It doesn’t matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Magna (MGA)
Magna International Inc., based in Aurora, Canada, is a manufacturer and supplier of complete automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, apart from engineering and assembling complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks.
MGA is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 10.5X for the current fiscal year compared to the Automotive – Original Equipment industry’s P/E of 14.5X. Additionally, MGA has a PEG Ratio of 0.5 and a Price/Cash Flow ratio of 6.2X. Value investors should also note MGA’s Price/Sales ratio of 0.4X.
A company’s earnings performance is important for value investors as well. For fiscal 2023, five analysts revised their earnings estimate higher in the last 60 days for MGA, while the Zacks Consensus Estimate has increased $0.41 to $5.30 per share. MGA also holds an average earnings surprise of 1.2%.
Investors should take the time to consider MGA for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Magna International Inc. (MGA) : Free Stock Analysis Report