American Axle & Manufact. Holdings, Inc. (AXL), Visteon Corp (VC), Lear Corporation (LEA): Are There Solid Investment Opportunities in the Auto Parts Industry?

The company was quick to recover from the financial meltdown of 2008. In 2009, it reported a positive EPS but that figure was not crossed until the year 2012. The company’s profitability has increased greatly in recent times.

Further good news in the first quarter results showed that Lear Corporation (NYSE:LEA) has a three-year sales backlog of $1.8 billion, which will continue driving the company’s sales through 2015. I believe that the best is yet to come for this company and I would give investors a buy recommendation for it.

Final takeaway

The worldwide demand for automobiles is bound to increase as more and more emerging economies try to up the standards of living in their countries. With demand for automobiles rising only at meager rates in the United States, auto parts manufacturers have done the right thing to exploit demand from the emerging economies. I analyzed three successful auto parts manufacturing companies. All three of them have positive outlooks and for that I would recommend investors to take a long position on them.

Awais Iqbal has no position in any stocks mentioned. The Motley Fool recommends General Motors.

The article Are There Solid Investment Opportunities in the Auto Parts Industry? originally appeared on Fool.com.

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