6 Reasons Why You Should Invest in Aptiv (APTV) Stock Now
A prudent investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.
Aptiv PLC APTV is a technology services provider that has performed extremely well lately and has the potential to sustain the momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes Aptiv an Attractive Pick?
An Outperformer: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Shares of Aptiv have returned 54.1%, outperforming the 21% rally of the industry it belongs to and 16.1% rise of the Zacks S&P 500 composite in the said time frame.
Solid Zacks Rank: Aptiv has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 or #2 (Buy) offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Aptiv’s current-quarter earnings has increased 2.2% to 93 cents per share. Estimates for 2021 have moved up 5.4%.
Positive Earnings Surprise History: Aptiv has an impressive earnings surprise history. The company delivered a four-quarter earnings surprise of 47.8%, on average.
Earnings Expectations: Earnings growth and stock price gains often serve as indications of a company’s prospects. For first-quarter 2021, Aptiv’s earnings are expected to register 36.8% growth. For 2021, earnings are expected to register more than 100% growth.
Growth Factors: Aptiv is well positioned to leverage on growing electrification, connectivity and autonomy trends in the rapidly evolving automotive sector. The company has ramped up investments in advanced technology and collaborations to make the most of the opportunities offered by the automotive sector. Acquisition is a key growth strategy for the company. The 2019 acquisition of gabocom enhanced Aptiv’s cable management portfolio and strengthened its position in the telecommunications market. The 2018 acquisitions of KUM and Winchester Interconnect strengthened the company’ Signal and Power Solutions segment.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are ManpowerGroup MAN, Gartner IT and NV5 Global NVEE, each carrying a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Gartner and NV5 Global is 3.5%, 13.5% and 16.8%, respectively.
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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
NV5 Global, Inc. (NVEE) : Free Stock Analysis Report
Aptiv PLC (APTV) : Free Stock Analysis Report
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