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Why Should You Retain Delphi Technologies in Your Portfolio?

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A prudent investment decision involves buying stocks that have solid prospects and selling those that carry risks. At times, it is rational to hold certain stocks that have enough potential but are weighed down by tough market conditions.

Here we discuss about Delphi Technologies PLC , a stock with an expected long-term earnings per share growth rate of 6.5% and a VGM Score of A.

Global Presence to Boost Client Base

Delphi Technologies operates in 24 countries and manages technical centers, manufacturing sites and customer support services. Region-wise, it derived 45% of revenues from Europe, the Middle East and Africa (EMEA), 28% from North America, 24% from the Asia Pacific and 3% from South America in second-quarter 2018. In fact, the company considers Asia Pacific as a key growth market. Notably, net sales from this region grew almost 28% from 2015-2017, thereby raising the company’s optimism about this region.

OEMs’ Focus on Standardized Suppliers to Aid Delphi Technologies

OEMs are focused on increasing efficiency, profitability and reduce per unit costs. To expand global manufacturing footprint, OEMs are choosing suppliers with global scale and who can easily adapt to regional variations. Delphi Technologies’ regional presence along with its diverse and innovative product portfolio with updated technologies will make it a strong choice for OEMs.

Delphi Technologies PLC Price, Consensus and EPS Surprise

 

Delphi Technologies PLC Price, Consensus and EPS Surprise | Delphi Technologies PLC Quote

Stable Revenues Generated by Aftermarket Business

The company’s aftermarket business generates stable recurring revenues. Through its aftermarket product portfolio, Delphi Technologies offer an extensive range of solutions, which includes fuel injection, electronics and engine management, maintenance and test equipment as well as vehicle diagnostics categories to leading aftermarket companies, including independent retailers and wholesale distributors.

Zacks Rank & Key Picks

Currently, Delphi Technologies carry a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader Business Services Sector include Broadridge Financial Solutions, Inc. (BR - Free Report) , WEX Inc. (WEX - Free Report) and Total System Services, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected EPS (three to five years) growth rate for Broadridge, WEX and Total System Services is 10%, 15% and 14.6%, respectively.

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