Group 1 - O'Reilly Automotive, Inc. (ORLY) is viewed as a compounder that invests in its own growth through expansion and shareholder rewards via significant share repurchases [2] - The company does not pay a dividend, which could enhance investor interest [2] - BAD BEAT Investing, led by Quad 7 Capital, has a history of providing investment opportunities and has maintained an average position of 95% long and 5% short since May 2020 [2] Group 2 - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades, aiming to teach investors to become proficient traders [2] - The service offers in-depth research, clear entry and exit targets, and various trading tools, including chat rooms and daily analyst summaries [2] - The analysts involved have diverse expertise in business, policy, economics, mathematics, game theory, and sciences, contributing to a comprehensive investment approach [2]

Company Overview - LKQ supplies automotive replacement parts to repair shops, dealerships, and retail customers across North America and Europe, leveraging a diversified product portfolio and multi-channel distribution network [5][8] - The company focuses on aftermarket and recycled parts, addressing the ongoing demand for cost-effective vehicle repair solutions [5] Financial Performance - As of February 2, 2026, LKQ reported a revenue of $13.96 billion and a net income of $697 million [4] - The company's dividend yield stands at 3.63%, with shares trading at $32.52, reflecting an 11.1% decline over the past year and underperforming the S&P 500 by 25 percentage points [3][4] Investment Activity - Seizert Capital Partners increased its position in LKQ by 503,998 shares during the fourth quarter, with an estimated transaction value of $15.20 million, raising the total stake value to $65.80 million [1][2] - LKQ now constitutes 2.78% of Seizert Capital Partners' 13F reportable AUM [2] Market Position and Valuation - LKQ has been accumulating shares for seven consecutive quarters, with the stock price declining from $50 to $33 during this period [9] - The company is considered a value opportunity, trading at 1.3 times book value and 12 times free cash flow, which is seen as a reasonable price for a dominant player in the automotive replacement parts industry [9] Shareholder Returns - LKQ has been actively buying back shares, reducing its share count by 3.6% annually over the last five years [10] - The company has transitioned from a growth stock to a more stable entity focused on capital returns, supported by a growing dividend [10]

Core Insights - Gentex Corporation (GNTX) reported fourth-quarter 2025 results with adjusted EPS of 43 cents, up from 39 cents a year ago, and net sales of $644.4 million, reflecting a 19% increase year over year [1][9] Financial Performance - The company shipped 3.19 million Full Display Mirror (FDM) units in 2025, marking an 8% year-over-year increase, with expectations of an additional 200,000-400,000 units in 2026 [3][9] - Gentex anticipates consolidated revenues for 2026 to be between $2.6 billion and $2.7 billion, up from $2.53 billion in 2025, with projections for 2027 revenues ranging from $2.75 billion to $2.85 billion [4] Growth Drivers - Growth is expected to be driven by product launches, improved product mix, and the adoption of value-added features, particularly in the FDM segment [3][10] - Strategic acquisitions, including VOXX International and BioConnect, are set to enhance Gentex's product portfolio and support revenue growth [4][10] Market Position and Strategy - Gentex's HomeLink Connect app is expected to increase penetration as demand for home connectivity rises, supported by collaborations with Solace and ADASKY [5] - The company maintains a debt-free balance sheet and a strong cash position, with a current ratio of 2.9 compared to the industry average of 1.9, enhancing financial flexibility [6][11] Challenges - Gentex faces challenges from commodity pricing, particularly in precious metals, and anticipates increased costs from tariffs, which could amount to approximately $45-$50 million in 2026 [7]

Company Overview - Autoliv, Inc. is a leading supplier of automotive safety systems with a global footprint and a diversified customer base among major car manufacturers [6] - The company generates revenue through the sale of safety system modules and components to automotive manufacturers worldwide, focusing on both OEM supply contracts and ongoing product innovation [8] - Autoliv's revenue for the trailing twelve months (TTM) is $10.81 billion, with a net income of $735 million and a dividend yield of 2.59% [4] Recent Developments - On February 2, Tweedy, Browne Co disclosed the sale of 31,740 shares of Autoliv, valued at approximately $3.79 million, reducing their stake to 400,924 shares [2][3] - The value of Tweedy, Browne's position in Autoliv decreased by $5.84 million due to the sale and market movements over the quarter [2] - Autoliv's shares were priced at $120.49 as of February 2, reflecting a 32% increase over the past year, outperforming the S&P 500 by 12.78 percentage points [3] Financial Performance - In the most recent quarterly release, Autoliv reported $2.82 billion in revenue, representing a 7.7% year-over-year increase, with operating cash flow reaching a record $544 million [10] - Full-year operating cash flow totaled $1.16 billion, supporting dividends, buybacks, and maintaining a leverage ratio well below management's 1.5x ceiling [10] Future Outlook - Management is guiding for roughly flat organic growth in 2026, with an adjusted operating margin expected to be between 10.5% and 11.0% [11] - A weaker first quarter is anticipated, with expectations for improvement later in the year, indicating a solid but not explosive growth outlook [11] Investment Perspective - Autoliv remains a meaningful position in Tweedy Browne's portfolio, representing nearly 4% of assets, alongside other high-conviction holdings [12] - The recent share price increase suggests a disciplined approach to risk management, as even strong companies may warrant partial profit-taking after significant gains [9][12]

Japan's Denso , a major auto parts supplier to Toyota , slashed its full-year operating profit forecast by nearly a fifth mainly due to U.S. import tariffs and rising material costs. ...

