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.
GNTX in +1.71% Uptrend, advancing for three consecutive days on June 27, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where GNTX advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 30, 2025. You may want to consider a long position or call options on GNTX as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GNTX just turned positive on June 24, 2025. Looking at past instances where GNTX's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
GNTX moved above its 50-day moving average on June 26, 2025 date and that indicates a change from a downward trend to an upward trend.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The 10-day moving average for GNTX crossed bearishly below the 50-day moving average on May 29, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 01, 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 Aroon Indicator for GNTX entered a downward trend on June 27, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (3.618) is normal, around the industry mean (12.597). P/E Ratio (19.641) is within average values for comparable stocks, (41.812). GNTX's Projected Growth (PEG Ratio) (1.650) is slightly higher than the industry average of (0.991). GNTX has a moderately low Dividend Yield (0.013) as compared to the industry average of (0.029). P/S Ratio (3.611) is also within normal values, averaging (21.251).
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. GNTX’s price grows at a lower 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 worse than 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 81, placing this stock worse than average.
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General Information
a manufacturer of automotive and fire protection products
Industry AutoPartsOEM