Lear Stock Buy Hold or Sell Recommendation

LEA
 Stock
  

USD 140.79  3.45  2.39%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Lear Corporation is 'Strong Hold'. Macroaxis provides Lear buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Lear positions. The advice algorithm takes into account all of Lear's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Lear's buy-and-hold perspective. Additionally, see Lear Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Lear and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Lear Corporation.

Execute Lear Buy or Sell Advice

The Lear recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Lear Corporation. Macroaxis does not own or have any residual interests in Lear Corporation or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Lear's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell LearBuy Lear
Strong Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Lear Corporation has a Risk Adjusted Performance of 0.0517, Jensen Alpha of (0.017276), Total Risk Alpha of (0.041333), Sortino Ratio of 0.0025 and Treynor Ratio of 0.053
Macroaxis provides trade recommendations on Lear to complement and cross-verify current analyst consensus on Lear. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Lear is not overpriced, please verify all Lear Corporation fundamentals, including its operating margin, shares owned by institutions, price to sales, as well as the relationship between the shares outstanding and price to earning . Given that Lear has a price to book of 1.93 X, we recommend you to check Lear market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Lear Trading Alerts and Improvement Suggestions

Lear Returns Distribution Density

The distribution of Lear's historical returns is an attempt to chart the uncertainty of Lear's future price movements. The chart of the probability distribution of Lear stock daily returns describes the distribution of returns around its average expected value. We use Lear Corporation price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Lear returns is essential to provide solid investment advice for Lear.
Mean Return0.08Value At Risk-4
Potential Upside4.60Standard Deviation2.56
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Lear historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Lear Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(594.5 M)(677 M)(603.9 M)(452.3 M)(585.1 M)(631.29 M)
Depreciation Amortization and Accretion427.7 M484.4 M509.9 M539.9 M573.9 M530.68 M
Net Cash Flow or Change in Cash and Cash Equivalents228.8 M19.4 M(9.4 M)(195.9 M)6.8 M7.34 M
Net Cash Flow Business Acquisitions and Disposals(499.2 M)(155.9 M)(292.4 M)(321.7 M)(289.53 M)(312.39 M)
Issuance Purchase of Equity Shares(450.5 M)(704.9 M)(384.7 M)(70 M)(100.3 M)(108.22 M)
Issuance Repayment of Debt Securities(13.4 M)1,000 K354.8 M(38.4 M)247 M196.45 M
Payment of Dividends and Other Cash Distributions(88.8 M)(137.7 M)(186.3 M)(67.3 M)(106.7 M)(115.12 M)
Net Cash Flow from Financing(742 M)(1.03 B)(361.9 M)(411.7 M)(13.6 M)(14.67 M)
Net Cash Flow from Investing(868.6 M)(693.5 M)(922.4 M)(468.8 M)(646.7 M)(697.76 M)
Net Cash Flow from Operations1.78 B1.78 B1.28 B663.1 M670.1 M807.45 M
Effect of Exchange Rate Changes on Cash56.3 M(36.4 M)(9.4 M)21.5 M(3 M)(3.24 M)
Share Based Compensation70.2 M41.4 M23.3 M40 M60.3 M53.69 M

Lear Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lear or Auto Components sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lear's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lear stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.02
β
Beta against NYSE Composite1.36
σ
Overall volatility
2.63
Ir
Information ratio 0.0024

Lear Volatility Alert

Lear Corporation currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of -0.02. However, we advise investors to further question Lear Corporation expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lear's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lear's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Lear Fundamentals Vs Peers

Comparing Lear's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lear's direct or indirect competition across all of the common fundamentals between Lear and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lear or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lear's fundamental indicators could also be used in its relative valuation, which is a method of valuing Lear by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Lear to competition
FundamentalsLearPeer Average
Return On Equity0.07 %(0.31) %
Return On Asset0.0352 %(0.14) %
Profit Margin0.0114 %(1.27) %
Operating Margin0.0365 %(5.51) %
Current Valuation10.05 B16.62 B
Shares Outstanding59.11 M571.82 M
Shares Owned by Insiders0.21 %10.09 %
Shares Owned by Institutions99.73 %39.21 %
Number of Shares Shorted1.51 M4.71 M
Price to Earning54.89 X28.72 X
Price to Book1.93 X9.51 X
Price to Sales0.42 X11.42 X
Revenue19.26 B9.43 B
Gross Profit1.48 B27.38 B
EBITDA1.18 B3.9 B
Net Income373.9 M570.98 M
Cash and Equivalents1.32 B2.7 B
Cash per Share14.00 X5.01 X
Total Debt2.6 B5.32 B
Debt to Equity0.72 %48.70 %
Current Ratio1.33 X2.16 X
Book Value Per Share72.63 X1.93 K
Cash Flow from Operations670.1 M971.22 M
Short Ratio2.70 X4.00 X
Earnings Per Share3.86 X3.12 X
Price to Earnings To Growth0.39 X4.89 X
Target Price152.88
Number of Employees160.1 K18.84 K
Beta1.5-0.15
Market Capitalization8.53 B19.03 B
Total Asset13.35 B29.47 B
Retained Earnings4.05 B9.33 B
Working Capital1.47 B1.48 B
   Acquisition by Marianne Vidershain of 682 shares of Lear Corp subject to Rule 16b-3 [view details]

Lear Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Lear . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Lear Buy or Sell Advice

When is the right time to buy or sell Lear Corporation? Buying financial instruments such as Lear Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables2.98 B3.27 B3.04 B2.69 B
Inventories1.26 B1.4 B1.57 B1.26 B

Use Investing Ideas to Build Portfolios

In addition to having Lear in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Sport Products Thematic Idea Now

Sport Products
Sport Products Theme
Companies manufacturing sporting goods and accessories. The Sport Products theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sport Products Theme or any other thematic opportunities.
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Additionally, see Lear Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Lear information on this page should be used as a complementary analysis to other Lear's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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Is Lear's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lear. If investors know Lear will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lear listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.61) 
Market Capitalization
8.5 B
Quarterly Revenue Growth YOY
0.23
Return On Assets
0.0352
Return On Equity
0.0699
The market value of Lear is measured differently than its book value, which is the value of Lear that is recorded on the company's balance sheet. Investors also form their own opinion of Lear's value that differs from its market value or its book value, called intrinsic value, which is Lear's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lear's market value can be influenced by many factors that don't directly affect Lear's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lear's value and its price as these two are different measures arrived at by different means. Investors typically determine Lear value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lear's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.