Valeo (OTCPK:VLEEY) (VLOF.PA) doesn't have the most liquid ADRs and it is not a household name for most American investors, but this French auto components component continues to demonstrate why it's worth following. The shares are up more than 65% from my first article on the company for Seeking Alpha, and up another 15% or so since my April update, as the company continues to post double-digit content growth and exceptional order growth that paves the way for strong revenue and earnings growth over the next three to five years.
Valeo shares still appear to be priced for double-digit annual total returns. A slowdown in car sales in Europe and/or North America looms as a risk, but Valeo is well-placed with what seem to be inevitable trends towards greater adoption of LED lighting, advanced sensors/cameras, telematics, and automobile electrification and emissions control.
Ongoing Outperformance At Valeo Continues To Build Value