Investing in auto equipment stocks can be a lucrative choice within the automotive sector. While aftermarket parts suppliers like Advanced Auto Parts have struggled, the original equipment manufacturers show great potential.
Allison Transmission Holdings (ALSN)
As the leading manufacturer of fully automatic transmissions, Allison Transmission Holdings presents an attractive investment opportunity. With steady growth and impressive earnings forecasted, the stock is undervalued compared to industry peers.
Commercial Vehicle Group (CVGI)
Commercial Vehicle Group generates promising earnings estimates, fostering confidence in its valuation and growth prospects. The company specializes in supplying interior systems and vision safety solutions to various commercial vehicle markets.
As a supplier of automatic-dimming rear-view mirrors and electronics to the automotive industry, Gentex offers an intriguing investment opportunity. The stock has shown positive performance and trades below industry averages.
These auto equipment stocks, ranked as Zacks Rank #1 (Strong Buy), benefit from rising earnings estimates. With attractive valuations and positive growth potential, these stocks are worth considering for long-term investments.
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