Four Stock Picks By David Einhorn That Might Be Oversold

Next up is Adient PLC (NYSE:ADNT), an Irish company specialized in the manufacturing of seating systems and components for a variety of vehicles. Since the start of the year, the stock has been in a clear downtrend, having lost 24% of its value. Lear Corporation (NYSE:LEA), that is also engaged in the manufacturing of seating systems, has been oscillating between $180 and $200 per share since the beginning of 2018, currently up by 2.3% for the year.

The first trigger of Adient PLC (NYSE:ADNT)’s recent decline was the announcement of a joint venture with Boeing Co (NYSE:BA) on January 17. Boeing was facing increased costs due to delays in airplane deliveries mainly due to bottlenecks in supply of airplane interior parts. So, it decided to team up with Adient to create Adient Aerospace, a company that will develop seats for airplanes. Market participants reacted angrily, as Adient’s stock fell nearly 10% at market open. At the end of January, Adient PLC (NYSE:ADNT) issued its financial report for the fiscal first quarter. The company posted adjusted earnings of $1.06 per share, missing analysts’ estimates of $1.11 per share. Revenues came in at $4.2 billion, also below Wall Street’s expectations of $4.32 billion. Investors pushed the stock 7.5% lower following the release of the report.

A maker of mattresses and other bedding products, Tempur Sealy International Inc (NYSE:TPX) saw its stock plunge 22% since the start of 2018. By comparison, the stock of Sleep Number Corp (NASDAQ:SNBR), one of its main competitors, fell by only 8.9% during the same period of time. Analysts recommend Tempur Sealy International Inc (NYSE:TPX) mainly as a Buy and have a consensus price target of $66.43 per share, which implies and upside potential of 36% given today’s closing price of $48.74 per share.

Tempur Sealy International Inc (NYSE:TPX) stock started downhill in November 2017 after the company’s third quarter financial report. Tempur Sealy reported falling revenues and margins, and investors carried out the sentence in the stock market. Although shares regained some of the losses, they resumed their downtrend in 2018. The company’s latest earnings poured more fuel on the fire. Tempur Sealy reported revenue of $648 million and adjusted earnings of $0.79, missing analysts’ estimates of $679 million in revenue and $0.82 in earnings per share. The company’s management said it is “a much stronger company” in 2018 as it adapts to changing consumer’s purchasing habits.

Disclosure: none.