5 Best Auto Components and Parts Stocks to Buy Now

2. Aptiv PLC (NYSE:APTV)

Number of Hedge Fund Holders: 40

Irish-American automotive technology company Aptiv PLC (NYSE:APTV) rank second in our list of the best auto components and parts stocks to buy now according to hedge funds. Aptiv PLC (NYSE:APTV)’s adjusted EPS in the second quarter totaled $1.25 beating estimates by $0.23. Revenue in the period jumped 28% year over year to $5.2 billion, beating estimates by $340 million.

A total of 40 hedge funds out of the 910 hedge funds tracked by Insider Monkey reported owning stakes in Aptiv PLC (NYSE:APTV). The most significant stakeholder of Aptiv PLC (NYSE:APTV) during this period was Ian Simm’s Impax Asset Management which owns a $626 million stake in the company.

Artisan Mid Cap Fund Composite made the following comment about Aptiv PLC (NYSE:APTV) in its second quarter 2023 investor letter:

“Along with Catalent, we ended our investment campaigns in Aptiv PLC (NYSE:APTV) and Nasdaq during the quarter. Aptiv is a leading provider of safety, infotainment and electronic control components to the automotive market. Our view was that the company was well-positioned to benefit from several strong secular industry trends—the shift from internal combustion engines to electric vehicles, autonomous driving and increased computing intensity in vehicles. Over our holding period, a volatile macro environment (pandemic, supply chain shortages) steadily weighed on the profit cycle despite the company’s strong new business announcements. Furthermore, we believe the company may be increasingly disadvantaged as leading auto manufacturers work around tier-one suppliers (such as Aptiv) to maximize profits and speed to market. While the profit cycle may ultimately take hold, we concluded that several of our semiconductor holdings (ON Semiconductor, Lattice Semiconductor and Monolithic Power Systems) offer stronger leverage to these important new auto trends and decided to exit the position.”