10 Oversold Small Cap Stocks to Buy Right Now

6) Adient plc (NYSE:ADNT)

Market Cap (As of October 23): $1.85 billion

Forward P/E (As of October 23): 8.64x

% Decline on a YTD Basis: ~40%

Number of Hedge Fund Holders: 22

Adient plc (NYSE:ADNT) is engaged in the designing, developing, manufacturing, and marketing of seating systems and components for passenger cars, commercial vehicles, and light trucks.

Adient plc (NYSE:ADNT) maintains longstanding relationships with some of the renowned global auto original equipment manufacturers (OEMs), which should provide support to its growth trajectory. Market experts opine that the company’s technologies span virtually every area of automotive seating solutions. The company’s diverse customer base and international presence supported it in developing a healthy market position.

Adient plc (NYSE:ADNT) continues to focus on launch execution, which can act as a key building block to win new business. Considering the customer and geographic mix, Wall Street believes its market position should strengthen further. In the near term, top-line growth should stem from a strong relationship with Japanese and Asian OEMs. Adient plc (NYSE:ADNT) expects to exploit this competitive edge as several OEMs prioritize hybrid and longer-term battery electric vehicle (BEV) roll-outs. Such customers are expected to engage the company in highly integrated programs, enhancing operational efficiency.

Adient China is expected to act as a growth engine for Adient plc (NYSE:ADNT), with expected double-digit increases over the coming years. These increases are expected off the back of new and longstanding customer relationships, such as legacy manufacturers and Chinese domestic OEMs. Adient plc (NYSE:ADNT)  has been maintaining a healthy and flexible balance sheet, which supports its balanced capital allocation policy.

The company has been deploying industry-leading tools and expanding the use of AI in a bid to unlock further opportunities for savings. As per Wall Street analysts, the shares of Adient plc (NYSE:ADNT) have an average price target of $25.29.