Send me real-time posts from this site at my email

Best Growth Auto Parts Stocks To Buy Now

Originally published on Best Stocks

Category: best stocks to buy now

Auto parts manufacturers are likely to be some of the best stocks to buy now, given the steady growth of the auto industry. These stocks should also be good long-term investments, as regulatory measures will likely keep new car sales growing steadily. Global demand for autos is expected to continue increasing over the next several years. The International Organization of Motor Vehicle Manufacturers forecasts that global car production will increase from almost 96 million units in 2018 to about 110 million in 2021. Given this trend and these investment tips, investors should consider investing in one of these three auto parts stocks now:

Autoliv (ALV)

Autoliv is the world’s largest automotive safety technology company. It provides a range of passive safety products, including seat belts and airbags. It also makes active safety products for the automotive industry, such as radar and vision systems. Autoliv has a leading market share in several of its product segments. In fiscal 2018, the company generated about 85% of its sales from passive safety products, with the remaining 15% coming from active safety products. Autoliv’s passive safety product segments are mature and growing at a slow rate. However, its active safety product segments are growing quickly. The company is well positioned in this segment, given that active safety systems are expected to be the main growth driver for the automotive industry in the coming years. As a result, Autoliv’s safety product segments will likely drive more than 15% long-term organic growth. The company’s operating margins are also likely to increase as it leverages economies of scale and benefits from cost savings through its acquisition of TRW. Autoliv has a strong track record of generating free cash flow, which it used to fund dividends and share buybacks. The company pays a quarterly dividend of $0.54 per share and has a growing dividend payout ratio of less than 50%.

Adient (ADNT)

Adient is a leading automotive seating manufacturer and a major supplier to the automotive industry. The company has a geographically diversified presence in Europe, North America, and the Asia Pacific. In fiscal 2018, about 54% of the company’s sales came from North America, with the remaining 46% from Europe, Asia Pacific, and other regions. Adient also has significant operations in emerging markets, particularly China. The company’s core seating business is unlikely to see any major growth drivers in the near term. However, the recent acquisition of Johnson Controls’ Automotive business has put Adient in a strong position to benefit from the growth of autonomous cars. As autonomous cars become more common, the company expects to see significant revenue and profit growth from its seating and cockpit systems businesses in the next few years. Adient is also likely to benefit from economies of scale, as the combined seating business is expected to generate about $7 billion in annual revenue. Adient has a strong track record of generating free cash flow, which it used to repurchase shares. In addition, the company has a dividend payout ratio of about 50%, which will likely increase as profit growth accelerates.

Luminar Technologies (LAZR)

Luminar Technologies is a leading manufacturer of light-emitting diode (LED) automotive lighting systems. The company’s products include LED headlights and daytime running lights (DRLs). Luminar’s products are designed to meet both federal and international safety standards. The company’s products are used in both new and older model cars. Luminar’s products are likely to become increasingly relevant as federal regulators are expected to mandate the use of DRLs in all cars by 2022. Luminar’s products will also likely benefit from growing consumer demand for high-end cars and trucks with premium features. The company has a strong competitive advantage in the LED lighting systems market. Luminar has strong brand recognition and a large customer base. It also has an advanced manufacturing facility that allows it to offer high-quality and high-performance products. Luminar’s products are likely in high demand, given their potential to increase road safety. The company’s products are also likely to be used on autonomous cars, which are expected to become common by the early 2020s.

XPEL, Inc. (XPEL)

XPEL is a specialty automotive and architectural protection company. The company makes high-quality window films and other products designed to protect cars and buildings from UV rays, insects, and damage. XPEL’s aesthetic window films are designed to enhance the appearance of cars and buildings. The company’s products are generally applied to the inside of the windshield, windows, and architectural glass. XPEL is a fast-growing company with a large addressable market. The company’s automotive and architectural businesses are expected to generate significant revenue in the coming years. XPEL’s automotive business will likely grow as customers replace their old car films with new ones. Likewise, the architectural business will likely grow as builders install new films in newly constructed buildings. In addition, theIn addition, the company’s products are likely to become increasingly relevant in the coming years as regulators make architectural glass more energy efficient and consumers make new cars more attractive. With a growing addressable market and strong product offerings, XPEL is likely to generate long-term revenue and profit growth of more than 15%.

Conclusion

Auto parts manufacturers are likely to be some of the best stocks to buy now, given the steady growth of the auto industry. These stocks should also be good long-term investments, as regulatory measures will likely keep new car sales growing steadily. Global demand for autos is expected to continue increasing over the next several years. The International Organization of Motor Vehicle Manufacturers forecasts that global car production will increase from almost 96 million units in 2018 to about 110 million in 2021. Given this trend and these investment tips, investors should consider investing in one of these three auto parts stocks now. When a new report is published, sign up for free investor alerts if you want to receive a free research report on any of these stocks.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue