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Is Magna International (MGA) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Magna International (MGA - Free Report) . MGA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.50, while its industry has an average P/E of 20.68. Over the past year, MGA's Forward P/E has been as high as 13.10 and as low as 7.57, with a median of 9.97.
Investors will also notice that MGA has a PEG ratio of 0.43. 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 has an average PEG of 0.93 right now. Within the past year, MGA's PEG has been as high as 0.83 and as low as 0.41, with a median of 0.52.
We should also highlight that MGA has a P/B ratio of 1.33. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.53. Over the past 12 months, MGA's P/B has been as high as 1.71 and as low as 1.20, with a median of 1.41.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MGA has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.85.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Magna International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MGA feels like a great value stock at the moment.
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Is Magna International (MGA) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Magna International (MGA - Free Report) . MGA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.50, while its industry has an average P/E of 20.68. Over the past year, MGA's Forward P/E has been as high as 13.10 and as low as 7.57, with a median of 9.97.
Investors will also notice that MGA has a PEG ratio of 0.43. 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 has an average PEG of 0.93 right now. Within the past year, MGA's PEG has been as high as 0.83 and as low as 0.41, with a median of 0.52.
We should also highlight that MGA has a P/B ratio of 1.33. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.53. Over the past 12 months, MGA's P/B has been as high as 1.71 and as low as 1.20, with a median of 1.41.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MGA has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.85.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Magna International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MGA feels like a great value stock at the moment.