Due to lucrative government initiatives and growing demand for auto parts, the auto industry is poised to thrive in the foreseeable future. Given the significant prospects of the industry, auto stocks Continental Aktiengesellschaft (CTTAY) and Garrett Motion (GTX) might be solid additions to one’s portfolio. Read on.
New innovation and demand for advanced car accessories is expected to drive the auto industry’s growth. So, I think it might be ideal to buy Continental Aktiengesellschaft (CTTAY) and Garrett Motion Inc. (GTX), considering their strong fundamentals.
The automotive industry is rapidly growing with innovations, which is bolstering the growth of the auto parts manufacturing industry. Therefore, the key players are aligning their strategies to the prevalent trends in order to maintain competitiveness in such a dynamic environment.
The growth in the availability of automotive aftermarket parts on e-commerce platforms is a significant trend impacting the US aftermarket automotive parts and components market. Sales of online retail parts have been consistently increasing, reflecting a significant shift.
The global automotive parts aftermarket market in the US is estimated to grow at a CAGR of 7.7% until 2027.
Furthermore, lucrative government initiatives, rapid technological advancements, and a shift of focus on car accessories should drive the growth of the auto parts industry in the coming years. According to Research and Markets, the motor vehicle parts market is projected to grow at 7.9% until 2026.
Take a look at the stocks mentioned above:
Continental Aktiengesellschaft (CTTAY)
Headquartered in Hanover, Germany, CTTAY offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive; Tires; ContiTech; and Contract Manufacturing.
CTTAY’s forward EV/Sales of 0.43x is 61.2% lower than the industry average of 1.11x. Its forward P/S multiple of 0.31 is 62.3% lower than the industry average of 0.82.
CTTAY pays $0.17 annually as dividends which translates to a yield of 2.31% at the current price. Its 4-year average dividend yield is 2.70%.
During the fiscal first quarter ended March 31, 2023, CTTAY’s sales increased 11.1% year-over-year to €10.31billion ($11.19 billion). Net income attributable to shareholders of the parent increased 59.6% year-over-year to €382.2 million ($414.64 million). Its earnings per share increased 59.6% year-over-year to €1.91.
CTTAY’s revenue is expected to increase 18.4% year-over-year to $11.41 billion for the fiscal second quarter ending June 2023. Also, it has surpassed revenue estimates in each of the trailing four quarters, which is impressive.
Shares of CTTAY have gained 19.8% year-to-date to close the last trading session at $7.15.
CTTAY’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an A grade for Growth and a B in Stability, Quality, and Value. It is ranked #4 out of 60 stocks in the A-rated Auto Parts industry.
Beyond what is stated above, we’ve also rated CTTAY for Momentum and Sentiment. Get all CTTAY ratings here.
Garrett Motion Inc. (GTX)
Headquartered in Rolle, Switzerland, GTX designs, manufactures, and sells turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers worldwide.
GTX’s forward EV/Sales of 0.36x is 67.6% lower than the industry average of 1.11x. Its forward P/S multiple of 0.13 is 84.2% lower than the industry average of 0.82.
GTX’s net sales rose 7.7% year-over-year to $970 million in the fiscal first quarter that ended March 31, 2023. Its adjusted EBITDA grew 15.1% from its prior-year quarter to $168 million. Gross profit increased 8% year-over-year to $189 million. Earnings per common share came in at $0.13.
Its revenue is expected to grow 14.3% year-over-year to $982 million in the second fiscal quarter ending June 2023. Its EPS is expected to rise 47.3% year-over-year to $0.22 in the same quarter.
The stock has gained 34.1% over the past month to close the last trading session at $7.98.
Its strong fundamentals are reflected in its POWR Ratings. GTX has an overall A rating, which equates to a Strong Buy in our proprietary rating system.
It also has an A grade for Growth and Value and B in Quality. It is ranked #3 stocks in the same industry.
To see the GTX’s additional ratings for Momentum, Stability, and Sentiment, click here.
