Jim Cramer’s Lightning Round: 7 Stocks to Watch

1. Aptiv PLC (NYSE:APTV)

Number of Hedge Fund Holders: 52

When a caller asked about Aptiv PLC (NYSE:APTV), Cramer expressed concern and said:

“Yeah, auto parts. I am concerned that many auto parts may be made in China. We don’t know. AutoZone had a very good quarter. I would go with AutoZone.”

Aptiv (NYSE:APTV) designs, manufactures, and sells vehicle components, providing electrical, electronic, and safety technologies to the automotive and commercial vehicle markets. The auto industry overall has faced challenges, especially in the latter part of the year. Rising competition from Chinese manufacturers and a slowdown in consumer demand, partly driven by inflation and broader economic concerns, have impacted growth in the sector.

For the third quarter, the company reported a U.S. GAAP revenue of $4.9 billion, marking a 5% decline compared to the same period in the previous year. This drop in revenue was driven by a reduction in vehicle production at multinational customers, including in China, where the company saw a 6% decline.

Aptiv (NYSE:APTV) management indicated that they anticipate more localized demand within China, emphasizing the need to adapt their supply chain to better serve Chinese customers. According to the latest earnings call, the company has been increasingly focusing on building and localizing its supply chain to meet this potential shift in demand for locally sourced products.

While we acknowledge the potential of Aptiv PLC (NYSE:APTV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than APTV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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