Top 3 Picks
2026 Outlook
The Auto Parts sector is poised for moderate growth through 2026, fueled by trends like electrification, where EV component demand is expected to surge by 20-25% annually, and advancements in lightweight materials and software integration for connected vehicles. Despite potential challenges such as supply chain disruptions and inflationary pressures, the sector's outlook remains positive with anticipated revenue growth driven by stricter emissions regulations and the rise of autonomous driving technologies. By 2026, market consolidation and innovation in sustainable parts could lead to improved profitability, with the global auto parts market projected to exceed $1 trillion.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Lear Corporation
|
64.8 | $118.61 | $5.4B |
|
2
|
Adient plc Ordinary Shares
|
64.4 | $19.04 | $2.0B |
|
3
|
Dana Incorporated
|
64.3 | $24.95 | $2.6B |
|
4
|
Aptiv PLC
|
62.6 | $78.44 | $19.0B |
|
5
|
PHINIA Inc.
|
62.3 | $64.65 | $2.2B |
|
6
|
BorgWarner Inc.
|
62.0 | $46.64 | $9.6B |
|
7
|
Holley Inc.
|
61.6 | $4.14 | $375M |
|
8
|
Autoliv, Inc.
|
61.3 | $122.08 | $9.5B |
|
9
|
Garrett Motion Inc. Common Stock
|
60.6 | $17.38 | $2.8B |
|
10
|
Motorcar Parts of America, Inc.
|
59.5 | $12.36 | $322M |
|
11
|
VISTEON CORPORATION
|
58.8 | $96.88 | $3.3B |
|
12
|
Gentex Corp
|
58.3 | $23.69 | $6.1B |
|
13
|
Commercial Vehicle Group, Inc.
|
58.0 | $1.51 | $65M |
|
14
|
Atmus Filtration Technologies Inc.
|
56.9 | $52.41 | $3.7B |
|
15
|
Stoneridge, Inc
|
56.9 | $5.97 | $213M |
In-Depth Analysis: Top Auto Parts Stocks
LEA
Lear Corp designs, develops, and manufactures automotive seating and electrical systems and components. The company has two reporting segments Seating and E-Systems. Seating components include frames and mechanisms, covers (leather and woven fabric), seat heating and cooling, foam, and headrests. Automotive electrical distribution and connection systems and electronic systems include wiring harnesses, terminals and connectors, on-board battery chargers, high-voltage battery …
Lear Corporation matters in the Auto Parts sector as a leading supplier of automotive seating and electrical systems, serving major global automakers through its Seating and E-Systems segments, which provide essential components like frames, mechanisms, and advanced electrical solutions that enhance vehicle comfort and functionality.
Lear's profit margin of 1.9% indicates tight profitability, potentially due to competitive pressures in the auto parts industry, but its ROE of 10.6% demonstrates efficient use of equity to generate returns, supported by a modest revenue growth of 1.7% that suggests stable, albeit slow, top-line expansion.
With a P/E ratio of 14.2 indicating reasonable valuation compared to peers, Lear is poised for growth in 2026 amid rising demand for electric vehicle components in its E-Systems segment, potentially boosting revenue beyond the current 1.7% growth rate as the auto industry shifts toward electrification. Additionally, the company's ROE of 10.6% reflects strong equity efficiency, which could lead to improved profitability margins if operational efficiencies are scaled. The Tradestie Score of 64.8/100 further supports a moderate buy case, highlighting balanced risk and opportunity in the evolving automotive market.
ADNT
Adient began trading Oct. 31, 2016, when Johnson Controls spun off its automotive experience segment. Adient is the leading seating supplier to the industry with about one third of the global market. Its share in China is now nearly 20%, down from about 45%, following the sale of its main joint venture there at the end of fiscal 2021. Unconsolidated …
Adient plc stands out in the Auto Parts sector as the leading global supplier of automotive seating, commanding approximately one-third of the market share, which positions it as a critical component supplier for major automakers worldwide. Its origins from the 2016 spin-off of Johnson Controls' automotive experience segment and its adjusted presence in China, now at nearly 20% market share, highlight its strategic importance in a consolidating industry.
