Magna International Inc. (MGA): Today's Featured Automotive Loser

Magna International ( MGA) pushed the Automotive industry lower today making it today's featured Automotive loser. The industry as a whole closed the day down 0.6%. By the end of trading, Magna International fell 25 cents (-0.6%) to $41.56 on average volume. Throughout the day, one million shares of Magna International exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $41.27-$42.26 after having opened the day at $41.88 as compared to the previous trading day's close of $41.81. Other company's within the Automotive industry that declined today were: ATC Venture Group ( ATC), down 16.1%, Enova Systems ( ENA), down 6.9%, Motorcar Parts of America ( MPAA), down 5.4%, and Stoneridge ( SRI), down 5.2%.

Magna International Inc. designs, develops, and manufactures automotive systems, assemblies, modules and components, and engineers and assembles vehicles to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America, and Africa. Magna International has a market cap of $9.56 billion and is part of the consumer goods sector. The company has a P/E ratio of 9.9, below the S&P 500 P/E ratio of 17.7. Shares are up 25.5% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Magna International a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Magna International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Quantum Fuel Systems Technologies Worldwide ( QTWW), up 8.9%, Tesla Motors ( TSLA), up 7%, Supreme Industries ( STS), up 4.2%, and Wabash National Corporation ( WNC), up 3%, were all gainers within the automotive industry with Toyota Motor ( TM) being today's featured automotive industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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