Lear (LEA) Hits 52-Week High: What’s Driving the Stock?

Zacks

Shares of Lear Corporation LEA scaled a 52-week high of $ 192.13 on Jan 5, eventually closing at $ 191.39.

Lear Corporation has a market cap of roughly $12.9 billion. Average volume of shares traded is around 459,243. The company has an expected long-term EPS growth of 7.1%.

The stock has seen the Zacks Consensus Estimate for fiscal 2018 being revised 0.4% upward, respectively, over the last 30 days. The company delivered a positive earnings surprise in each of the trailing four quarters, the average beat being 7.5%.

Shares of Lear Corporation have gained 10.1% in the past three months, outperforming the industry’s 5.4% growth.

Driving Factors

Lear Corporation is a top supplier of automotive seating systems, electrical distribution systems and electronics. Recently, the company inked a deal for acquiring Israel-based EXO Technologies, which is engaged in developing innovative software-based solutions for GPS. The acquisition is likely to provide Lear with a different technology to appreciably enhance GPS accuracy and reliability. This will in turn improve vehicle safety and assist in autonomous driving.

Last year, Lear Corporation announced the inking of a new credit agreement. This move was aimed at enhancing the financial flexibility of the company and positioning it well, in order to take advantage of the conducive market conditions.

Lear Corporation currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

A couple of other top-ranked automobile stocks in the same space are Allison Transmission Holdings, Inc. ALSN, Denso Corp. DNZOY and Oshkosh Corporation OSK, each carrying a Zacks Rank #2.

Allison Transmission has a long-term growth rate of 10%. The company’s shares have gained 35.6% in the past 12 months.

Denso has a long-term growth rate of 10.1%. The company’s shares have gained 23.5% in the past 12 months.

Oshkosh has a long-term growth rate of 16.5%. The company’s shares have gained 35.7% in the past 12 months.

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