Magna International Inc. (MGA): Today's Featured Wholesale Winner

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 Wholesale industry higher today making it today's featured wholesale winner. The industry as a whole closed the day up 0.9%. By the end of trading, Magna International rose 77 cents (1.4%) to $56.14 on average volume. Throughout the day, 572,911 shares of Magna International exchanged hands as compared to its average daily volume of 696,400 shares. The stock ranged in a price between $55.35-$56.21 after having opened the day at $55.74 as compared to the previous trading day's close of $55.37. Other companies within the Wholesale industry that increased today were: LKQ Corporation ( LKQ), up 6%, China Auto Logistics ( CALI), up 4.9%, Chefs Warehouse Holdings ( CHEF), up 4.3%, and Navarre Corporation ( NAVR), up 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 $12.85 billion and is part of the services sector. The company has a P/E ratio of 9.3, below the S&P 500 P/E ratio of 17.7. Shares are up 10.7% year to date as of the close of trading on Thursday. Currently there are eight 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, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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