- Gentherm has gained 161.69% over the past year, but only 15.75% year-to-date.
- The stock is highly dependent on the behavior of the Global Auto Index Fund.
- The automotive sector is recovering and THRM is still catching up. I tend to believe this shouldn't last forever.
- Unfortunately, the company's valuation multiples are slightly higher than they should be. This fact may limit Gentherm's upside potential.
- Despite all the risks identified, I recommend considering THRM as a potential BUY.
For further details see:
The Auto Sector Is Recovering And Gentherm Is Still Catching Up