In this article, we will take a look at the top 5 best auto components and parts stocks to buy now. To see more such companies, go directly to 13 Best Auto Components and Parts Stocks to Buy Now.
5. Mobileye Global Inc. (NASDAQ:MBLY)
Number of Hedge Fund Holders: 36
Israel-based Mobileye Global Inc. (NASDAQ:MBLY) ranks 5th in our list of the best auto parts and components stocks to buy now according to hedge funds. Mobileye Global Inc. (NASDAQ:MBLY) is up about 40% over the past one year.
As of the end of the second quarter of 2023, 36 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Mobileye Global Inc. (NASDAQ:MBLY).
Baron Fifth Avenue Growth Fund made the following comment about Mobileye Global Inc. (NASDAQ:MBLY) in its second quarter 2023 investor letter:
“Lastly, we took advantage of the volatility in Mobileye Global Inc. (NASDAQ:MBLY)’s (the leading ADAS and autonomous driving technology supplier) stock to add to our existing position following the company’s quarterly earnings report, in which it revised its 2023 guidance due to a decrease in volume for its point-to-point assisted driving navigation solution, SuperVision, due to reduced orders from its initial Chinese customer, Zeekr. While the company remains a leader in ADAS (with an approximate 70% market share), we believe the real potential lies in leading the autonomous driving revolution. This transition has the potential to significantly enhance safety, meaningfully increase vehicle utilization rates (which presently hovers around 4%), and substantially grow the company’s content per vehicle. SuperVision for example, has a price point approximately 20 times higher than its basic ADAS offering, while Mobileye’s higher level autonomy solutions, such as Chauffeur, are priced at even a greater premium.”
4. Gentex Corporation (NASDAQ:GNTX)
Number of Hedge Fund Holders: 37
Gentex Corporation (NASDAQ:GNTX) sells automatic-dimming rear-view mirrors, camera-based driver assistance systems, and other auto equipment.
Out of the 910 hedge funds tracked by Insider Monkey 37 funds reported owning stakes in Gentex Corporation (NASDAQ:GNTX).
Here is what Ariel Fund & Ariel Appreciation Fund has to say about Gentex Corporation in its Q3 2021 investor letter:
“During the quarter, we added leading supplier of automatic-dimming mirrors for the automotive industry, Gentex Corporation (GNTX), to Ariel Fund and Ariel Appreciation Fund. With over 90% market share and a long history of technological innovation and manufacturing capability, the company consistently outgrows the broader industry, produces best-in-class operating margins, and generates attractive free cash flows. Recently, the stock has underperformed due to broad-based supply chain concerns and the disruption of global automotive production. We view these worries as overblown and see this as an opportunity to own a high-quality, niche franchise with excellent and improving growth prospects, well-positioned to benefit from growing market adoption of its essential technologies.”
3. Autoliv Inc. (NYSE:ALV)
Number of Hedge Fund Holders: 38
Autoliv Inc. (NYSE:ALV) makes and sells passive safety systems for cars. Earlier this month Autoliv Inc. (NYSE:ALV) said its China division will partner with Great Wall Motor (OTCPK:GWLLF) to explore new opportunities.
Insider Monkey’s database of 910 hedge funds shows that 38 hedge funds were long Autoliv Inc. (NYSE:ALV) as of the end of the second quarter. The most significant stakeholder of Autoliv Inc. (NYSE:ALV) during this period was Christer Gardell and Lars Forberg’s Cevian Capital which owns a $536 million stake in the company.
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.”
1. O’Reilly Automotive Inc. (NASDAQ:ORLY)
Number of Hedge Fund Holders: 52
O’Reilly Automotive Inc. (NASDAQ:ORLY) ranks first in our list of the best auto components and parts stocks to buy now. As of the end of the second quarter of 2023, 52 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in O’Reilly Automotive Inc. (NASDAQ:ORLY). The biggest hedge fund stakeholder of O’Reilly Automotive Inc. (NASDAQ:ORLY) during this period was Charles Akre’s Akre Capital Management which owns a $1 billion stake in the company.
In July O’Reilly Automotive Inc. (NASDAQ:ORLY) posted Q2 results. GAAP EPS in the period came in at $10.22 beating estimates by $0.14. Revenue in the quarter jumped 10.9% year over year to $4.07 billion, beating estimates by $60 million.
TimesSquare U.S. Mid Cap Growth Strategy made the following comment about O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its Q4 2022 investor letter:
“Another boost came from O’Reilly Automotive, Inc. (NASDAQ:ORLY), a specialty retailer of after-market automotive parts and accessories, which scored a 20% gain. Revenues and earnings surpassed sell-side estimates on higher same store comparisons. Their do-it-for-me professional mechanic business generated double-digit growth while do-it-yourself increased sales by a modest amount.”
You can also take a peek at 16 $100K Jobs No One Wants and 20 Easiest Jobs That Pay $100K.
