Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides body and chassis, exterior, and roof systems, as well as battery enclosures and engineering and testing services, including fascia and trims, front end modules, integration panels, liftgate modules, active aerodynamics, engineered glass, running boards, truck bed access products, breakthrough lightings, quarter windows, encapsulated glasses, and side doors. The Power & Vision segment offers ?electric drive systems and components, such as emotors, inverters, onboard chargers, gearboxes, and e-clutch; dedicated hybrid drives, dual and hybrid dual clutch, and manual transmissions; AWD/4WD products and rear drive modules; transmission, driveline components, and ICE; engineering services; advanced driver assistance systems sensors and, and electronic control units; interior and exterior mirrors, camera and driver monitoring systems and electronics, actuators, door handles, and overhead consoles; forward, rear, and auxiliary lighting products; latching, door modules, window, power closure, and hinges and wire forming systems; and modular and textile folding roofs, and hard and soft tops. The Seating Systems segment provides seat structures, mechanism and hardware solutions, and foam and trim products. The Complete Vehicles segment offers vehicle engineering and manufacturing services. The company also designs, engineers, and manufactures tooling products. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.

Magna International, Inc.

(RTTNews) - Magna International Inc. (MGA, MG.TO), a Canadian automotive parts maker, on Friday revised up its annual outlook.
Swamy Kotagiri, CEO of Magna, said: "Looking ahead, our updated 2025 outlook indicates that we are on track for further solid execution in the second half of 2025, despite ongoing industry headwinds, including soft volumes in North America and Europe and continued trade policy uncertainty."
For the full year, the company now expects adjusted income per share of $1.35 to $1.55 per share, higher than the earlier guidance of $1.3 to $1.5 per share.
Magna now anticipates sales of $40.4 billion to $42 billion, compared with the previous expectation of $40 billion to $41.6 billion.
On average, 17 analysts polled forecast the company to register an annual income of $4.68 per share on revenue of $40.4 billion. Analysts' estimates typically exclude special items.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Magna International Lifts Annual Outlook, But Profit Guidance Below View

Magna International Inc (Symbol: MGA) has been named to the Dividend Channel ''International S.A.F.E. 10'' list, signifying an international stock with above-average ''DividendRank'' statistics including a strong 3.4% yield, as well as a superb track record of at least five years of dividend growth, according to the most recent ''DividendRank'' report.
According to the ETF Finder at ETF Channel, Magna International Inc is an underlying holding representing 2.32% of the Powershares International Dividend Achievers ETF (PID), which holds $23,063,445 worth of MGA shares.
Magna International Inc (Symbol: MGA) made the "Dividend Channel International S.A.F.E. 10" list because of these qualities: S. Solid return — hefty yield and strong DividendRank characteristics; A. Accelerating amount — consistent dividend increases over time; F. Flawless five year history — never a missed or lowered dividend; E. Enduring — at least a half-decade of dividend payments.
The annualized dividend paid by Magna International Inc is $1.84/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/16/2023. Below is a long-term dividend history chart for MGA, which the report stressed as being of key importance.
MGA operates in the Auto Parts sector, among companies like Honeywell International Inc (HON), and Cummins, Inc. (CMI).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MGA Named Top 10 SAFE International Dividend Stock

