NEW YORK (TheStreet) -- With Ford (F) performing strongly and the government trying to exit from GM, many investors are increasingly bullish on auto supplier stocks. As car unit sales continue to stabilize -- or pick up -- auto suppliers will undoubtedly reap rewards, and glean steady business going forward.
One piece of evidence of the investment community's increasingly bullish view towards auto supplier stocks can been seen in the recently rebalanced Hennessy Focus 30 Fund (HFTFX), which invests its assets in 30 mid-cap growth oriented companies, screening for undervalued stocks with above-average growth potential. The top three performers of the rebalanced fund have been Crocs (CROX), TRW Automotive (TRW) and Tenneco (TEN). Two out of the top three are auto supplier stocks.
"Those companies were decimated when GM had to be taken over. So the ones that survived obviously had to cut to the bone and figure out a way to manage this," Hennessy co-portfolio manager Frank Ingarra explains. "I think the ones that we have or at least some other ones that are out there are the strong ones that have survived."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV