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Delphi Automotive Splits Into Delphi Technologies & Aptiv

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Steel Dynamics (STLD) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

In a major development, Delphi Automotive PLC has completed the spin-off of its Powertrain segment into Delphi Technologies. The $4.5-billion independent spun-off entity has already started trading on the New York Stock Exchange as DLPH. Delphi Automotive, engaged in developing more connected electronics and safety solutions for a wide array of customers across the globe, will now be known as Aptiv (APTV).

Delphi Technologies, with 5,000 engineers, is built on the legacy of dishing out sophisticated propulsion solutions through combustion systems, software and controls and products electrification for customers across the globe. Liam Butterworth, the newly selected chief executive officer of Delphi Technologies, has said, “We are paving the way towards full electrification with our comprehensive technology portfolio, best-in-class cost structure and a balanced geographic manufacturing footprint with 20 manufacturing facilities and 12 technical centers on three continents.”

Delphi Technologies enjoys a balanced revenue mix, robust cost structure and veteran leadership. Also, the company is capable of complying with the strict automotive regulations, pertaining to lowering of the CO2 and other toxic emissions from combustion engines by a considerable amount.

Aptiv is in a position to solve complicated challenges embedded in greener, safer and more connected mode of transportation. The expertise in software and vehicle architecture will aid in automated driving, improved safety, better user experience, and connected services.

Stocks to Consider

A few top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN, AB Volvo VLVLY, Cummins Inc. CMI and Wabco Holdings Inc. WBC. While Allison Transmission and Volvo sport a Zacks Rank #1 (Strong Buy), Cummins and Wabco Holdings carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 05%. Year to date, shares of the company have gained 22.3%.

Volvo has an expected long-term growth rate of 15%. Year to date, shares of the company have gained 64.7%.

Cummins has an expected long-term growth rate of 12.2%. The stock has seen the Zacks Consensus Estimate for current-quarter earnings per share being revised 0.4% upward to $2.60 over the last 30 days.

Wabco Holdings has an expected long-term growth rate of 15%. Its shares have rallied 36.4%, year to date.

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