5 Best Auto Parts Stocks to Buy Now

4. BorgWarner Inc. (NYSE:BWA) 

Number of Hedge Fund Holders: 31

31 hedge funds disclosed having stakes in BorgWarner Inc. (NYSE:BWA) at the close of Q4 2022. The total value of these stakes amounted to $254.9 million. As of December 31, Harris Associates is the largest shareholder in the company and has a stake worth $466.7 million.

On February 14, Barclays analyst Dan Levy started coverage of BorgWarner Inc. (NYSE:BWA) with an Overweight rating and a $62 price target.

Shares of BorgWarner Inc. (NYSE:BWA) have gone up by 33.02% over the past 6 months, as of April 25, and the stock is trading at a PE multiple of 12x. BorgWarner Inc. (NYSE:BWA)  is placed fourth among the best auto parts stocks to buy now.

Ariel Investments made the following comment about BorgWarner Inc. (NYSE:BWA) in its Q4 2022 investor letter:

“Shares of leading supplier of solutions for combustion, hybrid and electric vehicles BorgWarner Inc. (NYSE:BWA) also increased on a solid earnings beat, with revenue and margins exceeding expectations. The company continues to successfully execute on its Charging Forward Initiative and remains on track to deliver $4 billion in electric vehicle sales by 2025. At the same time, however, management noted mounting Fx pressure and revised its full year outlook downward. Also in the quarter, BWA announced a new award to supply electric motors for eaxles starting in 2023, as well as a production increase on existing business with a premium European original equipment manufacturer beginning in 2024. In our view, BWA’s electric motor and driveline technology offerings position the company to grow intrinsic value throughout the evolution in hybrid and electric vehicles market.”