The following are today's upgrades for Validea's Book/Market Investor model based on the published strategy of Joseph Piotroski. This value-quant strategy screens for high book-to-market stocks, and then separates out financially sound firms by looking at a host of improving financial criteria.
MAGNA INTERNATIONAL INC (USA) (MGA) is a mid-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Joseph Piotroski changed from 0% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Magna International Inc. is a Canada-based mobility technology company. The Company is a global automotive supplier that has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, electronics, mechatronics, mirrors, lighting and roof systems. It also has electronic and software capabilities across many of these areas. Its segments include Body Exteriors & Structures; Power & Vision; Seating Systems, and Complete Vehicles. 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 343 manufacturing operations and 105 product development, engineering and sales centers spanning 28 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO:
PASS
RETURN ON ASSETS:
PASS
CHANGE IN RETURN ON ASSETS:
FAIL
CASH FLOW FROM OPERATIONS:
PASS
CASH COMPARED TO NET INCOME:
PASS
CHANGE IN LONG TERM DEBT/ASSETS
FAIL
CHANGE IN CURRENT RATIO:
PASS
CHANGE IN SHARES OUTSTANDING:
PASS
CHANGE IN GROSS MARGIN:
PASS
CHANGE IN ASSET TURNOVER:
PASS
Detailed Analysis of MAGNA INTERNATIONAL INC (USA)
MGA Guru Analysis
MGA Fundamental Analysis
Joseph Piotroski Portfolio
About Joseph Piotroski: Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago's Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain during that time. Piotroski's findings were reported in major financial publiations like SmartMoney. Today, he teaches accounting at Stanford University's Graduate School of Business.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Joseph Piotroski Strategy Daily Upgrade Report - 5/3/2025

Magna (MGA) came out with quarterly earnings of $0.78 per share, missing the Zacks Consensus Estimate of $0.90 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -13.33%. A quarter ago, it was expected that this automotive supply company would post earnings of $1.46 per share when it actually produced earnings of $1.69, delivering a surprise of 15.75%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Magna, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $10.07 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.70%. This compares to year-ago revenues of $10.97 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Magna shares have lost about 16.2% since the beginning of the year versus the S&P 500's decline of -4.7%.
What's Next for Magna?
While Magna has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Magna: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $9.75 billion in revenues for the coming quarter and $5.02 on $38.94 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, BorgWarner (BWA), is yet to report results for the quarter ended March 2025. The results are expected to be released on May 7.
This auto parts supplier is expected to post quarterly earnings of $0.98 per share in its upcoming report, which represents a year-over-year change of -4.9%. The consensus EPS estimate for the quarter has been revised 3% lower over the last 30 days to the current level.
BorgWarner's revenues are expected to be $3.39 billion, down 5.6% from the year-ago quarter.
Should You Invest in Magna International Inc. (MGA)?
Before you invest in Magna International Inc. (MGA), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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This article originally published on Zacks Investment Research (zacks.com).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Magna (MGA) Q1 Earnings Lag Estimates

(RTTNews) - Magna International Inc. (MGA) released earnings for its first quarter that increased from the same period last year but missed the Street estimates.
The company's earnings came in at $146 million, or $0.52 per share. This compares with $9 million, or $0.03 per share, last year.
Excluding items, Magna International Inc. reported adjusted earnings of $219 million or $0.78 per share for the period.
Analysts on average had expected the company to earn $0.86 per share. Analysts' estimates typically exclude special items.
The company's revenue for the period fell 8.2% to $10.069 billion from $10.970 billion last year.
Magna International Inc. earnings at a glance (GAAP) :
-Earnings: $146 Mln. vs. $9 Mln. last year. -EPS: $0.52 vs. $0.03 last year. -Revenue: $10.069 Bln vs. $10.970 Bln last year.
-Guidance: Full year revenue guidance: $40.0 - $41.6 Bln
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Magna International Inc. Q1 Profit Increases, But Misses Estimates

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Monday, shares of Magna International Inc (Symbol: MGA) entered into oversold territory, hitting an RSI reading of 27.2, after changing hands as low as $30.71 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 21.5. A bullish investor could look at MGA's 27.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of MGA shares:
Looking at the chart above, MGA's low point in its 52 week range is $30.71 per share, with $53.26 as the 52 week high point — that compares with a last trade of $30.87.
Find out what 9 other oversold stocks you need to know about »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Relative Strength Alert For Magna International

