Why Cooper-Standard Holdings Inc. (CPS) Is Surging in 2025

We recently published an article titled Why These 15 Vehicles & Parts Stocks Are Surging In 2025. In this article, we are going to take a look at where Cooper-Standard Holdings Inc. (NYSE:CPS) stands against the other vehicles and parts stocks.

Certain automotive companies have held up surprisingly well in the current environment, and that’s especially true with companies that supply automotive parts. The high interest rate regime was supposed to crush automotive companies across the board, and early tariffs specifically targeted countries that produced the most automotive parts for the U.S.

Even then. These stocks have done well since high interest rates have made it difficult for low-income consumers to buy new cars. Instead, they have opted for repairing their existing vehicles, which has been a tailwind for automotive parts companies for the past two years. The average age of vehicles was already at a record 12.6 years in 2024, so this tailwind isn’t going away anytime soon.

Customers who have higher incomes have kept on buying new vehicles. It is mostly because of them that consumer spending has held up across the board. Here are the biggest winners from this trend.

Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Financial Services Stocks that are up the Most in 2025 in another article.

Methodology

For this article, I screened the best-performing vehicles & parts stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Cooper-Standard Holdings Inc. (NYSE:CPS)

Number of Hedge Fund Holders In Q4 2024: 14

Cooper-Standard Holdings Inc. (NYSE:CPS) is a global supplier of sealing, fuel and brake delivery, and fluid transfer systems primarily for the automotive industry.

Cooper-Standard's stock price surged significantly in late April and early May 2025, jumping 46% in the month leading up to May 3, 2025. This rise was primarily driven by the company's strong first quarter 2025 financial results reported on May 1, 2025.

Cooper-Standard Holdings Inc. (NYSE:CPS) announced a return to profitability, posting net income of $1.6 million compared to a net loss of $31.7 million in the first quarter of 2024. Adjusted earnings per share were $0.19, dramatically beating analyst forecasts, which anticipated a loss.

The improved profitability resulted from operational efficiencies, including $20 million saved through manufacturing and purchasing improvements and $8 million from cost initiatives, rather than sales growth, as revenue slightly declined by 1.4%. Gross profit margin expanded significantly to 11.6% from 9.1%, and the adjusted EBITDA margin doubled to 8.8%.

The consensus price target of $12 implies 45% downside.

Cooper-Standard Holdings Inc. (NYSE:CPS) stock is up 61.36% year-to-date.

Overall CPS ranks 5th on our list of vehicles and parts stocks that are surging in 2025. While we acknowledge the potential of CPS as an investment, our conviction lies in the belief that 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 CPS 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.