Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on ke ...

Adient (NYSE: ADNT) is a global leader in automotive seating. With more than 65,000 employees in 29 countries, Adient operates ~200 manufacturing/assembly plants worldwide. We produce and deliver automotive seating for all major OEMs. From complete seating systems to individual components, our expertise spans every step of the automotive seat-making process. We take our products from research and design to engineering and manufacturing — and into millions of vehicles every year. For more information, please ...

Core Insights - The article emphasizes the importance of the price-to-book (P/B) ratio as a valuation tool for identifying undervalued stocks with high growth potential, alongside more commonly used ratios like price-to-earnings (P/E) and price-to-sales (P/S) [1][5]. Group 1: Understanding P/B Ratio - The P/B ratio is calculated by dividing market capitalization by the book value of equity, helping investors assess whether a stock is under- or overvalued [1][5]. - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued and a good buy, while a ratio above one may indicate overvaluation [5][6]. - The P/B ratio is particularly relevant for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or negative earnings [8]. Group 2: Stock Recommendations - Five stocks with low P/B ratios and strong growth potential are highlighted: BioMarin Pharmaceutical (BMRN), General Motors (GM), Harmony Biosciences (HRMY), Adient plc (ADNT), and Gibraltar Industries (ROCK) [2][9]. - BioMarin Pharmaceutical has a projected 3-5 year EPS growth rate of 20.11% and holds a Zacks Rank of 2 with a Value Score of A [15]. - General Motors is projected to have a 3-5 year EPS growth rate of 10.65% and has a Zacks Rank of 1 with a Value Score of A [16]. - Harmony Biosciences has a projected 3-5 year EPS growth rate of 25.66% and a Zacks Rank of 2 with a Value Score of A [16]. - Adient has a projected 3-5 year EPS growth rate of 15.7% and a Zacks Rank of 2 with a Value Score of A [17]. - Gibraltar Industries has a projected 3-5 year EPS growth rate of 15.0% and a Zacks Rank of 2 with a Value Score of A [18].

Core Viewpoint - Adient's stock has experienced a significant increase, driven by positive developments in business contracts and a rating upgrade from UBS, indicating strong future prospects for the company [1][2]. Group 1: Stock Performance - Adient shares rose 10% in the last trading session, closing at $23.6, with trading volume significantly higher than usual [1]. - The stock has gained 13.1% over the past four weeks, reflecting positive market sentiment [1]. Group 2: Business Developments - UBS upgraded Adient's rating from neutral to buy, citing frequent business wins as a positive indicator for the company's future [2]. - In fiscal 2025, Adient secured $1.2 billion in new contracts in China, with nearly 70% coming from domestic automakers, enhancing its market position [2]. - The company is also focusing on higher-margin business opportunities in Europe, which is expected to improve revenues and profitability in the coming years [2]. Group 3: Earnings Expectations - Adient is projected to report quarterly earnings of $0.19 per share, representing a year-over-year decline of 29.6%, with revenues expected to be $3.46 billion, down 1% from the previous year [3]. - The consensus EPS estimate for the quarter has been revised slightly higher over the last 30 days, indicating a positive trend that may lead to price appreciation [4]. Group 4: Industry Context - Adient holds a Zacks Rank of 2 (Buy) within the Zacks Automotive - Original Equipment industry, suggesting favorable conditions compared to peers [5]. - Another company in the same industry, EVgo Inc., saw a 6.1% increase in its stock price, although it has returned -4.5% over the past month, highlighting varying performance within the sector [5].

