GTES - Short-Cycle Sentiment Keeping Gates Industrial Locked Down

• Gates has posted two more good quarters, with strong above-market revenue growth and very good incremental margins, but the Street has responded with a shrug.
• Over the longer term, electrification of personal transportation offers growth opportunities for Gates in pumps, hoses, and belts, while automation can accelerate/facilitate industrial chain-to-belt transitions.
• Institutions don't seem interested in short-cycle names, and growth is going to decelerate from here, but the longer-term return potential is getting more interesting.

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