Magna International Inc. (MGA): Today's Featured Services 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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.4%. By the end of trading, Magna International rose 86 cents (1.5%) to $56.80 on average volume. Throughout the day, one million shares of Magna International exchanged hands as compared to its average daily volume of 690,500 shares. The stock ranged in a price between $56.01-$56.97 after having opened the day at $56.10 as compared to the previous trading day's close of $55.94. Other companies within the Services sector that increased today were: DLH Holdings ( DLHC), up 15.8%, Gaiam Inc. Class A ( GAIA), up 13.2%, Seanergy Maritime Holdings ( SHIP), up 7.7%, and Premier Exhibitions ( PRXI), up 7.3%.
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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 $13.2 billion and is part of the wholesale industry. The company has a P/E ratio of 9.6, below the S&P 500 P/E ratio of 17.7. Shares are up 11.8% year to date as of the close of trading on Monday. 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, solid stock price performance, growth in earnings per share, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Fortune Industries ( FFI), down 24.5%, Intersections ( INTX), down 16.9%, Point.360 ( PTSX), down 11.6%, and Sport Chalet ( SPCHB), down 11.6%, were all laggards within the services sector with Michael Kors Holdings ( KORS) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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