The Future of Google Search

As a presidential candidate, Donald Trump liked to call himself "tariff man." Now that he's back in the White House, he's living up to his self-given nickname.
Trump has levied 10% tariffs on imports from China. He has announced plans to implement reciprocal tariffs on all U.S. trading partners. The president intends to impose 25% tariffs on all aluminum, steel, automobiles, pharmaceuticals, and computer chips imported to the U.S. And while a 25% tariff on all imports from Canada and Mexico was temporarily delayed, Trump stated this week these tariffs "will go forward."
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The looming prospect of a trade war between the U.S. and major trading partners is bad news for quite a few stocks. I predict three, in particular, will be big losers in 2025 due to Trump's tariffs.
1. General Motors
Shares of General Motors (NYSE: GM) are already down by a double-digit percentage year to date. This decline has occurred despite the big automaker reporting better-than-expected fourth-quarter results in January. What's going on? Several factors are at play but concerns about Trump's tariffs especially stand out.
I think investors are right to be worried. GM exports more light vehicles made in Mexico to the U.S. than any other carmaker by far. Although most of the company's assets are in the U.S., a significant amount (12%) are in Mexico.
But Mexico isn't the only problem spot for General Motors. The company also has major facilities in Canada and China. In addition, GM has joint ventures in Canada and China, including some that focus on battery manufacturing and raw material sourcing.
"With respect to possible tariffs, we are working across our supply chain, logistics network, and assembly plants so that we are prepared to mitigate near-term impacts," GM CEO Mary Barra said in the company's Q4 earnings call in January. GM probably will be able to take some steps to reduce the negative impact of the tariffs. However, I nonetheless predict the auto stock will be one of the major losers from Trump's existing and proposed actions.
2. Lenovo Group
Lenovo Group (OTC: LNVG.F) (OTC: LNVGY) ranks as the world's largest PC maker. Its stock has been a big winner so far this year, with shares jumping more than 30%. However, Lenovo's prospects going forward might not be so great for one simple reason: It's a Chinese company, headquartered in Hong Kong.
Roughly 34% of Lenovo's total revenue is made in North America, according to Statista. Although the company doesn't provide details about sales in specific North American markets, it's fair to say that the lion's share of that amount is generated in the U.S.
Of Lenovo's 11 manufacturing locations, four are in China and two in Mexico. The company's other facilities are in Brazil, Hungary, India, Japan, and the U.S. Sure, Lenovo could ramp up production in its U.S. facility and/or try to ship more units from its facilities that aren't in China or Mexico. However, Trump's tariffs will almost certainly hurt.
It's important to remember, too, that before he returned to the White House Trump pledged to impose much steeper tariffs of 60% on imports from China. Notably, Robert Lighthizer, U.S. trade representative in Trump's first term and an unofficial advisor to the president, believes that China presents "an existential threat" to the U.S. He thinks higher tariffs are needed for Chinese imports. If Trump agrees, the impact on Lenovo's business from tariffs could be even worse.
To be fair, Lenovo CEO Yuanqing Yang doesn't think tariffs will hurt his company's business very much. He even went as far as saying in the recentearnings callthat tariffs are "probably an advantage for Lenovo." Maybe Yang is right, but I wouldn't bet on it.
3. Magna International
Like GM, Magna International (NYSE: MGA) is already proving to be a disappointment for investors this year. Shares of the Canadian automotive supplier have fallen roughly 8% year to date and have plunged around 30% during the last 12 months. I won't be surprised if the misery continues in 2025 as a result of Trump's tariffs.
Magna specifically highlighted "increasing trade protectionism" as a risk factor in its 2024 third-quarter update. Without naming Trump, the company said, "One candidate's platform includes the potential imposition of significant tariffs on all U.S. trading partners, which could escalate into a global trade-tariff war."
The company is a major supplier to multiple automakers, including the "big three" in the U.S. -- GM, Ford, and Stellantis (formerly Chrysler). Anything that hurts these auto giants (and tariffs will hurt them) will hurt Magna, too.
An important caveat
My prediction that Trump's tariffs will cause GM, Lenovo, and Magna to be big losers in 2025 comes with an important caveat: I'm assuming the tariffs will remain in place. However, that assumption could prove to be wrong.
If many economists are correct in their forecasts that inflation will rise as a result of tariffs, the Trump administration could reverse course on its protectionist strategy. The White House has already delayed tariffs on Canada and Mexico once. It wouldn't be surprising if many of the tariffs mentioned earlier are only temporary ones.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends General Motors, Magna International, and Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: Trump's Tariffs Would Cause These Stocks to Be Big Losers in 2025