The Bear Market is NOT Over…
That is why you need to discover this timely presentation with a trading plan and top picks from 40 year investment veteran Steve Reitmeister:
REVISED: 2023 Stock Market Outlook >
New innovation and demand for advanced car accessories is expected to drive the auto industry’s growth. So, I think it might be ideal to buy Continental Aktiengesellschaft (CTTAY) and Garrett Motion Inc. (GTX), considering their strong fundamentals.
The automotive industry is rapidly growing with innovations, which is bolstering the growth of the auto parts manufacturing industry. Therefore, the key players are aligning their strategies to the prevalent trends in order to maintain competitiveness in such a dynamic environment.
The growth in the availability of automotive aftermarket parts on e-commerce platforms is a significant trend impacting the US aftermarket automotive parts and components market. Sales of online retail parts have been consistently increasing, reflecting a significant shift.
The global automotive parts aftermarket market in the US is estimated to grow at a CAGR of 7.7% until 2027.
Furthermore, lucrative government initiatives, rapid technological advancements, and a shift of focus on car accessories should drive the growth of the auto parts industry in the coming years. According to Research and Markets, the motor vehicle parts market is projected to grow at 7.9% until 2026.
Take a look at the stocks mentioned above:
Continental Aktiengesellschaft (CTTAY)
Headquartered in Hanover, Germany, CTTAY offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive; Tires; ContiTech; and Contract Manufacturing.
CTTAY’s forward EV/Sales of 0.43x is 61.2% lower than the industry average of 1.11x. Its forward P/S multiple of 0.31 is 62.3% lower than the industry average of 0.82.
CTTAY pays $0.17 annually as dividends which translates to a yield of 2.31% at the current price. Its 4-year average dividend yield is 2.70%.
During the fiscal first quarter ended March 31, 2023, CTTAY’s sales increased 11.1% year-over-year to €10.31billion ($11.19 billion). Net income attributable to shareholders of the parent increased 59.6% year-over-year to €382.2 million ($414.64 million). Its earnings per share increased 59.6% year-over-year to €1.91.
CTTAY’s revenue is expected to increase 18.4% year-over-year to $11.41 billion for the fiscal second quarter ending June 2023. Also, it has surpassed revenue estimates in each of the trailing four quarters, which is impressive.
Shares of CTTAY have gained 19.8% year-to-date to close the last trading session at $7.15.
CTTAY’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an A grade for Growth and a B in Stability, Quality, and Value. It is ranked #4 out of 60 stocks in the A-rated Auto Parts industry.
Beyond what is stated above, we’ve also rated CTTAY for Momentum and Sentiment. Get all CTTAY ratings here.
Garrett Motion Inc. (GTX)
Headquartered in Rolle, Switzerland, GTX designs, manufactures, and sells turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers worldwide.
GTX’s forward EV/Sales of 0.36x is 67.6% lower than the industry average of 1.11x. Its forward P/S multiple of 0.13 is 84.2% lower than the industry average of 0.82.
GTX’s net sales rose 7.7% year-over-year to $970 million in the fiscal first quarter that ended March 31, 2023. Its adjusted EBITDA grew 15.1% from its prior-year quarter to $168 million. Gross profit increased 8% year-over-year to $189 million. Earnings per common share came in at $0.13.
Its revenue is expected to grow 14.3% year-over-year to $982 million in the second fiscal quarter ending June 2023. Its EPS is expected to rise 47.3% year-over-year to $0.22 in the same quarter.
The stock has gained 34.1% over the past month to close the last trading session at $7.98.
Its strong fundamentals are reflected in its POWR Ratings. GTX has an overall A rating, which equates to a Strong Buy in our proprietary rating system.
It also has an A grade for Growth and Value and B in Quality. It is ranked #3 stocks in the same industry.
To see the GTX’s additional ratings for Momentum, Stability, and Sentiment, click here.
The Bear Market is NOT Over…
That is why you need to discover this timely presentation with a trading plan and top picks from 40 year investment veteran Steve Reitmeister:
REVISED: 2023 Stock Market Outlook >
New innovation and demand for advanced car accessories is expected to drive the auto industry’s growth. So, I think it might be ideal to buy Continental Aktiengesellschaft (CTTAY) and Garrett Motion Inc. (GTX), considering their strong fundamentals.
