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Magna (MGA) Gains But Lags Market: What You Should Know
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In the latest trading session, Magna (MGA - Free Report) closed at $79.88, marking a +0.05% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.34%.
Prior to today's trading, shares of the automotive supply company had gained 6.11% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 1.92% and the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from Magna as it approaches its next earnings report date. The company is expected to report EPS of $0.81, down 71.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.9 billion, down 15.83% from the prior-year quarter.
MGA's full-year Zacks Consensus Estimates are calling for earnings of $4.74 per share and revenue of $36.01 billion. These results would represent year-over-year changes of +20% and +10.31%, respectively.
It is also important to note the recent changes to analyst estimates for Magna. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Magna currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Magna is currently trading at a Forward P/E ratio of 16.84. For comparison, its industry has an average Forward P/E of 16.84, which means Magna is trading at a no noticeable deviation to the group.
It is also worth noting that MGA currently has a PEG ratio of 0.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.85 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Magna (MGA) Gains But Lags Market: What You Should Know
In the latest trading session, Magna (MGA - Free Report) closed at $79.88, marking a +0.05% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.34%.
Prior to today's trading, shares of the automotive supply company had gained 6.11% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 1.92% and the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from Magna as it approaches its next earnings report date. The company is expected to report EPS of $0.81, down 71.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.9 billion, down 15.83% from the prior-year quarter.
MGA's full-year Zacks Consensus Estimates are calling for earnings of $4.74 per share and revenue of $36.01 billion. These results would represent year-over-year changes of +20% and +10.31%, respectively.
It is also important to note the recent changes to analyst estimates for Magna. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Magna currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Magna is currently trading at a Forward P/E ratio of 16.84. For comparison, its industry has an average Forward P/E of 16.84, which means Magna is trading at a no noticeable deviation to the group.
It is also worth noting that MGA currently has a PEG ratio of 0.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.85 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.