The shares of this automotive systems supplier just hit their 52-week high. The company beat analysts’ estimates by $0.05 last quarter, perhaps a harbinger of growth to come as it takes on a leading role in autonomous vehicles.
Magna International (MGA)
From Cabot Benjamin Graham Value Investor
Magna International (MGA) is one of the conservatively positioned value stocks available in our portfolio. Apart from its conservative balance sheet coupled with a low valuation, Magna is also well-positioned for growth in the autonomous vehicle era.
Being the largest auto parts supplier, Magna has the vast original equipment manufacturer (OEM) network to promote and supply its MAX4 autonomous driving platform. On the ridesharing side, I believe autonomous vehicles are going to be more commoditized, and Magna will be in the forefront to manufacture complete vehicles for the ridesharing and rental companies.
Magna’s entrepreneurially-driven culture will be the right fit to collaborate seamlessly with the Silicon Valley ridesharing companies.
Azmath Rahiman, Cabot Benjamin Graham Value Investor, www.cabotwealth.com, 978-745-5532, December 22, 2017