Magna (MGA) Remains a Good Value Amid Rapid Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 27 2025
0mins
Should l Buy MGA?
Source: NASDAQ.COM
Momentum Investing Strategy: Momentum investors focus on "buying high and selling higher," avoiding traditional strategies like buying low and waiting for recovery, which can be risky.
Magna International (MGA) Performance: MGA has shown strong price momentum with a 7.3% increase over the past month and an 8.5% gain over the last 12 weeks, supported by a favorable Momentum Score of B and a Zacks Rank #2 (Buy).
Valuation Metrics: Despite its fast-paced momentum, MGA is trading at a low Price-to-Sales ratio of 0.33, indicating it is attractively priced for potential growth.
Investment Tools and Opportunities: Investors can utilize Zacks Premium Screens and the Research Wizard to identify winning stocks, while also exploring emerging opportunities in AI and quantum computing for future gains.
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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: 57.820
Low
48.00
Averages
52.80
High
58.00
Current: 57.820
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 INC: TD COWEN INCREASES TARGET PRICE FROM $58 TO $75
- Target Price Increase: Magna International has raised its target price to $75 from $58.
- Market Impact: This adjustment reflects a positive outlook on the company's performance and market conditions.
See More
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
See More
Magna International Stock Hits Four-Year High Amid Strong Revenue Performance
- Strong Stock Performance: Magna International's stock soared to $69.94 on Friday, closing at $68.73 with an 18.87% increase, reflecting strong investor confidence in its performance and positive market reaction to its ongoing buyback program.
- Revenue Guidance Met: The company reported $42 billion in revenue for 2025, hitting the high end of its previous guidance, although this figure represents a 1.8% decline from $42.8 billion in 2024, indicating stability and adaptability in a competitive market.
- Net Income Decline: Attributable net income for 2025 was $829 million, down 17.8% from $1.009 billion in 2024, highlighting challenges in profitability that may affect future investor confidence.
- Optimistic Future Outlook: Magna International targets sales of $41.9 billion to $43.5 billion for 2026, with adjusted diluted earnings per share projected between $6.25 and $7.25, while also planning to repurchase 22 million shares to enhance company and shareholder value.
See More
U.S. Markets Closed with Mixed Results on Friday, Driven by Rivian Automotive's Gains and Pinterest's Decline
- U.S. Stock Market Performance: Stock indexes in the U.S. ended the day mixed on Friday.
- Index Movements: The S&P 500 rose by 0.10%, the Dow Jones increased by 0.05%, while the Nasdaq Composite fell by 0.22%.
See More
Magna International Releases 2026 Fiscal Outlook with Mixed Earnings and Sales Forecast
- Quarterly Performance Beats Expectations: Magna International reported fourth-quarter adjusted earnings per share of $2.18, surpassing the analyst consensus estimate of $1.79, with quarterly sales reaching $10.84 billion, a 2% year-over-year increase, demonstrating the company's resilience despite a 1% decline in global light vehicle production.
- Sales Forecast Downgrade: While the company forecasts fiscal 2026 adjusted earnings between $6.25 and $7.25 per share, exceeding analysts' estimate of $5.99, it has lowered its sales outlook from $48.8 billion to $51.2 billion down to $41.9 billion to $43.5 billion, reflecting uncertainty in market demand.
- Strong Cash Flow Performance: In the fourth quarter, Magna generated $1.98 billion in cash from operations and $1.35 billion in free cash flow, indicating the company's ability to maintain robust cash flow while capital spending remains below historical levels, supporting future shareholder buyback plans.
- Dividend Increase: The company declared a fourth-quarter dividend of $0.495 per common share, representing a 2% increase from the previous year, with payment scheduled for March 13, reflecting the company's ongoing commitment to shareholder returns.
See More
Update: Magna International Shares Rise After Q4 Adjusted Earnings, Sales Top Estimates
See More
MAGNA INTERNATIONAL INC: TD COWEN INCREASES TARGET PRICE FROM $58 TO $75
- Target Price Increase: Magna International has raised its target price to $75 from $58.
- Market Impact: This adjustment reflects a positive outlook on the company's performance and market conditions.
See More
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
See More
Magna International Stock Hits Four-Year High Amid Strong Revenue Performance
- Strong Stock Performance: Magna International's stock soared to $69.94 on Friday, closing at $68.73 with an 18.87% increase, reflecting strong investor confidence in its performance and positive market reaction to its ongoing buyback program.
- Revenue Guidance Met: The company reported $42 billion in revenue for 2025, hitting the high end of its previous guidance, although this figure represents a 1.8% decline from $42.8 billion in 2024, indicating stability and adaptability in a competitive market.
- Net Income Decline: Attributable net income for 2025 was $829 million, down 17.8% from $1.009 billion in 2024, highlighting challenges in profitability that may affect future investor confidence.
- Optimistic Future Outlook: Magna International targets sales of $41.9 billion to $43.5 billion for 2026, with adjusted diluted earnings per share projected between $6.25 and $7.25, while also planning to repurchase 22 million shares to enhance company and shareholder value.
See More
U.S. Markets Closed with Mixed Results on Friday, Driven by Rivian Automotive's Gains and Pinterest's Decline
- U.S. Stock Market Performance: Stock indexes in the U.S. ended the day mixed on Friday.
- Index Movements: The S&P 500 rose by 0.10%, the Dow Jones increased by 0.05%, while the Nasdaq Composite fell by 0.22%.
See More
Magna International Releases 2026 Fiscal Outlook with Mixed Earnings and Sales Forecast
- Quarterly Performance Beats Expectations: Magna International reported fourth-quarter adjusted earnings per share of $2.18, surpassing the analyst consensus estimate of $1.79, with quarterly sales reaching $10.84 billion, a 2% year-over-year increase, demonstrating the company's resilience despite a 1% decline in global light vehicle production.
- Sales Forecast Downgrade: While the company forecasts fiscal 2026 adjusted earnings between $6.25 and $7.25 per share, exceeding analysts' estimate of $5.99, it has lowered its sales outlook from $48.8 billion to $51.2 billion down to $41.9 billion to $43.5 billion, reflecting uncertainty in market demand.
- Strong Cash Flow Performance: In the fourth quarter, Magna generated $1.98 billion in cash from operations and $1.35 billion in free cash flow, indicating the company's ability to maintain robust cash flow while capital spending remains below historical levels, supporting future shareholder buyback plans.
- Dividend Increase: The company declared a fourth-quarter dividend of $0.495 per common share, representing a 2% increase from the previous year, with payment scheduled for March 13, reflecting the company's ongoing commitment to shareholder returns.
See More
Update: Magna International Shares Rise After Q4 Adjusted Earnings, Sales Top Estimates
See More
