Core Insights - Garrett Motion Inc. is a leading differentiated automotive technology provider with a focus on innovation in the automotive sector and beyond [2] Group 1: Company Overview - Garrett Motion has a 70-year history of innovation in automotive technology, including cars, trucks, off-highway equipment, marine, and power generators [2] - The company specializes in turbocharging technology, which has led to significant reductions in engine size, fuel consumption, and CO2 emissions [2] - Garrett is actively developing technology solutions for Zero Emission Vehicles, including fuel cell compressors for hydrogen fuel cell vehicles and systems for battery electric vehicles [2] - The company operates six R&D centers and 13 manufacturing sites, employing over 9,000 people across more than 20 countries [2] Group 2: Upcoming Events - Garrett Motion will participate in the Baird Global Industrial Conference on November 12, 2025, with presentations by Sean Deason (SVP and CFO) and Craig Balis (Chief Technology Officer) [1]

Core Insights - In times of market volatility, investors are increasingly turning to value investing as a strategy to capitalize on discounted stock prices when others are selling off [1][3] Group 1: Value Investing Strategy - Value investing allows investors to purchase stocks at lower prices during market uncertainty, presenting opportunities for long-term gains [1] - The strategy can lead to "value traps" if not properly understood, where stocks underperform due to persistent issues rather than temporary setbacks [3] Group 2: Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, with a lower PEG ratio indicating better value [5] - While P/E ratios alone may not accurately reflect a stock's true value, the PEG ratio helps in assessing intrinsic value [5] - Investors should also consider other parameters alongside the PEG ratio to enhance investment outcomes [6] Group 3: Screening Criteria for Value Stocks - Effective screening criteria for identifying potential value stocks include a PEG ratio lower than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, market capitalization over $1 billion, average trading volume exceeding 50,000, and upward revisions in earnings estimates greater than 5% [6] Group 4: Selected Stocks - Fox Corporation (FOX) has a Zacks Rank of 1, a Value Score of A, and a five-year historical growth rate of 12.3% [10] - Flex Ltd. (FLEX) also holds a Zacks Rank of 1, a Value Score of B, and a five-year historical growth rate of 35.1% [12] - Suzano S.A. (SUZ) has a Zacks Rank of 1, a Value Score of A, and a long-term expected growth rate of 52% [14] - Garrett Motion Inc. (GTX) maintains a Zacks Rank of 1, a Value Score of A, and a five-year expected growth rate of 23.1% [15]

Summary of Conference Call Company Overview - The company is identified as Garrett, a technology company primarily involved in the automotive and transportation sectors, with a focus on turbocharger technology [2][3] - The company has approximately 192 million shares, trading around $17, with a market capitalization of about $3.3 billion and net debt of $1.2 billion, leading to a total enterprise value of approximately $4.5 billion [1] Financial Performance - The company reports adjusted EBIT margins of over 14% and adjusted EBITDA margins of 18%, indicating strong profitability [2] - The company generates significant free cash flow due to its aerospace-derived products [2] Market Position and Strategy - Garrett is a leading player in the turbocharger market, primarily competing with BorgWarner, and is described as the "last man standing" in turbo technology [3] - The company has a strong geographic sales distribution, with a significant focus on Europe due to stringent emission standards [3][4] - Turbo penetration rates are high in Europe (over 70%) compared to the U.S. (around 50%), with all diesel engines being turbocharged [4] Product Development and Innovation - Garrett has developed new zero-emission products based on its aerospace-derived intellectual property [5] - The company has a diverse product portfolio, including high-speed rotating machines, air and gas compression technologies, and fuel cell compressors [11][12] - The e-cooling compressor technology is highlighted for its potential applications beyond automotive, including HVAC systems for buildings [19] Growth Opportunities - The company sees growth in the commercial vehicle sector, particularly in backup power generation for data centers, and anticipates recovery in mining and agriculture [29] - There is a growing interest in e-boosting technologies and range-extended vehicles (REVs) in markets like China, which could drive demand for Garrett's products [17][18] - The company is well-positioned to benefit from the shift towards hybrid and plug-in hybrid vehicles, which typically have higher turbo penetration [39][40] Competitive Landscape - Garrett's strong balance sheet and financial stability are seen as advantages over smaller competitors, which may struggle with price increases and financial viability [9] - The company is actively monitoring the competitive landscape in China, where local OEMs are gaining market share [37] Regulatory Environment - The regulatory environment in Europe is evolving, with potential extensions to emission deadlines, which could favor Garrett's turbocharged products [39][40] Financial Discipline and R&D - The company maintains a financial framework that limits R&D spending to 5% of revenue, currently operating in the low 4% range [23] - Garrett has redirected excess cash from its turbo business to invest in new technologies without exceeding its R&D budget [24] Future Outlook - The company has set a target of $1 billion in sales from electric products by 2030, which may be conservative given the evolving market dynamics [53] - An investor day is planned for 2026 to provide updates on growth and strategic direction [54] Key Metrics - Free cash flow for the year is projected at $385 million, representing over 10% of the company's equity capitalization [51] This summary encapsulates the key points discussed during the conference call, highlighting Garrett's market position, financial performance, product innovation, growth opportunities, and strategic outlook.

