MAGNA -- NICE GROWTH CHART forming - riding a channel upwards.
EVs and self driving
Magna’s stunning performance could be a long-term trend. That’s because the company is gradually establishing itself as a key player in the electric vehicle and self-driving spaces.
The company recently inked a deal with LG to start manufacturing batteries for electric vehicles. Meanwhile, it’s been working with its network of 43 car manufacturers across the world to create a unified self-driving platform. Billions of dollars have been invested in this space, which puts the company in a great position to offer these parts and systems to nearly every electric car maker in the world over the next decade.
These parts and systems also have higher margins, which means Magna’s profitability could noticeably improve over time.
Magna stock valuation
For the year ahead, Magna forecasts sales of roughly US$40 to US$41 billion, or up to $51.7 billion. That means the stock is trading at a forward price-to-sales ratio of 0.6. It’s also trading at a price-to-earnings ratio of roughly 12.
Effectively, Magna could be the most reasonably priced stock in this sector of global transport.
Analysts have raised their price target for the stock after its recent quarterly report. Consensus suggests the stock could have as much as 20% upside this year. That makes Magna stock worth a closer look for both growth- and income-seeking investors.
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KEY: 50-day moving average
Stock price above the 50-day moving average is considered bullish. Stock price below 50-day moving average is considered bearish. If the price meets the 50 day SMA as support and bounces upwards, you should think long. Stock price meets the 50-day SMA as resistance and bounces downwards, you should think short.
In technical analysis, a Fibonacci retracement is created by taking two extreme points (usually a peak and a trough) on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%.
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Disclaimer:
These are just opinions and current thoughts, which may change. Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of opinions and thoughts of patterns seen in the markets. Thank you.
EVs and self driving
Magna’s stunning performance could be a long-term trend. That’s because the company is gradually establishing itself as a key player in the electric vehicle and self-driving spaces.
The company recently inked a deal with LG to start manufacturing batteries for electric vehicles. Meanwhile, it’s been working with its network of 43 car manufacturers across the world to create a unified self-driving platform. Billions of dollars have been invested in this space, which puts the company in a great position to offer these parts and systems to nearly every electric car maker in the world over the next decade.
These parts and systems also have higher margins, which means Magna’s profitability could noticeably improve over time.
Magna stock valuation
For the year ahead, Magna forecasts sales of roughly US$40 to US$41 billion, or up to $51.7 billion. That means the stock is trading at a forward price-to-sales ratio of 0.6. It’s also trading at a price-to-earnings ratio of roughly 12.
Effectively, Magna could be the most reasonably priced stock in this sector of global transport.
Analysts have raised their price target for the stock after its recent quarterly report. Consensus suggests the stock could have as much as 20% upside this year. That makes Magna stock worth a closer look for both growth- and income-seeking investors.
----------
KEY: 50-day moving average
Stock price above the 50-day moving average is considered bullish. Stock price below 50-day moving average is considered bearish. If the price meets the 50 day SMA as support and bounces upwards, you should think long. Stock price meets the 50-day SMA as resistance and bounces downwards, you should think short.
In technical analysis, a Fibonacci retracement is created by taking two extreme points (usually a peak and a trough) on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%.
___________________________________
Disclaimer:
These are just opinions and current thoughts, which may change. Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of opinions and thoughts of patterns seen in the markets. Thank you.