10 Worst Affordable Stocks To Buy Right Now

4. Aptiv PLC (NYSE:APTV)

Forward P/E Ratio: 11.01

Earnings Growth This Year: 28.40%

Number of Hedge Fund Holders: 38

Short % of Shares Outstanding: 15.22%

Aptiv PLC (NYSE:APTV) is a technology company that provides key technologies for the electric vehicle industry. The company makes vehicle components that are essential for electrical systems such as wiring, connectors, power distribution systems, etc. Moreover, it is also a leading producer of safety technologies that help prevent accidents and enable autonomous driving cars. In addition the company also servers software solutions that enable automakers of next-gen cars to connect and manage their vehicles during after-sale service.

The auto tech supplier has positioned itself to profit from both the internal combustion engine and electric vehicle industries. The growth prospects and market penetration of Aptiv PLC (NYSE:APTV) can be estimated by its substantial year-over-year increase in new business bookings. Over the past 3 years, the company has continued to improve its bookings, in 2022 total bookings stood at $32 billion, which increased to $34 billion in 2023, and management now expects bookings for the current year to be above $35 billion.

The company ranks among the worst affordable stocks to buy right now. It also faced a 3% decline in year-over-year revenue in FQ2 2024. However, there is more to the story. Despite a decrease in revenue, Aptiv PLC (NYSE:APTV) reported substantial net income, which totaled $1.16 billion, with net income margins at 11.6%. Management was able to pull off profitability on the back of strong operational income and lower supply chain costs.

While there are concerns regarding the EV market, Aptiv PLC (NYSE:APTV) remains a viable investment option due to its growing bookings indicating a robust market share and operational profitability. It was held by 38 hedge funds in Q2 2024, with total stakes worth $1.03 billion. Impax Asset Management is the top shareholder with a position worth more than $437 million.

TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Aptiv PLC (NYSE:APTV) in its first quarter 2024 investor letter:

“At the beginning of the year, we sold our shares in Aptiv PLC (NYSE:APTV), which supplies automotive electronic technology for safety and entertainment systems. The company had expected significant growth from its EV components, though that segment saw much slower growth recently. With no line of sight for a rebound, we exited our position.”