(C) Reuters. Adient is Setting for a Big Move, Here’s Why
A support level and a down trending resistance line have formed in the chart of Adient plc (NYSE:ADNT). This has created a trading pattern known as a descending triangle. The stock is expected to break through either level. Read more to learn how to profit from this trade.Adient plc (ADNT) began trading Oct. 31, 2016, when Johnson Controls (NYSE:JCI) spun off its automotive experience segment into this new company. The company is the leading seating supplier to the industry with about one third of the global market.
It benefits from a diverse customer base and a strong international presence. ADNT has been seeing strong revenue, driven by recovering industry volume and a healthy backlog. It has also seen new business wins from auto companies such as Honda (HMC), Toyota (TM), and Nissan (OTC:NSANY), which should help drive revenue growth.
ADNT has a current ratio of 1.1 which indicates it has more than enough liquidity to handle short-term obligations. The company has also shown strong growth as earnings have grown an average of 107.9% per year over the past three years. Analysts forecast earnings to rise 5,625% this year, leading to a Growth Grade of B in our POWR Ratings system.
Adient is Setting for a Big Move, Here’s Why
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