Why Lear Stock Hit A New 52-Week Low This Week

Shares of Lear Corp LEA are trading lower by 8% to $87.38 since Monday’s open following President Donald Trump’s announcement of a 25% tariff on imported cars and key auto parts.

The broader market is also lower following a greater-than-expected rise in the PCE price index in February while personal spending missed estimates.

What To Know: As a major supplier of automotive seating and electrical systems, Lear depends on a global supply chain for raw materials and components.

With the tariffs set to take effect in April and May, the company’s cost structure and profitability face significant risks.

Industry Impact: Lear operates on tight margins, making it difficult to pass these increased costs onto automakers, many of whom are already struggling with rising production expenses.

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Given that nearly half of a U.S.-built car's components come from abroad, higher tariffs on imported parts could further erode Lear's margins, forcing the company to consider cost-cutting measures or price hikes—both of which could hurt demand.

Analyst Concerns: According to Goldman Sachs, auto suppliers are especially vulnerable since their long-term contracts often lock in prices, leaving little room to absorb rising costs.

Additionally, the anticipated increase in vehicle prices—ranging from $5,000 to $15,000 per car—could weigh on sales, further dampening demand for Lear's products and adding to the company’s financial strain.

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How To Buy LEA Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Lear’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, LEA has a 52-week high of $145.35 and a 52-week low of $86.28.