Long Position on VC @ $148.00 on 11/25/2022 (Momentum)

Visteon Corporation (VC) engineers, designs, and manufactures automotive electronics and connected car solutions for vehicle manufacturers worldwide. 

The company provides instrument clusters, including analog gauge clusters to 2-D and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as 3-D, active privacy, TrueColor enhancement, cameras, optics, haptic feedback, and light effects; and Phoenix, a display audio and embedded infotainment platform, as well as onboard artificial intelligence-based voice assistant with natural language understanding.

It also offers wired and wireless battery management systems; telematics control unit to enable secure connected car services, software updates, and data; and head-up displays.

In addition, the company provides SmartCore, an automotive-grade, integrated domain controller; DriveCore, a platform for addressing multiple levels of vehicle automation; and body domain modules, which integrate various functions, such as central gateway, body controls, comfort, and vehicle access solutions into one device. 

Shares have formed a bullish "cup and handle" following the company's latest quarterly report. On October 27th, VC reported 3rd Quarter September 2022 earnings of $1.58 per share on revenue of $1.0 billion. The consensus earnings estimate was $1.23 per share on revenue of $822.5 million.  Revenue grew 62.6% on a year-over-year basis.

Guided Higher: The company said it expects 2022 revenue of $3.60 billion to $3.70 billion. The company's previous guidance was revenue of $3.15 billion to $3.35 billion and the consensus revenue estimate was $3.25 billion for the year ending December 31, 2022. Higher share prices are expected.

Entry Point: $148.00

Trading Range: $88.82 to $152.10

Stop Loss: $140.00

Target Price: $153.00

Position closed on 12/16/2022 at price of $140.00 with a -5.41% loss in 20 days.

Back to Portfolio