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Why Should You Retain Aptiv (APTV) Stock in Your Portfolio?

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Shares of Aptiv PLC (APTV - Free Report) have gained 19.7% year to date, outperforming the 18.1% rally of its industry and 13.5% rally of the S&P 500.

With expected long-term earnings per share (EPS) growth rate of 11.1% and a market cap of $19 billion, it is a stock that investors should retain in their portfolios.

What’s Driving the Company?

With system integration expertise, Aptiv is well positioned to leverage on growing electrification, connectivity and autonomy trends in the automotive sector. The company’s "smart architecture”, which reduces wiring requirement in cars, makes them more fuel efficient and adds features, gives it a significant competitive advantage.

Aptiv is expanding its technological suit to address multiple signal and power solution needs for automotive sector, and futuristic safety needs.

The acquisition of KUM, made last year, has strengthened Aptiv’s position in Asia Pacific and engineered components. Winchester Interconnect has strengthened the company’s position in connectivity solutions.

Wrapping Up

Despite riding on significant growth prospects, Aptiv is not free from headwinds. The company is witnessing escalation in costs as it continues investing in growth initiatives, while being embroiled in legal matters. Nevertheless, we believe that continued investments in technology and acquisitions bode well for the company’s top- and bottom-line growth.

Zacks Rank & Stocks to Consider

Currently, Aptiv carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some top-ranked stocks in the broader Zacks Business Services sector are WEX (WEX - Free Report) , Navigant Consulting (NCI - Free Report) and FLEETCOR Technologies . While WEX and Navigant Consulting sport a Zacks Rank #1, FLEETCOR carries a Zacks Rank #2(Buy).

Long-term expected EPS (three to five years) growth rate for WEX, Navigant Consulting and FLEETCOR is 15%, 13.5% and 16.5%, respectively.

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