Wolfe Research identifies Ford, General Motors, and BorgWarner as having favorable setups ahead of Q1 2026 earnings.
The firm notes sector volatility from the Iran conflict, but expects minimal impact of cost inflation and supply disruptions on Q1 results.
Magna, Aptiv, and Goodyear are flagged with cautious setups and downside risk, while Tesla faces downside tied to Robotaxi messaging.
Wolfe Research maintains Outperform ratings on GM, Autoliv, BorgWarner and Vignette.