Volkswagen AG (VWAGY) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Volkswagen AG (VWAGY) closed at $36, marking a -1.73% move from the previous day. This change lagged the S&P 500's 0.47% gain on the day.
Heading into today, shares of the company had gained 19.36% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 1.5% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from VWAGY as it approaches its next earnings report date.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.29 per share and revenue of $298.8 billion. These totals would mark changes of +66.16% and +18.43%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for VWAGY. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. VWAGY is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note VWAGY's current valuation metrics, including its Forward P/E ratio of 11.13. This represents a discount compared to its industry's average Forward P/E of 11.14.
It is also worth noting that VWAGY currently has a PEG ratio of 0.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Foreign industry currently had an average PEG ratio of 0.82 as of yesterday's close.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow VWAGY in the coming trading sessions, be sure to utilize Zacks.com.
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