Is Dana Incorporated (DAN) The Top Auto Parts Stock That Could Surge On Trump's Auto Tariff Relaxation?

We recently published a list of Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation. In this article, we are going to take a look at where Dana Incorporated (NYSE:DAN) stands against other top auto parts stocks that could surge On Trump’s auto tariff relaxation.

The corporate earnings season is about to kick off, but investors have something else on their minds: Donald Trump’s tariffs. Since the beginning of his term, Trump has wreaked havoc on the markets with repeated tariffs, resulting in the S&P index being down nearly 8% for the year.

We have observed that some of the most aggressive tariff policies are soon revoked or relaxed, resulting in a rally that brings back the stock prices to reasonable levels. We saw this recently when Donald Trump hinted that Big Tech companies may not bear the brunt of the tariffs as badly as previously thought. As a result, investors poured their money into these companies, thinking they may be critical for the US infrastructure.

A similar development is forming in the auto sector, with Trump likely to offer some relaxation when it comes to importing auto parts or manufacturing vehicles outside the US. Since auto parts companies are critical to the supply chain of this industry, we decided to take a look at the auto parts stocks that could surge following any news of relaxation in tariffs.

To come up with our list of Top 10 Auto Parts Stocks that could surge following Trump’s auto tariff reprieve, we looked at companies in the auto parts industry with a minimum market cap of $300 million that were outperforming their peers.

Dana Incorporated (NYSE:DAN)

Dana Incorporated is a power-conveyance solutions provider for machinery and vehicles. It operates in Off-Highway Drive and Motion Systems, Light Vehicle Drive Systems, Power Technologies, and Commercial Vehicle Drive and Motion Systems segments. The stock has now started recovering its losses as it is following an upward trend from the past few days, surging over 3% in the last five trading sessions.

Recently, Deutsche Bank highlighted the company and backed it to stand out regardless of macroeconomic tariff-related volatility and instability. The bank believes that investors will benefit from the company’s plan to sell its Off-Highway business to reduce leverage. With the help of its planned cost reduction actions and divestiture, the company anticipates saving up to $300 million by 2026.

Overall, DAN ranks 8th on our list of top auto parts stocks that could surge On Trump’s auto tariff relaxation. While we acknowledge the potential of DAN 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DAN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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