On July 15, 2026, Lear Corp LEA shares rose 3.3%, currently priced at $140.39. This move comes amid a 52-week range between $91.67 and $150.33, reflecting a volatile market for the company. The stock has shown significant growth year-to-date, gaining 23.9%, while its performance over the last year is even more impressive at 36.9%.
- GF Valueâ„¢ verdict: Current price $140.39 vs GF Valueâ„¢ $126.06, indicating the stock is 11.4% overvalued.
- GF Scoreâ„¢: 84/100, which suggests a strong overall performance.
- Notable signal: Insiders sold $9.2M worth of stock in the last three months, indicating potential caution.
Is LEA Overvalued or Undervalued?
With the current price of Lear Corp LEA at $140.39, the stock is trading above the GF Valueâ„¢ of $126.06, marking it as 11.4% overvalued. This suggests that the shares may be priced higher than their intrinsic value, posing a risk for potential investors seeking a margin of safety. The GF Valuation label classifies the stock as modestly overvalued, indicating caution when considering new investments or additional positions in this company.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. As Lear Corp’s stock price exceeds this calculated value, investors may want to consider this overvaluation and the associated risks, including potential price corrections in the future.
How Does LEA's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 14.0x | 14.3x (5-Year Median) |
| Forward P/E | 9.5x | N/A |
The current P/E (TTM) of 14.0x is slightly below its 5-year median of 14.3x, indicating that the stock is trading at a small discount relative to its history. However, the forward P/E of 9.5x reflects a potentially more favorable outlook. This P/E analysis aligns with the GF Valueâ„¢ verdict, reinforcing the notion that LEA may be modestly overvalued at its current price point.
What Does LEA's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 84/100 |
| Financial Strength | 6/10 |
| Profitability | 8/10 |
| Growth | 6/10 |
| Valuation | 7/10 |
| Momentum | 9/10 |
The overall GF Scoreâ„¢ of 84/100 indicates a strong performance across multiple dimensions. The strongest area is the momentum rank at 9/10, signaling considerable recent price strength. Conversely, the financial strength rank of 6/10 is the weakest aspect, suggesting some caution regarding the company's financial stability. Despite this, the profitability rank of 8/10 indicates robust profit generation capabilities, which may offset some concerns about financial health.
What Are Insiders Doing with LEA Stock?
In recent months, insider activity at Lear Corp has shown no signs of buying, with insiders selling a total of $9.2 million worth of stock. This trend may suggest a lack of confidence among insiders regarding the stock’s current valuation or future performance. The absence of insider buying could indicate that those with the most intimate knowledge of the company are not optimistic about the stock at its current price.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, Lear Corp LEA is currently overvalued. With the stock trading at a significant premium to its intrinsic value, potential investors should approach with caution while considering this overvaluation.
For the complete analysis, visit the Lear Corp LEA stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is LEA's GF Scoreâ„¢?
LEA's GF Scoreâ„¢ is 84/100, which indicates a strong overall performance and potential for higher long-term returns based on the company's financial metrics.
Is LEA overvalued or undervalued?
LEA is currently overvalued, with a GF Valueâ„¢ of $126.06 compared to its current price of $140.39, marking it as 11.4% overvalued.
What is LEA's P/E ratio?
LEA's P/E (TTM) ratio is 14.0x, which is slightly below its 5-year median of 14.3x, indicating that it is trading at a small discount relative to its historical valuations.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
