Colin Langan, senior equity analyst at Wells Fargo, told CNBC that BorgWarner Inc. (New York Stock Exchange:BWA) is your top car pick for 2024.
The target price for the stock with a buy rating is $47, while the current price is $35.53. The stock is up 0.19% year to date and up 5.34% from the previous month.
Langan said high-quality suppliers historically can perform well even if their customers are struggling, and he believes that's the case in the auto industry.
BorgWarner (BWA), he said, is a globally diversified and inexpensive company.
“If you take away some of the health issues that suppliers have been suffering due to cost recovery, they are one of the fastest growing this year and yet they are not trading at a premium to the group, they are trading online with a group,” he said.
The US automotive supplier, based in Michigan, has performed very well since Covid amid industry volatility, “and I think we will see more volatility for suppliers next year.”
Much of that volatility, he said, will be caused by cost inflation and financial problems, “so I'd rather stick with a name that has performed through all the volatility recently.”