Gentex Corp. hits lower rail of trend channel ahead of earnings
Gentex Corp. (Nasdaq: GNTX) is set to release third quarter earnings results on October 18 and the automotive equipment manufacturer is expected to report earnings of $0.42 per share and that would match the results from last year. The company manufactures auto-dimming mirrors, and other electronic items for automobile manufacturers.
Over the last three years, the company has been able to grow earnings at a rate of 16% per year, but earnings are only expected to grow by 4% in 2019. Sales have grown at a rate of 4% per year over the last three years and are expected to increase by 2.8% this year.
Looking at some of the fundamental indicators from Tickeron’s Fundamental Analysis Overview, the Tickeron Profit vs. Risk Rating for Gentex is 24. This indicates low risk on high returns. The average Profit vs. Risk Rating for the industry is 91, placing this stock well above average.
The Tickeron PE Growth Rating for Gentex is 27 and that points to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents. A rating of 1 indicates highest PE growth while a rating of 100 indicates lowest PE growth.
The Tickeron Valuation Rating for Gentex is 33 and that indicates that the company is slightly undervalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.
The chart for Gentex shows that the stock has been trending higher since late March and a trend channel has formed in the last six months. The stock recently hit the lower rail of the channel as the overbought/oversold indicators have reached oversold territory.
The daily stochastic readings are the lowest they have been since February and they made a bullish crossover on October 9. The 10-day RSI reached its lowest level of the past nine months and has since turned higher.
In addition to the oversold readings from the stochastics and RSI, the stock broke below the lower Bollinger Band earlier in October. In 28 of 44 cases where GNTX's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued uptrend are 64%.
Sentiment toward Gentex is rather bearish, especially the analysts’ ratings. There are currently nine analysts covering the stock with only one “buy” rating. There are five “hold” ratings and three “sell” ratings. This puts the buy percentage at 11.1% and that is one of the lowest buy percentages I have seen recently.
The short interest ratio is currently at 3.89 and that is slightly above average.
When viewing the sentiment, I prefer to use it in a contrarian manner, but you don’t want to be contrarian just for the sake of betting against other investors or analysts. The idea is that you have bearish sentiment toward a stock that has been moving higher and a company with strong fundamentals. Gentex certainly seems to fit that scenario.
Aroon Indicator for GNTX shows an upward move is likely
GNTX's Aroon Indicator triggered a bullish signal on August 29, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 174 similar instances where the Aroon Indicator showed a similar pattern. In of the 174 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 13, 2025. You may want to consider a long position or call options on GNTX as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for GNTX moved above the 200-day moving average on August 29, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GNTX advanced for three days, in of 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for GNTX moved out of overbought territory on August 28, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 similar instances where the indicator moved out of overbought territory. In of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for GNTX turned negative on August 15, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GNTX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GNTX broke above its upper Bollinger Band on July 25, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.530) is normal, around the industry mean (2.140). P/E Ratio (15.825) is within average values for comparable stocks, (44.429). Projected Growth (PEG Ratio) (1.153) is also within normal values, averaging (1.240). Dividend Yield (0.017) settles around the average of (0.030) among similar stocks. P/S Ratio (2.654) is also within normal values, averaging (85.553).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GNTX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GNTX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
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General Information
a manufacturer of automotive and fire protection products
Industry AutoPartsOEM
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