Gates Industrial Corp. (NYSE:GTES) is one of the worst-performing stocks on Wednesday, falling 12.86% and closing at $22.50 per share as investors sold off positions due to lower core sales growth outlook for full-year 2025. EBITDA was revised to $770-790 million from $765-795 million.

In the third quarter, Gates Industrial Corp. (NYSE:GTES) saw better earnings performance, with revenues growing 3% to $855.7 million and net income attributable to shareholders jumping 71.4% to $81.6 million year-on-year. CEO Ivo Jurek highlighted solid growth in Automotive Replacement and Personal Mobility sectors.

Despite the potential of GTES as an investment, some believe AI stocks hold greater promise for higher returns with limited downside risk. A report recommends an extremely cheap AI stock that benefits from Trump tariffs and onshoring. Gates Industrial Corp. (NYSE:GTES) is optimistic about its business prospects in the mid-term.

Read more at Yahoo Finance: Gates Industrial (GTES) Falls 12.86% on Lower Sales Growth