Adient's financial health is currently challenged by a negative profit margin of -1.9% and a return on equity of -8.1%, reflecting difficulties in achieving profitability and efficient use of equity. Despite these issues, the company's revenue growth of 3.5% indicates underlying operational progress that could support future improvements.
Adient's established market leadership with one-third global share and 3.5% revenue growth suggest potential for recovery and expansion by 2026, especially as automotive demand rebounds. The Tradestie Score of 64.4/100 reflects moderate investment appeal, bolstered by strategic moves like the China joint venture sale, which could enhance efficiency and profitability. With the sector's shift toward electrification and increased vehicle production, Adient's core seating expertise positions it for significant upside in 2026.
DAN
Dana Inc is engaged in the designing and manufacturing of efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company has four operating segments: Light Vehicles, Power Technologies, Commercial Vehicle, and Off-Highway. The Light Vehicles segment generates the majority portion of revenue by providing products to support light vehicle OEMs. Its …
Dana Inc matters in the Auto Parts sector as a leading provider of propulsion and energy-management solutions, serving diverse markets including Light Vehicles, Commercial Vehicle, and Off-Highway segments globally, which positions it to capitalize on the transition to efficient mobility technologies.
Dana's profitability is notably weak, with a profit margin of only 0.5% and an ROE of 5.3%, indicating limited efficiency in converting revenue into profits and generating returns on equity; however, its revenue growth of 1.1% suggests modest expansion amid sector challenges, while the high P/E ratio of 47.9 implies potential overvaluation relative to earnings.
By 2026, Dana's focus on energy-management and propulsion solutions across its segments could drive growth amid rising demand for electric and hybrid vehicles, supported by its global market presence and a Tradestie Score of 64.3 indicating moderate investment appeal. The company's diversification into Power Technologies and Off-Highway segments positions it to benefit from infrastructure and industrial recovery trends. Investors may find value in Dana's stock as automotive electrification accelerates, potentially improving revenue growth beyond the current 1.1%.
APTV
Aptiv PLC signal and power solutions segment supplies components and systems that make up a vehicle's electrical system, including wiring assemblies and harnesses, connectors, electrical centers, and hybrid electrical systems. The operating segments are grouped on the basis of similar product, market and operating factors: Signal and Power Solutions, which includes complete electrical architecture and component products. advanced Safety and …
Aptiv PLC is a pivotal player in the Auto Parts sector, specializing in advanced signal and power solutions that are essential for vehicle electrification and connectivity, including wiring assemblies, harnesses, and hybrid electrical systems. Its operating segments, grouped by similar products and markets, position it as a key supplier to major automakers, driving innovation in the evolving automotive landscape.
Aptiv's profitability is modest, with a profit margin of 1.5% and ROE of 3.3%, indicating challenges in generating strong returns on equity and margins amid competitive pressures. However, the company's revenue growth of 7.4% demonstrates financial resilience and potential for improvement, while the high P/E ratio of 58.3 suggests investor confidence in future earnings growth.
By 2026, Aptiv is poised to benefit from the accelerating demand for electric and connected vehicles, leveraging its expertise in electrical systems to capture market share and drive revenue growth beyond the current 7.4%. The Tradestie Score of 62.6 indicates a solid investment opportunity, reflecting positive fundamentals and industry trends. Investors should consider buying APTV stock due to its strategic positioning in the auto parts sector, where electrification and autonomy are expected to fuel long-term expansion.
PHIN
Phinia Inc is engaged in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial vehicles, industrial applications, and light vehicles. Its product portfolio includes alternative fuel systems, fuel delivery modules, evaporative canisters, diesel fuel injection systems, electrical systems, hydrogen solutions, associated software, and others. …
Phinia Inc. matters in the Auto Parts sector as a key innovator in integrated components and systems that enhance efficiency, reduce emissions, and support hybrid propulsion for commercial vehicles, industrial applications, and light vehicles, addressing the industry's shift towards sustainability. Its diverse product portfolio positions it to capitalize on growing demand for eco-friendly technologies amid regulatory and market pressures for greener automotive solutions.
