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GTES

Gates IndustrialB
NYSE / Capital Goods
Last Price
At close
2026-07-21
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
Value
What changed
Value remains the lead driver in the composite, 7D delta -0.4.
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
62
Value
65
Sentiment
45
Setup hits (3d)
0 · Net Neutral
AI TargetsBase $27.00 · Bull $31.00 · Bear $20.50
Data freshness
Prices
As of 2026-07-21
Fundamentals
As of 2026-07-21 • Vendor: Data Vendor v1
Scores
As of 2026-07-21 • Model: HYBRID_IC_RP
AI Memo
As of 2026-05-04 • Model: RankAlpha Sentiment Codex
Investment thesis
As of 2026-07-21
Supporting evidence
What
Grade B · Constructive
Confidence Medium · Net Neutral
Target $31.73
Why
Momentum62 · Δ7d +7.5
Value65 · Δ7d -0.4
Sentiment45 · Δ7d -1.0
So what
Strength-led posture (Net Neutral). Favor watchlist adds and disciplined entries.
Lead driver: Value · See fundamentals
Momentum
62
26% active weight
Current posture
7d trendImproving
Δ7d
+7.5
Δ21d
-2.2
Value
65
39% active weight
Current posture
7d trendFlat
Δ7d
-0.4
Δ21d
-0.1
Sentiment
45
34% active weight
Current posture
7d trendSoftening
Δ7d
-1.0
Δ21d
+4.9
Why this grade

Composite grade B. Momentum 61.9 / Value 65.4 / Sentiment 44.8

Fundamentals (TTM)
As of 2026-07-21
Market Cap
$6.87B
Beta
1.27
Shares Out
254M
P/E (TTM)
24.7
P/S (TTM)
1.70
P/FCF (TTM)
20.33
Rev YoY
+0.4%
EPS YoY
-2.1%
Gross Margin
+40.3%
Op Margin
+13.7%
Net Debt
$1.57B
Current Ratio
3.67
As of 2026-07-21 • Updated nightlySource: Internal modelMethodology