Earnings Preview: Auto Suppliers

While the strike is expected to most hurt American Axle, which derives about 80 percent of its total sales from GM, Magna, Lear and Tenneco also have significant GM exposure, Kwas said.

Both Michaeli and Kwas pegged BorgWarner Inc., which makes automotive systems and drivetrain components, as their top pick in the sector, citing its strong finances and diverse product lineup. The Auburn Hills, Mich.-based company reports its results July 31.

Johnson Controls Inc., which makes building and automotive systems, kicked off the sector's reporting last week with a fiscal third-quarter profit that met Wall Street predictions, largely as a result of a 13 percent increase in building efficiency sales. Sales at the company's automotive division rose 3 percent.