We recently published a list of Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation. In this article, we are going to take a look at where Garrett Motion Inc. (NASDAQ:GTX) stands against other top auto parts stocks that could surge On Trump’s auto tariff relaxation.
The corporate earnings season is about to kick off, but investors have something else on their minds: Donald Trump’s tariffs. Since the beginning of his term, Trump has wreaked havoc on the markets with repeated tariffs, resulting in the S&P index being down nearly 8% for the year.
We have observed that some of the most aggressive tariff policies are soon revoked or relaxed, resulting in a rally that brings back the stock prices to reasonable levels. We saw this recently when Donald Trump hinted that Big Tech companies may not bear the brunt of the tariffs as badly as previously thought. As a result, investors poured their money into these companies, thinking they may be critical for the US infrastructure.
A similar development is forming in the auto sector, with Trump likely to offer some relaxation when it comes to importing auto parts or manufacturing vehicles outside the US. Since auto parts companies are critical to the supply chain of this industry, we decided to take a look at the auto parts stocks that could surge following any news of relaxation in tariffs.
To come up with our list of Top 10 Auto Parts Stocks that could surge following Trump’s auto tariff reprieve, we looked at companies in the auto parts industry with a minimum market cap of $300 million that were outperforming their peers.
A close up of an engine piston with a commercial turbocharger attached.
Garrett Motion Inc. (NASDAQ:GTX)
Garrett Motion Inc. is a manufacturer, designer, and seller of air and fluid compression, turbocharging, and high-speed electric motor technologies. The company serves original equipment manufacturers and distributors. It provides cutting-edge technology for industrial space and mobility.
The firm recently reported its Q4 2024 earnings, indicating an improved EBITDA margin of 18.1%, fueled by cost management and operational performance. The company also increased share repurchase activity by spending $70 million during the quarter.
Garrett reduced its total debt to $1.5 billion, aided by strong liquidity. For the full year, the company recorded enhanced adjusted EBITDA margin of 17.2%. As per the company’s provided outlook, it expects net sales of $3.4 billion in 2025. Adjusted free cash flow is anticipated to be $345 million with the adjusted EBITDA of $575 million.
The firm plans to assign more than half of its research and development expenditures to zero-emission technologies. This will increase its total research and development expenditures to 4.6% of sales. Management highlighted challenges from foreign exchange impacts, but pricing strategies and operational productivity are expected to minimize these challenges.
Overall, GTX ranks 5th on our list of top auto parts stocks that could surge On Trump’s auto tariff relaxation. While we acknowledge the potential of GTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GTX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
