Magna International rated as Strong Buy amid market challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 02 2024
0mins
Should l Buy MGA?
Source: Business Insider
Magna International Inc's stock has dropped 3.38% and hit a 20-day low, reflecting broader market weakness as the Nasdaq-100 and S&P 500 decline.
Despite the current market conditions, Magna is rated as a Strong Buy by Zacks, with projected earnings growth of 19% in 2026 and 17% in 2027, indicating its potential as an attractive investment. The company's forward P/E ratio of 8.3 suggests it is undervalued, and it offers a dividend yield of 3.5%.
This positive outlook amidst market volatility highlights Magna's resilience and potential for recovery, making it a stock to watch for investors seeking value.
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Analyst Views on MGA
Wall Street analysts forecast MGA stock price to fall
11 Analyst Rating
3 Buy
8 Hold
0 Sell
Moderate Buy
Current: 55.810
Low
48.00
Averages
52.80
High
58.00
Current: 55.810
Low
48.00
Averages
52.80
High
58.00
About MGA
Magna International Inc. is a Canada-based mobility technology company. The Company is a supplier in automotive space, specializing in body and chassis, all-wheel drive/front-wheel-drive, transmissions, latches, mirrors and contract vehicle assembly. Its segments include Body Exteriors & Structures, Power & Vision, Seating Systems and Complete Vehicles. The Company's major product portfolio includes seating, mechatronics, electronics, body & chassis exteriors, mirrors, lighting, powertrain, and complete vehicle. Its products include battery enclosures, body-in-white solutions, chassis systems, ADAS and automated driving, control modules, active aerodynamics, exterior systems and modules, lighting, mechatronics, mirrors, electrified powertrain products, complete vehicle engineering and others. Its global network includes approximately 341 manufacturing operations and 106 product development, engineering and sales centers spanning 28 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Magna International Releases 2025 Annual Report
- Annual Report Release: Magna International announced on March 27, 2026, that its 2025 Annual Report is now available on the company’s website, including Management's Discussion and Analysis and Audited Consolidated Financial Statements, ensuring transparency and compliance.
- Document Filing: The annual report has been filed with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission, enhancing investor confidence in the company's financial status and meeting regulatory requirements.
- Shareholder Meeting Arrangement: The 2026 Annual Meeting of Shareholders is scheduled for May 4, conducted as a virtual-only meeting, facilitating global shareholder participation and reflecting the company's commitment to shareholder communication.
- Free Financial Statements: Magna promises to provide shareholders with free copies of the audited financial statements contained in the 2025 Annual Report, demonstrating the company’s commitment to service and transparency towards its shareholders.
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- Automotive Supply Chain Strength: Magna International (MGA) has seen a 13.9% increase in its current year earnings estimate over the past 60 days, suggesting that its expertise in vehicle engineering and contract manufacturing will further enhance its market share.
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- Portfolio Risk: A couple's investment portfolio dropped from $1 million to $497,000 between 2000 and 2002, highlighting the sequence of return risk when withdrawing funds during a bear market, which serves as a cautionary tale for investors managing cash flows amidst market volatility.
- Strong Buy Stocks: Currently, only 203 stocks are rated as Strong Buys by Zacks, including Magna International, Allstate, and Columbia Sportswear, indicating their potential as attractive investments in the current market landscape.
- Magna International Outlook: As the largest automotive supplier globally, Magna is projected to see earnings growth of 19% in 2026 and 17% in 2027, with a forward P/E ratio of just 8.3, suggesting its stock is undervalued, complemented by a dividend yield of 3.5%.
- Columbia Sportswear Appeal: Despite an expected 6.2% decline in earnings for 2026, Columbia Sportswear is anticipated to rebound by 17.1% in 2027, with a forward P/E of 15.9, making it an attractive value investment, alongside a dividend yield of 2.2%.
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Xpeng Explores Potential Collaboration with Stellantis
- Stock Surge: Xpeng's U.S.-listed American Depositary Shares (ADS) have risen by 15% this week, reflecting investor optimism regarding its potential for future expansion and demonstrating strong market confidence in its global business development.
- Collaboration Opportunities: Stellantis is in discussions with Xpeng and Chinese tech company Xiaomi for potential partnerships, which may involve acquiring stakes in its European brands, particularly Maserati, providing crucial support for Xpeng's expansion in the European market.
- Manufacturing Capacity Enhancement: While Xpeng's manufacturing presence in Europe is relatively light, a partnership with Stellantis would significantly expand its manufacturing footprint in the EU, enhancing its global competitiveness.
- Global Ambitions: Xpeng and other Chinese automakers aim to establish a presence in the global market, and a potential deal with Stellantis could be a significant step towards achieving this goal, further advancing its internationalization strategy.
See More
Stellantis Seeks Investment from Chinese Firms
- Investment Collaboration: Stellantis is soliciting investments from Chinese companies, particularly aimed at its European operations, which could attract more capital and enhance its competitiveness in the global market.
- Stock Price Surge: Xpeng's American Depositary Shares (ADS) rose 15% this week as investors express optimism about the company's expansion potential, reflecting strong market confidence in its future growth.
- Manufacturing Capacity Expansion: Potential collaboration with Stellantis may involve acquiring stakes in its European brands, notably Maserati, which would significantly enhance Xpeng's manufacturing capabilities in the European market, supporting its global expansion strategy.
