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Auto manufacturers are continuously looking for new ways to provide their customers with the most seamless and connected experience, not only with their cars but also with the brand itself. For this reason, several auto components stocks have begun implementing innovative solutions to keep their cars connected, driver-friendly, and safe. In addition, as car manufacturers continue ramping production to meet the demand for electric vehicles and autonomous car technology, investors can capitalize on the growing demand for these auto components by buying stock in companies producing them. This article details some of the best auto components stocks to buy now and in 2022.
Magna International (MGA)
Magna International is one of the leading auto parts manufacturers in the world. The company’s history dates back to 1957, when the founder, Frank Stronach, started the business by selling car parts out of the back of his car in Southern Ontario, Canada. Since then, the company has transformed into a global leader in the auto parts industry with a vast network of manufacturing and sales operations in 20 countries. Magna International is known for promptly building high-quality auto parts, which has helped the company win contracts with leading auto manufacturers. Furthermore, the company has a strong presence in the growing electric vehicle sector. As a result, Magna International has a robust business model, and its stock has performed exceptionally well over the past five years. As a result, the stock has risen by more than 100%, making it one of the best auto parts stocks.
Dana Incorporated (DAN)
Dana is a leading manufacturer of auto components and driveline parts, including drive shafts, axles, transfer cases, and differentials. Dana started manufacturing differentials in the early 1900s and has since become a leader in the industry, producing roughly 20 million differentials annually. Dana’s product offering has expanded over the years and includes various parts built for passenger vehicles, commercial vehicles, and off-highway applications. The company has an extensive network of production facilities in the U.S., Canada, and Mexico, as well as several distribution centers across the Americas and Europe. Dana is a part of the Berkshire Hathaway family. The company has a robust business model and has grown its profits and cash flow over the past five years. As a result, the stock has risen by more than 200% since 2018, making it one of the best auto parts stocks.
QuantumScape (QS)
QuantumScape is a leading manufacturer of silicon carbide (SiC) semiconductor devices and power semiconductor systems. The semiconductor industry is expected to see a significant increase in demand over the next decade as electric vehicles, autonomous vehicles, and other electric energy-intensive applications continue to grow. QuantumScape’s strong presence in the SiC semiconductor device industry has helped the company win several contracts with big-name clients such as Nissan, Tesla, and Caterpillar. As a result, the stock price of QuantumScape has risen by more than 500% since early 2018, making the stock one of the best auto components stocks to buy now.
Dorman Products (DORM)
Dorman Products is a leading manufacturer of car parts, tools, and accessories for commercial and passenger vehicles. The company specializes in producing exterior accessories, including tailgate assist cables, bed extenders, hood hinges, and tonneau covers. Dorman Products also manufactures interior accessories such as seat covers, seat back protectors, and other accessories. The company has more than 50 manufacturing facilities in 12 countries and serves over 100,000 automotive repair shops. Dorman Products is a subsidiary of Eaton Corporation, a global manufacturer of industrial and transportation products. The stock of Dorman Products has risen by more than 300% over the past five years, making it one of the best auto parts stocks to buy now.
Conclusion
As car manufacturers continue ramping production to meet the demand for electric vehicles and autonomous car technology, investors can capitalize on the growing demand for these auto components by buying stock in companies that produce them. This article details some of the best auto components stocks to buy now and in 2022. With these stocks, investors can benefit from the rising demand for electric vehicles, autonomous driving technology, and the expansion of ride-sharing services.
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