10 Best Small-Cap Value Stocks to Buy Now

7. American Axle & Manufacturing Holdings Inc. (NYSE:AXL)

Forward P/E Ratio as of March 19: 10.18

Market Capitalization as of March 19: $542.05 million

Number of Hedge Fund Holders: 28

American Axle & Manufacturing Holdings Inc. (NYSE:AXL) designs and manufactures driveline and metal forming technologies for electric, hybrid, and internal combustion vehicles. It operates through Driveline and metal-forming segments. It provides axles, driveshafts, and other driveline components, as well as engine, transmission, and safety-critical parts for light, commercial, and off-highway vehicles.

The company’s driveline business, notably the production of axles for full-size trucks, drives most of its revenue. The company has secured this essential business for long-term stability and expansion. Significant contract wins have cemented the company’s position in the market. It has secured contracts with multiple customers for next-generation full-size truck axles, representing over $10 billion in lifetime revenue. American Axle & Manufacturing Holdings Inc. (NYSE:AXL) recently announced a contract extension to supply power transfer units for the Ford Maverick and Bronco Sport vehicles.

To maximize the performance of this segment, the company is prioritizing operational efficiency. In 2024, the company’s sales were ~$6.1 billion. The company is now actively pursuing strategic initiatives, such as the pending combination with Dowlais, which is expected to generate $300 million in run-rate synergies, to strengthen its position in the driveline market.