Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Strattec Security (STRT) and AB Volvo (VLVLY). But which of these two stocks is more attractive to value investors?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Here is how Strattec Security (STRT) and XPEL, Inc. (XPEL) have performed compared to their sector so far this year.
Strattec Security (STRT) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Strattec Security (STRT) or AB Volvo (VLVLY). But which of these two stocks is more attractive to value investors?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Strattec Security Corporation ( STRT ) Q1 2026 Earnings Call October 31, 2025 9:00 AM EDT Company Participants Deborah Pawlowski Jennifer Slater - CEO, President & Director Mathew Pauli - Senior VP, CFO, Secretary & Treasurer Conference Call Participants John Franzreb - Sidoti & Company, LLC Presentation Operator Greetings, and welcome to the Strattec Security Corporation's First Quarter Fiscal Year 2026 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
Strattec Security (STRT) came out with quarterly earnings of $2.22 per share, beating the Zacks Consensus Estimate of $1.48 per share. This compares to earnings of $0.92 per share a year ago.
Strattec continues to impress with revenue growth, improved margins, and strong cash flow, validating my ongoing buy rating. Operational efficiencies and working capital management have driven profitability and a robust net cash position. Management guides for flat to slightly declining revenues in 2026, but expects further margin improvements and cautious cash management amid auto market uncertainty.
Strattec Security (STRT) came out with quarterly earnings of $2.06 per share, beating the Zacks Consensus Estimate of $1.07 per share. This compares to earnings of $2.39 per share a year ago.
STRT's Q4 results arrive on Aug. 14, with forecasts showing modest revenue growth but a sharp earnings drop from last year.
Strattec has executed a strong turnaround, expanding margins and cash flow through pricing, cost cuts, and operational improvements, despite a turbulent auto market. The company's balance sheet is robust, with no parent-level debt, rising cash, and prudent capital allocation, positioning it to weather industry volatility. Risks include customer concentration, wage inflation in Mexico, and tariff volatility, but Strattec is largely insulated from direct tariff impacts.