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Gates Industrial Corporation pl (GTES) Stock Analysis

Range Bound setup

Buy WaitVALUE-TRAP 2/5Moderate Confidence

Industrials · Specialty Industrial Machinery

Earnings in 0 days (2026-05-01). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Wait for pullback to $24.15. At $25.40 the A.R:R is 0.6:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $24.15 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Thin upside margin: 8.2%; Value-trap signals (2/5): Margin compression (op margin 3.4%), Material insider selling (12 sells, 0.13% of cap).

Gates Industrial manufactures power transmission belts (62% of net sales) and fluid power hoses/fittings (38%) under the Gates brand, generating $3.44B in FY2025 net sales globally. It sells primarily through aftermarket distributors and directly to OEMs across automotive,... Read more

$25.40+11.4% A.UpsideScore 5.6/10#10 of 48 Specialty Industrial Machinery
Entry $24.15(Ma50 Sticky)Stop $22.47Target $27.48(analyst − 13%)A.R:R 0.6:1Setup A.R:R 1.7:1
Analyst target$31.58+24.3%12 analysts
$27.48our TP
$25.40price
$31.58mean
$39

Wait for pullback to $24.15. At $25.40 the A.R:R is 0.6:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $24.15 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Thin upside margin: 8.2%; Value-trap signals (2/5): Margin compression (op margin 3.4%), Material insider selling (12 sells, 0.13% of cap). Chart setup: RSI 49 mid-range, Bollinger mid-band. Earnings in 0 days. Wait until post-earnings. Score 5.6/10, moderate confidence.

Passes 4/7 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 0d<=7d. Suitability: moderate.

Thesis

Rewards
No bull case signals
Risks
Thin upside margin: 8.2%
Value-trap signals (2/5): Margin compression (op margin 3.4%), Material insider selling (12 sells, 0.13% of cap)

Key Metrics

P/E (TTM)25.9
P/E (Fwd)13.4
Mkt Cap$6.3B
EV/EBITDA11.1
Profit Mgn7.3%
ROE7.9%
Rev Growth3.2%
Beta1.29
DividendNone
Rating analysts18

Quality Signals

Piotroski F9/9

Options Flow

P/C0.25bullish
IV63%elevated

Concentration Risks(10-K Item 1A)

  • LOWCustomertop ten customers24%
    10-K Item 1A: 'our top ten customers accounted for approximately 24% of our consolidated net sales and accounted for approximately 29% of our trade accounts receivable balance as of December 31, 2025'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
2.4
Quality Rank
2.9
Value Rank
8.1

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Surprise Avg
0.3
Earnings History
3.3
Erm
5.0
Earnings Timing
5.0
Earnings concerns: 2B/2MEarnings in 0 days

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Obv
1.0
Macd
3.7
Rsi
5.5
Ma Position
9.0
Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.8<4.5A.R:R 0.6 < 1.5@spotEARNINGS PROXIMITY 0d<=7dInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
49 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $21.70Resistance $26.58

Price Targets

$22
$24
$27
A.Upside+8.2%
A.R:R0.6:1
Setup A.R:R (at entry)1.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Earnings in 0 days - binary event risk
! Momentum score 3.8/10 — below 4.5 minimum
! Reward/Risk 0.6:1 at current price — below 1.5:1 minimum

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-05-01 (0d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is GTES stock a buy right now?

Wait for pullback to $24.15. At $25.40 the A.R:R is 0.6:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $24.15 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Thin upside margin: 8.2%; Value-trap signals (2/5): Margin compression (op margin 3.4%), Material insider selling (12 sells, 0.13% of cap). Chart setup: RSI 49 mid-range, Bollinger mid-band. Earnings in 0 days. Wait until post-earnings. Target $27.48 (+8.2%), stop $22.47 (−13.0%), Setup A.R:R 1.7:1. Score 5.6/10, moderate confidence.

What is the GTES stock price target?

Take-profit target: $27.48 (+11.4% upside). Target $27.48 (+8.2%), stop $22.47 (−13.0%), Setup A.R:R 1.7:1. Stop-loss: $22.47.

What are the risks of investing in GTES?

Thin upside margin: 8.2%; Value-trap signals (2/5): Margin compression (op margin 3.4%), Material insider selling (12 sells, 0.13% of cap).

Is GTES overvalued or undervalued?

Gates Industrial Corporation pl trades at a P/E of 25.9 (forward 13.4). TrendMatrix value score: 7.5/10. Verdict: Buy (Wait for Entry).

What do analysts say about GTES?

18 analysts cover GTES with a consensus score of 4.1/5. Average price target: $32.

What does Gates Industrial Corporation pl do?Gates Industrial manufactures power transmission belts (62% of net sales) and fluid power hoses/fittings (38%) under...

Gates Industrial manufactures power transmission belts (62% of net sales) and fluid power hoses/fittings (38%) under the Gates brand, generating $3.44B in FY2025 net sales globally. It sells primarily through aftermarket distributors and directly to OEMs across automotive, industrial, and energy markets. The company operates across six continents in 130+ countries.

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