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 0.2%. By the end of trading, Magna International rose $0.92 (1.6%) to $58.66 on average volume. Throughout the day, 674,903 shares of Magna International exchanged hands as compared to its average daily volume of 694,100 shares. The stock ranged in a price between $57.78-$59.20 after having opened the day at $57.80 as compared to the previous trading day's close of $57.74. Other companies within the Wholesale industry that increased today were: LKQ Corporation ( LKQ), up 6.3%, Commercial Vehicle Group ( CVGI), up 5.2%, Shengkai Innovations ( VALV), up 5.1% and Watsco ( WSO.B), up 3.6%.
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Magna International Inc. designs, develops, manufactures, and engineers automotive systems and components to original equipment manufacturers primarily in North America, Europe, and internationally. Magna International has a market cap of $13.3 billion and is part of the services sector. The company has a P/E ratio of 9.6, below the S&P 500 P/E ratio of 17.7. Shares are up 15.4% year to date as of the close of trading on Wednesday.

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, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Nash-Finch Company ( NAFC), down 5.6%, InfoSonics Corporation ( IFON), down 5.2%, Crystal Rock Holdings ( CRVP), down 4.9% and AmerisourceBergen ( ABC), down 4.3% , were all laggards within the wholesale industry with McKesson ( MCK) being today's wholesale industry laggard.

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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