Six Auto Stocks That Could Accelerate

6. Lear Corporation (LEA) engages in the manufacture of automotive seating systems and electrical power management systems.

Pretax income for the second quarter of 2011 rose to $205.4 million from $182.6 million. Adjusted earnings per share were $1.65 compared with $1.47 in the same quarter last year.

For the quarter, Lear reported net sales of $3.7 billion, vs. $3 billion in the year-ago period, representing growth of 23%. In the seating segment, net sales increased 19% to $2.9 billion, while electrical power management systems observed 29% sales growth to $816.4 million.

During the quarter, free cash flow was $121.0 million and net cash from operating activities was $206.7 million. The balance sheet is strong, with $1.8 billion cash. Capital spending in 2011 is estimated at $325 million, reflecting further investment plans in emerging markets.

Lear expects 2011 net sales to range from $13.4 billion to $13.8 billion and operating earnings to range between $740 million and $780 million. On average, analysts expect the stock to gain 48% over the next year. Eight-one percent of analysts covering the stock give it a buy rating.

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