HomeMarket NewsDriving Your Portfolio: Revving Up with 3 ‘Auto’ Stocks

Driving Your Portfolio: Revving Up with 3 ‘Auto’ Stocks

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When it comes to auto stocks, the first names that come to mind are usually giants like General Motors (NYSE:GM) and
Tesla (NASDAQ:TSLA). However, the automotive manufacturing ecosystem is vast, encompassing various supporting industries that often thrive in the shadows of these behemoths.

O’Reilly Automotive (ORLY): Paving the Way in Aftermarket Parts

The front of an O'Reilly Auto Parts (ORLY) store.

Source: Jonathan Weiss / Shutterstock.com

O’Reilly Automotive (NASDAQ:ORLY), under SIC 5531, is a powerhouse in the aftermarket auto parts industry. The company has showcased stellar performance, with a remarkable 20% return in 2022 and a subsequent 13% gain in 2023. What’s more, O’Reilly’s commitment to buying back shares has proven lucrative, making it a standout in the market.

Valvoline (VVV): Lubricating History and Growth

VVV stock: a valvoline sign with a white background and blue and red accents

Source: ricochet64/Shutterstock.com

Valvoline (NYSE:VVV) boasts a rich history dating back to 1866 when it was founded by Dr. John Ellis. The company’s strategic divestment of its Global Products business in March 2023 for a handsome sum of $2.65 billion highlighted its commitment to focus on high-margin retail operations, securing a brighter future for shareholders.

Gentex (GNTX): Reflecting Growth in Auto Technology

Gentex Sees Bright Future with Record Sales in 2023

Gentex Sees Bright Future with Record Sales in 2023

Gentex 2023 Performance Overview

In its 2023 10-K filing, Gentex (NASDAQ:GNTX) proudly detailed its accomplishments in the realm of automotive technology. The company specializes in creating automatic-dimming rearview mirrors, non-dimming mirrors, and cutting-edge electronics for the automotive industry, alongside crafting dimmable aircraft windows for aviation purposes and commercial smoke alarms for fire safety.

Driving Innovation: The Full-Display Mirror (FDM)

A standout in Gentex’s repertoire is its full-display mirror (FDM), a revolutionary product first introduced in 2015 and subsequently refined through multiple updates. This innovative mirror marries a custom camera with an integrated video display, offering drivers an unparalleled rearward view. Presently, the FDM adorns more than 100 vehicle models across 25 distinguished brands, marking a beacon of the company’s commitment to cutting-edge solutions.

Thriving Sales and Financial Growth in 2023

The fiscal year 2023 brought immense success for Gentex, with the company shipping a remarkable 2.44 million FDMs – a 45% surge from the previous year. This upswing in production underpinned a substantial 20% boost in sales, reaching a historic pinnacle of $2.30 billion. Not to be outdone, Gentex also excelled on the earnings front, clocking in at $1.85 per share in 2023, a noteworthy 35% uptick year-over-year.

Looking Ahead: Striving for Excellence in 2024

With an eye towards the future, Gentex has outlined ambitious goals for 2024. The company anticipates revenues of $2.50 billion, with projected gross profits of $863 million and pre-tax profits set at $563 million. In terms of net income, Gentex aims high at $466.9 million, translating to an impressive $2.01 per share. The current trading landscape has placed Gentex shares at an attractive 18.4x its 2024 earnings per share, boasting an alluring earnings yield of 5.4%, marking its highest figure since the year 2019.

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. His works have been featured in renowned publications such as InvestorPlace, The Motley Fool Canada, Investopedia, and Kiplinger, among others in both the United States and Canada. He has a penchant for crafting model portfolios that withstand the test of time, residing in Halifax, Nova Scotia.

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