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Magna (MGA) Outpaces Stock Market Gains: What You Should Know
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Magna (MGA - Free Report) closed the most recent trading day at $92.92, moving +1.37% from the previous trading session. This change outpaced the S&P 500's 0.1% gain on the day. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq lost 0.59%.
Heading into today, shares of the automotive supply company had gained 18.16% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 7.56% and the S&P 500's gain of 0.71% in that time.
Wall Street will be looking for positivity from MGA as it approaches its next earnings report date. The company is expected to report EPS of $1.63, up 89.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.75 billion, up 12.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.42 per share and revenue of $40.8 billion, which would represent changes of +87.85% and +24.97%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MGA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 23.07% higher. MGA currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note MGA's current valuation metrics, including its Forward P/E ratio of 12.36. Its industry sports an average Forward P/E of 16.69, so we one might conclude that MGA is trading at a discount comparatively.
Investors should also note that MGA has a PEG ratio of 1.75 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Original Equipment was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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) Outpaces Stock Market Gains: What You Should Know
Magna (MGA - Free Report) closed the most recent trading day at $92.92, moving +1.37% from the previous trading session. This change outpaced the S&P 500's 0.1% gain on the day. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq lost 0.59%.
Heading into today, shares of the automotive supply company had gained 18.16% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 7.56% and the S&P 500's gain of 0.71% in that time.
Wall Street will be looking for positivity from MGA as it approaches its next earnings report date. The company is expected to report EPS of $1.63, up 89.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.75 billion, up 12.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.42 per share and revenue of $40.8 billion, which would represent changes of +87.85% and +24.97%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MGA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 23.07% higher. MGA currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note MGA's current valuation metrics, including its Forward P/E ratio of 12.36. Its industry sports an average Forward P/E of 16.69, so we one might conclude that MGA is trading at a discount comparatively.
Investors should also note that MGA has a PEG ratio of 1.75 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Original Equipment was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.