Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Auto, Truck & Motorcycle Parts industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Auto, Truck & Motorcycle Parts Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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5 Undervalued Auto, Truck & Motorcycle Parts Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Auto, Truck & Motorcycle Parts industry for Wednesday, April 17, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Auto, Truck & Motorcycle Parts industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Dana Inc’s Value Grade

Value Grade:

Dana Incorporated is engaged in providing power-conveyance and energy-management solutions for vehicles and machinery. The Company's portfolio improves the efficiency, performance, and sustainability of light vehicles, commercial vehicles, and off-highway equipment. It offers axles, driveshafts, transmissions, sealing and thermal products to electrifications products including motors, inverters, controllers, e-sealing, e-thermal and digital solutions. The Company operates through four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies. The Company owns and have licensed trademarks, such as Spicer Electrified, Victor Reinz, Long, Graziano and Dana TM4. The Company operates in North America, Europe, South America and Asia Pacific regions. Its North America includes Canada, Mexico and United States of America. Its Europe regions include Belgium, Netherlands, Germany and Hungary.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Dana Inc has a Value Score of 73, which is considered to be undervalued.

When you look at Dana Inc’s price-to-sales ratio at 0.16 compared to the industry median at 0.51, this company has a lower price relative to revenue compared to its peers. This could make Dana Inc’s stock more attractive for value investors.

Dana Inc’s price-earnings ratio is 44.94 compared to the industry median at 14.71. This means it has a higher share price relative to earnings compared to its peers. This could make Dana Inc less attractive for value investors.

Now, let’s assess Dana Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 5.8, when compared to the industry median of 7.3, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Dana Inc’s shareholder yield is higher than its industry median ratio of 0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Dana Inc’s price-to-book ratio is lower than its industry median ratio of 1.32. This could make Dana Inc more attractive to investors looking for a new addition to their portfolio.

Tytan Cybernetics Inc’s Value Grade

Value Grade:

Tytan Cybernetics, Inc., formerly Video River Networks, Inc., is a holding company for electric vehicle technology, financial technology, artificial intelligence, robotics, drones and distressed assets. The Company is engaged in expanding its technology portfolio, which includes electric vehicles, artificial intelligence, machine learning and robotics (EV-AI-ML-R), with businesses and operations in North America and Asia. The Company is also focused on business opportunities within financial technology, artificial intelligence, health, sports and entertainment industries.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Tytan Cybernetics Inc has a Value Score of 83, which is considered to be undervalued.

Tytan Cybernetics Inc’s price-to-book ratio is higher than its peers. This could make Tytan Cybernetics Inc less attractive for value investors when compared to the industry median at 1.32.

You can read more about Tytan Cybernetics Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Strattec Security Corp’s Value Grade

Value Grade:

Strattec Security Corporation designs, develops, manufactures and markets automotive access control products. The Company’s products include mechanical locks and keys, electronically enhanced locks and keys, passive entry passive start systems (PEPS), steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate systems, power lift gate systems, power deck lid systems, door handles, and related products. The Company provides its products primarily to North American automotive customers. The Company’s products and solutions portfolio includes Vehicle Access Solutions, Electronic Security Solutions, Vehicle Security Solutions, Dealer Direct Fulfillment Services, Aftermarket, BOLT and STRATTEC Advance Logic-Via GoKeyless. Its products are shipped to customer locations in the United States, Canada, Mexico, Europe, South America, Korea, China and India.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Strattec Security Corp has a Value Score of 66, which is considered to be undervalued.

Strattec Security Corp’s price-earnings ratio is 541.2 compared to the industry median at 14.7. This means that it has a higher price relative to its earnings compared to its peers. This makes Strattec Security Corp less attractive for value investors.

Strattec Security Corp’s price-to-book ratio is higher than its peers. This could make Strattec Security Corp less attractive for value investors when compared to the industry median at 1.32.

You can read more about Strattec Security Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Superior Industries International Inc’s Value Grade

Value Grade:

Superior Industries International, Inc. is engaged in designing and manufacturing aluminum wheels for sale to original equipment manufacturers (OEMs) in North America and Europe and to the aftermarket in Europe. The Company designs, engineers, and manufactures a wide variety of products utilizing the latest lightweight and finishing technologies. The Company is an aluminum wheel supplier to global OEMs and European aluminum wheel aftermarket manufacturers and suppliers. The Company’s OEM aluminum wheels are primarily sold for factory installation on vehicle models. The Company sells aluminum wheels to the European aftermarket under the brands ATS, RIAL, ALUTEC and ANZIO. The Company manufactures all of its North American products in Mexico for sale in the United States, Canada and Mexico.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Superior Industries International Inc has a Value Score of 92, which is considered to be undervalued.

You can read more about Superior Industries International Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Visteon Corp’s Value Grade

Value Grade:

Visteon Corporation is an automotive technology company. The Company provides a range of oncology diagnostic testing and consultative services which includes technical laboratory services and professional interpretation of laboratory test results by licensed physicians who specialize in pathology and oncology. It operates a network of cancer- focused testing laboratories in the United States and the United Kingdom. The Company's platforms leverage hardware and software solutions that enable the digital, electric, and autonomous evolution of the Company's global automotive customers, including BMW, Ford, Geely, General Motors, Honda, Jaguar/Land Rover, Mahindra, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Renault, Stellantis, Tata, Toyota, and Volkswagen. It designs and manufactures automotive electronics and connected car solutions, such as instrument clusters, information displays, infotainment, battery management systems, telematics solutions, and body domain modules.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Visteon Corp has a Value Score of 63, which is considered to be undervalued.

Visteon Corp’s price-earnings ratio is 6.3 compared to the industry median at 14.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Visteon Corp more attractive for value investors.

Visteon Corp’s price-to-book ratio is lower than its peers. This could make Visteon Corp more attractive for value investors when compared to the industry median at 1.32.

You can read more about Visteon Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Auto, Truck & Motorcycle Parts Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Auto, Truck & Motorcycle Parts stocks as well as other industrys.

Choosing Which of the 5 Best Auto, Truck & Motorcycle Parts Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Dana Inc stock has a Value Grade of B.
• Tytan Cybernetics Inc stock has a Value Grade of A.
• Strattec Security Corp stock has a Value Grade of B.
• Superior Industries International Inc stock has a Value Grade of A.
• Visteon Corp stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 undervalued stocks in the Auto, Truck & Motorcycle Parts industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Auto, Truck & Motorcycle Parts Stocks

Want to learn more about Auto, Truck & Motorcycle Parts stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 5 Undervalued Auto, Truck & Motorcycle Parts Stocks for Wednesday, April 17
• 6 Undervalued Auto, Truck & Motorcycle Parts Stocks for Tuesday, April 16
• 6 Undervalued Auto, Truck & Motorcycle Parts Stocks for Monday, April 15
• Why Cooper-Standard Holdings Inc’s (CPS) Stock Is Down 6.77%

AAII Disclaimer

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