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Gates Industrial Corporation pl (GTES) Stock Analysis

SellModerate Confidence

Industrials · Specialty Industrial Machinery

Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $23.50 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Sector modifier (Industrials): -0.7.

Gates Industrial manufactures power transmission belts (62% of 2025 net sales) and fluid power products including hydraulic hoses and fittings (38%) for aftermarket and OEM customers in 130+ countries; $3.44B net sales in Fiscal 2025. ~68% of net sales are aftermarket and ~32%... Read more

$23.50+15.0% A.UpsideScore 5.7/10#10 of 48 Specialty Industrial Machinery
QualityF-score9 / 9FCF yield6.12%
Stop $22.17Target $26.97(analyst − 13%)A.R:R 1.8:1
Analyst target$31.00+31.9%12 analysts
$26.97our TP
$23.50price
$31.00mean
$37

Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $23.50 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Sector modifier (Industrials): -0.7. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.7/10, moderate confidence.

Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 70d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.

Val7.9Qual5.9Grw6.3Mom2.6Sent7.1Ins5.0Peer2.9Tech7.8Risk4.85.7OVERALL

Recent Developments — Gates Industrial Corporation pl

Latest news

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Risks
Sector modifier (Industrials): -0.7
Negative momentum

Key Metrics

P/E (TTM)24.7
P/E (Fwd)12.6
Mkt Cap$6.0B
EV/EBITDA10.9
Profit Mgn7.2%
ROE7.7%
Rev Growth0.4%
Beta1.28
DividendNone
Rating analysts18

Quality Signals

Piotroski F9/9

Options Flow

P/C144.64bearish
IV45%normal
Max Pain$21-10.6% vs spot

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'
  • MEDIUMGeographicU.S. revenues37%
    10-K Item 1A: 'Approximately 37% of our Fiscal 2025 revenues were generated from customers in the U.S.'

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

Rating Breakdown

2 floor-breakers

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Obv
1.0
Ma Position
2.2
Rsi
4.5
Volume
5.1
Volume distribution (falling OBV)Below 200-MA but MA still rising (+0.7%/30d) — pullback in uptrend, not confirmed weakness

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

Growth Rank
1.1
Quality Rank
2.8
Value Rank
7.8
GatesMomentum 2.6<4.5A.R:R 1.8 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 70d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
42 · Neutral
↓ 20D MA↓ 50D MA↓ 200D MAGOLDEN CROSSSupport $22.86Resistance $26.99

Price Targets

$22
$27
A.Upside+14.8%
A.R:R1.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 2.6/10 — below 4.5 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-30 (70d)

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?

Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $23.50 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Sector modifier (Industrials): -0.7. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $22.17. Score 5.7/10, moderate confidence.

What is the GTES stock price target?

Take-profit target: $26.97 (+15.0% upside). Prior stop was $22.17. Stop-loss: $22.17.

What are the risks of investing in GTES?

Sector modifier (Industrials): -0.7; Negative momentum.

Is GTES overvalued or undervalued?

Gates Industrial Corporation pl trades at a P/E of 24.7 (forward 12.6). TrendMatrix value score: 7.9/10. Verdict: Sell.

What do analysts say about GTES?

18 analysts cover GTES with a consensus score of 4.1/5. Average price target: $31.

What does Gates Industrial Corporation pl do?Gates Industrial manufactures power transmission belts (62% of 2025 net sales) and fluid power products including...

Gates Industrial manufactures power transmission belts (62% of 2025 net sales) and fluid power products including hydraulic hoses and fittings (38%) for aftermarket and OEM customers in 130+ countries; $3.44B net sales in Fiscal 2025. ~68% of net sales are aftermarket and ~32% OEM; no single customer exceeds 10% of net sales.

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