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Aptiv PLC (APTV) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest close session, Aptiv PLC (APTV - Free Report) was down 1.82% at $77.35. The stock's change was less than the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.59%.

The company's stock has dropped by 0.16% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 5.06% and outpacing the S&P 500's loss of 0.21%.

The upcoming earnings release of Aptiv PLC will be of great interest to investors. The company is forecasted to report an EPS of $1.79, showcasing a 2.29% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.03 billion, reflecting a 2.58% rise from the equivalent quarter last year.

APTV's full-year Zacks Consensus Estimates are calling for earnings of $7.73 per share and revenue of $20.28 billion. These results would represent year-over-year changes of +23.48% and +2.87%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Aptiv PLC. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.34% decrease. Currently, Aptiv PLC is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Aptiv PLC has a Forward P/E ratio of 10.19 right now. Its industry sports an average Forward P/E of 16.79, so one might conclude that Aptiv PLC is trading at a discount comparatively.

Investors should also note that APTV has a PEG ratio of 0.81 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 1.22.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow APTV in the coming trading sessions, be sure to utilize Zacks.com.


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