10 Best Car Repair Stocks to Buy Now

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1. BorgWarner Inc. (NYSE:BWA)

Number of Hedge Fund Holders: 41

BorgWarner Inc. (NYSE:BWA) is an automotive parts company that provides solutions for combustion, hybrid, and electric vehicles. It is based in Auburn Hills, Michigan.

The company has been performing positively in 2024, primarily because of the resilience of its tech-focused portfolio. Additionally, BorgWarner Inc. (NYSE:BWA) also has plenty of free cash flow to ensure it remains afloat even in the face of current headwinds in the automotive sector. In the second quarter, the company’s free cash flow stood at $297 million, which represents an increase of $267 million year-over-year.

In its second-quarter earnings call, BorgWarner Inc. (NYSE:BWA) also announced its intention to repurchase $300 million worth of its stock in the second half of 2024. Through this, the company aims to focus on the efficient deployment of its capital and ensure that it returns value to its shareholders. BorgWarner Inc. (NYSE:BWA) also outperformed the industry by 350 basis points in the second quarter, which highlights the strength of its sales performance.

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

While automotive repair stocks like BWA have great potential, we believe that AI stocks hold promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones mentioned in our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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