Sensata's (ST)
strong record as a supplier of sensors and controls to multiple markets
(but primarily auto OEMs) didn't really protect the shares when growth
started to slow in 2015 and 2016, and investors began to worry that
newer entrants like Amphenol (APH) and TE Connectivity (TEL)
were pushing the company aside. While the 2015-2017 period was not a
great one for the company, it looks like the prophets of doom went a
little overboard, as Sensata's growth has been recovering and with it
the share price as well.
I liked Sensata shares back in May of 2017
when they traded below $40, but it's harder for me to argue that
there's substantial undervaluation now. What's more, light vehicle
production isn't looking so strong outside of China, and we're in the
later part of the semiconductor cycle. I like the prospects for Sensata
to continue growing content and diversifying beyond autos, but I don't
see the shares as particularly undervalued anymore.
Read the full article here:
Sensata Back To A More Reasonable Level
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