The automotive industry is rapidly growing with innovations, which is bolstering the growth of the auto parts manufacturing industry. Therefore, the key players are aligning their strategies to the prevalent trends in order to maintain competitiveness in such a dynamic environment.
The growth in the availability of automotive aftermarket parts on e-commerce platforms is a significant trend impacting the US aftermarket automotive parts and components market. Sales of online retail parts have been consistently increasing, reflecting a significant shift.
The global automotive parts aftermarket market in the US is estimated to grow at a CAGR of 7.7% until 2027.
Furthermore, lucrative government initiatives, rapid technological advancements, and a shift of focus on car accessories should drive the growth of the auto parts industry in the coming years. According to Research and Markets, the motor vehicle parts market is projected to grow at 7.9% until 2026.
Take a look at the stocks mentioned above:
Continental Aktiengesellschaft (CTTAY)
Headquartered in Hanover, Germany, CTTAY offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive; Tires; ContiTech; and Contract Manufacturing.
CTTAY’s forward EV/Sales of 0.43x is 61.2% lower than the industry average of 1.11x. Its forward P/S multiple of 0.31 is 62.3% lower than the industry average of 0.82.
CTTAY pays $0.17 annually as dividends which translates to a yield of 2.31% at the current price. Its 4-year average dividend yield is 2.70%.
During the fiscal first quarter ended March 31, 2023, CTTAY’s sales increased 11.1% year-over-year to €10.31billion ($11.19 billion). Net income attributable to shareholders of the parent increased 59.6% year-over-year to €382.2 million ($414.64 million). Its earnings per share increased 59.6% year-over-year to €1.91.
CTTAY’s revenue is expected to increase 18.4% year-over-year to $11.41 billion for the fiscal second quarter ending June 2023. Also, it has surpassed revenue estimates in each of the trailing four quarters, which is impressive.
Shares of CTTAY have gained 19.8% year-to-date to close the last trading session at $7.15.
CTTAY’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an A grade for Growth and a B in Stability, Quality, and Value. It is ranked #4 out of 60 stocks in the A-rated Auto Parts industry.
Beyond what is stated above, we’ve also rated CTTAY for Momentum and Sentiment. Get all CTTAY ratings here.
Garrett Motion Inc. (GTX)
Headquartered in Rolle, Switzerland, GTX designs, manufactures, and sells turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers worldwide.
GTX’s forward EV/Sales of 0.36x is 67.6% lower than the industry average of 1.11x. Its forward P/S multiple of 0.13 is 84.2% lower than the industry average of 0.82.
GTX’s net sales rose 7.7% year-over-year to $970 million in the fiscal first quarter that ended March 31, 2023. Its adjusted EBITDA grew 15.1% from its prior-year quarter to $168 million. Gross profit increased 8% year-over-year to $189 million. Earnings per common share came in at $0.13.
Its revenue is expected to grow 14.3% year-over-year to $982 million in the second fiscal quarter ending June 2023. Its EPS is expected to rise 47.3% year-over-year to $0.22 in the same quarter.
The stock has gained 34.1% over the past month to close the last trading session at $7.98.
Its strong fundamentals are reflected in its POWR Ratings. GTX has an overall A rating, which equates to a Strong Buy in our proprietary rating system.
It also has an A grade for Growth and Value and B in Quality. It is ranked #3 stocks in the same industry.
To see the GTX’s additional ratings for Momentum, Stability, and Sentiment, click here.
The Bear Market is NOT Over…
That is why you need to discover this timely presentation with a trading plan and top picks from 40 year investment veteran Steve Reitmeister:
REVISED: 2023 Stock Market Outlook >
CTTAY shares were trading at $7.17 per share on Monday morning, up $0.02 (+0.25%). Year-to-date, CTTAY has gained 22.08%, versus a 8.12% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi Agarwal
Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor’s degree in finance and marketing and is pursuing the CFA program.
Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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