Brokers Back These 5 Stocks Amid Ongoing Market Volatility

Investors seeking solid returns in a volatile market should consider broker-backed stocks like American Axle & Manufacturing, Brookdale Senior Living, Adient, Asbury Automotive, and AutoNation. These stocks have been selected based on improving broker recommendations and upward revisions in earnings estimates. American Axle & Manufacturing has made strides in the electric drive space, while Brookdale Senior Living has seen a steady increase in occupancy rates, driving higher revenue and EBITDA growth. Adient has been gaining customers with its broad product range.

In the current volatile market, investors are seeking solid returns and reliable stocks. One such stock that has garnered attention is American Axle & Manufacturing (NYSE: AXL), a company known for its driveline and metal forming technologies supporting electric, hybrid, and internal combustion vehicles. This article explores why American Axle & Manufacturing could be a promising investment, based on recent developments and financial data.

Recent Developments

American Axle & Manufacturing has been making significant strides in the electric drive space. The company has recently secured new business to support Scout Motors’ iconic SUV and truck launch, indicating a growing presence in the electric vehicle (EV) market [1]. Additionally, the company has received an upgrade to a "Buy" recommendation by UBS, citing the potential for growth on the General Motors (GM) platform [2].

Financial Performance

American Axle & Manufacturing's stock price has shown resilience, closing at $4.79 as of July 2, 2025. The company's stock has a 1-year change of -32.78%, indicating a recovery from previous lows. The company's market capitalization is $569.19 million, with a 52-week range of $3.00 to $7.65. Key financial metrics include a price-to-earnings (P/E) ratio of 27.40, a return on assets of 0.4%, and a return on equity of 3.4% [3].

Valuation and Growth Prospects

Analysts have revised their earnings upwards for the upcoming period, with a price target of $5.56, representing an upside of +16.02%. The company's fair value estimate is based on valuation models like discounted cash flow, peer valuation multiples, and dividend discount models [4]. American Axle & Manufacturing's strong shareholder yield and high EBITDA margin of $717.4 million further indicate its financial health.

Conclusion

American Axle & Manufacturing presents a compelling investment opportunity for investors seeking solid returns in a volatile market. The company's strategic moves in the EV market, coupled with strong financial performance and analyst upgrades, make it a potential candidate for investors. However, as with any investment, thorough analysis and risk assessment are essential.

References:

[1] https://www.investing.com/equities/american-axle---manufacturing
[2] https://www.investing.com/equities/american-axle---manufacturing
[3] https://www.investing.com/equities/american-axle---manufacturing
[4] https://www.investing.com/equities/american-axle---manufacturing