Autoliv stock is the IBD Stock Of The Day as the Stockholm-based supplier of automotive safety systems works on a traditional buy point. Autoliv, an emerging electric vehicle (EV) play, offered an early entry Tuesday.
Auto-parts makers are acting well in the current market, with recession fears and macroeconomic uncertainty still running high. More people are hanging on to their automobiles, driving up the need for repair and maintenance parts.
In mid-February, auto parts stocks Visteon and Allison Transmission surged on earnings and outlook.
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Autoliv Stock: Solid IBD Ratings
The Stock Checkup tool shows that ALV stock earns an IBD Composite Rating of 89, RS Rating of 74 and EPS Rating of 75, all out of a best-possible 99.
The FactSet analyst consensus rating on Autoliv stock is overweight, with a consensus price target of $98.23.
ALV Shares
Shares of Autoliv rose 0.9% to 91.26 on the stock market today, holding above the 21-day exponential moving average. They remain far above the 50-day and 200-day lines.
ALV stock is working on a 93.88 buy point from a cup-with-handle base. It's arguably actionable Tuesday from breaking the downtrend of the handle.
The cup-with-handle base includes a 9.2% earnings gap-up on Jan. 27.
In addition, Autoliv shares are still in range from an 89.98 bottoming base buy point.
The relative strength line for ALV stock is trending higher within a longer-term downtrend, the MarketSmith chart shows. A rising RS line means that a stock is outperforming vs. the S&P 500.
The 74 Relative Strength Rating means that Autoliv stock has outperformed 74% of all stocks in IBD's database over the past year.
By comparison, Visteon bears an RS Rating of 93 while Allison Transmission sports a 91.
Autoliv Earnings
On Jan. 27, Autoliv easily beat earnings estimates for the fourth quarter, while slightly missing on revenue.
For full-year 2022, Autoliv earnings fell 12% despite sales growing 7%. The first half of the year was especially challenging for the maker of seat belts, air bags, child seats and more.
The company reported "the worst cost inflation seen in three decades."
But in the latter six months, profitability recovered in a big way. The recovery came from price hikes to offset higher raw material costs, as well as product launches and cost controls, CEO Mikael Bratt said in the Q4 earnings release.
In 2023, analysts polled by FactSet expect a 49% Autoliv EPS rebound on 13.5% revenue growth. It's expected to grow earnings a further 42% in 2024.
The company itself has predicted 15% organic sales growth and margin improvement this year.
Autoliv Stock: Hitched To EV Boom
Sweden's Autoliv is an emerging electric vehicle (EV) play. It touts high EV order win rates in 2022, from EV startups as well as established automakers shifting to battery-powered vehicles.
It supplies things like "low noise seat belts" for EVs.
In October 2022, Autoliv and China car giant Geely agreed to jointly develop advanced safety technology for future vehicles.
Geely owns Sweden's Volvo Cars, and the pair cofounded Polestar, an EV startup. The latest Chinese media reports suggest Geely will be launching its own EV brand, called Galaxy.
