Image supply: Getty Photographs
The auto elements industry did honest nicely no matter the harsh environment and provide chain bottlenecks in 2021. Outstanding shares adore Linamar Company (+12.25%) and Magna International (+15.8%) did now not disappoint traders and delivered certain returns.
Alternatively, Uni-Take (TSX:UNS) modified into once the high-flyer with its 217.4% total return. The stock’s performance modified into once far higher than the broader market and the purple-sizzling vitality sector. For 2022, Westport Gasoline Methods Inc. (TSX:WPRT)(NASDAQ:WPRT) would possibly per chance per chance well be the industry’s top growth stock and worth performer.
Westport is absurdly low-price ($2.35 per part), though market analysts are bullish. Their 12-month reasonable label device is $13.04, or a most likely upside of 454.9%. Meanwhile, Uni-Take is coming near near its 52-week high.
Growth opportunities forward
Uni-Take will order its Q4 and total-twelve months 2021 earnings outcomes on February 18, 2022. In the nine months ended September 30, 2021, entire sales increased 9.7%, whereas accept loss improved 69% versus the the same period in 2020. Particularly, accept earnings in Q4 2021 climbed 167.8% to US$11.92 million when put next with Q4 2020.
Constant with Brian McManus, Uni-Take’s executive chairman and CEO, the quarterly outcomes replicate the continuing operational development and persisted sequential recovery within the industry. The $1 billion company from Boucherville distributes automotive refinish, industrial coatings, and associated merchandise in North The USA.
Uni-Take is the leader within the automotive aftermarket elements industry no longer entirely in Canada nonetheless moreover within the UK. McManus unearths the come-time period focus is to align the core companies with administration’s vision for the future. Uni-Take is positioning the industry for the very long time period and must still capitalize on the opportunities forward.
Market analysts masking the stock seek a return most likely of as a minimal 24.9%. The label would possibly per chance per chance climb from $22.96 to $28.68 in 12 months.
Sizable returns within the come time period
Westport Gasoline Methods carries a eliminate rating from market analysts nonetheless continues to waft below the radar. The $401.36 million company delivers different fuel programs to be used in transportation applications globally. About 70 international locations consume the evolved honest fuel programs in passenger car & light trucks, buses, and heavy-accountability trucks.
The elephantine-twelve months 2021 outcomes aren’t out yet nonetheless it’s bag to inform that the foremost nine months modified into once a recovery period for Westport. In the nine months ended September 30, 2021, entire revenue increased 36% to US$229.8 million. Salvage earnings modified into once US$8.3 million, or a 173% turnaround from the US$11.5 million accept loss within the the same period in 2020.
In Q3 2021, revenue growth versus Q3 2020 modified into once 14%, though Westport incurred US$5.8 million losses due to the increased operating prices, decrease authorities wage-subsidy and enhance programs, plus decrease foreign alternate gains. Serene, it modified into once encouraging on memoir of the improving pattern within the industry.
Wall Aspect road notes the rising count on for electrical autos. Westport must still be to your watchlist since the Canadian company will play a extremely well-known feature within the worldwide vitality transition. Investors characterize the stock as a producing play at coronary heart. The company will provide natural fuel-powered trucks to Amazon’s fleet.
Lunge on the enhance
Ask Westport Gasoline Methods to upward push from obscurity in 2022 on memoir of the different fuel auto industry enhance. As talked about earlier, now would possibly per chance per chance be a classy time to bag this auto elements stock. The most likely return within the come time period would possibly per chance per chance well be substantial.