Tech Stocks to Buy: Delphi Automotive (DLPH)
Delphi Automotive PLC’s (NYSE:DLPH) businesses span the future of cars: infotainment, ADAS/autonomous driving, electrical/electronic content, sensors, connectors, driver interface and electric vehicle products such as battery chargers. Buying Delphi stock offers a way to play the future automotive trend with a single stock.
However, Delphi, like TE Connectivity, is a fairly large firm and unlikely to be acquired by another company.
Delphi is becoming more technology intensive, inking deals with Silicon Valley firms. Last year, Delphi invested in Tula, which produces software algorithms that save fuel by making cylinder deactivation more efficient. DLPH also invested in Quanergy, a startup making LiDAR systems. According to Delphi CEO Kevin Clark, Delphi sells products using 20 billion lines of code a day, and this will increase to 200 billion by 2020.
Delphi stock trades at 16.4 times earnings, 10.7 times forward earnings and 7.4 times book value. Delphi stock trades at 13.7% below its 52-week high.