Back to top

Image: Bigstock

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

Read MoreHide Full Article

Volkswagen AG (VWAGY - Free Report) closed at $34.87 in the latest trading session, marking a -1.84% move from the prior day. This change lagged the S&P 500's daily loss of 0.53%.

Heading into today, shares of the company had lost 1.2% over the past month, lagging the Auto-Tires-Trucks sector's gain of 1.75% and the S&P 500's gain of 5.72% in that time.

Wall Street will be looking for positivity from VWAGY as it approaches its next earnings report date. The company is expected to report EPS of $0.61, up 577.78% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $66.64 billion, up 9.73% from the year-ago period.

VWAGY's full-year Zacks Consensus Estimates are calling for earnings of $3.03 per share and revenue of $295.3 billion. These results would represent year-over-year changes of +53.03% and +17.04%, respectively.

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

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.16% higher. VWAGY is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, VWAGY currently has a Forward P/E ratio of 11.71. This valuation marks a premium compared to its industry's average Forward P/E of 10.67.

We can also see that VWAGY currently has a PEG ratio of 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 industry currently had an average PEG ratio of 0.52 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% 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.

To follow VWAGY in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Volkswagen AG (VWAGY) - free report >>

Published in