Lear Corporation (LEA) Stock Analysis
Range Bound setup
Consumer Cyclical · Auto Parts
Sell if holding. Engine safety override at $141.67: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: Elevated put/call ratio: 1.34; Below-average business quality; Negative price momentum.
Lear Corporation supplies complete seat systems, seat components, and electrical distribution and connection systems to global automotive OEMs through its Seating and E-Systems segments, operating 258 facilities across 36 countries. Revenue of $23.3 billion in 2025 comes from... Read more
Sell if holding. Engine safety override at $141.67: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: Elevated put/call ratio: 1.34; Below-average business quality; Negative price momentum. Chart setup: RSI 45 mid-range, Bollinger mid-band. Score 5.5/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 49d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
About Lear Corporation
About Lear Corporation
Lear Corporation posted $23.3 billion in net revenue in fiscal 2025 from 258 manufacturing, engineering and administrative locations in 36 countries, serving all of the world's major automotive manufacturers. North America accounted for $9.8 billion in sales, Europe and Africa $8.0 billion, and Asia $4.6 billion. The company holds content on more than 500 vehicle nameplates worldwide across its Seating and E-Systems segments.
Lear earns revenue through purchase orders covering a customer's requirements for a particular vehicle model and assembly plant over the program's life, rather than fixed-quantity contracts. The Seating segment produces complete seat systems alongside seat trim covers, surface materials, seat mechanisms and thermal comfort products such as heating, ventilation and active cooling. The E-Systems segment manufactures wire harnesses, connectors, high-voltage battery connection systems and zonal controllers, benefiting from higher circuit counts and high-voltage content as electrification advances. Annual price reductions are a contractual norm, compelling the company to offset the pressure through supply chain management, manufacturing efficiencies and automation investments. Chinese domestic suppliers are increasingly challenging traditional automotive suppliers for market share both in and beyond China, with potential impacts on the production levels of Lear's key OEM customers.
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Global vehicle production remains below prior peaks — the 10-K discloses that 2025 production in North America and Europe was approximately 10% and 24%, respectively, below prior peak levels, while total industry output was roughly 2% below 2017 highs. Lear's revenue moves directly with OEM production volumes, and labor agreements covering approximately 67% of the company's global unionized workforce are scheduled to expire in 2026, adding renegotiation risk at a time of persistent below-peak production.
See also: Consumer Cyclical · Auto Parts
From Lear Corporation's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-06-17Recent Developments — Lear Corporation
Latest news
- NEWS This Lear Analyst Turns Bullish; Here Are Top 4 Upgrades For Tuesday — benzinga May 26, 2026 positive
- NEWS TD Cowen Upgrades Lear to Buy, Raises Price Target to $165 — benzinga May 26, 2026 positive
- NEWS JP Morgan Maintains Overweight on Lear, Raises Price Target to $153 — benzinga May 14, 2026 positive
- NEWS RBC Capital Maintains Sector Perform on Lear, Raises Price Target to $138 — benzinga May 5, 2026 positive
- NEWS Barclays Maintains Equal-Weight on Lear, Raises Price Target to $150 — benzinga May 5, 2026 positive
Generated 2026-06-17T08:56:48Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicNorth America10-K Item 1: 'North America| $| 9,809.4 | | | $| 9,749.1 | | | 1%'
- MEDIUMGeographicEurope and Africa10-K Item 1: 'Europe and Africa| 8,029.3 | | | 8,298.4 | | | (3%)'
- LOWGeographicChina10-K Item 1: 'China (consolidated)| $| 3,041.1 | | | $| 2,969.5 | | | 2%'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $141.67: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: Elevated put/call ratio: 1.34; Below-average business quality; Negative price momentum. Chart setup: RSI 45 mid-range, Bollinger mid-band. Prior stop was $132.71. Score 5.5/10, moderate confidence.
Take-profit target: $146.55 (+3.4% upside). Prior stop was $132.71. Stop-loss: $132.71.
Target reached (-9.2% upside); Quality below floor (4.0 < 4.0); Value-trap signals (2/5): Revenue declining (-10.2% YoY), High leverage (D/E 1.6).
Lear Corporation trades at a P/E of 14.4 (forward 8.3). TrendMatrix value score: 8.2/10. Verdict: Sell.
22 analysts cover LEA with a consensus score of 3.6/5. Average price target: $148.
What does Lear Corporation do?Lear Corporation supplies complete seat systems, seat components, and electrical distribution and connection systems to...
Lear Corporation supplies complete seat systems, seat components, and electrical distribution and connection systems to global automotive OEMs through its Seating and E-Systems segments, operating 258 facilities across 36 countries. Revenue of $23.3 billion in 2025 comes from purchase orders tied to vehicle model lifecycles with all major automotive manufacturers.