Aptiv PLC (APTV) Exceeds Market Returns: Some Facts to Consider

Zacks
01-15

Aptiv PLC (APTV) closed the latest trading day at $61.47, indicating a +1.42% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq lost 0.23%.

Prior to today's trading, shares of the company had gained 4.5% over the past month. This has outpaced the Business Services sector's loss of 6.13% and the S&P 500's loss of 3.45% in that time.

The upcoming earnings release of Aptiv PLC will be of great interest to investors. The company's earnings report is expected on February 6, 2025. The company's earnings per share (EPS) are projected to be $1.62, reflecting a 15.71% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.88 billion, reflecting a 0.72% fall from the equivalent quarter last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Aptiv PLC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Aptiv PLC holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Aptiv PLC is currently exchanging hands at a Forward P/E ratio of 8.65. For comparison, its industry has an average Forward P/E of 22.96, which means Aptiv PLC is trading at a discount to the group.

Meanwhile, APTV's PEG ratio is currently 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.43.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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