Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Has Adient (ADNT) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Adient is one of 96 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of ...

Group 1 - The rise in electric vehicles (EVs) has led to concerns among investors regarding auto part manufacturers that primarily serve internal combustion engine (ICE) vehicles [1] - Garrett Motion, a Switzerland-based company, specializes in manufacturing turbocharging systems for ICE vehicles [1] Group 2 - The article highlights the shift in the automotive industry towards electric vehicles, which may impact the demand for products from companies like Garrett Motion [1]

Core Insights - Garrett Motion Inc. (GTX) is expected to report second-quarter 2025 results on July 24, with earnings per share (EPS) estimated at 37 cents and revenues at $918 million, indicating a year-over-year growth of 32.14% in EPS and a 3.15% increase in revenues [1][2][7] Financial Performance - In Q1 2025, GTX reported an adjusted EPS of 30 cents, surpassing the Zacks Consensus Estimate of 29 cents, and net sales of $878 million, exceeding the estimate of $843 million, although the top line fell 4% year-over-year [2][4] - The adjusted EBIT margin improved to 14.9% in Q1 2025 from 13.2% in Q1 2024, reflecting the benefits of strategic cost-saving measures [4] Market Demand and Growth - The company is experiencing increased demand for turbocharged range-extended electric vehicles (EVs) and plug-in hybrids, securing new contracts in China and North America [3] - New commercial vehicle program wins in Europe and China are also contributing to the company's growth [3] Capital Expenditure - GTX anticipates capital expenditure to be 2.8% of sales in 2025, up from 2.6% in 2024, which may impact cash flow in the short term despite supporting long-term growth [4][7] Earnings Prediction - The current Earnings ESP for GTX is 0.00%, indicating no expected earnings beat, although it holds a Zacks Rank of 2 [5][6]

Core Viewpoint - The market anticipates Garrett Motion (GTX) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $0.37 per share, reflecting a year-over-year increase of +32.1%, while revenues are projected to be $918 million, up 3.2% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 6.06% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, Garrett Motion exceeded the expected earnings of $0.29 per share by delivering $0.30, resulting in a surprise of +3.45%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Investment Considerations - While Garrett Motion does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [17].

Core Viewpoint - Garrett Motion Inc. is set to release its second quarter financial results on July 24, 2025, before the U.S. market opens [1] Group 1: Financial Results Announcement - The financial results will be announced prior to market opening on July 24, 2025 [1] - A conference call will be held on the same day at 8:30 am EDT / 2:30 pm CET to discuss the results [2] - The conference call will be accessible via a dial-in number and will also be webcasted with a slide presentation [3] Group 2: Company Overview - Garrett Motion Inc. has a 70-year history of innovation in the automotive sector and beyond, including off-highway equipment and marine applications [4] - The company specializes in turbocharging technology, contributing to reduced engine size, fuel consumption, and CO2 emissions [4] - Garrett is focusing on developing technology solutions for Zero Emission Vehicles, including fuel cell compressors and electric propulsion systems [4] - The company operates five R&D centers and 13 manufacturing facilities, employing over 9,000 people across more than 20 countries [4]

Core Viewpoint - Garrett Motion (GTX) has shown strong year-to-date performance compared to its sector, indicating a positive outlook for the stock [1][4]. Company Performance - Garrett Motion has returned approximately 21.7% since the beginning of the calendar year, significantly outperforming the Auto-Tires-Trucks sector, which has returned an average of -14% [4]. - The Zacks Consensus Estimate for Garrett Motion's full-year earnings has increased by 4% over the past quarter, reflecting improved analyst sentiment [4]. - Garrett Motion currently holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3]. Industry Context - Garrett Motion is part of the Automotive - Original Equipment industry, which consists of 50 companies and currently ranks 90 in the Zacks Industry Rank [6]. - Stocks within the Automotive - Original Equipment industry have gained about 8.4% year-to-date, indicating that Garrett Motion is performing better than its industry peers [6]. - Strattec Security (STRT), another stock in the Auto-Tires-Trucks sector, has returned 63.2% since the start of the year and has a Zacks Rank of 1 (Strong Buy) [5].

