Autoliv, Inc. (ALV) Buy or Sell Stock Guide

Last updated: Sep 23, '17

The analysis below may be helpful to you if you have any of the following questions about ALV stock:

  • Is ALV a buy or a sell?
  • Should I sell or hold ALV stock today?
  • Is ALV a good buy / a good investment?
  • What are ALV analyst opinions, recommendations, ratings?

Here are ALV stock buy reasons/signals:

1. Autoliv possesses a culture that enables regular and consistent innovation, commercializing technology that generates solid margins and returns on invested capital.

2. Increasing safety content per vehicle across global markets is a growth opportunity for which Autoliv is well positioned.

3. Rising U.S. and European NCAP safety standards will require auto manufacturers to use ADAS and active safety technology to achieve a five-star crash-test rating.

4. ALV forward dividend yield is 2.20%, higher than the industry (1.02%) and sector (0.86%) forward dividend yields.

Here are ALV stock sell reasons/signals:

1. The auto-parts supply industry is highly competitive and customers expect annual, contractual price reductions.

2. The cyclical, capital-intense nature of the industry means that a modest volume decline could translate into a significant drop in profitability.

3. Raw material costs are volatile, adding a degree of uncertainty to margin.

4. ALV stock price ($125.26) is close to the 52-week high ($127.14). Perhaps now is a good time to sell?

5. ALV quarterly revenue growth was -1.30%, lower than the industry and sector average revenue growth (4.26% and 8.88%, respectively).

6. ALV PEG ratio (P/E adjusted for growth) is 2.29, and it’s high compared to its industry peers’ PEG ratios.

7. ALV average analyst price target ($108.44) is below its current price ($125.26).

8. ALV short share of float is 9.15%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

9. ALV short interest (days to cover the shorts) ratio is 14.8. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on ALV?

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