5 Best Auto Parts Stocks to Buy Now

In this article, we will take a look at the 5 best auto parts stocks to buy now. If you want to explore similar stocks, you can go to 10 Best Auto Parts Stocks to Buy Now.

5. Adient plc (NYSE:ADNT)

Number of Hedge Fund Holders: 29

Adient plc (NYSE:ADNT) is involved in the manufacturing of automotive seating for passenger cars, commercial vehicles, and light trucks. The company has operations worldwide. As of April 25, the stock has gained 6.67% over the past 12 months.

On April 17, Barclays analyst Dan Levy updated his price target on Adient plc (NYSE:ADNT) to $54 from $57 and maintained an Overweight rating on the shares. The stock is one of the best auto parts stocks to buy now.

At the close of Q4 2022, Adient plc (NYSE:ADNT) was spotted on 29 investors’ portfolios. These funds held positions worth $364.3 million in the company. As of December 31, Lyrical Asset Management is the leading shareholder in the company and has a stake worth $70.5 million.

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.”

3. LKQ Corporation (NASDAQ:LKQ)

Number of Hedge Fund Holders: 31

LKQ Corporation (NASDAQ:LKQ) is trading at bargain levels. As of April 25, the stock is trading at a TTM PE ratio of 13x and has gained 13.29% over the past 12 months. LKQ Corporation (NASDAQ:LKQ) is one of the best auto parts stocks to buy now.

This January, Raymond James analyst Sam Darkatsh raised his price target on LKQ Corporation (NASDAQ:LKQ) $65 from $60 and reiterated an Outperform rating on the shares.

At the end of Q4 2022, 31 hedge funds were long LKQ Corporation (NASDAQ:LKQ) and held stakes worth $692.5 million in the company. Of those, ValueAct Capital was the leading investor in the company and disclosed a position worth $323.7 million.

2. Autoliv Inc. (NYSE:ALV)

Number of Hedge Fund Holders: 35

On April 21, Autoliv Inc. (NYSE:ALV) announced earnings for the fiscal first quarter of 2023. The company reported a Non-GAAP EPS of $0.90 and outperformed EPS estimates by $0.02. The company’s revenue for the quarter amounted to $2.49 billion, up 17% year over year and ahead of Wall Street consensus by $170 million. Shares of Autoliv Inc. (NYSE:ALV) have surged 10.20% since the beginning of 2023, as of April 25, and the stock is one of the best auto parts stocks to buy now.

This April, Deutsche Bank updated its price target on Autoliv Inc. (NYSE:ALV) to $110 from $113 and maintained a Buy rating on the shares.

At the end of the fourth quarter of 2022, 35 hedge funds were bullish on Autoliv Inc. (NYSE:ALV) and disclosed positions worth $1 billion in the company. As of December 31, Cevian Capital is the dominant shareholder in the company and has a stake worth $428.3 million.

1. Aptiv PLC (NYSE:APTV) 

Number of Hedge Fund Holders: 41

Aptiv PLC (NYSE:APTV) was held by 41 hedge funds at the end of Q4 2022. These funds disclosed positions worth $1.45 billion in the company. As of December 31, Impax Asset Management is the top shareholder in the company and has disclosed a position worth $477.9 million.

Aptiv PLC (NYSE:APTV) is the best auto parts stock to buy according to hedge funds. The stock has returned 13.05% to investors over the past 6 months, as of April 25.

On April 17, Barclays analyst Dan Levy revised his price target on Aptiv PLC (NYSE:APTV) to $142 from $150 and reiterated an Overweight rating on the shares.

TimesSquare Capital Management made the following comment about Aptiv PLC (NYSE:APTV) in its Q4 2022 investor letter:

“Aptiv PLC (NYSE:APTV), a designer and manufacturer of vehicle components for original equipment manufacturers, rose 19%. Results from the latest quarter were above expectations and management maintained the outlook for revenue growth on bookings strength. Management acknowledged that 2023 could be difficult to forecast due to macroeconomic headwinds.”

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