Why Gates Industrial Corp. PLC (GTES) Advanced on Thursday

We recently compiled a list of the Impressive Earnings, Fresh Deals Propel Prices of These 10 Firms. In this article, we are going to take a look at where Gates Industrial Corp. PLC (NYSE:GTES) stands against the other stocks.

Wall Street’s main indices ended mixed on Thursday, with the Dow Jones the sole decliner, losing 0.28 percent.

In contrast, both the S&P 500 and the Nasdaq Composite registered gains, rising by 0.36 percent and 0.51 percent, respectively.

Amid the earnings season, 10 companies saw significant increases in their valuations, thanks to stronger-than-expected earnings reports. Additionally, several firms enjoyed rallies fueled by newly secured deals.

To come up with Thursday’s biggest advancers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A factory worker in a safety vest tightening a V-belt on a power transmission assembly.

Gates Industrial Corp. PLC (NYSE:GTES)

Gates Industrial Corp. PLC resumed its winning streak for a third consecutive day, ending Thursday’s trading up by 11.8 percent to finish at $23.22 apiece with analysts pointing to beating earnings per share (EPS) estimates as having buoyed investor sentiment.

In its latest earnings release, Gates Industrial said net income for the fourth quarter of 2024 dived by 40 percent to $41.1 million from the $69.1 million registered in the same period last year, while net profit for the full year 2024 declined by 14 percent to $219.9 million from $256.4 million year-on-year.

Net sales also dipped by 3.9 percent in the said quarter to $829.4 million from $863.3 million year-on-year, while for the full year, net sales decreased by 4.5 percent to $3.4 billion from $3.57 billion.

However, earnings per share stood at $0.36, beating analyst expectations of $0.33 by 9 percent.

Overall GTES ranks 6th on our list of Thursday’s biggest advancers. While we acknowledge the potential of GTES as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GTES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.