Aptiv PLC (APTV) closed at $64.49 in the latest trading session, marking a +0.91% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.01%, and the technology-dominated Nasdaq saw an increase of 0.46%.
The company's shares have seen a decrease of 4.31% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 8.54% and falling behind the S&P 500's loss of 3.59%.
The upcoming earnings release of Aptiv PLC will be of great interest to investors. The company is expected to report EPS of $1.53, up 31.9% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.77 billion, indicating a 2.58% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.32 per share and a revenue of $19.85 billion, representing changes of +16.93% and +0.67%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Aptiv PLC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.68% rise in the Zacks Consensus EPS estimate. Aptiv PLC presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Aptiv PLC is presently trading at a Forward P/E ratio of 8.73. This indicates a discount in contrast to its industry's Forward P/E of 11.4.
It's also important to note that APTV currently trades at a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 0.81.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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This article originally published on Zacks Investment Research (zacks.com).
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