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In the latest trading session, Magna (MGA) closed at $75.80, marking a -0.26% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.69%.
Heading into today, shares of the automotive supply company had gained 7.6% over the past month, lagging the Auto-Tires-Trucks sector's gain of 23.91% and outpacing the S&P 500's gain of 4.27% in that time.
Investors will be hoping for strength from MGA as it approaches its next earnings release. On that day, MGA is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 45.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.85 billion, up 4.85% from the year-ago period.
Any recent changes to analyst estimates for MGA should also be noted by investors. These revisions help to show the ever-changing nature of 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.26% higher. MGA is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note MGA's current valuation metrics, including its Forward P/E ratio of 12.72. This valuation marks a discount compared to its industry's average Forward P/E of 16.53.
Meanwhile, MGA's PEG ratio is currently 2.37. 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 - Original Equipment was holding an average PEG ratio of 1.16 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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