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Is Advanced Braking Technology Limited (ASX:ABV) Still A Cheap Automobile Stock?
Advanced Braking Technology Limited (ASX:ABV), a A$13.34M small-cap, is an automobile company operating in an industry which is a major consumer of key commodities such as copper and steel, making the car manufacturers and suppliers significant players in the global economy. New opportunities driving future growth in the auto sector is connected and intelligent cars, in particular, web networking, sensors and software, which is not the traditional focus for most automobile companies. The limitation of automobile incumbents is an opportunity for tech giants such as Apple and Google to develop their own software components behind networking, autonomous and communication capabilities of automobiles. Automobile analysts are forecasting for the entire industry, a positive double-digit growth of 14.03% in the upcoming year . Should your portfolio be overweight in the automobile sector at the moment? Today, I will analyse the industry outlook, and also determine whether Advanced Braking Technology is a laggard or leader relative to its automobile sector peers. See our latest analysis for Advanced Braking Technology
What’s the catalyst for Advanced Braking Technology's sector growth?
Is Advanced Braking Technology and the sector relatively cheap?
Next Steps:
Advanced Braking Technology recently delivered an industry-beating growth rate in earnings, which is a positive for shareholders. If the stock has been on your watchlist for a while, now may be the time to buy, if you like its ability to deliver growth and are not highly concentrated in the automobile industry. However, before you make a decision on the stock, I suggest you look at Advanced Braking Technology's fundamentals in order to build a holistic investment thesis.- 1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- 2. Historical Track Record: What has ABV's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- 3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Advanced Braking Technology? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
About ASX:ABV
Advanced Braking Technology
Engages in the research, design, development, manufacture, distribution, and sale of braking solutions worldwide.
High growth potential with adequate balance sheet.
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