Garrett Motion (GTX) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
A strong stock as of late has been Garrett Motion (GTX). Shares have been marching higher, with the stock up 41.5% over the past month. The stock hit a new 52-week high of $27.39 in the previous session. Garrett Motion has gained 54.6% since the start of the year compared to the -7.6% gain for the Zacks Auto-Tires-Trucks sector and the 2.1% return for the Zacks Automotive - Original Equipment industry.
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 30, 2026, Garrett Motion reported EPS of $0.49 versus consensus estimate of $0.42 while it beat the consensus revenue estimate by 2.23%.
For the current fiscal year, Garrett Motion is expected to post earnings of $1.83 per share on $3.79 in revenues. This represents a 20.39% change in EPS on a 5.66% change in revenues. For the next fiscal year, the company is expected to earn $2.1 per share on $3.88 in revenues. This represents a year-over-year change of 14.96% and 2.51%, respectively.
Though Garrett Motion has recently hit a 52-week high, what is next for Garrett Motion? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Garrett Motion has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.2X. On a trailing cash flow basis, the stock currently trades at 12.6X versus its peer group's average of 9.5X. Additionally, the stock has a PEG ratio of 0.9. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Garrett Motion currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Garrett Motion passes the test. Thus, it seems as though Garrett Motion shares could still be poised for more gains ahead.
Shares of GTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PHINIA Inc. (PHIN). PHIN has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. PHINIA Inc. beat our consensus estimate by 40.22%, and for the current fiscal year, PHIN is expected to post earnings of $6.36 per share on revenue of $3.71 billion.
Shares of PHINIA Inc. have gained 7.7% over the past month, and currently trade at a forward P/E of 12.32X and a P/CF of 8.46X.
The Automotive - Original Equipment industry may rank in the bottom 77% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for GTX and PHIN, even beyond their own solid fundamental situation.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X $TWTR Imaging which shot up +129.6% in little more than 9 months.
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Garrett Motion Inc. (GTX): Free Stock Analysis Report
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