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Aptiv (APTV) Hits 52-Week High: What's Driving the Stock?
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Shares of Aptiv PLC (APTV - Free Report) scaled a 52-week high of $131.23 in the trading session on Dec 31, before closing a tad lower at $130.29.
The company’s shares have charted a solid trajectory in recent times, appreciating 41.1% over the past year, ahead of 7.9% growth of the industry it belongs to and 17.8% surge of the Zacks S&P 500 composite.
What’s Supporting the Rally?
The stock seems to be benefiting from investors factoring in the second stimulus package and expected growth of new energy vehicles in China. Notably, the State council has stated that sales of electric, plug-in hybrid and hydrogen-powered vehicles are expected to grow to 20% of total car sales by 2025. Aptiv’s signal and power solutions are well-poised to gain from this trend.
Acquisition is a key growth strategy for the company. The 2019 acquisition of gabocom enhanced Aptiv’s cable management portfolio and strengthened its position in the telecommunications market. The 2018 acquisitions of KUM and Winchester Interconnect have strengthened the company’ Signal and Power Solutions segment.
Aptiv’s debt level has decreased quarter over quarter. Total debt at the end of third-quarter 2020 was $4.03 billion, down from the $4.15 billion recorded at the end of the prior quarter. The total-debt-to-total-capital ratio of 0.35 was lower than the previous quarter’s 0.37. Lower debt-to-capitalization ratio indicates that the proportion of debt to finance the company’s assets is declining and so is the risk of insolvency.
Further, cash and cash equivalent balance of $2.15 billion at the end of the third quarter was enough to meet the short-term debt of $99 million.
The long-term expected earnings per share (three to five years) growth rate for Republic Services, Gartner and NV5 Global is 9.4%, 13.5% and 16.8%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Shutterstock
Aptiv (APTV) Hits 52-Week High: What's Driving the Stock?
Shares of Aptiv PLC (APTV - Free Report) scaled a 52-week high of $131.23 in the trading session on Dec 31, before closing a tad lower at $130.29.
The company’s shares have charted a solid trajectory in recent times, appreciating 41.1% over the past year, ahead of 7.9% growth of the industry it belongs to and 17.8% surge of the Zacks S&P 500 composite.
What’s Supporting the Rally?
The stock seems to be benefiting from investors factoring in the second stimulus package and expected growth of new energy vehicles in China. Notably, the State council has stated that sales of electric, plug-in hybrid and hydrogen-powered vehicles are expected to grow to 20% of total car sales by 2025. Aptiv’s signal and power solutions are well-poised to gain from this trend.
Acquisition is a key growth strategy for the company. The 2019 acquisition of gabocom enhanced Aptiv’s cable management portfolio and strengthened its position in the telecommunications market. The 2018 acquisitions of KUM and Winchester Interconnect have strengthened the company’ Signal and Power Solutions segment.
Aptiv’s debt level has decreased quarter over quarter. Total debt at the end of third-quarter 2020 was $4.03 billion, down from the $4.15 billion recorded at the end of the prior quarter. The total-debt-to-total-capital ratio of 0.35 was lower than the previous quarter’s 0.37. Lower debt-to-capitalization ratio indicates that the proportion of debt to finance the company’s assets is declining and so is the risk of insolvency.
Further, cash and cash equivalent balance of $2.15 billion at the end of the third quarter was enough to meet the short-term debt of $99 million.
Zacks Rank and Key Picks
Aptiv currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Republic Services (RSG - Free Report) , Gartner, Inc. (IT - Free Report) and NV5 Global (NVEE - Free Report) . All carry a Zacks #2 Rank (Buy). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for Republic Services, Gartner and NV5 Global is 9.4%, 13.5% and 16.8%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>