Lear Corporation’s share price was heavily penalized and is now in an oversold situation near to a solid support area.
From a fundamental viewpoint, Lear Corporation seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.44 times its revenues.
Furthermore, EPS estimates have been revised upward in the last few months by analysts.
Moreover, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors.
Technically, the security is in a negative configuration in the short term as the bearish trend of the 20-day moving average, currently at USD 108.4, shows. Nevertheless, the stock seems in an oversold situation, near to its USD 100.1 support in daily data. This level and the upward trend-line might stop the bearish trend in the short term.
Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long trade in Lear Corporation in order to benefit from the USD 100 support area.
A first target price will be the USD 112.4 resistance, ie a potential of around 8%.
A stop loss order will be placed under the short-term support currently tested. Only a crossing of USD 112.4 would validate a bullish trend in order to aim a higher target price.
Lear Corporation is a global automotive technology company. The Company supplies complete seat systems, key seat components, complete electrical distribution and connection systems, high-voltage power distribution products, including battery disconnect units (BDUs), low-voltage power distribution products, electronic controllers and other electronic products to automotive manufacturers. The Companyâs segments include Seating and E-Systems. Its Seating segment consists of the design, development, engineering and manufacture of complete seat systems and key seat components. Its E-Systems segment consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems, high-voltage power distribution products, including BDUs, and low-voltage power distribution products, electronic controllers and other electronic products. Its software offerings include embedded control, cybersecurity software and software to control hardware devices.