Phinia's profitability is modest, with a 2.6% profit margin and 5.5% ROE indicating slim returns on sales and equity, which suggests operational challenges in a competitive sector. However, the 8.2% revenue growth reflects positive business expansion, while the 28.4 P/E ratio signals investor optimism for future earnings potential despite current financial constraints.
Phinia's 8.2% revenue growth and expertise in hybrid propulsion systems make it an attractive investment by 2026, as global demand for efficient, low-emission components is expected to rise with stricter environmental regulations. The Tradestie Score of 62.3 indicates a moderate opportunity for upside, particularly if the company leverages its innovation to gain market share in the evolving auto parts landscape. Additionally, the 28.4 P/E ratio suggests the stock is priced for growth, potentially delivering strong returns as the sector transitions to sustainable technologies.
BWA
BorgWarner is a tier one supplier of turbo and thermal management technologies, drivetrain systems, powerdrive systems, and battery and charging systems mostly to automotive original equipment manufacturers. Its products aim to move a vehicle with as few electrons as possible, resulting in cleaner, cost-optimized, and more-efficient vehicles. Foundational products, the combustion vehicle business, contributes more than 80% to group revenue …
BorgWarner matters in the Auto Parts sector as a leading tier-one supplier of critical technologies like turbochargers, thermal management, and electrification systems, which enhance vehicle efficiency and support the industry's shift toward sustainable mobility. Its focus on minimizing electron usage for cleaner operations positions it as a key enabler for automotive OEMs navigating electrification trends.
BorgWarner's profit margin of 0.9% indicates low profitability, reflecting tight margins in the competitive auto parts industry, while its ROE of 3.0% suggests inefficient returns on equity. However, with revenue growth at 4.1%, the company demonstrates modest expansion, though the high P/E ratio of 64.4 signals that the stock may be priced aggressively based on expectations of future earnings growth.
BorgWarner's expertise in electrification and efficiency technologies positions it for growth in 2026 as the EV market expands, with its 4.1% revenue growth underscoring ongoing demand for products like battery and charging systems. The Tradestie Score of 62.0 indicates moderate investment potential, supported by the company's role in helping OEMs meet emissions regulations. Additionally, as global automotive trends favor sustainable solutions, BorgWarner's innovations could drive stock appreciation amid increasing adoption of electric and hybrid vehicles.
HLLY
Holley Inc is a designer, marketer, and manufacturer of high-performance automotive aftermarket products, featuring a portfolio of iconic brands serving the car and truck industry. It offers a diversified line of performance automotive products including fuel injection systems, tuners, exhaust products, carburetors, safety equipment and various other performance automotive products. The Company's products are designed to enhance street, off-road, recreational …
Holley Inc. stands out in the Auto Parts sector as a leading designer, marketer, and manufacturer of high-performance automotive aftermarket products, including fuel injection systems, tuners, and exhaust products, which cater to the growing demand for vehicle customization in the car and truck industry. Its portfolio of iconic brands and diversified product line positions it as a key innovator in the aftermarket segment, serving enthusiasts and professionals alike.
Holley Inc.'s negative profit margin of -4.2% and ROE of -5.5% highlight current challenges in achieving profitability and efficient use of equity, reflecting potential operational inefficiencies or market pressures. However, the company's revenue growth of 3.2% demonstrates positive top-line expansion, which could signal improving financial health if cost management improves.
Holley Inc.'s 3.2% revenue growth and a Tradestie Score of 61.6/100 indicate underlying momentum in the high-performance aftermarket, positioning the company for potential recovery and expansion by 2026 as automotive customization trends accelerate. The sector's shift toward electric and performance vehicles could boost demand for Holley's specialized products, enhancing market share and profitability. Investors may benefit from this growth trajectory, especially if economic conditions improve and the company optimizes its operations to turn negative metrics positive.
ALV
Autoliv Inc is the world-wide leader in passive safety components and systems for the auto industry. Products include seat belts, frontal air bags, side-impact air bags, air bag inflators, and steering wheels. The Renault-Nissan-Mitsubishi alliance is the company's largest customer at 10% of 2023 revenue, with Stellantis accounting for 10% and Volkswagen 9%. At 34% of 2023 revenue, the Americas …
Autoliv Inc. stands out as the global leader in passive safety components for the auto parts sector, supplying critical products like air bags and seat belts that are essential for vehicle safety and regulatory compliance. Its position is reinforced by the Renault-Nissan-Mitsubishi alliance as its largest customer, accounting for 10% of 2023 revenue, highlighting its integral role in major automotive supply chains.
