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Should Value Investors Buy Magna International (MGA) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Magna International (MGA - Free Report) is a stock many investors are watching right now. MGA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.47 right now. For comparison, its industry sports an average P/E of 18.35. Over the last 12 months, MGA's Forward P/E has been as high as 8.47 and as low as 5.65, with a median of 6.79.
MGA is also sporting a PEG ratio of 0.94. 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 PEG compares to its industry's average PEG of 0.98. Over the past 52 weeks, MGA's PEG has been as high as 0.94 and as low as 0.46, with a median of 0.60.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MGA has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.77.
Another great Automotive - Original Equipment stock you could consider is Miller Industries (MLR - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Miller Industries sports a P/B ratio of 1.05 as well; this compares to its industry's price-to-book ratio of 3.20. In the past 52 weeks, MLR's P/B has been as high as 2.23, as low as 1.05, with a median of 1.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Magna International and Miller Industries are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MGA and MLR feels like a great value stock at the moment.
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Should Value Investors Buy Magna International (MGA) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Magna International (MGA - Free Report) is a stock many investors are watching right now. MGA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.47 right now. For comparison, its industry sports an average P/E of 18.35. Over the last 12 months, MGA's Forward P/E has been as high as 8.47 and as low as 5.65, with a median of 6.79.
MGA is also sporting a PEG ratio of 0.94. 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 PEG compares to its industry's average PEG of 0.98. Over the past 52 weeks, MGA's PEG has been as high as 0.94 and as low as 0.46, with a median of 0.60.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MGA has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.77.
Another great Automotive - Original Equipment stock you could consider is Miller Industries (MLR - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Miller Industries sports a P/B ratio of 1.05 as well; this compares to its industry's price-to-book ratio of 3.20. In the past 52 weeks, MLR's P/B has been as high as 2.23, as low as 1.05, with a median of 1.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Magna International and Miller Industries are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MGA and MLR feels like a great value stock at the moment.