trading platform and you are ready to trade.

  4. Conduct your Analysis

    Now your account is all set and you can buy and sell financial assets. Go to the market watch of your trading platform. Use the search to find the Volkswagen stock. When you find the stock you can open its chart and approach the past price action. You can conduct two types of analysis:

    Technical analysis. Approach the price action of the stock to make assumptions about its future performance. Try to discover a trend or a potential reversal. If you find an increasing trend you can buy the Volkswagen stock and try to ride the trend with the assumption that the price will increase and you will sell later on a higher price. If you discover a downward trend, then you can short-sell and hope that the price will drop, where you can cover the trade and profit from the difference.

    Fundamental analysis. The fundamental analysis of a stock involves checking the financial condition of the company and the news releases related to it. An example of a fundamental element is the announcement that Volkswagen was cheating with the harmful emissions produced by their cars. This was the reason for a major drop in the stock price of Volkswagen.

  5. Purchase Volkswagen stock

    After you have conducted a proper analysis, you are ready to buy some shares of Volkswagen. Go to the chart of the stock, or to the market watch and you will see buy/sell buttons.

    Make sure you regulate the number of shares you want to buy based on the amount of money you want to spend.

    Another important part of your trade is to place a stop-loss order. Traders use the stop-loss order to secure your trade by limiting the potential losses of the deal. If you put a stop-loss at a particular level, you can’t lose more than the level you have settled.

Best Online Brokers

We recommend the following for beginning, intermediate and advanced traders.

Invest in Volkswagen Stock

Volkswagen is a big name, and it could be a good choice for the right investor. The company is committed to growth, and it's software development is promising.

Connect with an online brokerage to invest in Volkswagen stock now.

Want to learn more about investing? Check out Benzinga's guides to the best online brokerages, best auto stocks and best investing courses.

Related content: How to Buy Foxconn Stock in the U.S.