Autoliv, Inc. (ALV) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Autoliv, Inc. (ALV)? Shares have been on the move with the stock up 6.5% over the past month. The stock hit a new 52-week high of $129.54 in the previous session. Autoliv has gained 8% since the start of the year compared to the 13.7% move for the Zacks Auto-Tires-Trucks sector and the 0.8% return for the Zacks Automotive – Original Equipment industry.

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 17, 2025, Autoliv reported EPS of $2.32 versus consensus estimate of $2.1 while it beat the consensus revenue estimate by 3.1%.

For the current fiscal year, Autoliv is expected to post earnings of $10.6 per share on $10.76 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $12.15 per share on $11.1 in revenues. This represents a year-over-year change of 11.4% and 3.17%, respectively.

Though Autoliv has recently hit a 52-week high, what is next for Autoliv? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Autoliv has a Value Score of A. The stock’s Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 12.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.7X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group’s average of 9X. Additionally, the stock has a PEG ratio of 0.87. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Autoliv an interesting choice for value investors.

We also need to consider the stock’s Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Autoliv currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Autoliv meets the list of requirements. Thus, it seems as though Autoliv shares could still be poised for more gains ahead.

Shares of ALV have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Magna International Inc. (MGA). MGA has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.

Earnings were strong last quarter. Magna International Inc. beat our consensus estimate by 7.26%, and for the current fiscal year, MGA is expected to post earnings of $5.99 per share on revenue of $41.61 billion.

Shares of Magna International Inc. have gained 8% over the past month, and currently trade at a forward P/E of 9.51X and a P/CF of 5.06X.

The Automotive – Original Equipment industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ALV and MGA, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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