- Market Appeal: Stellantis's extensive factory network in Europe is highly attractive to Chinese automakers like Xpeng, as it could rapidly expand their manufacturing footprint in the EU market, propelling their internationalization efforts.
See More
Magna International (MGA.US) Insider Plans to Sell 3.46 Million Shares of Common Stock via Form 144
- Stock Sale Announcement: Insider Eric Wild intends to sell 52,555 shares of its common stock on February 20.
- Market Value: The total market value of the shares being sold is approximately $3.46 million.
See More
Magna International Releases 2025 Annual Report
- Annual Report Release: Magna International announced on March 27, 2026, that its 2025 Annual Report is now available on the company’s website, including Management's Discussion and Analysis and Audited Consolidated Financial Statements, ensuring transparency and compliance.
- Document Filing: The annual report has been filed with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission, enhancing investor confidence in the company's financial status and meeting regulatory requirements.
- Shareholder Meeting Arrangement: The 2026 Annual Meeting of Shareholders is scheduled for May 4, conducted as a virtual-only meeting, facilitating global shareholder participation and reflecting the company's commitment to shareholder communication.
- Free Financial Statements: Magna promises to provide shareholders with free copies of the audited financial statements contained in the 2025 Annual Report, demonstrating the company’s commitment to service and transparency towards its shareholders.
See More
Five Stocks Added to Zacks Rank #1 (Strong Buy) List
- Earnings Growth: Lifetime Brands (LCUT) has seen a 35.6% increase in its current year earnings estimate over the past 60 days, indicating strong growth potential in the kitchenware design and marketing sector, which could drive stock price appreciation.
- Oilfield Services Demand: Enerflex Ltd. (EFXT) has experienced a 19.5% rise in its current year earnings estimate in the last 60 days, reflecting robust demand in the natural gas and petroleum production services market, likely enhancing its competitive position.
- Automotive Supply Chain Strength: Magna International (MGA) has seen a 13.9% increase in its current year earnings estimate over the past 60 days, suggesting that its expertise in vehicle engineering and contract manufacturing will further enhance its market share.
- Biopharmaceutical Market Potential: ADMA Biologics (ADMA) has reported a 12.9% increase in its current year earnings estimate, indicating growing market demand in the treatment of immunodeficient patients, which could lead to significant revenue growth for the company.
See More
Key Insights from Episode #433 of the Value Investor Podcast
- Portfolio Risk: A couple's investment portfolio dropped from $1 million to $497,000 between 2000 and 2002, highlighting the sequence of return risk when withdrawing funds during a bear market, which serves as a cautionary tale for investors managing cash flows amidst market volatility.
- Strong Buy Stocks: Currently, only 203 stocks are rated as Strong Buys by Zacks, including Magna International, Allstate, and Columbia Sportswear, indicating their potential as attractive investments in the current market landscape.
- Magna International Outlook: As the largest automotive supplier globally, Magna is projected to see earnings growth of 19% in 2026 and 17% in 2027, with a forward P/E ratio of just 8.3, suggesting its stock is undervalued, complemented by a dividend yield of 3.5%.
- Columbia Sportswear Appeal: Despite an expected 6.2% decline in earnings for 2026, Columbia Sportswear is anticipated to rebound by 17.1% in 2027, with a forward P/E of 15.9, making it an attractive value investment, alongside a dividend yield of 2.2%.
See More
Xpeng Explores Potential Collaboration with Stellantis
- Stock Surge: Xpeng's U.S.-listed American Depositary Shares (ADS) have risen by 15% this week, reflecting investor optimism regarding its potential for future expansion and demonstrating strong market confidence in its global business development.
- Collaboration Opportunities: Stellantis is in discussions with Xpeng and Chinese tech company Xiaomi for potential partnerships, which may involve acquiring stakes in its European brands, particularly Maserati, providing crucial support for Xpeng's expansion in the European market.
- Manufacturing Capacity Enhancement: While Xpeng's manufacturing presence in Europe is relatively light, a partnership with Stellantis would significantly expand its manufacturing footprint in the EU, enhancing its global competitiveness.
- Global Ambitions: Xpeng and other Chinese automakers aim to establish a presence in the global market, and a potential deal with Stellantis could be a significant step towards achieving this goal, further advancing its internationalization strategy.
See More
Stellantis Seeks Investment from Chinese Firms
- Investment Collaboration: Stellantis is soliciting investments from Chinese companies, particularly aimed at its European operations, which could attract more capital and enhance its competitiveness in the global market.
- Stock Price Surge: Xpeng's American Depositary Shares (ADS) rose 15% this week as investors express optimism about the company's expansion potential, reflecting strong market confidence in its future growth.
- Manufacturing Capacity Expansion: Potential collaboration with Stellantis may involve acquiring stakes in its European brands, notably Maserati, which would significantly enhance Xpeng's manufacturing capabilities in the European market, supporting its global expansion strategy.
- Market Appeal: Stellantis's extensive factory network in Europe is highly attractive to Chinese automakers like Xpeng, as it could rapidly expand their manufacturing footprint in the EU market, propelling their internationalization efforts.
See More
Magna International (MGA.US) Insider Plans to Sell 3.46 Million Shares of Common Stock via Form 144
- Stock Sale Announcement: Insider Eric Wild intends to sell 52,555 shares of its common stock on February 20.
- Market Value: The total market value of the shares being sold is approximately $3.46 million.
See More
