Have you been paying attention to shares of Garrett Motion (GTX)? Shares have been on the move with the stock up 9.9% over the past month. The stock hit a new 52-week high of $15.75 in the previous session. Garrett Motion has gained 65.3% since the start of the year compared to the 10.4% gain for the Zacks Auto-Tires-Trucks sector and the 3.2% return for the Zacks Automotive - Original Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 23, 2025, Garrett Motion reported EPS of $0.38 versus consensus estimate of $0.33 while it beat the consensus revenue estimate by 4.24%.
For the current fiscal year, Garrett Motion is expected to post earnings of $1.39 per share on $3.54 in revenues. This represents a 10.32% change in EPS on a 1.75% change in revenues. For the next fiscal year, the company is expected to earn $1.56 per share on $3.56 in revenues. This represents a year-over-year change of 11.57% and 0.62%, respectively.
Valuation Metrics
While Garrett Motion has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Garrett Motion has a Value Score of A. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 10.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.5X. On a trailing cash flow basis, the stock currently trades at 7.8X versus its peer group's average of 7.8X. Additionally, the stock has a PEG ratio of 0.62. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Garrett Motion an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Garrett Motion currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Garrett Motion meets the list of requirements. Thus, it seems as though Garrett Motion shares could have a bit more room to run in the near term.
How Does GTX Stack Up to the Competition?
Shares of GTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BRP Inc. (DOOO). DOOO has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. BRP Inc. beat our consensus estimate by 103.03%, and for the current fiscal year, DOOO is expected to post earnings of $3.28 per share on revenue of $5.91 billion.
Shares of BRP Inc. have gained 10.2% over the past month, and currently trade at a forward P/E of 20.32X and a P/CF of 8.8X.
The Automotive - Original Equipment industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GTX and DOOO, even beyond their own solid fundamental situation.
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Garrett Motion Inc. (GTX): Free Stock Analysis Report BRP Inc. (DOOO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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