10 Best Automotive Stocks To Buy Now

6. Lear Corporation (NYSE:LEA)

Number of Hedge Fund Holders: 40

Lear Corporation (NYSE: LEA) is an automotive parts provider. The company develops and supplies automotive seating and electrical distribution systems, among more. It is based in Southfield, Michigan.

Many investors are interested in buying Lear Corporation (NYSE: LEA) because of the potential they see in its innovative solutions and its focus on incorporating AI, robotics, and vision systems within its business. In this regard, the company recently acquired WIP Industrial Automation, through which it aims to design AI and robotics-enabled turnkey solutions for complex industrial challenges that will help Lear Corporation (NYSE: LEA) accelerate its global automation initiatives.

Another attractive feature of Lear Corporation (NYSE: LEA) is its cheap valuation at present. The stock is currently trading at a P/E ratio of 9.1 versus the sector median of 15.6. As it stands, Lear Corporation (NYSE: LEA) is incredibly undervalued and thus represents an attractive automotive stock pick for value investors. The company is also working on becoming a leader in advanced manufacturing integration, for which its WIP acquisition will come in handy.

Lear Corporation (NYSE:LEA) was spotted in the portfolios of 40 hedge funds in the second quarter, with a total stake value of $1.4 billion.