10 Best Car Stocks To Invest In Now

8. Autoliv, Inc. (NYSE:ALV)

Number of Hedge Fund Holders: 38

Autoliv, Inc. (NYSE:ALV) is an automotive safety supplier for leading car manufacturers worldwide. It has a wide range of product offerings, including airbag protection systems, seatbelts, steering wheels, battery cutoff switches, and inflator technologies. The company has over 60 facilities across 25 countries. Its products save 35,000 lives and reduce around 450,000 injuries every year.

In December this year, the automotive safety systems specialist formed a strategic partnership with Chinese car manufacturer Jiangling Motors Co., Ltd (JMC). Autoliv has supplied seatbelts to JMC for nearly three decades. Under this new arrangement, both companies aim to leverage each other’s strengths to enhance their global presence by bringing new technologies to the market that redefine safety and comfort.

Autoliv, Inc. (NYSE:ALV) is also increasing its footprint in the flying cars segment. The company’s China division in June signed a strategic cooperation agreement with XPENG AEROHT to develop safety solutions for future mobility. XPENG AEROHT is among Asia’s leading flying vehicle innovators.

Despite challenges in the global automotive industry, Autoliv, Inc. (NYSE:ALV)’s financial performance remains resilient. In its recent Q3 2024 earnings call on October 18, the company reported consolidated net sales of $2.6 billion, down 2% from last year due to lower light vehicle production and negative currency translation effects. EPS was posted at $1.84 per share, falling shy of expectations of $2.

Autoliv, Inc. (NYSE:ALV) outperformed the global light vehicle production by 4%. It also posted an 18% year-over-year increase in sales with domestic OEMs in China. During the quarter, the company paid a dividend of 68 cents per share and repurchased and retired 1.33 million shares for around $130 million, reflecting its commitment to a high level of shareholder returns.

Wall Street analysts have a consensus Buy rating for Autoliv, with an average share price upside potential of 31%. According to Insider Monkey’s database for Q3 2024, 38 hedge funds held a stake in the company, making it one of the best car stocks to invest in now.