Magna International MGA reported fourth-quarter 2024 adjusted earnings of $1.69 per share, which increased from the year-ago quarter’s $1.33 and beat the Zacks Consensus Estimate of $1.46.
Net sales increased 2% year over year to $10.6 billion and surpassed the Zacks Consensus Estimate of $10.3 billion.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Magna International Inc. Price, Consensus and EPS Surprise
Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote
Segmental Performance
The Body Exteriors & Structures segment’s revenues were $4.07 billion, down 3% year over year. This can be attributed to the end of production of certain programs, lower production on a few programs, divestitures and customer price concessions. Revenues, however, topped the Zacks Consensus Estimate of $3.99 billion. The segment reported an adjusted EBIT of $371 million, up from $280 million recorded in the year-ago period. The metric also surpassed the Zacks Consensus Estimate of $303 million because of favorable impact on commercial items, productivity and efficiency improvements as well as foreign exchange gains.
The Power & Vision segment’s revenues remained flat year over year to $3.79 billion due to the launch of new programs offset by lower production on certain programs & end of production on certain programs. The metric surpassed the Zacks Consensus Estimate of $3.67 billion. Segmental adjusted EBIT rose from $231 million to $235 million due to higher equity income, operational excellence and cost initiatives as well as lower net engineering costs. The metric also topped the Zacks Consensus Estimate of $230 million.
Revenues from the Seating Systems segment rose 6% year over year to $1.51 billion and topped the Zacks Consensus Estimate of $1.38 billion due to the launch of new programs and customer input cost recoveries. Segmental adjusted EBIT rose from $44 million to $67 million due to a net favorable impact on commercial items, higher equity income and lower net engineering costs. The metric also topped the Zacks Consensus Estimate of $46.15 million.
The Complete Vehicles segment’s revenues increased 17% year over year to $1,402 million due to higher engineering revenues, favorable program mix and customer input cost recoveries. The metric, however, missed the Zacks Consensus Estimate of $1,405 million. The segment reported an adjusted EBIT of $56 million, up from $43 million reported in the year-ago period and outpaced the Zacks Consensus Estimate of $37.24 million due to higher margins on higher engineering sales.
Financials
Magna had $1.25 billion in cash and cash equivalents as of Dec. 31, 2024, up from $1.2 billion as of Dec. 31, 2023. As of Dec. 31, 2024, long-term debt was $4.13 billion, down from $4.18 billion as of Dec. 31, 2023.
In the reported quarter, cash provided from operating activities totaled $1.91 billion, up from the year-ago figure of $1.58 billion.
The company hiked its quarterly dividend by 2% to 48.50 cents per common share, marking its 15th consecutive year of fourth-quarter increases. The dividend will be paid on March 14, 2025, to shareholders of record as of Feb. 28, 2025.
Magna Provides 2025 Outlook
Magna expects 2025 revenues in the band of $38.6-$40.2 billion compared with $42.8 billion reported in 2024. Adjusted EBIT margin is projected in the band of 5.3-5.8% compared with 5.4% reported in 2024. Adjusted net income is estimated between $1.3 billion and $1.5 billion compared with $1.55 billion reported in 2024. Capex is estimated to be $1.8 billion.
MGA’s Zacks Rank & Key Picks
Magna carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Garrett Motion Inc. GTX. While GELYY & DAN sport a Zacks Rank #1 (Strong Buy) each, GTX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 79.17%. EPS estimates for 2025 have improved by 20 cents in the past 30 days.
The Zacks Consensus Estimate for GTX’s 2025 sales and earnings indicates year-over-year growth of 2.16% and 17.92%, respectively. EPS estimates for 2025 have improved by a penny in the past 30 days.
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Magna Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

