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Combined with increasing demand for automobiles, technology consolidation is likely to keep the automotive industry resilient. Against this backdrop, quality auto parts stocks Lear Corporation (LEA), Gentex Corporation (GNTX) and Dana Incorporated (DAN) could be solid buys now. read….
The automotive industry is facing rapid changes in business operations. The automotive industry in 2023 will expected to be shaped by factors For example, the emergence of fuel cell electric vehicles (EVs), self-driving cars, and greater integration of digital technologies.
Increased adoption of advanced technologies in automobiles could put the auto parts industry on a positive growth trajectory. Therefore, several auto parts stocks, Lear Corporation (rare), Gentex Inc. (GNTX), and Dana Incorporated (group), it might be ideal to buy now for the reasons mentioned in the article.
some challenges, e.g. inflationary pressure, lack of chips,others Supply chain disruption, impacted the automotive industry. Despite these headwinds, the automotive industry is poised for growth with increased sales. April annual sales pace expected to reach 15.9 million, This is a significant increase from April 2022.
The automotive market is undergoing a rapid transformation with more decentralization and digitization and is projected to reach the following levels by 2023: unprecedented amount. Moreover, given supply constraints and high prices, more Americans continue to own cars. As the vehicle ages, Perfect for aftermarket auto parts suppliers.
The automotive aftermarket industry is expected to continue to expand rapidly in the future. CAGR 5.5% will reach $984 billion between 2023 and 2033, Automotive parts manufacturing market is expected to grow rapidly CAGR 3.2% It is expected to reach approximately $2.74 trillion by 2028.
Considering the tailwind of the industry, the auto parts inventory is LEA, GNTX, DAN, with its notable underlying strength, could be a solid buy now.
LEAR CORPORATION (rare)
LEA designs, develops, engineers, manufactures, assembles and supplies automotive seats, power distribution systems and related components to automotive OEMs in North America, Europe, Africa, Asia and South America.
On May 6, LEA announced that it has completed the acquisition of IG Bauahhin (IGB) to further expand its suite of in-vehicle comfort technologies. IGB’s products should enhance LEA’s thermal comfort systems portfolio.
LEA’s future EV/sales of 0.44x is 61.1% lower than the industry average of 1.13x.its progress Price/selling price A multiple of 0.32 is 60.7% lower than the industry average of 0.82.
LEA paid a quarterly dividend of $0.77 to shareholders on March 29, 2023. The company pays an annual dividend of $3.08, equivalent to his 2.56% yield at current price levels. The four-year average dividend yield is 1.72%. The company’s dividend has increased at his CAGR of 10.7% and 7% over the past three and five years respectively.
In the first quarter of the fiscal year ended April 30, 2023, LEA’s net sales increased 12.2% year-over-year to $5.85 billion. Net income attributable to LEA increased 190.7% year-over-year to $143.6 million, and net income per share attributable to LEA increased 193.9% year-over-year to $2.41.
LEA’s second quarter EPS for the fiscal year ending June 2023 is expected to grow 47.6% year over year to $2.64. The company’s revenue for the quarter is expected to grow 11.6% year over year to $5.66 billion. Plus, he’s beat consensus EPS and earnings estimates in each of his four quarters since, which is great.
LEA shares fell 1.8% during the day to close at $120.53.
Mr. LEA power rating It reflects its promising prospects. The overall rating for this stock is ‘B’, which is equivalent to ‘Buy’ in our proprietary rating system. The POWR rating is calculated by considering 118 different factors, with each factor being optimally weighted.
The stock has a B grade for growth and value. Ranked 26th among 59 A-rated brands. Auto parts industry.
click here Review LEA ratings for momentum, stability, sentiment, and quality.
Gentex Inc. (GNTX)
GNTX designs, develops, manufactures, markets and supplies digital vision, connected cars, dimmable glass and fire protection products in the United States, Germany, Japan, Mexico and internationally. It operates through the Automotive Products and Other segments.
May 1st, GNTXannounced that it has signed an agreement with ADASKY as the lead investor in the Series B round of funding. We also entered into commercial, engineering and manufacturing partnership agreements to help bring ADASKY’s proprietary technology to market. This collaboration should bode well for GNTX in the near future.
On February 8, GNTX announced its first quarter dividend $0.12 per share paid to shareholders. April 19th. Annual dividend $0.48 equates to a yield of 1.70% at current prices. 4 year average of GNTX dividend The yield is 1.64%. The company’s dividend has grown at his CAGR of 1.1% and 3.2% over the past three years and five years respectively.
