10 Best Car Repair Stocks to Buy Now

2. Lear Corporation (NYSE:LEA)

Number of Hedge Fund Holders: 40

Lear Corporation (NYSE:LEA) is another automotive parts company on our list. It offers automotive seating, electrical distribution systems, and related components for automotive OEMs.

A primary reason for investing in Lear Corporation (NYSE:LEA) is its incorporation of artificial intelligence, robotics, and vision systems within its business. The company’s recent acquisition of WIP Industrial Automation highlights the growing dedication to this strategic move since the acquisition will enable it to design AI and robotics-enabled turnkey solutions for complex industrial challenges.

In the second quarter, Lear Corporation (NYSE:LEA) delivered revenue of $6 billion, which exceeded its second-quarter 2023 revenue. Operating and free cash flow also rose by 8% year-over-year, coming in at $291 million and $170 million, respectively. Considering the company’s growing focus on AI and robotics integration in its offerings, investors can expect this growth trend to continue as the world moves towards EV and hybrid vehicle adoption.

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