Core Viewpoint - Adient (ADNT) is currently viewed as a better value opportunity compared to Mobileye Global (MBLY) based on various financial metrics and rankings [1]. Valuation Metrics - Adient has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Mobileye Global, which has a Zacks Rank of 4 (Sell) [3]. - The forward P/E ratio for Adient is 10.16, significantly lower than Mobileye Global's forward P/E of 29.00 [5]. - Adient's PEG ratio stands at 0.65, while Mobileye Global's PEG ratio is 1.01, suggesting that Adient may be undervalued relative to its expected earnings growth [5]. - Adient has a P/B ratio of 0.75, compared to Mobileye Global's P/B of 0.83, indicating a more favorable market value relative to its book value [6]. Investment Grade - Adient has earned a Value grade of A, while Mobileye Global has received a Value grade of D, reflecting a significant difference in perceived value [6]. - The combination of Zacks Rank and Style Scores suggests that value investors are likely to prefer Adient over Mobileye Global at this time [7].

Core Insights - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks [2] Company Analysis: Adient (ADNT) - Adient (ADNT) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4] - The Forward P/E ratio for ADNT is 11.5, significantly lower than the industry average of 18.52, with historical values ranging from a high of 12.68 to a low of 4.91 [4] - ADNT's PEG ratio stands at 0.82, which is below the industry average of 0.89, with a historical range from 0.84 to 0.22 [5] - The P/CF ratio for ADNT is 19.42, compared to the industry average of 27.06, with historical values fluctuating between 28.08 and 3.32 [6] Company Analysis: Continental (CTTAY) - Continental (CTTAY) is rated 1 (Strong Buy) with an A grade for Value, making it another attractive option for value investors [7] - The Forward P/E ratio for CTTAY is 9.29, which is favorable compared to the industry average of 18.52, with historical values ranging from 10.00 to 6.50 [7][8] - CTTAY's PEG ratio is 0.69, also below the industry average of 0.89, with historical values between 0.72 and 0.25 [8] - The P/B ratio for CTTAY is 2.82, compared to the industry's price-to-book ratio of 3.30, with historical values ranging from 2.97 to 0.76 [8] Investment Outlook - Both Adient and Continental are likely undervalued based on their financial metrics, making them strong candidates for value investment at this time [9]

Core Viewpoint - The global automotive seat manual slide rail market is projected to reach USD 938 million in 2024, with a compound annual growth rate (CAGR) of 2.9% [4]. Industry Overview - Automotive seat manual slide rails are mechanical components installed between the seat and vehicle floor, allowing for front and rear seat adjustments. They consist of left and right slide rails, rollers/sliders, locking systems, and release handles [3]. - The demand for manual slide rails is driven by their cost efficiency, reliability, and platform standardization, making them the mainstream solution for seat adjustments in cost-sensitive vehicles [9]. Market Participants - Key companies in the automotive seat manual slide rail market include Adient, Brose, Hyundai Transys, Faurecia, Toyota Boshoku, Imasen Electric Industrial, and several others [4][5]. - Adient is recognized for its comprehensive automotive component solutions and strong project management capabilities [5]. - Brose focuses on integrating mechanical structures with electronic controls and emphasizes engineering innovation [5]. Supply Chain - The upstream supply chain includes materials and key components such as high-strength steel, springs, and surface treatment chemicals. The midstream involves seat frame suppliers and specialized slide rail manufacturers, while the downstream targets vehicle manufacturers and seat assembly plants [8]. Challenges - The industry faces challenges from increasing performance requirements and competitive pricing pressures. Stricter safety regulations necessitate reliable locking mechanisms and durability, while cost fluctuations in materials can compress profit margins [10][12]. Opportunities - Opportunities for growth lie in modular upgrades and functional integration. Suppliers can enhance product value through improved sliding performance and corrosion resistance, while also developing modular platforms for various seat configurations [13]. Barriers to Entry - Barriers to entry are significant due to the safety-critical nature of slide rails, which require compliance with stringent safety and durability standards. New entrants must possess advanced manufacturing capabilities and a robust quality assurance system [14].

