The auto industry is booming. The global auto market is expected to reach $END trillion by 2023, driven by the rise of the millennial generation and their growing demand for safe, affordable and technology-rich transportation options. As a result, automakers, suppliers and other related companies are incredibly optimistic about their prospects. If you’re an investor looking to capitalize on this growing trend and invest in auto parts stocks that can weather potential downturns in the coming years, read on for our recommendations.
Investment overview Aptiv is a global leader in electromobility solutions for original equipment manufacturers and mobility service providers. It offers a variety of products and services, including electric powertrains, chassis, vehicle control and connectivity solutions. The company has a network of 12 engineering, manufacturing, sales and service facilities around the world. Apt is currently benefiting from strong demand for electric vehicles, particularly in China and Europe, along with a growing trend towards mobility services. Although the stock doubled in 2019, it still looks like an attractive investment due to its robust long-term growth outlook and strong tailwind in the end market.
Luminar Technologies (LAZR)
Investment Summary Luminar Technologies is a leading supplier of sensors for autonomous vehicles in commercial and autonomous vehicle markets. The sensors can generate high-quality images in challenging environments and weather conditions. The company currently has three core segments: the independent core activities, the defense activities and the commercial activities. Luminar’s defense business is currently the largest segment, but the retail business is expected to outpace the defense segment in revenue by the end of 2021. In addition, Luminar’s commercial business is expected to grow rapidly as the autonomous vehicle market continues to grow, particularly in the retail sector.
Investment Summary Tenneco is a global leader in the design, manufacture and distribution of motion and control technologies, products and services for ride control. It offers a wide range of products, including exhaust systems and components, air management systems, ride control and electronic products. The company operates in four business segments: Exhaust Technologies, Ride Control, Electronic Technologies and Engineered Solutions. Tenneco has been a consistent dividend grower for many years, with a solid track record of returning cash to shareholders. The stock is currently trading below its long-term average P/E ratio. It offers a juicy dividend yield of nearly 7% and a significant long-term gain from the ongoing auto boom.
Investment overview QuantumScape is a leading provider of integrated circuits for artificial intelligence, machine learning and advanced data processing. The company’s high-performance solutions are used in a variety of applications, including autonomous vehicles, data center infrastructure, networking and high-end computing. As AI technology advances, QuantumScape’s solutions become increasingly valuable. The company partners with major tech players, such as Amazon and Huawei, to design and manufacture custom chips based on the QPU architecture. The stock is currently trading at a discount to its long-term average valuation, making it an attractive investment opportunity.
The automotive industry is booming, driven by the rise of the millennial generation and their growing demand for safe, affordable and technology-rich transportation options. As a result, companies in this sector are incredibly optimistic about their prospects, with the global auto market expected to reach $END trillion by 2023. Investors can take advantage of this trend by investing in auto parts stocks that can weather potential downturns in the coming period. a few years. Aptiv, Luminar Technologies, Tenneco and QuantumScape are great stocks to watch.