GNTX’s non-GAAP projected PEG of 0.81x is 35.6% lower than the industry average of 1.25x.
GNTX’s net sales for the first quarter of the fiscal year ended March 31, 2023 were $550.76 million, an increase of 17.6% year-over-year. Gross profit increased 8.9% year-on-year to $174.74 million.
Net income and net earnings per share rose 11.5% and 13.5% year-on-year to $97.58 million and $0.42, respectively. In addition, GNTX’s total liquid assets were $948.65 million as of December 31, 2022, and $1.01 billion as of March 31, 2023.
of GNTX Second quarter EPS for the fiscal year ending June 2023 is expected to be $0.40, up 29% year over year. The company’s revenue for the quarter is expected to grow 18.2% year over year to $547.82 million.
GNTX shares rose 1.1% over the past month to close at $27.80.
No wonder the overall rating is B. This is equivalent to “buy” in the POWR rating system.
This stock has a B grade for stability, sentiment and quality. It ranks 27th in the industry.
We also evaluated GNTX’s growth potential, value, and momentum.Get all ratings here.
Dana (group)
DAN provides power transmission and energy management solutions for vehicles and machinery in North America, Europe, South America and Asia Pacific. The company operates in his four segments. Commercial vehicle drive and motion systems. Off-highway drive and motion systems. and power technology.
May 10, Dan announced that its wholly-owned subsidiary, Dana Financing Luxembourg S.à rl, has set an offering price of EUR 425 million, representing 8.500% of the total principal amount of senior notes due 2031. The 2031 Bonds are fully and unconditionally guaranteed by DAN.
On May 2nd, DAN announced the expansion of its Spicer Electrified e-Powertrain product line to include a family of e-transmissions for a range of mid-duty electric vehicle applications. It is designed to offer the highest levels of efficiency and performance, offering maximum starting, climbing and road speed.
“This new technology is an important step towards further electrification of the medium-duty commercial vehicle market, and we are proud to be at the forefront of this revolution,” said Ryan Lasky, senior vice president of Dana Commercial Vehicle Drive and Motion Systems. I think,” he said.
On April 26, DAN’s Board of Directors announced a quarterly dividend of $0.10 per share to be paid to DAN shareholders on June 2, 2023. Annual dividend $0.40 equates to a 2.97% yield at current prices. 4-year average of DAN dividend The yield is 2.08%. Over the last five years the dividend has grown at a 7.4% CAGR.
DAN’s future EV/sales of 0.45x is 60.3% lower than the industry average of 1.13x. The company’s expected price-to-sales multiple is 0.18, 78% lower than the industry average of 0.82.
DAN’s net sales for the first quarter of the fiscal year ended March 31 were $2.64 billion, an increase of 6.6% compared with the same period last year. Adjusted net income attributable to the parent company and adjusted EPS increased by 56.5% and 56.3% year-on-year to $36 million and $0.25, respectively. Adjusted EBITDA was $204 million, an increase of 20% from the same period last year.
Additionally, DAN’s cash, cash equivalents and restricted cash was $419 million for the quarter ended March 31, 2023, compared with $280 million in the year-ago quarter.
Dan Second quarter EPS for the fiscal year ending June 2023 is expected to be $0.15, up 91.1% year over year. Revenue for the quarter is expected to grow 5.1% year over year to $2.72 billion. Additionally, it has beaten consensus earnings estimates in each of his four subsequent quarters.
DAN shares fell 3.1% during the day to close at $13.05.
DAN’s strong outlook is reflected in the POWR rating system. The overall rating is B, which is equivalent to “Buy” in our own rating system.
The stock received a B rating for growth, value and sentiment. It ranks 28th in the industry.
To get an additional DAN (Momentum, Stability, Quality) rating, click here.
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LEA shares were trading at $121.60 a share Wednesday morning, up $1.07 (+0.89%). Year-to-date, the LEA is down -1.41%. In comparison, the benchmark S&P 500 Index over the same period rose 8.09% for him.
About the Author: Sristi Suman Jayaswar
Her interest in stock market movements as a student led her to become a financial journalist. Investing in undervalued stocks with solid long-term growth prospects is her preferred strategy. With a master’s degree in accounting and finance, Ms. Sristi wants to deepen her investment research experience and better guide investors.
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