Lear Set To Acquire EXO Technologies To Boost GPS Capability

Lear Corp. (NYSE:LEA) has inked a deal to acquire Israel-based EXO Technologies, engaged in developing innovative software-based solutions for GPS. The acquisition is likely to provide Lear with a different technology to considerably enhance GPS accuracy and reliability. This will in turn improve vehicle safety and assist in autonomous driving.

With its operations in San Mateo, California and Tel Aviv, Israel, EXO Technologies offers precise solutions for autonomous and connected vehicle applications. This tie up is likely to bolster Lear’s connectivity capabilities and aid its E-Systems business, as growth of autonomous and connected vehicles will boost demand for improved reliability and accuracy in vehicle positioning.

Lear is a leading supplier of automotive seating systems, electrical distribution systems and electronics. The company’s shares have outperformed the industry over the past three months. The stock rallied 11.4% compared with 4.3% growth of the industry it belongs to.


Currently, Lear has a Zacks Rank #3 (Hold).

A few better-ranked automobile stocks in the same space are Allison Transmission Holdings, Inc. (NYSE:ALSN) , AB Volvo (OTC:VLVLY) and Wabco Holdings Inc. (NYSE:WBC) . While Allison Transmission and Volvo sport a Zacks Rank #1 (Strong Buy), Wabco Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has a long-term growth rate of 10%. Shares of the company have gained 24.4% year to date.

Volvo has a long-term growth rate of 15%. Shares of the company have gained 61.3% year to date.

Wabco Holdings has a long-term growth rate of 15%. Its shares have rallied 36.3% on a year-to-date basis.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Lear Corporation (LEA): Free Stock Analysis Report

Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report

Wabco Holdings Inc. (WBC): Free Stock Analysis Report

Volvo Ab (VLVLY): Free Stock Analysis Report

Original post

Zacks Investment Research