Latest news with #StrattecSecurity
Yahoo
2 days ago
- Automotive
- Yahoo
Is Aeva Technologies (AEVA) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?
For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Aeva Technologies, Inc. (AEVA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question. Aeva Technologies, Inc. is a member of the Auto-Tires-Trucks sector. This group includes 102 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Aeva Technologies, Inc. is currently sporting a Zacks Rank of #2 (Buy). Over the past 90 days, the Zacks Consensus Estimate for AEVA's full-year earnings has moved 23.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Our latest available data shows that AEVA has returned about 301.1% since the start of the calendar year. At the same time, Auto-Tires-Trucks stocks have lost an average of 19.2%. As we can see, Aeva Technologies, Inc. is performing better than its sector in the calendar year. Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Strattec Security (STRT). The stock has returned 32.1% year-to-date. For Strattec Security, the consensus EPS estimate for the current year has increased 19.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Breaking things down more, Aeva Technologies, Inc. is a member of the Automotive - Original Equipment industry, which includes 52 individual companies and currently sits at #132 in the Zacks Industry Rank. This group has gained an average of 1% so far this year, so AEVA is performing better in this area. Strattec Security is also part of the same industry. Aeva Technologies, Inc. and Strattec Security could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aeva Technologies, Inc. (AEVA) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
Strattec Security Corporation (STRT) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Strattec Security (STRT)? Shares have been on the move with the stock up 47% over the past month. The stock hit a new 52-week high of $54.01 in the previous session. Strattec Security has gained 29.3% since the start of the year compared to the -11.1% move for the Zacks Auto-Tires-Trucks sector and the 1.7% return for the Zacks Automotive - Original Equipment industry. The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 8, 2025, Strattec Security reported EPS of $1.5 versus consensus estimate of $0.95. For the current fiscal year, Strattec Security is expected to post earnings of $4.40 per share on $556.56 million in revenues. This represents an 8.11% change in EPS on a 3.49% change in revenues. For the next fiscal year, the company is expected to earn $4.75 per share on $564.23 million in revenues. This represents a year-over-year change of 7.95% and 1.38%, respectively. Strattec Security may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself. On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style. Strattec Security has a Value Score of A. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A. In terms of its value breakdown, the stock currently trades at 12.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.3X. On a trailing cash flow basis, the stock currently trades at 6.6X versus its peer group's average of 6.2X. Additionally, the stock has a PEG ratio of 1.21. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective. We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Strattec Security currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Strattec Security meets the list of requirements. Thus, it seems as though Strattec Security shares could have a bit more room to run in the near term. Shares of STRT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY). ASEKY has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of F. Earnings were strong last quarter. Aisin Seiki Co. Ltd. Unsponsored ADR beat our consensus estimate by 19.51%, and for the current fiscal year, ASEKY is expected to post earnings of $1.46 per share on revenue of $32.67 billion. Shares of Aisin Seiki Co. Ltd. Unsponsored ADR have gained 23.1% over the past month, and currently trade at a forward P/E of 8.6X and a P/CF of 4.09X. The Automotive - Original Equipment industry may rank in the bottom 59% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for STRT and ASEKY, even beyond their own solid fundamental situation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strattec Security Corporation (STRT) : Free Stock Analysis Report Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Is Michelin (MGDDY) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?
Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Is Michelin (MGDDY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Michelin is a member of the Auto-Tires-Trucks sector. This group includes 103 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Michelin is currently sporting a Zacks Rank of #1 (Strong Buy). The Zacks Consensus Estimate for MGDDY's full-year earnings has moved 8.7% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Our latest available data shows that MGDDY has returned about 18.2% since the start of the calendar year. At the same time, Auto-Tires-Trucks stocks have lost an average of 8.4%. As we can see, Michelin is performing better than its sector in the calendar year. Strattec Security (STRT) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 17.2%. Over the past three months, Strattec Security's consensus EPS estimate for the current year has increased 19.9%. The stock currently has a Zacks Rank #1 (Strong Buy). Breaking things down more, Michelin is a member of the Rubber - Tires industry, which includes 2 individual companies and currently sits at #2 in the Zacks Industry Rank. Stocks in this group have gained about 19.7% so far this year, so MGDDY is slightly underperforming its industry this group in terms of year-to-date returns. In contrast, Strattec Security falls under the Automotive - Original Equipment industry. Currently, this industry has 53 stocks and is ranked #94. Since the beginning of the year, the industry has moved +3%. Michelin and Strattec Security could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Michelin (MGDDY) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
Strattec Security Corp (STRT) Q3 2025 Earnings Call Highlights: Robust Financial Performance ...
