Aptiv PLC (APTV Quick QuoteAPTV - Free Report) shares have had an impressive run on the bourses over the past year. The stock has gained 17.1%, significantly outperforming the 6.8% rally of the industry it belongs to.

Factors Aiding APTV

Aptiv has put on an impressive performance, beating the Zacks Consensus Estimates for earnings and revenues in the trailing four quarters.

The company is exposed to the lucrative connected cars market. With security becoming a key selling point for connected cars, automakers are increasingly seeking related technologies. This is one of the reasons behind the quick advancement of the driver-assistance system market. Demand for personalization, infotainment connectivity and convenience are increasing rapidly. Added features require more wiring inside vehicles.

We believe that with excellent system integration expertise, Aptiv is well-positioned to leverage the growing electrification, connectivity and autonomy trends in the automotive sector.

The company’s "smart architecture" provides a competitive advantage and should help it continue gaining market share. Decreasing environmental impact and increasing fuel economy are the key industry trends. OEMs have increased their search for better engine management and lower power consumption. Aptiv intends to take advantage of this trend as its “smart architecture” reduces wiring requirements in cars, helping them become fuel-efficient and add features.

The 2022 acquisition of Wind River expanded Aptiv’s position in the automotive software solutions market. Another 2022 acquisition, Intercable Automotive Solutions, strengthened APTV’s position as a global leader in vehicle architecture systems. Aptiv intends to continue making investments for organic and inorganic growth. Since it acquires a large number of companies on an ongoing basis, the integration of these companies generates cost synergies, which improve the efficiency of the combined company.

Favorable Estimate Revisions

The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Eight estimates for 2023 have moved north over the past 60 days versus no southward revision. Over the same period, the Zacks Consensus Estimate for 2023 earnings has increased 8%.

Zacks Rank and Stocks to Consider

Aptiv currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the broader Business Service sector to consider:

Verisk Analytics (VRSK Quick QuoteVRSK - Free Report) beat the Zacks Consensus Estimate in three of the four previous quarters and matched once, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, indicating an 8.2% decrease from the year-ago reported figure. Its earnings are pegged at $5.71 per share for 2023, suggesting 14% growth from the year-ago reported figure. VRSK currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Automatic Data (ADP Quick QuoteADP - Free Report) currently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies year-over-year growthof 6.3% and 11.1%, respectively.

Broadridge (BR Quick QuoteBR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings suggests a rise of 7.2% and 8.8%, respectively.