10 Best Car Stocks To Invest In Now

4. Aptiv PLC (NYSE:APTV)

Number of Hedge Fund Holders: 52

Aptiv PLC (NYSE:APTV) is a technology and mobility architecture company that manufactures vehicle components and provides electrical, electronic, and safety technology solutions to the automobile market.

The company’s share price has lost over 34% of its value this year, primarily due to the downward trajectory in the broader automotive industry, including factors like a dip in electrification momentum, growing labor and raw materials costs, and geopolitical tensions. Despite challenges, APTV has managed to maintain robust margins, which is a testament to its operational efficiencies.

On October 31, Aptiv PLC (NYSE:APTV) announced financial results for the third quarter of 2024. Revenue stood at $4.9 billion, down 6% from last year, driven by lower volume production at select customers in Europe and China. Adjusted EBITDA for the quarter was $778 million while operating income was posted at $593 million.

Improved operational performance across business segments, combined with efficient management of expenses in the current fiscal year and effective cost reduction measures taken at the end of 2023 have helped the company increase its operating margin by 120 basis points year-over-year. Moreover, its Q3 2024 EPS of $1.83 per share was the highest ever, growing 41% year-over-year.

APTV is confident about ending the year on a high by delivering strong earnings growth and margin expansion. The trend is projected to continue in 2025, with the company stating that it expects to pay dividends in the year and beyond. Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 43%.

Hedge fund sentiment around the stock has considerably improved as well. According to Insider Monkey’s database for Q3 2024, 52 hedge funds had investments in Aptiv PLC (NYSE:APTV), up from 38 at the end of the second quarter. It is one of the best car stocks to invest in now.