Autoliv's 7.1% profit margin indicates moderate profitability in a competitive sector, while its 31.0% ROE demonstrates efficient use of equity to generate returns. Combined with 5.9% revenue growth and a P/E ratio of 12.5, these metrics reflect a financially stable company that is potentially undervalued relative to its earnings.
Autoliv's strong 31.0% ROE and 5.9% revenue growth position it for continued expansion, especially as global demand for advanced safety features in vehicles is expected to rise by 2026 due to stricter regulations. The company's leadership in passive safety systems, coupled with its key partnership with the Renault-Nissan-Mitsubishi alliance, could drive market share gains in the evolving auto industry. Additionally, a P/E ratio of 12.5 suggests the stock is attractively valued, offering potential for solid returns as the sector recovers and innovates.
GTX
Garrett Motion Inc designs, manufactures and sells engineered turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers (OEMs). The company is a technology leader with expertise in delivering products across gasoline, diesel, natural gas and electrified powertrains. The company also sells its technologies in the aftermarket through its distribution network. The company derives maximum of its revenue …
Garrett Motion Inc. matters in the Auto Parts sector as a technology leader in turbocharger and electric-boosting technologies, serving OEMs for gasoline, diesel, natural gas, and electric vehicles, which enhances engine efficiency and supports the global shift toward electrification. Its expertise positions it to capitalize on the growing demand for advanced automotive components amid stricter emissions regulations and EV adoption.
With a profit margin of 9.2% and revenue growth of 9.2%, Garrett Motion demonstrates solid profitability and financial expansion, indicating effective cost management and market demand for its products. The P/E ratio of 11.3 suggests the stock is undervalued relative to earnings, while a Tradestie Score of 60.6/100 reflects moderate overall financial health in a competitive sector.
Garrett Motion's focus on electric-boosting technologies aligns with projected EV market growth, potentially driving revenue beyond the current 9.2% rate by 2026 as global automotive electrification accelerates. The company's P/E ratio of 11.3 offers an attractive entry point for value investors, combined with its 9.2% profit margin indicating resilience and capacity for reinvestment. Furthermore, as a leader in turbocharger innovations, the firm is well-positioned to benefit from regulatory pressures for fuel efficiency, making it a compelling buy for long-term portfolio growth in 2026.
MPAA
Motorcar Parts of America Inc is a supplier of automotive aftermarket non-discretionary replacement parts and test solutions and diagnostic equipment. It operate in the non-discretionary automotive aftermarket for replacement hard part in North America and includes products such as light-duty rotating electrical products, wheel hub products, brake-related products, and turbochargers. In addition, it sell test solutions and diagnostic equipment. The …
Motorcar Parts of America Inc. matters in the Auto Parts sector as a leading supplier of essential non-discretionary replacement parts and diagnostic equipment in North America, addressing the growing demand for vehicle maintenance amid an aging vehicle fleet. Its 6.4% revenue growth highlights its ability to capture market share in the automotive aftermarket, supporting the sector's resilience against economic fluctuations.
MPAA's profitability is concerning, with a profit margin of only 0.3% indicating slim earnings relative to sales, and an ROE of 0.9% suggesting inefficient use of shareholder equity. However, the 6.4% revenue growth demonstrates positive top-line expansion, though the high P/E ratio of 104.2 implies the stock is priced for significant future earnings improvements despite current financial weaknesses.
By 2026, MPAA could benefit from sustained demand in the automotive aftermarket, driven by its 6.4% revenue growth and the increasing need for replacement parts as vehicle fleets age in North America. The company's focus on non-discretionary products positions it for stability amid economic recoveries, potentially improving profitability and justifying its high P/E of 104.2 if operational efficiencies are achieved. Additionally, a Tradestie Score of 59.5/100 suggests moderate investment appeal, offering upside for investors betting on sector growth.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.