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Aptiv PLC (APTV) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Aptiv PLC (APTV - Free Report) closed at $68.79, marking a -0.23% move from the previous day. This move lagged the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.52%.

The company's shares have seen an increase of 0.03% over the last month, not keeping up with the Business Services sector's gain of 6.81% and the S&P 500's gain of 3.67%.

The upcoming earnings release of Aptiv PLC will be of great interest to investors. The company is expected to report EPS of $1.71, up 31.54% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $5.2 billion, indicating a 1.7% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.28 per share and a revenue of $20.23 billion, indicating changes of +29.22% and +0.88%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Aptiv PLC. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.06% lower. Aptiv PLC is currently a Zacks Rank #3 (Hold).

In terms of valuation, Aptiv PLC is currently trading at a Forward P/E ratio of 10.98. This expresses a discount compared to the average Forward P/E of 24.18 of its industry.

One should further note that APTV currently holds a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.56.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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