Currently, the automarket industry is experiencing interesting times. People are trying to avoid public transport due to COVID-19 pandemic and because of this, they are looking for fixing up their cars on a regular basis. This is leading to maximizing the demand level for new car parts. Although, the industry of car parts was not secure from the losses and uncertainty in 2020. It is expected that this new year will offer a range of opportunities for investors. During coronavirus in 2020, similar to other sectors, the automotive aftermarket industry also witnesses bumpy ride. At the start, the sales of the sector got hammered because of travel restrictions which also declined the demand for auto parts. Such movement restrictions result in low level usage of personal cars, less collisions, and low level spendings by customers for new parts of vehicles. The sales of vehicles were crashing already in the USA and this outbreak of Coronavirus has worsened the condition as the spendings have become limited. A 15% decline in the sales of new cars has been seen in November, 2020.
Let’s start with the list of top 10 auto-part stocks for 2021 as highlighted by Insider Monkey in their blog post. On 10th position in the list of best stocks 2021, Tenneco is placed which is selling aftermarket emissions and ride control products. According to Insider Monkey, 18 hedge funds have the ownership of the shares of this company in the Q3 of 2020. The overall worth of these shares is $82.48 million. Icahn Capital LP of Carl Icahn is the biggest stakeholder of this company as he owns $63.41 million worth of shares. The cash received through the company operations the latest quarter was $486 million.
Standard Motor Products Inc., which is a New York-based company is on 9th place in the list shared by Insider Monkey for Top 10 auto-part stocks for 2021. Approximately 19 hedge funds are showing bullish behavior for this stock during the Q3 of 2020. The total investment value is around $86.24 million. There has been observed a 24% downward trend in the stocks of Standard Motor. The reason is the announcement recently made by the company that one of its retail customers is no more using the product line of Engine Management. According to the company, $140 million worth of Engine Management products were purchased by this particular customer every year. Want to know what other auto-part stocks are the best for 2021? Simply read 10 Best Auto-Part Stocks To Buy For 2021.
