5 Industrial Stocks That Are Must Buys According to Caxton Associates

1. Aptiv PLC (NYSE:APTV)

Value of Caxton Associates’ 13F Position: $155 million

Number of Hedge Fund Shareholders: 50

Easily topping the list of Caxton Associates’ industrial stock must-buys is Aptiv PLC (NYSE:APTV), which ranks the fund’s second-largest long position overall. While many of the aforementioned industrial holdings are far more modest in nature, the fund has a huge bet on the electric car technology company, owning 1.29 million shares worth close to $155 million. That investment gives its 13F portfolio 12.59% exposure to the stock.

Aptiv PLC (NYSE:APTV) shares have pulled back significantly this year, falling by 45% even as the company released FY22 guidance than some analysts believe was overly aggressive. Aptiv’s adjusted EPS guidance of between $3.90 and $4.80 was particularly bullish compared to analysts, who are projecting just $3.88. The company has also received mixed reviews for its January acquisition of software firm Wind River for $4.3 billion in cash, which has also weighed on shares.

The ClearBridge Investments Sustainability Leaders Strategy is also a big fan of Aptiv PLC (NYSE:APTV)’s growth potential given its exposure to electric vehicles, having this to say about the company in its Q1 2022 investor letter:

“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.”

For more on the latest trades made by some of the biggest hedge fund managers in the world, check out 10 Best Tech Stocks to Buy According to Billionaire Ken Griffin and Cliff Asness’ Short Position on AMC and His Top 10 Picks.

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