This is the Worst Stock in the S&P 500 Today

Dow Jones
Aug 05

Companies just can't disappoint on any earnings metrics and see their stocks survive. The latest example is Aptiv.

On Tuesday, the provider of software and hardware for automotive safety and self-driving applications reported second-quarter earnings per share of $1.63 from sales of $3.3 billion. Wall Street was looking for $1.40 and $3.3 billion, respectively.

Those numbers are OK. But guidance was a problem. For the third quarter, Aptiv seeks earnings per share of about $1.30. Wall Street projects $1.60. For the full year, Aptiv sees earnings per share of about $5.70. Wall Street projects $5.91.

Shares were down 15.6% in midday trading at $48.32, while the S&P 500 was up 1.3%. That move made Aptiv the worst stock in the S&P 500, according to Dow Jones Market Data.

The "2026 guidance was lowered to reflect schedule changes, launch/ramp delays, and software timing," wrote Baird analyst Luke Juke in a Tuesday report. "Non-automotive growth was more positive (+12% year over year).... but lower guidance is set to carry the day."

Aptiv recently spun off its electrical hardware business, Versigent, partly to focus on those higher-growth non-automotive opportunities. Still, growth outside of the core car business couldn't save the quarter.

That spinoff was completed on April 1, 2026, and things are still new. Even so, when Aptiv reported first-quarter earnings on May 5 it guided earnings per share to about $5.90, so current guidance amounts to a 20-cent cut. Investors don't like cuts.

The drop leaves Aptiv stock trading for about seven times earnings expected over the coming 12 months, down from about eight times a year ago. Diversifying away from the automotive business was supposed to help the multiple. That hasn't happened yet.

Versigent stock trades for about six times earnings. Car suppliers rarely get big multiples of earnings. (The S&P 500 trades for about 2o times earnings expected over the next 12 months.)

Barron's recommended Aptive stock in August 2025, believing the spin would be a catalyst for higher valuations. It hasn't worked out that way. Investors who bought Aptiv at that time now have a share of Versigent for every three Aptiv shares held. The overall position is down about 20% in value, however, since the pick. It was off roughly 10% heading into Aptiv's second-quarter earnings report.

 

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