Stock of the Day

Aptiv (APTV)

$66.27

+$0.79 (+1.2%)

Market Cap: $14.50B

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 quarterly earnings, with earnings per share (EPS) of $1.69, surpassing analyst expectations, indicating robust financial performance.
• The current stock price is around $66, which is significantly lower than its twelve-month high of $85.35, suggesting potential for price appreciation.
• The company has a solid market capitalization of approximately $14.40 billion, reflecting its stability and presence in the automotive components sector.
• Aptiv PLC has received a "Moderate Buy" rating from analysts, with an average target price of $82.50, indicating positive sentiment and growth potential among market experts.
• The firm has a healthy return on equity of 15.63%, which suggests effective management and profitability relative to shareholder equity.

Aptiv Bear Case

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

• The stock has experienced a decline of about 1.3% recently, which may indicate volatility and investor uncertainty.
• Aptiv PLC's revenue has decreased by 1.6% year-over-year, suggesting potential challenges in maintaining sales growth in a competitive market.
• The company has a debt-to-equity ratio of 0.87, which, while manageable, indicates that it has a significant amount of debt compared to its equity, potentially increasing financial risk.
• Insider ownership is relatively low at 0.45%, which may raise concerns about alignment between management and shareholder interests.
• Analysts have mixed opinions, with some rating the stock as "underweight," indicating that not all market experts are confident in its future performance.

Recent News

• Guggenheim Downgrades Aptiv (APTV) (msn.com)
• Aptiv's Car Parts Valuation Contrasts Its High-Tech Reality (seekingalpha.com)