Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Gentex: The Auto Component Industry Is Ready To Reward Bottom-Up Stock Picking

Gentex Corp. (NASDAQ:GNTX) seems well positioned to offset the headwinds faced by the broader auto-component space. With macro headwinds getting stronger and a great valuation, the industry fundamentals are ripe to reward bottom-up stock picking, thus is deserving of a closer look. For Gentex, investments in technology and financial discipline seem to have positioned the business to grab market share as customers gravitate towards affordable premium features in autos.

(click to enlarge)

Auto ready for cyclical pressures.

Image source: Atlas Quartz

After multi-year growth, there is a widespread acceptance that the auto sector, especially the U.S.-based players, may face a slowdown. Looking at the sector cyclicality or the macroeconomic trends, there is little to argue against the notion,

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