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Why the Market Dipped But Aptiv PLC (APTV) Gained Today

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Aptiv PLC (APTV - Free Report) closed the latest trading day at $67.83, indicating a +1.12% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.93%.

The the stock of company has fallen by 0.68% in the past month, leading the Business Services sector's loss of 1.69% and undershooting the S&P 500's loss of 0.26%.

The upcoming earnings release of Aptiv PLC will be of great interest to investors. The company's earnings report is expected on August 1, 2024. On that day, Aptiv PLC is projected to report earnings of $1.37 per share, which would represent year-over-year growth of 9.6%. Meanwhile, our latest consensus estimate is calling for revenue of $5.34 billion, up 2.75% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.95 per share and a revenue of $21.1 billion, representing changes of +22.43% and +5.21%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Aptiv PLC. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1% lower. Aptiv PLC presently features a Zacks Rank of #4 (Sell).

Digging into valuation, Aptiv PLC currently has a Forward P/E ratio of 11.27. For comparison, its industry has an average Forward P/E of 22.98, which means Aptiv PLC is trading at a discount to the group.

It is also worth noting that APTV currently has a PEG ratio of 0.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.44.

The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 98, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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