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Volkswagen AG (VWAGY) Dips More Than Broader Markets: What You Should Know

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Volkswagen AG (VWAGY - Free Report) closed at $34.76 in the latest trading session, marking a -0.9% move from the prior day. This move lagged the S&P 500's daily loss of 0.02%.

Heading into today, shares of the company had gained 26.99% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 0.21% and the S&P 500's gain of 6.61% in that time.

Wall Street will be looking for positivity from VWAGY as it approaches its next earnings report date.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.03 per share and revenue of $296.55 billion, which would represent changes of +53.03% and +17.54%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for VWAGY. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.57% higher. VWAGY is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, VWAGY is holding a Forward P/E ratio of 11.56. For comparison, its industry has an average Forward P/E of 10.37, which means VWAGY is trading at a premium to the group.

Meanwhile, VWAGY's PEG ratio is currently 0.2. 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 - Foreign was holding an average PEG ratio of 0.5 at yesterday's closing price.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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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