Garrett Motion Inc. and Its NASDAQ Standing
We have recently published a list of the 15 NASDAQ Stocks with the Lowest P/E Ratios. In this piece, we will evaluate how Garrett Motion Inc. (NASDAQ:GTX) compares to other top-performing NASDAQ stocks.
Revised Economic Projections
At the beginning of the year, economists and strategists anticipated a stronger performance from the U.S. economy in 2025, predicting continued above-trend growth in the stock market. However, current forecasts for economic growth are trending slightly downward.
Adjustments to GDP Forecasts
Economics teams at major firms like Morgan Stanley and Goldman Sachs have downgraded their GDP growth estimates for 2025. Morgan Stanley now predicts a growth rate of 1.5%, while Goldman Sachs expects it to be around 1.7%.
Market Volatility and S&P 500 Performance
The year-end targets for the S&P 500 may be overly optimistic. If the current trends continue, the S&P 500 could underperform relative to growth in 2024, consequently affecting the NASDAQ 100 index. As of March 18, the S&P 500 has seen a decrease of over 3.30%, and the NASDAQ 100 index has dropped more than 5.50%. The volatility in the markets is exacerbated by the newly implemented tariff policies from the U.S. administration.
Expert Insights on Market Stability
Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, mentioned that while the U.S. equity market may withstand some declines, the risks of a more significant drop have increased. In a communication to clients on March 9, she noted that the market could manage a 5-10% drawdown, but a more severe ‘growth scare’ of a 14-20% decline could lead to a bearish scenario.
Comments from President Trump
During a recent address to Congress, President Donald Trump discussed potential disruptions to the economy stemming from his tariff policies. In an interview with Fox Business on March 9, he stated, “There is a period of transition because what we’re doing is very big … We’re bringing wealth back to America. That’s a big thing … it takes a little time, but I think it should be great for us.”
Garrett Motion Inc.’s Financial Performance
In seeking stocks with low P/E ratios, we selected 40 NASDAQ firms with a forward P/E ratio below 10 and a market cap exceeding $150 million. We then identified 15 stocks with the lowest P/E ratios and ranked them based on hedge fund ownership as of Q4 2024. Garrett Motion Inc. (NASDAQ:GTX) is a key player in turbocharging technology and has been recognized for its strong financial health. BWS Financial recently maintained a Buy rating on GTX, highlighting its robust free cash flow and optimistic projections for the coming years.
Garrett Motion Inc. ranks 4th in our analysis of NASDAQ stocks with the lowest P/E ratios. While it shows promise as an investment, we believe that stocks in the AI sector may offer higher returns in a shorter timeframe. For those interested in a promising AI stock trading at under 5 times its earnings, additional insights can be found in our report about the cheapest AI stock.
