Aptiv Stock Drives Toward Major Potential Growth in 2021

Aptiv options are affordably priced at the moment, too

facebook X logo linkedin

Auto parts manufacturer Aptiv PLC (NYSE:APTV) started the new year on the right foot, scoring a record high of $131.97 out of the gate yesterday. Since dipping below $30 back in March, APTV has carved out a channel of higher highs, guided by its ascending 20-day moving average. However, with the stock's 14-day Relative Strength Index (RSI) sitting up at 68 on the cusp of "overbought" territory, a short-term breather may be imminent.

APTV stock chart

Aptiv does has a manageable balance sheet with $2.12 billion in cash and $4.42 billion in debt. But the company also lacks steady revenue and net income growth, having reported a decline in annual revenue over the past two years. Nonetheless, APTV has demonstrated significant revenue growth of $1.1 billion since 2017. The company has also generated a total revenue of $14 billion in just the past 12 months. Despite the inconsistent growth, APTV has also grown its net income by about $1 billion since 2017, bringing its annual profit to $2.3 billion.

Furthermore, at a market cap of $34.97 billion, Aptiv is far from a small company but could continue growing as the world transitions to alternative fuel vehicles. In addition, Aptiv stock still trades at a relatively low price-earnings ratio of 19.73. At the moment, the biggest red flag for the company for potential investors is its lack of significant growth. However, APTV is still a very intriguing speculative play for investors intrigued by the electric vehicle industry.

Lastly, Aptiv stock's short-term options are attractively priced. Specifically, the equity's Schaeffer's Volatility Index (SVI) of 45% is in just the 18th percentile of its annual range, suggesting near-term options are pricing in relatively low volatility expectations for APTV. And the good news for options buyers: Aptiv stock hasn't had a problem making big moves. The stock's Schaeffer's Volatility Scorecard (SVS) sits at a lofty 79 out of 100, suggesting APTV has consistently exceeded the volatility expectations priced into its options over the past year.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI