10 Best Car Repair Stocks to Buy Now

3. Aptiv PLC (NYSE:APTV)

Number of Hedge Fund Holders: 38

Aptiv PLC (NYSE:APTV) is an automotive parts and equipment company based in Dublin, Ireland. It offers vehicle components providing active safety tech solutions for vehicles, and more.

Since Aptiv PLC (NYSE:APTV) offers software and digitalization components and solutions for automotive manufacturing and repair, the company’s growth is being propelled by the move towards electric and autonomous vehicles. Even with the rise of EVs somewhat stagnating because of their hefty price tags, Aptiv PLC (NYSE:APTV) is expected to continue its growth trajectory as more consumers opt for hybrid vehicles.

Several investors believe that Aptiv PLC (NYSE:APTV) is currently trading at a discount relative to its intrinsic value. The stock has a P/E ratio of 11.3, whereas the sector median currently stands at 15.6. Additionally, the secular trend of electrification and digitalization in the automotive space, alongside the rise of Chinese OEMs, is also expected to benefit Aptiv PLC (NYSE:APTV) as well, since the company has a significant presence in China, where it has operated for over 25 years.

Aptiv PLC (NYSE:APTV) was spotted in the 13F holdings of 38 hedge funds in the second quarter, with a total stake value of $1.03 billion.

Ariel Investments mentioned Aptiv PLC (NYSE:APTV) in its first-quarter 2024 investor letter:

“We added Aptiv PLC (NYSE:APTV)) which designs and manufactures vehicle components and provides electrical/electronic and active safety technology solutions to the global automotive and commercial vehicle markets. We believe the secular trend of electrification and digitization within the automobile industry, coupled with the expansion of Chinese original equipment manufacturers (OEMs), will accelerate demand and drive long-term growth. Additionally, we anticipate APTV will grow earnings per share over the near-term through its divesture of the autonomous driving joint venture, Motional. In our view, the name is currently trading at a significant discount relative to our estimate of intrinsic value.”