Stock of the Day

July 22, 2024

Aptiv (APTV)

$61.10
+$2.18 (+3.7%)
Market Cap: $13.30B

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle's electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.

Aptiv Bull Case

Here are some ways that investors could benefit from investing in Aptiv PLC:

  • Aptiv PLC has recently reported strong earnings, with an EPS of $1.69, surpassing expectations and indicating solid financial performance.
  • The current stock price is around $58.99, which may present a buying opportunity for investors looking for growth potential.
  • Analysts have a consensus rating of "Moderate Buy" with an average target price of $81.50, suggesting potential upside for investors.
  • The company has a robust market capitalization of approximately $13.54 billion, indicating a stable position in the auto parts industry.
  • Aptiv PLC's focus on innovative electrical and electronic safety technology solutions positions it well for future growth in the automotive sector.

Aptiv Bear Case

Investors should be bearish about investing in Aptiv PLC for these reasons:

  • The company's quarterly revenue has decreased by 1.6% compared to the same period last year, which may raise concerns about its growth trajectory.
  • Insider ownership is relatively low at 0.45%, which could indicate a lack of confidence from those closest to the company.
  • Aptiv PLC has a debt-to-equity ratio of 0.87, suggesting that the company has a moderate level of debt, which could impact financial flexibility.
  • The stock has experienced volatility, with a beta of 1.64, indicating that it may be more sensitive to market fluctuations compared to the overall market.
  • Despite recent upgrades from analysts, there is still a mix of ratings, with some analysts issuing hold or sell ratings, reflecting uncertainty in the stock's performance.

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