Aptiv PLC (APTV - Free Report) shares have had an impressive run on the bourses in the past three months. The stock has gained 20% compared with the 2.6% decline of the industry it belongs to and the 4.7% rally of the Zacks S&P 500 composite.
Reasons for the Upside
Aptiv remains exposed to the lucrative connected cars market. With safety becoming a key selling point for connected cars, automakers are increasingly seeking related technologies. Aptiv is well-positioned to leverage on growing electrification, connectivity and autonomy trends in the automotive sector.
The recent acquisition of Wind River Studio will enable APTV to give a quicker and cost-effective access to full-vehicle software architecture to its clients, expand to multiple industries, and transform into an edge-enabled, software-defined future.
Aptiv has a sound liquidity position. Its current ratio (a measure of liquidity) was at 2.66 at the end of third-quarter 2022, higher than the 2.63 recorded at the end of the second quarter and the prior-year quarter's 2.11. A current ratio, which is greater than 1.5, is usually considered good for a company. This may imply that the risk of default is less.
Favorable Estimate Revisions
The direction of estimate revisions serves as an important pointer, when it comes to the price of a stock. One estimate for 2023 has moved north over the past 30 days versus one southward revision. Over the same period, the Zacks Consensus Estimate for 2023 earnings has increased 0.4%.
Zacks Rank and Stocks to Consider
Aptiv currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Booz Allen has a long-term earnings growth expectation of 8.9%. Presently, BAH carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.
CRA International delivered a trailing four-quarter earnings surprise of 25.7%, on average.
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Aptiv PLC (APTV - Free Report) shares have had an impressive run on the bourses in the past three months. The stock has gained 20% compared with the 2.6% decline of the industry it belongs to and the 4.7% rally of the Zacks S&P 500 composite.
Reasons for the Upside
Aptiv remains exposed to the lucrative connected cars market. With safety becoming a key selling point for connected cars, automakers are increasingly seeking related technologies. Aptiv is well-positioned to leverage on growing electrification, connectivity and autonomy trends in the automotive sector.
The recent acquisition of Wind River Studio will enable APTV to give a quicker and cost-effective access to full-vehicle software architecture to its clients, expand to multiple industries, and transform into an edge-enabled, software-defined future.
Aptiv has a sound liquidity position. Its current ratio (a measure of liquidity) was at 2.66 at the end of third-quarter 2022, higher than the 2.63 recorded at the end of the second quarter and the prior-year quarter's 2.11. A current ratio, which is greater than 1.5, is usually considered good for a company. This may imply that the risk of default is less.
Favorable Estimate Revisions
The direction of estimate revisions serves as an important pointer, when it comes to the price of a stock. One estimate for 2023 has moved north over the past 30 days versus one southward revision. Over the same period, the Zacks Consensus Estimate for 2023 earnings has increased 0.4%.
Zacks Rank and Stocks to Consider
Aptiv currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Booz Allen has a long-term earnings growth expectation of 8.9%. Presently, BAH carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.
CRA International delivered a trailing four-quarter earnings surprise of 25.7%, on average.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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