Company Performance - BRP Inc. has returned 29.3% year-to-date, significantly outperforming the average gain of 13% in the Auto-Tires-Trucks sector [4] - The Zacks Consensus Estimate for BRP Inc.'s full-year earnings has increased by 26.3% over the past quarter, indicating improving analyst sentiment [3] Industry Context - BRP Inc. is part of the Auto-Tires-Trucks group, which ranks 10 within the Zacks Sector Rank, consisting of 99 companies [2] - Within the Automotive - Original Equipment industry, which includes 51 companies, BRP Inc. ranks 83 in the Zacks Industry Rank, with the average stock in this group gaining 3.7% this year [6] Competitive Landscape - Garrett Motion, another stock in the Auto-Tires-Trucks sector, has returned 93% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5] - Both BRP Inc. and Garrett Motion are expected to maintain solid performance in the Auto-Tires-Trucks sector [7]

Core Insights - Investors are showing increased interest in Garrett Motion (GTX) due to solid improvements in earnings estimates, which have led to positive short-term price momentum [1][9] - Analysts are optimistic about Garrett Motion's earnings prospects, as reflected in the upward trend of estimate revisions, which typically correlate with stock price movements [2][3] Current-Quarter Estimate Revisions - For the current quarter, Garrett Motion is expected to earn $0.35 per share, a decrease of 25.5% compared to the previous year [5] - The Zacks Consensus Estimate for the current quarter has increased by 13.36% over the last 30 days, with two estimates revised upward and no negative revisions [5] Current-Year Estimate Revisions - For the full year, the expected earnings per share is $1.44, indicating a year-over-year increase of 14.3% [6] - The consensus estimate for the current year has risen by 7.81%, supported by two upward revisions and no negative changes [6][7] Zacks Rank and Performance - Garrett Motion currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts on the positive earnings revisions [8] - Stocks with a Zacks Rank 1 and 2 have historically outperformed the S&P 500, suggesting a favorable investment outlook for Garrett Motion [8] Stock Performance - The stock has gained 23.4% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9]

Core Insights - Garrett Motion Inc. (NASDAQ:GTX) experienced a significant stock price increase of 33.25% week-on-week, reaching an all-time high of $17.05 before closing at $16.99, driven by strong earnings performance and an optimistic growth outlook [1][2] Financial Performance - The company reported a 48% increase in net income, rising to $77 million from $52 million year-on-year, attributed to a $20 million increase in gross profit, an $8 million reduction in interest costs, and a $2 million rise in non-operating income [2] - Net sales grew by 9.2% to $902 million from $826 million, primarily due to increased demand for gasoline and diesel, favorable currency impacts, and recoveries from enacted import tariffs [2] Future Projections - Following the positive earnings report, Garrett Motion raised its full-year net income projection to a range of $265 million to $295 million, up from the previous estimate of $233 million to $278 million [2] - The net sales projection was also upgraded to a range of $3.5 billion to $3.6 billion, compared to the prior range of $3.4 billion to $3.6 billion [2]