Wall Street is facing volatility amid sticky inflation, uncertainty over the Fed’s rate-cut trajectory, and fears of a potential trade war. The auto sector, being highly cyclical, faces additional challenges, including potential disruptions from U.S. tariffs on Canadian and Mexican imports. While these duties were temporarily paused in early February, their long-term impact remains unclear.
In this uncertain landscape, dividend-paying stocks can offer stability for cautious investors seeking steady income. Several auto stocks, including Harley-Davidson HOG, Magna International MGA, Oshkosh Corp. OSK, PACCAR, Inc. PCAR and Group 1 Automotive GPI, have recently raised their first-quarter 2025 dividends.
While higher payouts instill shareholder confidence, investors must assess whether these stocks are worth buying beyond their dividend hikes. Let’s take a closer look.
Harley Davidson
It is one of the leading motorcycle makers in the world.
On Friday, the company hiked its quarterly payout by 4.3% to 18 cents a share. The dividend will be paid out on March 14 to the shareholders of record as of Feb. 28, 2025. This translates to a dividend yield of 2.80%, with a payout ratio of around 20%.
Harley-Davidson's revamped operating model, streamlined structure and focus on high-potential markets are promising. The LiveWire unit strengthens its presence in the dynamic sportier market with innovative offerings. While these bode well for the long term, HOG faces near-term challenges. It expects flat 2025 retail sales. Wholesale shipments are expected to decline 5% as it manages dealer inventory, while global inventory is set to drop over 10%, including a 30% cut in the first half of 2025. The company expects EPS to be flat to down 5% in 2024, pressured by higher taxes, lower interest income and reduced pension gains. A cautious stance seems warranted at this juncture.
The Zacks Consensus Estimate for HOG’s 2025 EPS is pegged at $3.44, down 76 cents over the past 30 days. For 2026, EPS estimates have moved south by 59 cents to $4.43 in the same time frame. The consensus mark for next year’s sales and EPS implies 4% and 29% growth, respectively, on a yearly basis.
HOG currently carries a Zacks Rank #3 (Hold) and has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Magna
It is a mobility technology firm that designs, engineers and manufactures automotive systems and components.
On Friday, the company hiked its quarterly payout by 2% to 48.5 cents a share. The dividend will be paid out on March 14 to the shareholders of record as of Feb. 28, 2025. This translates to a dividend yield of 5%, with a payout ratio of around 35%.
Magna’s diverse product portfolio and strategic acquisitions enhance its efficiency and technical capabilities, while a solid liquidity profile and investor-friendly policies provide stability. To navigate macroeconomic pressure, the company is implementing restructuring and cost-cutting measures. However, uncertainty in government policies has complicated forecasting, leading Magna to cut its 2026 sales outlook and issue a weak revenue forecast for 2025. Sales are expected to drop to $38.6-$40.2 billion in 2025 from $42.8 billion in 2024, primarily due to currency headwinds, lower vehicle production and program expirations. Investors may want to stay on the sidelines for now.
The Zacks Consensus Estimate for MGA’s 2025 and 2026 EPS implies growth of 13% and 15%, respectively. However, EPS estimates for the first two quarters of 2025 have declined by 2 cents each in the past 30 days.
Magna currently has a Zacks Rank #3 and a Value Score of A.
Group 1
It is one of the leading automotive retailers in the world, with operations primarily located in the United States and the U.K.
On Wednesday, the company hiked its quarterly payout by 6.3% to 50 cents a share. The dividend will be paid out on March 17 to shareholders of record as of March 3, 2025. This translates to a dividend yield of 0.4%. While the yield is not too tempting, the payout ratio is quite sustainable at just 5%. Investors should note that the company has increased dividends 12 times in the last five years, with an annualized growth rate of 12.5%.
