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Lear (LEA) has recently drawn investor attention after its latest trading session, with the share price closing at US$117.09. That move sits against a 1 day return of about 2.9% in the red.
Over the past week and month the stock has recorded returns of roughly 2.3% and 1.3% declines respectively, while the past 3 months show an 8.2% gain and the past year a 28.4% total return.
See our latest analysis for Lear.
With the share price at US$117.09, Lear’s shorter term share price returns have softened, while the 1 year total shareholder return of 28.4% still points to earlier positive momentum that has cooled more recently.
If Lear has you looking at the wider auto space, this could be a good moment to scan auto manufacturers for other manufacturers showing interesting trends.
With Lear trading at US$117.09 and an indicated intrinsic discount of about 17%, the key question is whether the stock still offers value or whether the market is already pricing in future growth.
At US$117.09 against a narrative fair value of US$127.64, Lear is framed as modestly undervalued, with the story hinging on execution through 2026.
The company is leveraging automation, digital manufacturing, and AI/data partnerships (notably with Palantir) to drive material and recurring efficiency gains, with $60M already realized in H1 and expectations for an additional $90M in H2, which should support sustainable net margin expansion even in a flat-to-down volume environment.
Curious how modest top line assumptions still back a higher value? The narrative leans on rising margins, cash generation and a lower future earnings multiple. The full set of numbers is where it gets interesting.
Result: Fair Value of $127.64 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you also need to weigh softer volumes on key customer platforms and ongoing E Systems headwinds, which could pressure both revenue momentum and margin progress.
Find out about the key risks to this Lear narrative.
If you see the story differently or just want to stress test the numbers yourself, you can build a full view in a few minutes. Start with Do it your way.
A great starting point for your Lear research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
If Lear has sharpened your focus but you do not want to stop at one name, use the Simply Wall St screener to spot more targeted opportunities fast.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LEA.
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