Delphi Automotive (DLPH) Still Offering Growth in 2013

Autoliv Inc. (NYSE:ALV) focuses on auto safety components and is one of the few auto parts companies paying a dividend – yielding 3%. 3Q earnings results for Autoliv came in at $1.23 per share, which missed estimates of $1.45. The stock is still up 25% year to date, but trades above Delphi at 12x earnings. Although the stock does pay a solid dividend, its growth is the lowest of the five stocks listed at only a 2% long-term expected earnings CAGR. Billionaire Jim Simons dumped over 60% of his Autoliv shares last quarter (check out Jim Simons’ top picks).

Johnson Controls, Inc. (NYSE:JCI) is relatively flat year to date and makes temperature regulation systems for buildings. Johnson recently upped its 2013 outlook based on global expansion. Johnson now expects EPS to come in up 0.5-4% higher next year. This should also help drive the temperature company’s robust 11% 5-year expected EPS growth.

Lear Corporation (NYSE:LEA) also trades on the cheap end of the industry and has the lowest debt position, with a 9% debt to equity ratio. Lear is a manufacturer of seat and electrical systems for autos. The seat-maker is up over 7% this past week on expansion announcements, including a seat facility in the U.K. and a wiring factory in Morocco. Next to Delphi, Lear has the best return on equity at 20% and the cheapest P/E at 9x, but we still prefer Visteon as our No. 2 pick, given its breakup positioning. Ken Griffin upped his stake in Lear by 35% last quarter (check out Ken Griffin’s newest picks here).

Essentially, we believe that Delphi is an industry leader that still has the potential to go higher in 2013. It appears many investors are hesitant to jump into the stock given its recent run-up, but there is no denying that shares are still cheap. For more auto coverage, continue reading at Insider Monkey:

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