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Garrett Motion Inc. (GTX) Hits Fresh High: Is There Still Room to Run?
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Shares of Garrett Motion (GTX - Free Report) have been strong performers lately, with the stock up 58.5% over the past month. The stock hit a new 52-week high of $34.34 in the previous session. Garrett Motion has gained 91% since the start of the year compared to the -3.6% gain for the Zacks Auto-Tires-Trucks sector and the 3.9% return for the Zacks Automotive - Original Equipment industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 30, 2026, Garrett Motion reported EPS of $0.49 versus consensus estimate of $0.42.
For the current fiscal year, Garrett Motion is expected to post earnings of $1.83 per share on $3.79 in revenues. This represents a 20.39% change in EPS on a 5.66% change in revenues. For the next fiscal year, the company is expected to earn $2.15 per share on $3.88 in revenues. This represents a year-over-year change of 17.55% and 2.51%, respectively.
Valuation Metrics
While Garrett Motion has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Garrett Motion has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.6X. On a trailing cash flow basis, the stock currently trades at 15.6X versus its peer group's average of 9.1X. Additionally, the stock has a PEG ratio of 1.11. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Garrett Motion currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Garrett Motion passes the test. Thus, it seems as though Garrett Motion shares could have a bit more room to run in the near term.
How Does GTX Stack Up to the Competition?
Shares of GTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PHINIA Inc. (PHIN - Free Report) . PHIN has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. PHINIA Inc. beat our consensus estimate by 40.22%, and for the current fiscal year, PHIN is expected to post earnings of $6.36 per share on revenue of $3.71 billion.
Shares of PHINIA Inc. have gained 1.5% over the past month, and currently trade at a forward P/E of 11.76X and a P/CF of 8.08X.
The Automotive - Original Equipment industry may rank in the bottom 58% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for GTX and PHIN, even beyond their own solid fundamental situation.
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Garrett Motion Inc. (GTX) Hits Fresh High: Is There Still Room to Run?
Shares of Garrett Motion (GTX - Free Report) have been strong performers lately, with the stock up 58.5% over the past month. The stock hit a new 52-week high of $34.34 in the previous session. Garrett Motion has gained 91% since the start of the year compared to the -3.6% gain for the Zacks Auto-Tires-Trucks sector and the 3.9% return for the Zacks Automotive - Original Equipment industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 30, 2026, Garrett Motion reported EPS of $0.49 versus consensus estimate of $0.42.
For the current fiscal year, Garrett Motion is expected to post earnings of $1.83 per share on $3.79 in revenues. This represents a 20.39% change in EPS on a 5.66% change in revenues. For the next fiscal year, the company is expected to earn $2.15 per share on $3.88 in revenues. This represents a year-over-year change of 17.55% and 2.51%, respectively.
Valuation Metrics
While Garrett Motion has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Garrett Motion has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.6X. On a trailing cash flow basis, the stock currently trades at 15.6X versus its peer group's average of 9.1X. Additionally, the stock has a PEG ratio of 1.11. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Garrett Motion currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Garrett Motion passes the test. Thus, it seems as though Garrett Motion shares could have a bit more room to run in the near term.
How Does GTX Stack Up to the Competition?
Shares of GTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PHINIA Inc. (PHIN - Free Report) . PHIN has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. PHINIA Inc. beat our consensus estimate by 40.22%, and for the current fiscal year, PHIN is expected to post earnings of $6.36 per share on revenue of $3.71 billion.
Shares of PHINIA Inc. have gained 1.5% over the past month, and currently trade at a forward P/E of 11.76X and a P/CF of 8.08X.
The Automotive - Original Equipment industry may rank in the bottom 58% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for GTX and PHIN, even beyond their own solid fundamental situation.