Is Aurora Innovation a Good Autonomous Driving Stock to Buy?

: AUR | Aurora Innovation, Inc. News, Ratings, and Charts

AUR – Self-driving technology company Aurora Innovation (AUR) recently made its stock market debut. But is it wise to buy the stock now even though the company has not yet generated any revenues? Let’s find out.

Autonomous technology company Aurora Innovation, Inc. (AUR) in Pittsburgh, Pa., recently completed its business combination and began trading on November 4, merging with special purpose acquisition company (SPAC) Reinvent Technology Partners Y, and raising over $1.80 billion in gross proceeds. The stock has gained 6.9% in price since its public debut.

Wall Street analysts expect the stock to hit $14 in the near term, which indicates a potential 16.6% upside

However, AUR is currently trading 32.4% below its all-time high of $17.77, which it hit on November 19, 2021. Moreover, the entire automotive industry is facing severe semiconductor chip and labor shortages, which could hamper the company’s production plans. So, AUR’s near-term prospects look uncertain.

Click here to checkout our Electric Vehicle Industry Report for 2021

Here is what could influence AUR’s performance in the upcoming months:

Retail Trader Optimism

As major car manufacturers race to develop self-driving cars, autonomous driving technology is deemed the “next big thing” in the automotive industry. AUR’s shares  soared primarily on investor optimism. According to a Bloomberg report published on November 20, the stock was widely cited on social media platforms — Twitter and StockTwits.

Stretched Valuation

In terms of forward EV/S, AUR’s 275.87x is 12,977.8% higher than the 2.11x industry average. Similarly, its 54.27x forward P/S is 3,196.5% higher than the 1.65x industry average. And  the stock’s 10.38x forward P/B  is 246.5% higher than the 3x industry average.

POWR Ratings Don’t Indicate Enough Upside

AUR has an overall C rating, which equates to a Neutral in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. AUR has a D grade for Value, which is in sync with its higher-than-industry valuation ratios.

The stock has a D grade for Quality. AUR’s trailing-12-month ROTC and ROTA are negative, compared to the 6.73% and 5.19% respective industry averages, justifying the Quality grade.

AUR is ranked #45 out of 75 stocks in the D-rated Technology – Services industry. Click here to access AUR’s ratings for Momentum, Sentiment, Stability, and Growth also.

Bottom Line

The ongoing semiconductor and labor shortage could lead to unexpected delays and hurdles in production for AUR. In addition, AUR has yet to generate revenues. So, the stock looks overvalued at its current price level, and we think it could be wise to wait for a better entry point in the stock.

How Does Aurora Innovation (AUR) Stack Up Against its Peers?

While AUR has an overall POWR Rating of C, one might want to consider investing in the following Technology – Services stocks with an A (Strong Buy) rating: NetScout Systems, Inc. (NTCT), Jabil Inc. (JBL), and Celestica, Inc. (CLS).

Click here to checkout our Electric Vehicle Industry Report for 2021


AUR shares fell $0.49 (-4.08%) in premarket trading Friday. Year-to-date, AUR has gained 20.10%, versus a 26.79% rise in the benchmark S&P 500 index during the same period.


About the Author: Nimesh Jaiswal


Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
AURGet RatingGet RatingGet Rating
NTCTGet RatingGet RatingGet Rating
JBLGet RatingGet RatingGet Rating
CLSGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Stock Market “Nausea Index” Going Off

The stock market (SPY) has seen fresh lows this week scaring many investors into selling their positions. On the other hand, 40 year investment veteran shares a proprietary market indicator that points to a significant bounce coming soon. Is he right? You be the judge by reading below.

:  |  News, Ratings, and Charts

3 Stocks that Are Thriving in an Inflationary Environment

Inflation is one of the biggest threats facing the economy. One profitable strategy during this period of high inflation is to focus on stocks that have pricing power, as these companies’ margins will continue to expand. In contrast, stocks without pricing power are likely to underperform as margin compression erodes EPS. Therefore, investors should consider buying these 3 stocks that are thriving in this inflationary environment: Olin (OLN), Nucor (NUE), and Chemours (CC).

:  |  News, Ratings, and Charts

Is the Bear Market Here?

We are witnessing the nastiest stock market (SPY) correction since Covid first came on the scene. That has some pondering if the next bear market is upon us. 40 year veteran investor Steve Reitmeister gives his clear eyed view on the market outlook and trading plan in this timely commentary. Get the full story below...

:  |  News, Ratings, and Charts

4 Best Value Stocks to Buy in January

In times of high inflation, value stocks tend to outperform growth stocks and have done so over the past year. Amid the rising inflationary pressure and looming interest rate hikes, fundamentally sound value stocks ArcelorMittal (MT), Covestro (COVTY), KT Corporation (KT), and Nature’s Sunshine (NATR) could be solid bets.

:  |  News, Ratings, and Charts

Is the Bear Market Here?

We are witnessing the nastiest stock market (SPY) correction since Covid first came on the scene. That has some pondering if the next bear market is upon us. 40 year veteran investor Steve Reitmeister gives his clear eyed view on the market outlook and trading plan in this timely commentary. Get the full story below...

Read More Stories

More Aurora Innovation, Inc. (AUR) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AUR News