We recently published a list of Why These 15 Automotive Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Strattec Security Corporation (NASDAQ:STRT) stands against other automotive stocks that are skyrocketing so far in 2025.

The automotive industry is starting to shift gears this year as supply chains continue to improve and the worldwide rate-cut cycle stimulates more demand. In addition, Trump’s election is also changing things with loosened regulations helping legacy automotive companies, and tariffs helping domestic companies, though it hurts companies abroad.

Regardless, the electrification megatrend has continued, and electric vehicle shipments are projected to surge by 17% this year. Also, the European automotive sector is showing signs of recovery with a projected 2.1% growth.

The broader sector could get a lot hotter this year if macroeconomic metrics cooperate and rates come down more. Let’s take a look at the stocks that have already started to climb.

Methodology

For this article, I screened the top-performing automotive stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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Strattec Security Corporation (NASDAQ:STRT)

Number of Hedge Fund Holders In Q3 2024: 8

Strattec Security Corporation (NASDAQ:STRT) makes automotive security and access control products.

The stock is up significantly year-to-date as it beat analyst expectations in Q2 FY2025. Revenue rose 9.6% year-over-year to $129.9 million vs. $118.5 million last year. Gross margin also expanded to 13.2% from 11.4% due to higher volume and a $3.5 million FX tailwind from the weaker Mexican peso.

Strattec Security (NASDAQ:STRT) ended up generating $9.4 million in OCF in Q2, with its cash balance reaching $42.6 million. Adjusted EBITDA is now at $8 million and EPS of $0.32 beat estimates by 132.1%, with net income up 30% year-over-year.

STRT stock is up 13.86% year-to-date.

Overall, STRT ranks 11th on our list of automotive stocks that are skyrocketing so far in 2025. While we acknowledge the potential of STRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.