We recently published a list of  Why These 15 Automotive Stocks Have Been Plunging In 2025. In this article, we are going to take a look at where Monro, Inc. (NASDAQ:MNRO) stands against other automotive stocks that have been plunging in 2025.

Automotive stocks have been among the worst-performing names in the past few months, and even before that, if you exclude Tesla from the list. Donald Trump’s election caused panic among electric vehicle startups, and his tariff policies caused that panic and uncertainty to spread among traditional automakers.

Meanwhile, inflationary pressures and rising interest rates have dampened consumer demand for big-ticket purchases like vehicles. The recent inflation read is a step in the right direction and can eventually help bring rates lower, but the automotive sector is unlikely to pull off a big recovery anytime soon.

Methodology

For this article, I screened the worst-performing automotive stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A car in a service bay being inspected by a technician for a routine maintenance service.

Monro, Inc. (NASDAQ:MNRO)

Number of Hedge Fund Holders In Q4 2024: 21

Monro, Inc. (NASDAQ:MNRO) is a retail tire and automotive repair company.

The stock is down significantly so far in 2025 due to the company’s weak financial performance. In Q3 FY2025, Monro’s sales fell 3.7% year-over-year to $305.8 million, and comparable store sales declined by 0.8%. Operating income dropped to $10 million from $21.4 million in the prior year, and diluted earnings per share fell to $0.15 from $0.38.

And this is on top of Q2 FY2025’s weak report, where sales declined 6.4% year-over-year to $301.4 million, with comparable store sales dropping by 5.8%.

Moreover, Monro (NASDAQ:MNRO) has faced gross margin pressures in its tire segment. It saw a decline of 150 basis points year-over-year. Operating margins have also been under strain.

The consensus price target of $25.33 implies 55.23% upside.

MNRO stock is down 33.59% year-to-date.

Overall, MNRO ranks 9th on our list of automotive stocks that have been plunging in 2025. While we acknowledge the potential of MNRO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MNRO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.