Group 1 - The core viewpoint of the articles highlights the resurgence of headquarters projects in Guanggu, attracting significant foreign investment from global leading companies and Fortune 500 firms [1][2][3] - In 2025, the Wuhan Investment Promotion Conference resulted in the signing of 10 major projects in Guanggu, with a total investment amounting to 16.74 billion yuan [1] - Guanggu has signed over 60 projects worth more than 100 million yuan this year, indicating a consistent trend of investment activity [1] Group 2 - The "second headquarters" phenomenon in Guanggu began in 2017, with over 80 leading internet companies and numerous major enterprises establishing their second headquarters in the region by 2020 [2] - The focus of Guanggu's investment strategy is not merely on scale but on aligning with regional strategies and supporting industrial upgrades, thereby enhancing the local industrial ecosystem [2] - Guanggu has attracted over 1,300 foreign enterprises, including nearly 100 Fortune 500 companies, with more than 120 foreign enterprises registered last year, accounting for nearly 30% of new foreign investment enterprises in the city [3] Group 3 - The efficient business environment in Guanggu has been a key factor in attracting foreign investment, with companies like Amber Group citing quick establishment processes as a significant advantage [6] - Guanggu has optimized its foreign investment policies, introducing new incentives for development, research, and green initiatives, which have led to over a hundred foreign enterprises benefiting from these policies [7] - Recent initiatives include the establishment of overseas offices by local companies and the signing of agreements with international firms, enhancing Guanggu's global connectivity [7][8]

Core Insights - Garrett Motion Inc. has been added to the Russell 2000® Index, effective June 27, 2025, reflecting the company's growth and market position in automotive technology [1][2] - The addition to the index signifies Garrett's advancements in turbo technologies and its commitment to zero-emission mobility solutions [2] - Membership in the Russell 2000® Index is based on inclusion in the broader Russell 3000® Index, which is widely utilized by investment managers and institutional investors [2] Company Overview - Garrett Motion has a 70-year history in the automotive sector, focusing on innovation in turbocharging and differentiated technology solutions [5][6] - The company operates five R&D centers and 13 manufacturing facilities, employing over 9,000 people across more than 20 countries [6] - Garrett is actively developing technologies for Zero Emission Vehicles, including fuel cell compressors and electric propulsion systems [5][6]

Core Insights - Garrett Motion Inc. inaugurated its new Wuhan Innovation Center, enhancing its zero-emission R&D capabilities in China and globally [2][3] - The center is part of Garrett's strategy to strengthen its position as a leader in differentiated automotive technologies, particularly in electrification and decarbonization [3][7] Company Developments - The Wuhan Innovation Center is Garrett's second innovation hub in China, complementing the Shanghai R&D Center to create a "dual innovation engine" [2][5] - The center focuses on high-speed E-Powertrain systems for zero-emission applications, supporting both automotive and industrial decarbonization efforts [5][9] Technological Advancements - Garrett has a history of innovation in mobility technologies, including variable geometry turbines and hydrogen fuel cell compressors, with a strong emphasis on zero-emission solutions [4][6] - The E-Powertrain system integrates an electric motor, inverter, and gearbox, reducing system size and weight by up to 40% and cutting the use of critical materials by approximately 30% [8] Strategic Importance - The Wuhan Innovation Center embodies Garrett's "East for East" strategy, integrating R&D and manufacturing capabilities to accelerate the commercialization of zero-emission technologies [10] - The center aims to attract cross-disciplinary talent and foster partnerships with academic institutions and industry players to drive innovation [10]

Core Viewpoint - Garrett Motion announced a significant secondary offering of 17 million shares, leading to a 10% drop in its stock value as investors reacted negatively to the increased share supply [1][4]. Company Overview - Garrett Motion is the former auto division of Honeywell International, specializing in turbochargers for internal combustion engine vehicles and components for hybrid and battery electric vehicles [3]. - The company underwent bankruptcy after separating from Honeywell but has since returned to public markets with substantial ownership from private equity firms that aided in its restructuring [3]. Shareholder Dynamics - The secondary offering consists of shares owned by affiliates of Oaktree Capital Management, Centerbridge Partners, and Cyrus Capital Partners, with Garrett not receiving any proceeds from this offering [4]. - Private equity investors typically do not hold long-term stakes, indicating their intention to gradually cash out to return capital to their investors [5]. Financial Performance - Despite the ownership overhang from private equity sales, Garrett has successfully transformed into a free cash flow-generating entity, with the capacity to repurchase shares and currently offering a dividend yield of 2.3% [6]. Investment Perspective - For investors seeking solid cash generation opportunities, Garrett is considered an attractive option despite the short-term volatility associated with the secondary offering [7].