Core Insights - The year 2025 has experienced significant volatility in equity markets due to tariff issues, inflation, softening job growth, and geopolitical tensions [1] - Despite market uncertainties, investors are encouraged to consider stocks with strong broker recommendations and improving earnings estimates [2][7] Stock Recommendations - Recommended stocks include Zumiez (ZUMZ), The Beachbody Company (BODI), CVR Energy (CVI), Civitas Resources (CIVI), and Adient (ADNT), all of which have shown strong earnings estimate revisions and favorable broker recommendations [2][7] - Zumiez is a specialty retailer focusing on apparel and accessories, with a strong performance driven by North American markets [6][7] - The Beachbody Company offers a vast digital fitness library and has consistently surpassed earnings estimates, showcasing a strong digital model [8][9] - CVR Energy is involved in renewable energy and petroleum refining, with a commitment to reducing carbon emissions [10][11] - Civitas Resources benefits from a strong presence in productive U.S. shale plays, enhancing its market position [11][12] - Adient has a diverse customer base and international presence, contributing to its growth potential [12][13] Screening Strategy - A screening strategy was developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks [4] - Key parameters include net upgrades in broker ratings, percentage change in earnings estimates, price-to-sales ratio, stock price above $5, average daily volume over 100,000 shares, and market capitalization in the top 3000 [5][6]

A month has gone by since the last earnings report for Adient (ADNT) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Adient due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Adient Q4 Earnings Miss Exp ...

Company Operations and Workforce - Adient operates approximately 200 manufacturing, assembly, or sequencing facilities across 29 countries, employing over 65,000 people[12][14]. - Adient's global workforce consists of approximately 65,000 employees, with 41% identifying as female and 54% of U.S. employees as ethnic minorities[51]. - 99% of Adient's salaried workforce completed the annual Ethics Policy certification in fiscal year 2025[49]. - 98% of Adient's facilities are third-party audited and certified for health and safety management systems[52]. Technology and Innovation - Adient's investment in technology includes automation and artificial intelligence to reduce labor costs and improve accuracy[17]. - The company has developed a comprehensive energy management toolkit to help reduce energy use and related emissions[47]. - Adient is likely to pursue new product development and technological advancements, as indicated by the diverse backgrounds of its executives in manufacturing and operations[61]. Market Position and Strategy - The company focuses on long-term relationships with leading global OEMs, enhancing its ability to grow alongside them[13][18]. - Adient aims to expand its market share in seating and seating components, leveraging its strong relationships with global OEM customers[26]. - Adient's strong market position in China includes 37 manufacturing locations in 22 cities, supported by partnerships with major auto groups[24]. - The competitive landscape includes traditional seating suppliers and component specialists, with Adient's vertical integration providing a competitive edge[35]. Sustainability and Environmental Goals - Adient aims to reduce its scope 1 and 2 greenhouse gas emissions by 75% by 2030, using 2019 as the base year[45]. - The company aspires to achieve carbon neutrality at its manufacturing sites for scope 1 and 2 emissions by 2040[45]. - Adient has set a goal to source 100% of the electricity consumed at its manufacturing sites from renewable sources by 2035[46]. - Adient is working to reduce scope 3 emissions by 35% by 2030, with 2019 as the base year[48]. - The Pure Ergonomics seat developed by Adient achieves a 5% reduction in weight and contains 46% recycled content compared to conventional models[48]. Operational Efficiency and Management - The company focuses on operational efficiencies through standardized manufacturing processes, optimizing inventory, and reducing costs[15]. - Adient's Core Product Portfolio strategy aims to sustain market success by leveraging modular and scalable systems[21]. - Adient's health and safety management system is certified to the ISO 45001 standard, with 100% of facilities internally audited for compliance[52]. - The company has implemented a five-year global water management strategy to reduce water consumption and enhance operational resilience[47]. Leadership and Governance - Adient's leadership team includes experienced executives with backgrounds in operations, finance, and legal, enhancing the company's strategic direction[61][62][67]. - The company's commitment to continuous improvement and best practices is reflected in its executive roles, which may enhance operational efficiency[61]. - Adient's strategic focus on legal and human resources management suggests an emphasis on compliance and workforce development[67]. - The leadership team has a combined experience in major automotive companies, which may provide competitive advantages in market positioning and operational excellence[62][65].