Cash from Operations: $21 million in Q3, $41.5 million year-to-date. Cash Position: Over $60 million with limited borrowings. Gross Margin: Expanded 560 basis points year-over-year, 280 basis points sequentially. Net Income: $1.32 per diluted share, over threefold increase from last year. Adjusted EBITDA: $12.9 million or 9% of sales, up from 4.4% in the prior year period. Gross Profit: $23.1 million, up from $14.7 million in the prior year period. Tariff Impact: Estimated $9 million to $12 million annually before mitigation. Engineering, Selling, and Administrative Expenses: $16 million, up $3.3 million from the prior year. Operating Cash Flow: $20.7 million for the quarter, $41.5 million year-to-date. Capital Expenditures: $4.2 million year-to-date. Warning! GuruFocus has detected 6 Warning Signs with ITUB. Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strattec Security Corp (NASDAQ:STRT) generated nearly $21 million in cash from operations in the third quarter, bringing the year-to-date total to $41.5 million, reflecting improved earnings power and disciplined working capital management. The company reported a significant year-over-year gross margin expansion of 560 basis points, demonstrating effective cost management and pricing strategies. Net income per diluted share increased more than threefold from the previous year's third quarter, reaching $1.32. Adjusted EBITDA rose to $12.9 million, representing 9% of sales, up from 4.4% in the prior year period, indicating strong margin expansion. Strattec Security Corp (NASDAQ:STRT) has a strong cash position with over $60 million in cash and limited borrowings, providing flexibility to navigate market conditions and execute strategic priorities. The company faces potential tariff-related costs estimated at $9 million to $12 million annually, which could impact profitability if not fully mitigated. Engineering, selling, and administrative expenses increased by $3.3 million from the prior year, reflecting higher restructuring charges and additional salaries. The company is experiencing elevated labor costs in Mexico, which partially offset the benefits of pricing discipline and cost optimization. Despite strong financial performance, macroeconomic uncertainties, including tariffs and industry volume pressures, remain a concern. Strattec Security Corp (NASDAQ:STRT) has not yet reinstated its dividend, citing uncertainty in the current environment as a reason for maintaining a conservative cash management approach. Q: What was the absolute number of the impact of tariffs in the third quarter, and how much do you think you could mitigate the $9 million to $12 million exposure through logistics or suppliers? A: Jennifer Slater, President and CEO, explained that they started with logistics changes and are working on commercial recovery and supply chain adjustments. They are confident in mitigating the full tariff exposure. Matthew Pauli, CFO, noted that the third quarter saw an incremental $800,000 in tariffs, primarily in March. Q: What kind of operating environment are you assuming with your customer base for the balance of the year? A: Jennifer Slater stated they are monitoring automotive production and tariff impacts on customers, ensuring preparedness for any material impacts on production and cost structure. Q: What is the mix of price realization versus labor cost savings from headcount reduction? A: Matthew Pauli mentioned that about $2.5 million of the benefit was from pricing, with the rest from labor cost savings. The full restructuring savings are expected to be realized in the first quarter of 2026. Q: What are the capital expenditure plans for the rest of the year and thoughts on reinstituting the dividend? A: Jennifer Slater emphasized focusing on internal modernization and organic growth opportunities. Matthew Pauli projected CapEx around $10 million annually, with $2 million to $3 million expected in the last quarter. Dividend reinstatement is being considered but not prioritized due to current uncertainties. Q: Are there any comments on the potential sale of the Milwaukee building facility? A: Jennifer Slater expressed satisfaction with the progress on the potential sale but stated they are not ready to make any announcements yet. Q: Is Strattec considering expanding its offerings to industries other than automotive? A: Jennifer Slater indicated that while there are opportunities within automotive and transportation, they will first focus on these markets before exploring adjacent industries. Q: Have you seen any pull forward in demand due to tariffs, and how are April and May proceeding relative to the first quarter? A: Jennifer Slater noted some inventory build-up but stated that customers are providing stable demand signals, with no major fluctuations expected. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
31-03-2025
- Business
- Yahoo
Is There Now An Opportunity In Strattec Security Corporation (NASDAQ:STRT)?
Strattec Security Corporation (NASDAQ:STRT), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGM, rising to highs of US$51.49 and falling to the lows of US$36.42. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Strattec Security's current trading price of US$39.78 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Strattec Security's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Great news for investors – Strattec Security is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 10.28x is currently well-below the industry average of 14.42x, meaning that it is trading at a cheaper price relative to its peers. What's more interesting is that, Strattec Security's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Check out our latest analysis for Strattec Security Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Strattec Security, it is expected to deliver a negative earnings growth of -1.7%, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term. Are you a shareholder? Although STRT is currently trading below the industry PE ratio, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to STRT, or whether diversifying into another stock may be a better move for your total risk and return. Are you a potential investor? If you've been keeping an eye on STRT for a while, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future. If you want to dive deeper into Strattec Security, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Strattec Security. If you are no longer interested in Strattec Security, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
