Company Performance - Autoliv, Inc. reported quarterly earnings of $2.21 per share, exceeding the Zacks Consensus Estimate of $2.07 per share, and up from $1.87 per share a year ago, representing an earnings surprise of +6.76% [1] - The company posted revenues of $2.71 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.36%, compared to $2.61 billion in the same quarter last year [2] - Over the last four quarters, Autoliv has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Autoliv shares have increased approximately 24.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $2.34 on revenues of $2.6 billion, and for the current fiscal year, it is $9.09 on revenues of $10.4 billion [7] Industry Outlook - The Automotive - Original Equipment industry, to which Autoliv belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Autoliv's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Autoliv, Inc. (ALV) , which belongs to the Zacks Automotive - Original Equipment industry.When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 16.39%, on average, in the last two quarters.For the last reported quarter, Autoliv came out with earnings of $2.15 per s ...

Core Viewpoint - BorgWarner is positioned to potentially continue its earnings-beat streak in upcoming reports, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the most recent quarter, BorgWarner reported earnings of $0.98 per share, missing the expected $1.11 per share by 13.27%. In the previous quarter, it exceeded the consensus estimate of $0.92 per share by reporting $1.01 per share, resulting in a surprise of 9.78% [2]. Earnings Estimates and Predictions - BorgWarner's earnings estimates have been trending higher, supported by its history of earnings surprises. The company currently has a positive Zacks Earnings ESP of +11.20%, indicating bullish sentiment among analysts regarding its earnings prospects [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that stocks with this combination beat estimates nearly 70% of the time [6][8]. Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions. This metric is crucial for predicting earnings performance [7][9].

Group 1 - The stock of American Axle & Manufacturing Holdings, Inc. (AXL) is experiencing significant attention due to high implied volatility in the options market, particularly the July 18, 2025 $2.00 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - American Axle currently holds a Zacks Rank of 3 (Hold) in the Automotive - Original Equipment industry, which is in the bottom 26% of the Zacks Industry Rank, with recent earnings estimates being revised downward [3] Group 2 - The high implied volatility surrounding American Axle may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capitalize on time decay [4]

Company Overview - Strattec Security (STRT) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Price Performance - STRT shares have increased by 14.68% over the past week, outperforming the Zacks Automotive - Original Equipment industry, which rose by 3.83% during the same period [5] - Over the last month, STRT's price change is 11.4%, compared to the industry's 5.17% [5] - In the last quarter, STRT shares have surged by 84.76%, and over the past year, they have gained 176.83%, significantly outperforming the S&P 500, which increased by 25.34% and 13.06% respectively [6] Trading Volume - STRT's average 20-day trading volume is 110,963 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for STRT has moved higher, while none have moved lower, resulting in an increase in the consensus estimate from $3.67 to $4.40 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [9] Conclusion - Given the strong price performance, positive earnings outlook, and favorable momentum indicators, STRT is positioned as a solid momentum pick for investors [11]

Core Insights - Investors are evaluating the attractiveness of Dana (DAN) and Ferrari (RACE) for value investment opportunities [1] - Both companies currently have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3] Valuation Metrics - DAN has a forward P/E ratio of 11.21, while RACE has a significantly higher forward P/E of 49.17 [5] - The PEG ratio for DAN is 1.08, suggesting a more favorable valuation relative to its expected earnings growth, compared to RACE's PEG ratio of 5.53 [5] - DAN's P/B ratio stands at 1.76, indicating a lower market value relative to its book value, whereas RACE has a P/B ratio of 31.3 [6] Value Grades - Based on the valuation metrics, DAN holds a Value grade of A, while RACE has a Value grade of D, suggesting that DAN is currently the superior value option [6][7]

Core Viewpoint - Adient (ADNT) is highlighted as a strong candidate for investors due to its consistent performance in beating earnings estimates, particularly in the automotive seating and interiors sector [1]. Group 1: Earnings Performance - Adient has a notable track record of exceeding earnings estimates, with an average surprise of 52.08% over the last two quarters [2]. - In the most recent quarter, Adient reported earnings of $0.36 per share against an expectation of $0.69, resulting in a surprise of 91.67%. In the previous quarter, the company reported $0.27 per share compared to an estimate of $0.24, yielding a surprise of 12.50% [3]. Group 2: Earnings Estimates and Predictions - Recent changes in earnings estimates for Adient have been favorable, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong potential for an earnings beat [6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that stocks like Adient have a nearly 70% chance of producing a positive surprise [7]. - Currently, Adient has an Earnings ESP of +7.81%, reflecting increased analyst optimism regarding its near-term earnings potential [9].

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 - Aeva Technologies, Inc. (AEVA) shares increased by 8.6% to close at $36.43, with a notable trading volume and a 93.8% gain over the past four weeks [1][2] - The company is positioned to benefit from growth in industrial automation, robotics, and autonomous driving, as more businesses adopt robotics for task handling [2] - Aeva is expected to report a quarterly loss of $0.44 per share, reflecting a year-over-year change of +22.8%, with revenues projected at $3.4 million, up 69.2% from the previous year [3] Group 2 - The consensus EPS estimate for Aeva has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [4] - Aeva Technologies holds a Zacks Rank of 3 (Hold), while Strattec Security (STRT), another company in the same automotive industry, has a Zacks Rank of 1 (Strong Buy) and has seen an 11.1% return over the past month [5][6]

Company Overview - Holley Inc. (HLLY) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Aug 15, 2025 $7.50 Call option [1] - The company currently holds a Zacks Rank 3 (Hold) in the Automotive - Original Equipment industry, which ranks in the top 29% of the Zacks Industry Rank [3] Analyst Insights - Over the past 60 days, there has been a mixed sentiment among analysts regarding Holley's earnings estimates; one analyst has increased estimates while five have decreased them, resulting in a consensus estimate drop from 11 cents to 10 cents per share for the current quarter [3] Options Market Dynamics - The high implied volatility suggests that options traders are anticipating a significant price movement for Holley shares, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Seasoned options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]