Auto The automotive industry is central to America’s clean energy future. Gas vehicles are becoming more efficient, while electric vehicles are offering a glimpse of what the market could be like in the next ten years. Stocks in companies that develop parts and products for the auto industry are worth considering.

Garrett Motion Inc. (OTC: GTXMQ) is an automobile technology company that develops turbochargers to increase gasoline and diesel engine performance and efficiency. It also develops performance and efficiency-boosting components for electric and hybrid vehicles.

In its most recent fiscal report, Garrett Motion saw an 8.5% decline in sales, attributed to the Coronavirus Pandemic. Light vehicle production was down almost 25% in the first half of the year, which had a direct impact on the business. However, the company did generate positive EBITDA of $108 million and $57 million in adjusted free cash flow. Its resilience to the conditions and its position as a key supplier to the recovering auto industry has made investors upbeat about the future.

The current average target price on this bargain stock is $6.00, representing a significant upside considering its low price. Whether buying for short-term growth or the long-term potential within the wider auto industry, this is an excellent bargain pick for 2020 and beyond.

Key Data:

  • 1 Year Price Growth: -53.98%
  • YTD Price Growth: -51.95%
  • 3 Month Price Growth: 73%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.