This Automotive Stock Could Supercharge Your Portfolio
Turbocharger maker Garrett Motion's (NASDAQ: GTX) reorganization in the spring of 2021 makes it a cash-generating machine with a mouthwatering valuation. The company could return additional capital to investors through share repurchases in the coming months. Here's how the opportunity came about.
Garrett sells turbochargers to diesel, light industrial, gas, and hybrid manufacturers. Turbochargers aren't like any old, highly competitive auto part. They are highly engineered devices that require detailed specifications designed into each model. That intimate knowledge of each customer's product has built up significant trust and barriers to entry for any company trying to break into the turbocharger business. Over the decades, the turbocharger market has evolved into a duopoly between Garrett Motion and auto supply behemoth BorgWarner (NYSE: BWG).
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Source Fool.com
