10 Best Automotive Stocks To Buy Now

5. BorgWarner Inc. (NYSE:BWA)

Number of Hedge Fund Holders: 41

BorgWarner Inc. (NYSE:BWA) is an automotive parts and equipment provider based in Auburn Hills, Michigan. It offers solutions for combustion, hybrid, and electric vehicles worldwide.

In its second-quarter earnings call, BorgWarner Inc. (NYSE:BWA) announced an increase in its full-year margin and earnings guidance, aided by the fact that the company delivered a strong margin of 10.4%, up 30 basis points year-over-year, and EPS of $1.19, up $0.13 year-over-year, in the second quarter. Because of these results, BorgWarner Inc. (NYSE:BWA) has increased its full-year margin outlook to 9.6%-9.8% from 9.2%-9.6% previously. Full-year adjusted EPS outlook was increased to a range of $3.95-$4.15.

The primary reason for BorgWarner Inc.’s (NYSE:BWA) positive performance over the past quarters is the resiliency of its technology-focused portfolio and free cash flow, which keeps the company afloat in any type of end-market environment. In the second quarter, BorgWarner Inc. (NYSE:BWA) brought in free cash flow of $297 million, up $267 million year-over-year. In light of these results, the company also reaffirmed its position that it will outperform the market by 350-450 basis points for the full year of 2024, making BorgWarner Inc. (NYSE:BWA) a highly attractive automotive stock to invest in right now.

At the end of the second quarter, there were 41 hedge funds long BorgWarner Inc. (NYSE:BWA) with a total stake value of $725.5 million.