Big automakers suchs as Stellantis (STLA) and Ford (F) recently posted results that disappointed some investors. The auto sector at large, for the most part, underperformed this quarter, but is there more under the hood?

Bernstein senior analyst Daniel Roeska joins Morning Brief to give insight into Stellantis' latest performance and how the autos sector will shape out for the rest of the year.

On Stellantis, Roeska states: "Here we are in the situation where Stellantis did all the wrong things in one quarter. Right? They pumped the inventory channel last year. Inventories went up. They had to put discounts back on. They put pricing down. They overspent on M&A. They overspent on capex and they basically had no free cash flow... This is really the first time in the past three years that Stellantis has messed up."

He ends with: "We think GM (GM) here is best positioned to tide people over with a good buyback and dividend strategy. In the medium-term though, we'd flag that everybody Stellantis, Ford, GM they're all working on the future electric vehicle platforms, and they will be a part of this market," arguing that over the long-term, valuations on these stocks should improve.

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This post was written by Nicholas Jacobino