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People have been talking about ‘peak auto’ for years, but the industry just keeps on growing anyway. The auto market has been on fire as of late, and with a strong economy it looks like this trend could continue in the near term too.
This idea is further backed up by the automotive industry taking the top spot in terms of the Zacks Sector Rank, while the Zacks Industry Rank for one industry in particular—original equipment manufacturers—is showing incredible promise these days. This segment actually has just two ‘Strong Sell’ ranked companies out of 37, and it has close to a dozen firms that have a ‘buy’ rank or better.
Clearly, this is a segment of the market with some serious potential, but how do you decide where to focus in this group? Well, one way is to focus on companies with ‘strong buy’ ranks and those that have great fundamental grades too. One stock that fits this bill is Lear ((LEA - Free Report) ), but let’s take a closer look at some of its key fundamentals below to see why it stands out in a strong group these days.
Strong Style Scores
Lear is tough to beat from a fundamental perspective, as the company possesses an overall fundamental score of ‘A’, suggesting robust metrics. The company is actually in the top 20% overall from a fundamental look, so it will be tough to beat LEA in many regards.
In particular though, LEA shines in terms of its industry-beating PEG and P/S ratios, while a PE below 10 doesn’t hurt matters either. Throw in a double-digit earnings yield, and it shouldn’t be a surprise that LEA has earned itself an ‘A’ on the Value front.
But Lear also stands out from a growth perspective too. The company also receives an ‘A’ grade on that front, thanks in part to its industry-beating EPS growth, projected sales growth, and cash flow growth too. And with a ROE above 30%, it is hard to overlook Lear’s potential from a growth perspective these days.
Impressive Earnings
Key fundamental metrics aren’t the only reasons to be a fan of LEA right now though. The company has seen rising earnings estimates over the past two months which includes no cuts in the past sixty days to the current year estimate.
The magnitude of these estimate revisions has also been impressive, as the consensus estimate for the full year has increased by nearly 7.5% in the past two months alone. Add in a great history in earnings season and it is clear why Lear has earned itself a Zacks Rank #1 (Strong Buy) rating.
Yes, the automotive market is hot and has been for a while, but a strong economy and rising estimates suggest that this trend can continue. And though there are numerous options in this corner of the market, one that stands out in particular these days is Lear.
This company has earned a top grade on the value and growth fronts, while it has an impressive Zacks Rank too. So, if you are looking for a great stock in the auto market for your portfolio this month, a closer look at Lear is an excellent idea.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day One?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop.
Image: Bigstock
Bull of the Day: Lear (LEA)
People have been talking about ‘peak auto’ for years, but the industry just keeps on growing anyway. The auto market has been on fire as of late, and with a strong economy it looks like this trend could continue in the near term too.
This idea is further backed up by the automotive industry taking the top spot in terms of the Zacks Sector Rank, while the Zacks Industry Rank for one industry in particular—original equipment manufacturers—is showing incredible promise these days. This segment actually has just two ‘Strong Sell’ ranked companies out of 37, and it has close to a dozen firms that have a ‘buy’ rank or better.
Clearly, this is a segment of the market with some serious potential, but how do you decide where to focus in this group? Well, one way is to focus on companies with ‘strong buy’ ranks and those that have great fundamental grades too. One stock that fits this bill is Lear ((LEA - Free Report) ), but let’s take a closer look at some of its key fundamentals below to see why it stands out in a strong group these days.
Strong Style Scores
Lear is tough to beat from a fundamental perspective, as the company possesses an overall fundamental score of ‘A’, suggesting robust metrics. The company is actually in the top 20% overall from a fundamental look, so it will be tough to beat LEA in many regards.
In particular though, LEA shines in terms of its industry-beating PEG and P/S ratios, while a PE below 10 doesn’t hurt matters either. Throw in a double-digit earnings yield, and it shouldn’t be a surprise that LEA has earned itself an ‘A’ on the Value front.
But Lear also stands out from a growth perspective too. The company also receives an ‘A’ grade on that front, thanks in part to its industry-beating EPS growth, projected sales growth, and cash flow growth too. And with a ROE above 30%, it is hard to overlook Lear’s potential from a growth perspective these days.
Impressive Earnings
Key fundamental metrics aren’t the only reasons to be a fan of LEA right now though. The company has seen rising earnings estimates over the past two months which includes no cuts in the past sixty days to the current year estimate.
The magnitude of these estimate revisions has also been impressive, as the consensus estimate for the full year has increased by nearly 7.5% in the past two months alone. Add in a great history in earnings season and it is clear why Lear has earned itself a Zacks Rank #1 (Strong Buy) rating.
Lear Corporation Price and EPS Surprise
Lear Corporation Price and EPS Surprise | Lear Corporation Quote
Bottom Line
Yes, the automotive market is hot and has been for a while, but a strong economy and rising estimates suggest that this trend can continue. And though there are numerous options in this corner of the market, one that stands out in particular these days is Lear.
This company has earned a top grade on the value and growth fronts, while it has an impressive Zacks Rank too. So, if you are looking for a great stock in the auto market for your portfolio this month, a closer look at Lear is an excellent idea.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day One?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop.
Download this IPO Watch List today for free >>