Sensata Performing Better, But Still Not Convincing The Bears

As was the case when I last wrote about Sensata (ST), shares of this leading mechanical sensor and control company remain stuck between the mid-$40s and mid-$50s, as bearish concerns about near-term weakness in auto builds and long-term substitution threats battle against bullish rebuttals based on strong existing market shares and expanding market opportunities.

While Sensata's second-quarter results were pretty good, it's not likely going to be enough to really change anybody's mind. The shares can move higher if and when more financial reports support the content growth thesis of the bulls, and likewise if the company can effectively deploy more capital into M&A, but weaker auto builds and the looming threat of weaker truck orders will continue to be a factor in sentiment.

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Sensata Performing Better, But Still Not Convincing The Bears