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NEW YORK (TheStreet) -- Magna International (MGA) remains an A-rated, top pick in TheStreet's Trifecta Stocks portfolio, as the auto industry continues its recovery. The global automotive supplier designs, develops and manufactures various vehicle and assembly components.
"We remain bullish on the continued global recovery of automotive sales," said Trifecta Stocks' Bryan Ashenberg and Bob Lang in their analysis. "The improving economy should give the company attractive operating leverage when volumes come online as auto production increases."
Magna International continues to expand its international reach into growing regions, such as Turkey and greater Eastern Europe. Management expects new regions to account for 17% of revenue by 2015.Shares closed 0.93% higher to finish at $85.03 on Friday. Year to date, shares have gained 70%, compared to the S&P 500's 19.42% increase. TheStreet Ratings team rates Magna International Inc as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation: "We rate Magna International Inc (MGA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MGA's revenue growth has slightly outpaced the industry average of 7.6%. Since the same quarter one year prior, revenues rose by 16%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 86.75% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MGA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Magna International Inc has improved earnings per share by 20.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, Magna International Inc increased its bottom line by earning $6.09 a share vs. $4.19 a share in the prior year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Auto Components industry average. The net income increased by 18.9% when compared to the same quarter one year prior, going from $349 million to $415 million.
- You can view the full analysis from the report here: MGA Ratings Report
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