I’m a huge fan of science fiction novels and films. Having grown up on Star Wars movies and books by authors like Alastair Reynolds and Philip K. Dick, I marveled at the possibilities and envisioned living in a similar world. 

#-ad_banner-#Fast-forward to 2014, and the very things I thought were the stuff of fiction have become modern-day technologies. Any proper fan of sci-fi will note certain similarities in near-future stories — hand-held computers, holograms and self-driving cars. 

Many of these things have already come to pass or are on the verge of doing so. Smartphones have many times the computing power of those used by the Apollo astronauts, a holographic keyboard is available for some hand-held devices, and Google’s (Nasdaq: GOOG) campus is known to house a self-driving car.

Looking to the future, technologies across many industries will undoubtedly surprise us all with inventions that will amaze us — and that our children and grandchildren will take for granted. 

However, investors are more interested in futuristic developments with real-world applications. 

Telecommunications has received the most attention from futurist investors, which shows in the sector’s average price-to-earnings (P/E) ratio of 37. Value-minded shoppers look to other sectors to find undervalued companies with a growing technological edge. 

One such answer lies in a trillion-dollar industry known for revolutionary concepts: the automotive sector. 

Total auto sales topped 84 million units last year, and industry experts expect 2014 to be even more prolific, with unit sales rising 5.4% and earnings for the sector climbing 11%.

Gentex Corp. (Nasdaq: GNTX) is the perfect fusion of futuristic ideas and real-world application. It’s primarily an auto parts company with segments in fire alarm system development and pressure-treated glass used in aviation as well. Its claim to fame was the creation of the automatic-dimming mirror which was quickly bought by Ford (NYSE: F) and General Motors (NYSE: GM) back in 1982. 

Since then, the company has branched out beyond mirrors and into dynamic lighting with SmartBeam, sensors for weather and object sensitivity, and driver assist programs that often use mounted rear-view cameras when the drivetrain is placed in reverse. Another initiative is Gentex’s acquisition last year of HomeLink, a vehicle-based control system that the company had already been using in its mirrors, from Johnson Controls (NYSE: JCI) for about $700 million.

Gentex’s stock trades at an attractive forward P/E of 14.5, with year-over-year earnings and revenue growth of nearly 47% and 25%, respectively, in its most recent quarter. The recent HomeLink deal already appears to have been beneficial to gross profit margins, which rose to 39.1% in its most recent quarter from 34.7% in the preceding quarter. 

From a liquidity standpoint, Gentex looks strong. Total current liabilities are only $167 million while cash and cash equivalents stand at $374 million. Long-term debt is relatively small at $263 million, giving Gentex the ability to weather economic hardships and take advantage of acquisition opportunities like it did with HomeLink. 

The company recently raised its dividend 14%, to $0.16 a share, for a current yield of 2.2%. Since 2011, Gentex has increased its dividend more than 45%, and its low payout ratio of 33% means it has plenty of room to continue raising it in the future.

Risks to Consider: Auto parts suppliers face risks from local third-party suppliers that may be able to create low-cost alternatives. The automotive sector is cyclical in nature, making it sensitive to economic weakness. 

Action to Take –> The average analyst consensus for GNTX is $34, which represents 18% upside from its current trading range. A dividend yield of 2.2% brings the total discount of this stock to just over 20%. 

If the potential of sci-fi technologies like self-driving cars has you excited, wait until you see what StreetAuthority’s Andy Obermueller has been working on. Andy has identified five “game-changing” trends with the potential to revolutionize the way we live our lives — and make early investors a killing. To learn more about these developing technologies — and the companies behind them — follow this link…