Aptiv PLC (APTV) closed at $62.65 in the latest trading session, marking a -0.92% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 0.31%.
Shares of the company have depreciated by 5.63% over the course of the past month, outperforming the Auto-Tires-Trucks sector’s loss of 19.07% and the S&P 500’s loss of 7.69%.
The investment community will be paying close attention to the earnings performance of Aptiv PLC in its upcoming release. The company is predicted to post an EPS of $1.53, indicating a 31.9% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.75 billion, indicating a 3.06% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.30 per share and a revenue of $19.9 billion, indicating changes of +16.61% and +0.93%, respectively, from the former year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Aptiv PLC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate has shifted 1.44% upward. Aptiv PLC currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Aptiv PLC is presently trading at a Forward P/E ratio of 8.66. This denotes a discount relative to the industry’s average Forward P/E of 11.33.
Also, we should mention that APTV has a PEG ratio of 0.57. 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 the market closed yesterday, the Automotive – Original Equipment industry was having an average PEG ratio of 0.78.