Group 1’s diversified product portfolio and its omnichannel initiatives bolster sales potential. Strategic acquisitions of dealerships and franchises enhance portfolio optimization, strengthening long-term prospects. The firm's restructuring plan aims to improve operational efficiency in the United Kingdom with workforce realignment and facility closures, streamlining operations and reducing costs. Investor-friendly measures also instill confidence. However, affordability concerns may dampen the demand for new vehicles.
Stringent zero-emission mandates and rising electric vehicle sales targets pose macroeconomic headwinds in the U.K. market. High debt and escalating SG&A costs are also playing spoilsports. Given these factors, a wait-and-watch approach on GPI stock seems prudent.
The Zacks Consensus Estimate for GPI’s 2025 sales and EPS implies growth of 10% and 4.4%, respectively. For 2026, the consensus mark for revenues and EPS suggests year-over-year growth of 4% and 9.3%, respectively.
Group 1 currently carries a Zacks Rank #3 and has a Value Score of A.
Oshkosh
It is engaged in designing, developing and manufacturing custom-built vehicles and equipment.
On Jan. 30, OSK hiked its quarterly payout by 11% to 51 cents a share. This was the 11th straight year that Oshkosh raised its dividend by a double-digit percentage. The dividend will be paid out on March 3 to shareholders of record as of Feb. 17, 2025. This translates to a dividend yield of 1.90%, with a payout ratio of around 16%.
Oshkosh has expanded its offerings and core capabilities through acquisitions. Despite short-term softness in the Access segment, margins remain strong and resilient, with long-term growth supported by mega projects, infrastructure expansion and data center construction.
NGDV production will scale up through 2025, reaching full capacity by year-end and fueling revenue growth into 2026. A strong balance sheet and shareholder-friendly actions bolster confidence. However, a declining backlog signals weaker future sales, with 2025 revenues expected to decline. Heavy reliance on government contracts exposes Oshkosh to policy risks and economic uncertainty. Considering the risks, waiting for a better entry point may be wise.
The Zacks Consensus Estimate for OSK’s 2025 sales and EPS implies a decline of 2.4% and 6.6%, respectively. However, for 2026, the consensus mark for revenues and EPS suggests year-over-year growth of 5% and 14%, respectively.
Oshkosh currently carries a Zacks Rank #3 and has a Value Score of A.
PACCAR
It is a dominant name in the trucking industry and is known for its premium brands — Kenworth, Peterbilt and DAF.
In December, PACCAR hiked its quarterly payout by 10% to 33 cents a share. The dividend will be paid out on March 5 to shareholders of record as of Feb. 12, 2025. This translates to a dividend yield of 1.25%, with a payout ratio of around 15%. Investors should note that PACCAR has paid dividends every year since 1941. Over the past five years, PACCAR increased its dividend 11 times, with an annualized growth rate of 8.15%.
Fueled by steadfast demand for its top-tier vehicles and strategic expansion initiatives, PACCAR is poised for growth. While truck sales drive most of its revenues, its expanding aftermarket parts business strengthens long-term stability. PACCAR’s robust balance sheet with A+/A1 credit ratings instills optimism. However, significant capital expenditures for advanced technologies may put pressure on near-term financials and cash flow. Additionally, the company foresees a decline in European registrations for trucks of more than 16 tons in 2025 and expects sequentially lower truck deliveries in the first quarter. For now, we maintain a neutral outlook on the stock.
The Zacks Consensus Estimate for PACCAR’s 2025 sales implies a 0.5% uptick year over year, while EPS estimates suggest a 4.2% decline. But for 2026, the consensus mark for EPS suggests year-over-year growth of 20.8%.
PACCAR currently carries a Zacks Rank #3 and has a Value Score of A.
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