Magna International Inc. MGA has provided the outlook for 2019. This Aurora, Canada-based manufacturer and supplier of automotive components has announced that its revenues in 2019 will be impacted by the disposition of the Fluid Pressure & Controls ("FP&C") business and appreciating dollar.
In September 2018, Magna inked a deal to divest its global FP&C. For this divestiture, the company signed an agreement with Hanon Systems, a global supplier of thermal and energy management systems based in South Korea, for $1.23 billion.
Magna added that its North American business will be affected by General Motors Company's GM
decision to close its Oshawa plant in Ontario. Notably, in November, as part of its restructuring program, General Motors announced the closure of three assembly plants.
For 2019, Magna expects total revenues of $40.2-$42.4 billion and net income of $2.1-$2.3 billion. Further, the company expects a slight decline in EBIT margin in 2019 due to elevated commodity costs, and higher spending on electrification and autonomy.
Over the past year, shares of Magna have outperformed the industry
it belongs to. Over the time frame, shares of the company have lost 15.8%, whereas the industry declined 31.5%. Further, Magna has an expected long-term growth rate of 8.5%.
While Magna currently carries a Zacks Rank #2 (Buy), General Motors has a Zacks Rank #3 (Hold).
A couple of other top-ranked stocks in the auto space are Fox Factory Holding Corp. FOXF
and AutoZone, Inc. AZO
. While Fox Factory currently sports a Zacks Rank #1 (Strong Buy), AutoZone currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here
Fox Factory has an expected long-term growth rate of 17.9%. Over the past year, shares of the company have risen 56.5%.
AutoZone has an expected long-term growth rate of 12%. Over the past year, shares of the company have increased 5.3%. More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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 report To read this article on Zacks.com click here. Zacks Investment Research