After five years in third place, Bank of America Merrill Lynch’s John Murphy rises to second. “His modeling delves deep into the minutiae, and he’s thoughtful about valuations — both of which make him a value-added part of my process,” affirms one backer. Murphy follows 21 stocks in this sector, and his long-standing buy on TRW Automotive Holdings Corp. further endears him to clients. Though shares of the Livonia, Michigan–based supplier of auto-safety equipment had already surged 64.4 percent in 2012, he named TRW a top pick in January 2013, at $53.77. Murphy credited the company’s share-repurchase program and balance-sheet strength, as well as high demand for its components. From January through August the stock advanced 28.5 percent, to $69.07, against a sector rise of 23.2 percent. — Ben Mattlin |
The 2013 All-America Research Team: Autos & Auto Parts, No. 2: John Murphy