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Dublin, Ireland-based Aptiv PLC (APTV) designs, manufactures and sells vehicle components. It provides electronic, and safety technology solutions to the automotive and commercial vehicle markets. With a market cap of $13.6 billion, Aptiv operates through the Signal and Power Solutions and Advanced Safety and User Experience segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Aptiv fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the auto parts industry. Its operations span the Americas, Europe, the Middle East, Africa, the Indo-Pacific, and internationally.
Despite its notable strengths, the stock has plummeted 38.2% from its 52-week high of $91.66 achieved on Jan. 2. Moreover, APTV has tanked 18.7% over the past three months, lagging behind First Trust Nasdaq Transportation ETF’s (FTXR) 8.1% gains during the same time frame.
Aptiv’s performance has remained grim over the longer term as well. APTV stock plunged 36.9% on a YTD basis 35.1% over the past 52 weeks, significantly underperforming FTXR’s surge of 14.7% in 2024 and 14.3% over the past year.
To confirm the bearish trend, APTV has remained consistently below its 200-day moving average and mostly below its 50-day moving average with some fluctuations over the past year.
Shares of Aptiv plummeted 17.7% following the release of its disappointing Q3 results on Oct. 31. The company reported a 5.1% year-over-year decline in net sales to $4.9 billion, significantly missing Wall Street’s estimates by 6.1%. Additionally, Aptiv lowered its full-year topline guidance, further shaking investor confidence. The American auto industry has been facing several challenges including intense competition from Chinese firms and a decline in demand due to inflation and economic uncertainty. Furthermore, the increase in inventory build-up on automakers’ balance sheets has hurt component manufacturers’ product demand leading to a decline in revenues.
Despite these headwinds, Aptiv demonstrated robust resilience and improved profitability. The company maintained operational efficiency, resulting in a remarkable 22.3% year-over-year growth in adjusted non-GAAP net income to $449 million.
Aptiv has underperformed its peer Autoliv, Inc.’s (ALV) 17% dip in 2024 and 12.1% decline over the past 52 weeks.
Nevertheless, analysts remain optimistic about the stock’s longer-term prospects. APTV has a consensus “Moderate Buy” rating among the 22 analysts covering it. Its mean price target of $77.41 suggests a 36.6% upside potential from current price levels.
