BRAZIL – 18102018: In this photo illustration, the APTIV logo is displayed on a smartphone [] (photo illustration by Rafael Henrique / SOPA Images / LightRocket via Getty Images)

At its current price close to $ 130 per share, we believe Aptiv (NYSE: APTV) stock appears to be overvalued. Aptiv, a global technology and mobility company serving the automotive sector, rose from $ 9497 to 128 $ 42 year-to-date versus the S&P 500, which is up 15% in 2020. The stock outperformed the market despite serving the automotive industry, which was one of the hardest hit industries in 2020, Aptiv recorded in the first nine months of the year 2020 sales decline 17% net income improved to $ 1.5 billion compared to $ 0.8 billion in the same period mainly due to a $ 1.4 billion non-cash gain following the conclusion of an autonomous joint venture with Hyundai, the share price spike despite falling revenue suggests stocks may fall in the short term

The company has seen earnings decline over the past few years while its P / E ratio has increased, causing its share price to surge We believe the stock appears to be overvalued at current price Our “Buying or Selling Aptiv Stock?” dashboard ” provides the key numbers behind our thinking

The 51% increase in APTV stock price from 2017 to date was justified in part by an 11% increase in Aptiv’s revenue, increasing from $ 129 billion in 2017 to $ 144 billion in 2019 net income margin declined from 105% in 2017 to 69% in 2020 resulting in a 27% decrease in net income over the same period On a stock basis, profit declined from $ 507 to $ 3.585 The margin decline was mainly due to higher operating expenses attributed

Over the same period, the P / E multiple rose from 16 to 167x to 247x The P / E ratio has improved in recent months as the automotive sector showed signs of recovery Currently the multiple is at 334x The stock may have some downside risk, especially when the P / E ratio is compared to the P / E multiple of 247x in 2019 and 152x in 2018

The global spread of the coronavirus resulted in a lockdown in various cities around the world, affecting industrial and economic activity, which is likely to have a detrimental impact on consumption and consumer spending. Aptiv sales declined in the first nine months of the year back, although there are signs of recovery in the third quarter of 2020 as the company posted a 3% increase in sales and earnings growth year over year.Another wave of lockdowns across Europe as well as the new virus strain could affect the current and upcoming quarters of the sector

Actual recovery and timing will depend on wider containment of the spread of the coronavirus Our dashboard trends in US. Covid-19 cases provide an overview of the spread of the pandemic in the USAS and contrasted with trends in Brazil and Russia After the Fed stimulus â ???? what set the ground for fear ???? The market was ready to see through the current weak period and a longer-term view As investors focus on 2021 results, valuations become essential to find value, although market sentiment can be volatile and signs of a surge in new cases could startle investors again

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World News – CA – Aptiv Stocks Drive Over?

Source: https://www.forbes.com/sites/greatspeculations/2021/01/04/aptiv-stocks-drive-over/