Magna International Inc.MGA has been emphasizing on growth of its lightweight thermoplastic liftgate modules. Rising demand for crossovers and sport utility vehicles, along with changing global emission standards, has forced many automakers to opt for such type of liftgates. Since the beginning of 2018, the company launched two thermoplastic liftgates on 2019 Jeep Cherokee and 2019 Acura RDX. Further, it plans to introduce two more in China in the second half of the year.
Magna's recyclable liftgate modules offer up to 25% weight reduction and wider design flexibility compared with the steel versions. Its design flexibility enables clients to carry out regular and cost-effective mid-cycle refreshes. Additionally, these liftgate modules trim CO2 emissions, expand electric vehicle battery range and develop aerodynamics.
In 1999, the company initiated manufacturing thermoplastic liftgates for a European automaker that followed several European launches. Much later, in 2014, Magna provided the first North American thermoplastic liftgate for 2014 Nissan Rogue. The company sold roughly 3 million thermoplastic liftgate modules, globally. Except for design liberty and mass savings, the key advantages of these modules also include increased throughput at the facility and lower tooling investment.
Magna International Inc. Price and Consensus
Magna International Inc. Price and Consensus | Magna International Inc. Quote
Per IHS Markit, the global sports utility vehicle (SUV) market is anticipated to grow by 43 million units by 2025 compared with 34 million in 2018. Magna anticipates a good growth prospect for its thermoplastic liftgates, with the rising SUV demand.
In the past three months, Magna's stock has lost 13%, underperforming 5.8% decline recorded by the industry it belongs to.
Zacks Rank & Key Picks
Magna currently carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the auto space are AB Volvo VLVLY , PACCAR Inc. PCAR and Fox Factory Holding Corporation FOXF . Volvo and PACCAR carry a Zacks Rank of 2 (Buy) while Fox Factory sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Volvo has an expected long-term growth rate of 15%. Shares of the company have risen 1.2% in the past three months.
PACCAR has an expected long-term growth rate of 10.8%. Over the past three months, shares of the company have gained 9.1%.
Fox Factory has an expected long-term growth rate of 16.8%. Shares of the company have risen 62.8% in the past three months.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportFox Factory Holding Corp. (FOXF): Free Stock Analysis ReportPACCAR Inc. (PCAR): Free Stock Analysis ReportAB Volvo (VLVLY): Free Stock Analysis ReportMagna International Inc. (MGA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research