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Volkswagen AG (VWAGY) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Volkswagen AG (VWAGY - Free Report) closed at $36.21, marking a +0.58% move from the previous day. This move outpaced the S&P 500's daily gain of 0.2%.

Coming into today, shares of the company had gained 15.09% in the past month. In that same time, the Auto-Tires-Trucks sector gained 4.95%, while the S&P 500 gained 1.06%.

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

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.29 per share and revenue of $298.8 billion. These totals would mark changes of +66.16% and +18.43%, respectively, from last 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 0.3% higher. VWAGY is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, VWAGY currently has a Forward P/E ratio of 10.94. This represents a discount compared to its industry's average Forward P/E of 11.06.

Meanwhile, VWAGY's PEG ratio is currently 0.9. 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 - Foreign industry currently had an average PEG ratio of 0.82 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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