After spending much of the past six months at a less-than-impressive two-star rank, Lear
After emerging from bankruptcy protection last year with a leaner balance sheet, Wall Street analysts and CAPS members have begun to take a fresh look at the stock. Coupled with a recovering auto market and an improved outlook from Lear, investors like the company's chances now that the heavy debt burden has been eased.
Lear counts every major auto manufacturer as a customer of its seats and electrical components, and the company got off to a good start for the year, with a swing back to a first-quarter profit from a year-ago loss and a 36% jump in revenue. With vehicle production volumes increasing in North America as well as multiple emerging markets, demand for Lear's products has been strong.
Lear shares a similar view of the improving market as competitor Johnson Controls
Two of Lear's largest customers, GM and Ford
While the recovery of the U.S. auto market is good for Lear, the company sees even bigger potential outside of North America, where it generated 70% of its 2009 sales. India's Tata Motors
Do you think Lear deserves its raised status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company.
The Motley Fool Stock Advisor service looks for companies with strong management poised to beat the market over the long haul. To see all the stocks that have helped Tom and David Gardner beat the market by 60 points on average, take a free 30-day trial.
Fool contributor Dave Mock is contemplating upgrading his car seat with one of those beaded massage covers. He owns no shares of companies mentioned here. Ford Motor is a Stock Advisor selection. The Fool's disclosure policy is getting close to the four-minute mile, but every second gets harder and harder now.