Core Insights - Garrett Motion (NASDAQ: GTX) experienced a significant rally of over 30% in just two days following a strong Q3 performance, indicating a pivotal moment in the stock's cycle [1] Technical Analysis - The stock is currently in Phase 9 of the Adhishthana framework, which is characterized by a Cakra structure that typically forms between Phases 4-8, suggesting bullish implications [2] - Garrett Motion entered Phase 4 in November 2021 and has been trading within its Cakra until the end of Phase 8, breaking out to the upside as it transitioned into Phase 9 [3] - A Phase 9 breakout is a powerful technical event, and since its breakout in April 2025, Garrett Motion has rallied nearly 72%, confirming the predictive accuracy of the Adhishthana Principles [4] Future Projections - The current Phase 9 is expected to conclude on November 16, 2025, after which the stock will transition into Phase 10, where a continued rally is anticipated before a potential peak formation [5] - The 18th interval is expected to be the level of peak formation, with the 23rd interval as a secondary possibility if the peak does not form in Phase 10 [5] Investor Sentiment - With the Cakra breakout and strong momentum, Garrett Motion's bullish trajectory is expected to continue into Phase 10, making it crucial for investors to monitor for signs of a peak as the phase transition approaches [6]

Core Insights - Garrett Motion Inc. (NASDAQ:GTX) has seen significant stock performance, reaching an all-time high of $17.05 during trading, ultimately closing up 13.8% at $16.99 [1] - The company reported a 48% increase in net income to $77 million, up from $52 million year-on-year, driven by a $20 million increase in gross profit and reduced interest costs [2] - Net sales rose by 9.2% to $902 million from $826 million, attributed to higher demand for gasoline and diesel, favorable currency impacts, and recoveries on import tariffs [3] Financial Performance - Garrett Motion raised its full-year net income projection to between $265 million and $295 million, an increase from the previous range of $233 million to $278 million [4] - The net sales projection was also upgraded to a range of $3.5 billion to $3.6 billion, compared to the prior estimate of $3.4 billion to $3.6 billion [4]

Core Insights - Garrett Motion delivered a strong quarterly performance on October 23, 2025, supporting the thesis that the company will benefit from the transition from internal combustion engine (ICE) and diesel vehicles to zero-emission vehicles [1] Company Performance - The company continues to make progress in its operations, indicating a positive trajectory in its business model and market positioning [1] Industry Context - The shift towards zero-emission vehicles represents a significant opportunity for companies like Garrett Motion, which are positioned to bridge the gap between traditional vehicle technologies and future sustainable solutions [1]

Company Performance - Garrett Motion (GTX) shares have increased by 9.9% over the past month, reaching a new 52-week high of $15.75, and have gained 65.3% since the start of the year, outperforming the Zacks Auto-Tires-Trucks sector's 10.4% gain and the Zacks Automotive - Original Equipment industry's 3.2% return [1] - The company has consistently beaten earnings estimates, reporting EPS of $0.38 against a consensus estimate of $0.33 in its last earnings report on October 23, 2025, and exceeding revenue estimates by 4.24% [2] Earnings Forecast - For the current fiscal year, Garrett Motion is projected to achieve earnings of $1.39 per share on revenues of $3.54 billion, reflecting a 10.32% increase in EPS and a 1.75% increase in revenues [3] - The next fiscal year is expected to see earnings of $1.56 per share on revenues of $3.56 billion, indicating a year-over-year change of 11.57% in EPS and 0.62% in revenues [3] Valuation Metrics - Garrett Motion has a Value Score of A, with Growth and Momentum Scores of B and C, respectively, resulting in a combined VGM Score of A [6] - The stock trades at 10.7X current fiscal year EPS estimates, below the peer industry average of 14.5X, and has a PEG ratio of 0.62, positioning it favorably for value investors [7] Zacks Rank - The company holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts [8] - Garrett Motion meets the criteria for investment selection, indicating potential for further price appreciation in the near term [9] Industry Comparison - The Automotive - Original Equipment industry is performing well, with Garrett Motion and BRP Inc. (DOOO) both holding a Zacks Rank of 1 (Strong Buy) [10] - BRP Inc. reported a 103.03% earnings surprise last quarter and is expected to post earnings of $3.28 per share on revenues of $5.91 billion for the current fiscal year [11] - The industry is in the top 33% of all industries, suggesting favorable conditions for both Garrett Motion and its peers [12]