Aptiv PLC (APTV) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Aptiv PLC (APTV) ended the recent trading session at $69.64, demonstrating a -0.66% swing from the preceding day’s closing price. The stock’s change was less than the S&P 500’s daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.18%.

The the stock of company has fallen by 2.04% in the past month, lagging the Business Services sector’s gain of 3.48% and the S&P 500’s gain of 2.76%.

Investors will be eagerly watching for the performance of Aptiv PLC in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on October 31, 2024. In that report, analysts expect Aptiv PLC to post earnings of $1.69 per share. This would mark year-over-year growth of 30%. Simultaneously, our latest consensus estimate expects the revenue to be $5.18 billion, showing a 1.39% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.26 per share and a revenue of $20.21 billion, indicating changes of +28.81% and +0.8%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Aptiv PLC. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Aptiv PLC is currently sporting a Zacks Rank of #4 (Sell).

In the context of valuation, Aptiv PLC is at present trading with a Forward P/E ratio of 11.19. For comparison, its industry has an average Forward P/E of 25.78, which means Aptiv PLC is trading at a discount to the group.

Meanwhile, APTV’s PEG ratio is currently 0.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. By the end of yesterday’s trading, the Technology Services industry had an average PEG ratio of 1.5.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 25% echelons of all 250+ industries.

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

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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