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GTES

Gates IndustrialB
NYSE / Capital Goods
Last Price
At close
2026-06-02
View Chart
Current thesis
The post-earnings bull read is that Q1 was a transition quarter: ERP implementation and fewer working days hurt core sales, yet order rates improved, book-to-bill was above 1, operating cash flow improved, and 2026 guidance was maintained [#8-K-2026-05-01]. Early checked sell-side reaction was constructive but not aggressive, with RBC reiterating Outperform and a $30 target while Morgan Stanley kept Equalweight and a $27 target.
Posture
Constructive
Lead driver
Momentum
What changed
Momentum remains the lead driver in the composite, 7D delta +13.3.
What can break
Balance-sheet flexibility is solid but not unconstrained, with about $2.23 billion of debt still on the balance sheet at quarter-end [#10-Q-2026-05-01].
Momentum
68
Value
63
Sentiment
48
Setup hits (3d)
0 · Net Neutral
AI TargetsBase $27.00 · Bull $31.00 · Bear $20.50
Data freshness
Prices
As of 2026-06-02
Fundamentals
As of 2026-05-29 • Vendor: Data Vendor v1
Scores
As of 2026-06-02 • Model: HYBRID_IC_RP
AI Memo
As of 2026-05-04 • Model: RankAlpha Sentiment Codex
Investment thesis
As of 2026-06-02
Supporting evidence
What
Grade B · Constructive
Confidence Medium · Net Neutral
Target $31.83
Why
Momentum68 · Δ7d +13.3
Value63 · Δ7d -0.6
Sentiment48 · Δ7d -2.8
So what
Strength-led posture (Net Neutral). Favor watchlist adds and disciplined entries.
Lead driver: Momentum · See technicals
Momentum
68
34% active weight
Current posture
7d trendImproving
Δ7d
+13.3
Δ21d
+4.8
Value
63
32% active weight
Current posture
7d trendFlat
Δ7d
-0.6
Δ21d
+0.2
Sentiment
48
33% active weight
Current posture
7d trendSoftening
Δ7d
-2.8
Δ21d
+8.4
Why this grade

Composite grade B. Momentum 67.6 / Value 62.8 / Sentiment 48.3

Fundamentals (TTM)
As of 2026-05-29
Market Cap
$6.58B
Beta
1.27
Shares Out
258.28M
P/E (TTM)
24.7
P/S (TTM)
1.70
P/FCF (TTM)
20.33
Rev YoY
+3.0%
EPS YoY
+72.5%
Gross Margin
+40.8%
Op Margin
+13.7%
Net Debt
$1.67B
Current Ratio
3.52
As of 2026-06-02 • Updated nightlySource: Internal modelMethodology