NEW YORK (TheStreet) -- The connected-car market is the newest battleground for high-tech companies seeking new revenue. That has been driving interest in Mobileye N.V. (MBLY) , which makes advanced driver assistance systems.
Mobileye's technology includes a collision-avoidance system based on various cameras, sensors and software that warns drivers of potential dangers before they occur. The system, which included automated braking, "thinks ahead," as the company puts it. The company is benefiting from its partnerships with auto manufacturersincluding Ford (F) and General Motors (GM) .
But valuation and profit fears have been a concern, pressuring Mobileye stock. Shares are currently up over 3% to around $36 thanks to beating both fourth-quarter revenue and earnings estimates Thursday.
Still, shares of the Israeli company are down over 10% for the year to date, trailing the broader averages. See how it compares with other companies competing for a piece of the connected-car market below.
Compared with chipmakers Skyworks Solutions (SWKS) (up 21% for the year to date), Nvidia (NVDA) (up 10.6%) and NXP Semiconductors (NXPI) (up 12%), Mobileye's struggles stand out.
But the stock gains made by Mobileye's competitors suggest the easy money has already been made. Investors looking for value should consider Mobileye's underperformance and buy shares now.
MBLY data by YCharts
MBLY data by YCharts
The stock is trading roughly 40% below its 52-week high to $60.28 and 17% above its 52-week low. The stock has a consensus buy rating and average analysts price target of $54.50, suggesting gains of close to 50% from current levels.
Mobileye, which went public in August of last year, is not a flawless company. But investors looking for a solid near-term trade (six to 12 months) should consider the company as a value investment.
By Richard Saintvilus
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