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Magna (MGA) Stock Sinks As Market Gains: What You Should Know
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Magna (MGA - Free Report) closed at $76.05 in the latest trading session, marking a -0.13% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 1.23%.
Wall Street will be looking for positivity from MGA as it approaches its next earnings report date. This is expected to be February 19, 2021. On that day, MGA is projected to report earnings of $1.98 per share, which would represent year-over-year growth of 40.43%. Meanwhile, our latest consensus estimate is calling for revenue of $9.92 billion, up 5.62% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for MGA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 3.26% higher. MGA is currently a Zacks Rank #1 (Strong Buy).
Investors should also note MGA's current valuation metrics, including its Forward P/E ratio of 12.64. This valuation marks a discount compared to its industry's average Forward P/E of 16.43.
Also, we should mention that MGA has a PEG ratio of 2.36. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Magna (MGA) Stock Sinks As Market Gains: What You Should Know
Magna (MGA - Free Report) closed at $76.05 in the latest trading session, marking a -0.13% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 1.23%.
Wall Street will be looking for positivity from MGA as it approaches its next earnings report date. This is expected to be February 19, 2021. On that day, MGA is projected to report earnings of $1.98 per share, which would represent year-over-year growth of 40.43%. Meanwhile, our latest consensus estimate is calling for revenue of $9.92 billion, up 5.62% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for MGA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 3.26% higher. MGA is currently a Zacks Rank #1 (Strong Buy).
Investors should also note MGA's current valuation metrics, including its Forward P/E ratio of 12.64. This valuation marks a discount compared to its industry's average Forward P/E of 16.43.
Also, we should mention that MGA has a PEG ratio of 2.36. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.