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.
Momentum Indicator for GNTX turns negative, indicating new downward trend
GNTX saw its Momentum Indicator move below the 0 level on June 26, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 92 similar instances where the indicator turned negative. In of the 92 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for GNTX moved out of overbought territory on June 16, 2026. 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 25 similar instances where the indicator moved out of overbought territory. In of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for GNTX turned negative on June 23, 2026. 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 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .
GNTX moved below its 50-day moving average on July 07, 2026 date and that indicates a change from an upward trend to a downward trend.
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 June 11, 2026. 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.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GNTX advanced for three days, in of 291 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 179 cases where GNTX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (1.988) is normal, around the industry mean (2.281). P/E Ratio (13.124) is within average values for comparable stocks, (77.639). Projected Growth (PEG Ratio) (0.777) is also within normal values, averaging (0.995). Dividend Yield (0.021) settles around the average of (0.025) among similar stocks. P/S Ratio (1.906) is also within normal values, averaging (63.856).
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 89, 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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