Group 1 - Advance Auto Parts (NYSE:AAP) is viewed positively by hedge funds, with Aaron Reed from Northcoast Research upgrading the stock from Neutral to Buy, setting a price target of $55, indicating an upside of over 14% [1] - TD Cowen analyst Max Rakhlenko has reduced his price target for Advance Auto Parts from $62 to $46 while maintaining a Hold rating, reflecting adjustments in his hardlines group coverage [2] - Greg Melich of Evercore ISI reaffirmed his In-Line rating for Advance Auto Parts, revising the target price from $58 to $56, which still suggests over 16% upside potential from current levels [3] Group 2 - Advance Auto Parts specializes in automotive aftermarket parts, including batteries, brake pads, chassis parts, clutches, engine parts, and exhaust systems, serving both professional installers and DIY customers through over 4,700 stores [4]

Group 1 - Autoliv Inc (NYSE:ALV) is recognized as one of the best auto parts stocks by hedge funds, with analysts providing mixed ratings and price target adjustments [1][3]. - Baird analyst Luke Junk reaffirmed a Neutral rating for Autoliv, raising the price target from $133 to $137, reflecting a cautious outlook amid supply chain disruptions affecting auto affordability [1][2]. - Wolfe Research's Emmanuel Rosner maintained an Outperform rating but lowered the price target from $149 to $143, indicating a potential upside of over 13% from the current level despite the revision [3]. Group 2 - Rosner anticipates that Autoliv's management may provide 2026 guidance that could exceed Wall Street consensus, projecting adjusted operating margins of approximately 11%, compared to the consensus estimate of 10.8% [4]. - Autoliv is the largest global supplier of automotive safety systems, offering products such as airbags, seatbelts, and pedestrian protection solutions, primarily serving car manufacturers [5].

Group 1: Company Overview - Visteon Corp (NASDAQ:VC) is a leading automotive technology company that specializes in engineering and selling digital cockpit electronics, automotive electronics, and connected car solutions, operating in 18 countries and primarily serving vehicle manufacturers [4] Group 2: Analyst Ratings and Price Targets - Goldman Sachs analyst Mark Delaney reiterated a Buy rating on Visteon Corp while lowering the price target from $130 to $120, indicating an upside potential of almost 30% at the current level [1] - Luke Junk from Robert W. Baird maintained an Outperform rating on Visteon Corp, reducing his price target from $141 to $126, which still suggests a 36% upside for investors [3] - Delaney's rating is supported by favorable projections for auto sales and growth expectations for the sector, as indicated by comments from various suppliers during the last quarter's conferences [2]

Group 1 - Garrett Motion (NASDAQ:GTX) is viewed positively by hedge funds, with a bullish sentiment reflected in the stock's coverage by three analysts, all assigning Buy ratings and a median 1-year price target of $22, indicating over 20% upside potential [1] - Ryan Brinkman from JPMorgan initiated coverage on Garrett Motion, assigning an Overweight rating and forecasting a target price of $23, which implies a 26% upside potential [2] - Brinkman highlighted potential tailwinds from the company's zero-emission vehicle offerings and a lower risk profile for its internal combustion engine business, along with strong free cash conversion and a favorable leverage position [3] Group 2 - Garrett Motion specializes in turbocharging, electric boosting, and air & fluid compression technologies, primarily serving commercial vehicle OEMs and aftermarket distributors, with a focus on improving powertrain efficiency and reducing emissions [4] - The company is also involved in developing technologies for zero-emission mobility and industrial applications [4]

Group 1 - Goodyear Tire & Rubber (NASDAQ:GT) is viewed positively by hedge funds, with 3 out of 5 analysts giving Buy ratings and a median 1-year price target of $10.26, indicating a potential upside of nearly 7% [1] - Deutsche Bank analyst Edison Yu maintains a Buy rating on Goodyear, setting a price target of $12, which suggests an upside potential of almost 25% [2] - Yu expects strong performance in the replacement tire market, driven by the digestion of low-cost inventory at retailers, despite a projected 4% reduction in tire volumes [3] Group 2 - Goodyear is a global manufacturer of tires and related products, serving automotive, commercial, and specialty applications, with well-known brands including Goodyear, Cooper, and Dunlop [4]