Profit from self-driving cars with Aptiv

Article Excerpt

Computer chip and labour shortages as a result of COVID-19 continue to impact auto production. That, in turn, has slowed revenue and earnings at companies such as Aptiv that make auto parts. Even so, the stock is still up more than 40% since the company spun off its powertrain operations in 2017. Aptiv recently announced a major acquisition that will help it profit as more automakers develop self-driving vehicles. The company is also benefiting from the shift to electric vehicles, which need more of its parts than traditional cars. Moreover, it could become an attractive takeover target for a larger firm. APTIV PLC $146 is a spinoff buy. The company (New York symbol APTV; Manufacturing & Industry sector; Shares outstanding: 270.5 million; Market cap: $39.5 billion; No dividend paid; Takeover Target Rating: Medium; www.aptiv.com) provides electronics hardware and software for self-driving cars. It has two operating segments: Signal and Power Solutions (74% of 2021 revenue) and Advanced Safety and User Experience (26%). The company has 155,000…