7 Best Auto Components and Parts Stocks to Buy Right Now

2. Lear Corporation (NYSE:LEA)

Number of Hedge Fund Holders: 40

Lear Corporation (NYSE:LEA) is an automotive technology company specializing in Seating and E-Systems. Its products include complete seat systems, key electrical components, and both low and high-voltage power distribution systems for all major automotive manufacturers. It is one of the best auto components and parts stocks to buy.

The company operates 265 locations in 38 countries, with the majority of its facilities and employees in low-cost regions. Its business is structured into two main segments: Seating, which includes complete seat systems and related components like leather and heating systems, and E-Systems, which provide advanced electrical distribution and connection systems for a wide range of vehicles, including those powered by traditional engines and electrified powertrains.

Lear (NYSE:LEA) continuously adapts to market trends by expanding its global footprint and making strategic acquisitions to enhance its capabilities. In July, the company completed its acquisition of WIP Industrial Automation, a Spanish company specializing in automation solutions using robotics and AI-based computer vision. The acquisition improves the company’s operational efficiency and help to address macroeconomic challenges like wage inflation.

It also complements previous acquisitions like ASI Automation and Thagora Technology, strengthening Lear’s (NYSE:LEA) innovation strategy under IDEA by Lear. The expansions provide the company with advanced automation technologies.

The company is also favored by analysts as the average price target of the stock among 17 analysts is $140, which represents a 33.50% upside to its stock price at current levels.