5 Best EV Stocks to Buy Now

2. Aptiv PLC (NYSE:APTV)

Number of Hedge Fund Holders: 48

Aptiv PLC (NYSE:APTV) is a leading global technology and mobility company. The company principally serves the automotive sector, and it designs and manufactures vehicle components and offers electrical, electronic and active safety technology solutions to the global automotive and commercial vehicle markets.

In 1Q22, its U.S. GAAP revenue was $4.2 billion, exhibiting a rise of 4%. The company anticipates net sales of between $17,750 million – $18,150 million in FY22. That’s a growth of ~13.7% year-over-year on lower end of the range. It expects its adjusted EBITDA to come in the range of $2,415 million-$2,695 million. The company continues to benefit from one of the strongest secular tailwinds. Rapid transition around the globe on producing BEVs should lend support to the company’s profits, margin, and ROI.

Furthermore, planned cash acquisition of $4.3 billion of Wind River from private equity firm TPG should give the company an edge over its competitors, mainly with autonomous driving vehicles. The company is scheduled to close this acquisition in mid-2022. The company has been working with over 20 global automakers and should be a lead beneficiary from megatrends driving change in this industry as car and truck makers are battling to roll out next generation of fleets which are greener and smarter. Several changes are due to the government mandates.

As of the first quarter of 2022, 48 hedge funds out of the 912 funds tracked by Insider Monkey held stakes in the company, up from 44 hedge funds in the preceding quarter. Analysts at BNP Paribas initiated coverage on Aptiv PLC (NYSE:APTV), and gave an “Outperform” rating with the price target of $160.00. The company seems to be in an excellent position to strengthen its competitive position given its relentless focus on execution.

ClearBridge Investments, an investment management firm, published first quarter 2022 investor letter and mentioned Aptiv PLC (NYSE:APTV). Here is what the fund has to say:

“The acceleration in electrification of transport should support electric vehicle (EV)-related stocks like Aptiv (NYSE:APTV), which came under pressure in the quarter on concerns the auto cycle is past its peak. Aptiv provides a range of solutions for the auto industry, including autonomous driving technologies, safety technologies, components, and wiring. The large exposure of APTV to EVs should lead to long-term value as EVs continue their growth, boosted by their relative attractiveness as prices at the pump hit near-historic highs.”