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Magna (MGA) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Magna (MGA - Free Report) closed at $93.34, marking a -0.85% move from the previous day. This change lagged the S&P 500's 0.75% gain on the day.

Prior to today's trading, shares of the automotive supply company had lost 10.03% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 4.68% and the S&P 500's gain of 3.52% in that time.

Wall Street will be looking for positivity from MGA as it approaches its next earnings report date. This is expected to be August 6, 2021. In that report, analysts expect MGA to post earnings of $1.47 per share. This would mark year-over-year growth of 185.96%. Our most recent consensus estimate is calling for quarterly revenue of $9.57 billion, up 122.97% from the year-ago period.

MGA's full-year Zacks Consensus Estimates are calling for earnings of $7.57 per share and revenue of $40.96 billion. These results would represent year-over-year changes of +91.65% and +25.47%, respectively.

Investors should also note any recent changes to analyst estimates for MGA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.75% higher. MGA is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, MGA currently has a Forward P/E ratio of 12.34. This valuation marks a discount compared to its industry's average Forward P/E of 12.97.

It is also worth noting that MGA currently has a PEG ratio of 0.63. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 129, which puts it in the top 50% 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.

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