Is Aptiv Stock Underperforming the S&P 500?

Schaffhausen, Switzerland-based Aptiv PLC (APTV) designs, manufactures, and sells vehicle components. Valued at $14.4 billion by market cap, the company helps automotive OEMs to create vehicles with advanced safety features, electrified architectures, and intelligent connectivity. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and APTV perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the auto parts industry. APTV ranks among the largest vehicle tech suppliers, serving the top 25 OEMs. With operations in 49 countries and 140 plants, it scales efficiently and reaches customers globally.

Despite its notable strength, APTV slipped 23.5% from its 52-week high of $88.93, achieved on Jan. 13. Over the past three months, APTV stock declined 2.9%, underperforming the S&P 500 Index’s ($SPX) 11.4% gains during the same time frame.

Shares of APTV fell 10.6% this year and dipped 2.3% over the past 52 weeks, underperforming SPX’s YTD gains of 8.6% and 22.9% returns over the same time frame.

To confirm the bearish trend, APTV has been trading below its 200-day moving average since late February, with slight fluctuations. However, the stock is trading above its 50-day moving average since late May.

On May 5, APTV shares closed down by 7.9% after reporting its Q1 results. Its net sales stood at $5.1 billion, up 5.4% year over year. The company’s adjusted EPS increased 1.2% year over year to $1.71. 

In the competitive arena of auto parts, Autoliv, Inc. (ALV) has taken the lead over APTV, showing resilience with an 8.3% uptick on a YTD basis and 16.9% gains over the past 52 weeks.

Wall Street analysts are bullish on APTV’s prospects. The stock has a consensus “Strong Buy” rating from the 22 analysts covering it, and the mean price target of $78.86 suggests a potential upside of 15.9% from current price levels.