Reasons Why You Should Retain Aptiv Stock in Your Portfolio

Shares of Aptiv APTV have gained 4.6% over the past month, outperforming the industry’s 3.1% growth. The company’s fourth-quarter 2025 earnings are expected to increase 2.3% year over year. Its 2025 and 2026 earnings are expected to rise 23.5% and 8%, respectively. Revenues are expected to grow 2.9% in 2025 and 3.5% in 2026.

Factors That Augur Well for APTV

APTV’s revenue growth is driven by its strong system integration capabilities. Rising demand for driver-assistance systems (ADAS) by automakers in the connected-car market is leading the company to innovate. In the third quarter of 2025, it launched a new Gen 8 radar, enabling enhanced hands-free driving with improved cost and efficiency and a high-performance cockpit controller for Mahindra's high-volume electric SUVs.

Aptiv PLC Revenue (TTM)

Aptiv PLC revenue-ttm | Aptiv PLC Quote

One of APTV’s recent acquisitions, Wind River, a software company, offers APTV new business across multiple end markets. Its offerings include cloud solutions for Black Box, which provides digital infrastructure, software and VxWorks RTOS (Real-time Operating System) for safety and reliability of mission-critical applications.

APTV  forged partnerships with Latent AI, bringing AI capabilities to real-time edge platforms for mission-critical infrastructure and Toradex, which provides integration between hardware and software, making product development fast and easy. The company’s "smart architecture" also provides a competitive advantage. It uses local Original Equipment Manufacturers to offer its products to foreign customers, especially in China.

APTV’s current ratio was 1.79 at the end of the third quarter of 2025, up from 1.5 in the year-ago quarter. Although it is slightly below the industry's average of 1.81, a current ratio above 1 indicates that the company can pay off its short-term debt efficiently.

A Risk

APTV operates in a competitive market with companies such as Bosch, Continental, Magna and Denso. This makes it challenging to balance growth and profitability while continuously innovating, differentiating offerings, and maintaining cost efficiency.

Zacks Rank & Stocks to Consider

APTV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

A couple of better-ranked stocks in the industry are BorgWarner BWA and Atmus Filtration Technologies ATMU.

BorgWarner carries a Zacks Rank #2 (Buy) at present. BWA has a long-term earnings growth expectation of 10.2%. The company delivered an average trailing four-quarter earnings surprise of 11%.

Atmus Filtration Technologies also holds a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 5.8%. ATM delivered a trailing four-quarter earnings surprise of 10.7% on average.

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This article originally published on Zacks Investment Research (zacks.com).

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