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]

On February 2, Tweedy, Browne Co disclosed in an SEC filing that it sold 31,740 shares of Autoliv (NYSE:ALV), an estimated $3.79 million trade based on quarterly average pricing. What happened In an SEC filing dated February 2, Connecticut-based financial planner Tweedy, Browne reported selling 31,740 shares of Autoliv during the fourth quarter. The estimated transaction value was $3.79 million, calculated using the average unadjusted closing price for the period. The reduction brought the stake to 400,9 ...

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. ...

Advance Auto Parts (NYSE:AAP) is one of the best Auto Parts stocks according to Hedge Funds. On January 21, Aaron Reed from Northcoast Research indicated his optimism around Advance Auto Parts (NYSE:AAP). He upgraded his rating on the stock from Neutral to Buy, and estimated a price target of $55, which yields an upside of over 14%. Reed’s rating is based on his expectations of strong demand trends during 2026, following the ongoing performance enhancements. Copyright: urfingus / 123RF Stock Photo On t ...

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].

Visteon Corp (NASDAQ:VC) is one of the best Auto Parts stocks according to Hedge Funds. On January 15, Goldman Sachs analyst Mark Delaney reiterated his Buy rating on Visteon Corp (NASDAQ:VC), while lowering the price target from $130 to $120. The revised target leads to an upside potential of almost 30% at the current level. Rivian (RIVN) Hits Record High on Analyst Bullish Rating, PT Copyright: dolgachov / 123RF Stock Photo Delaney’s rating is based on recent data for auto sales, along with growth ex ...

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]

Goodyear Tire & Rubber (NASDAQ:GT) is one of the best Auto Parts stocks according to Hedge Funds. As of January 29 closing, Goodyear Tire & Rubber (NASDAQ:GT) carried moderately bullish consensus views. Out of 5 analysts who provided coverage on the stock, 3 assigned Buy ratings and 1 gave a Hold call. With just 1 Sell call, it has a median 1-year price target of $10.26, which results in almost 7% upside potential. Newell (NWL) Extends Run on 5th Day Ahead of Dividends Copyright: baranq / 123RF Stock Ph ...