- Aptiv (APTV) shows strong technical momentum, hitting new highs on Sept. 9.
- Shares have a 100% “Buy” rating from Barchart and robust Trend Seeker signals.
- The stock is trading above key moving averages, with a 22.2% gain in the last month and an 18.34% increase over the past year.
- Aptiv’s shift to higher-margin technology is promising, but due to volatility, I recommend strict risk management and stop-loss strategies for investors.
Today’s Featured Stock
Valued at $17.9 billion, Aptiv (APTV) is a technology company serving transportation, aerospace and defense, telecommunications and industrial markets.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. APTV checks those boxes. Since the Trend Seeker signaled a buy on Aug. 13, the stock gained 10.14%.
APTV Price vs. Daily Moving Averages:
Barchart Technical Indicators for Aptiv
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Aptiv hit a new 52-week high of $82.53 in morning trading on Sept. 9.
- Aptiv has a Weighted Alpha of +32.13.
- APTV has an 100% “Buy” opinion from Barchart.
- The stock gained 18.34% over the past year.
- APTV has its Trend Seeker “Buy” signal intact.
- Aptiv is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 13 new highs and gained 22.2% in the last month.
- Relative Strength Index (RSI) is at 69.21%.
- There’s a technical support level around $80.42.
Don’t Forget the Fundamentals
- $17.9 billion market capitalization.
- 10.89x trailing price-earnings ratio.
- Revenue is expected to grow 2.19% this year and another 4.20% next year.
- Earnings are projected to increase 19.60% this year and an additional 9.06% next year.
Analyst and Investor Sentiment on Aptiv
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are positive on Aptiv.
- The Wall Street analysts tracked by Barchart have issued 12 “Strong Buy,” 1 “Moderate Buy,” 8 “Hold,” and 1 “Sell” opinion on the stock.
- Their price targets are between $60-$97.
- Value Line gives the stock its “Most Timely” rating with a price target of $71.
- CFRA’s MarketScope Advisor rates it a “Strong Buy” with a price target of $95.
- Morningstar thinks the stock is 9% undervalued with a fair value of $89.20 and comments: “This company has a robust ability to generate sales without much capital investment, freeing up more capital to be returned to shareholders in the long run. We believe this is a sign that shares could be undervalued.”
- 112 investors following the stock on Motley Fool think the stock will beat the market while 4 think it won’t.
- 20,040 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”
The Bottom Line on Aptiv
Aptiv has recently shifted its product focus from manufacturing OEM parts to technology which is less capital intensive and has higher margins.
I caution that APTV is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
