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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Magna International ( MGA) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 1%. By the end of trading, Magna International fell $1 (-2.2%) to $44.48 on average volume. Throughout the day, 881,919 shares of Magna International exchanged hands as compared to its average daily volume of 783,700 shares. The stock ranged in price between $44.40-$45.58 after having opened the day at $45.51 as compared to the previous trading day's close of $45.48. Other companies within the Automotive industry that declined today were: Stoneridge ( SRI), down 14.3%, ATC Venture Group ( ATC), down 8%, Orbital ( OBT), down 5.8%, and Enova Systems ( ENA), down 4.2%.
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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 $10.68 billion and is part of the consumer goods sector. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are up 37.3% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Magna International a buy, one analyst rates 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Shiloh Industries ( SHLO), up 2.6%, Commercial Vehicle Group ( CVGI), up 2.6%, Superior Industries International ( SUP), up 2.2%, and Drew Industries ( DW), up 2%, were all gainers within the automotive industry with Tesla Motors ( TSLA) being today's featured automotive industry leader.

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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