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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 $92.60, moving +0.97% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.51%.

Heading into today, shares of the automotive supply company had lost 5.77% over the past month, lagging the Auto-Tires-Trucks sector's gain of 7.17% and the S&P 500's gain of 1.75% in that time.

Wall Street will be looking for positivity from MGA as it approaches its next earnings report date. On that day, MGA is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 188.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.57 billion, up 122.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.57 per share and revenue of $40.96 billion, which would represent changes of +91.65% and +25.47%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MGA. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.75% higher. MGA is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, MGA is currently trading at a Forward P/E ratio of 12.12. This valuation marks a discount compared to its industry's average Forward P/E of 12.86.

It is also worth noting that MGA currently has a PEG ratio of 0.69. 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. MGA's industry had an average PEG ratio of 0.9 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 131, which puts it in the bottom 49% 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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