Aptiv PLC (APTV) is one of the leading global technology and mobility companies that serves the automotive industry. The company’s signal and power solutions segment supplies components and systems that make up a vehicle’s electrical system backbone, including wiring assemblies and harnesses, connectors, electrical centers, and hybrid electrical systems.
The company is poised to benefit from growing electrification, connectivity, and autonomy trends in the automotive industry. It is increasing investments in advanced technology. For instance, APTV has developed automated driving software and key active safety sensing technologies.
APTV had $2.8 billion in cash as of the end of the last quarter, compared with only $78 million in short-term debt. The company also has a debt-to-equity ratio of only 0.5. While earnings are down 76% over the past year, analysts forecast 161.8% year over year growth in the second quarter.
The stock does look overvalued with a trailing P/E of 103.14 and a forward P/E of 41.84. APTV has shown mixed performance this year as shown in the chart below.
Take a look at the 1-year chart of APTV below with added notations:
Chart of APTV provided by TradingView
APTV has been making its way higher since last year, but the stock has recently struggled to get past the $160 resistance (red), which is also the 52- week high. APTV has recently dropped back, but a solid close above that $160 level should lead to much higher prices for the stock.
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The possible long position on the stock would be on a breakout above the $160 mark level with a protective stop placed under it.
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APTV shares were unchanged in premarket trading Friday. Year-to-date, APTV has gained 16.11%, versus a 16.48% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp
I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More…
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