Magna International

MGA

Market cap $15.9B

Does Magna (MGA) have what it takes to be a top stock pick for momentum investors? Let's find out.

If you are looking for stocks that have gained strong momentum recently but are still trading at reasonable prices, Magna (MGA) could be a great choice. It is one of the several stocks that passed through our 'Fast-Paced Momentum at a Bargain' screen.

Magna to support OEMs with Hyperion-compatible ECUs and integration services supporting NVIDIA DRIVE AV Capabilities span assisted and automated driving systems across L2++, L3, and L4 autonomy levels Collaboration designed to help OEMs accelerate software-defined vehicle deployment AURORA, Ontario, Jan. 05, 2026 (GLOBE NEWSWIRE) -- Magna today announced an expansion of its strategic collaboration with NVIDIA to support OEM deployments on the NVIDIA DRIVE Hyperion platform. As part of this collaboration, Magna will offer OEMs a comprehensive portfolio of system integration, validation, and vehicle launch services for NVIDIA DRIVE AV stack running on DRIVE AGX Thor accelerated compute.

Magna (MGA) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

The automotive industry is currently navigating a period of intense volatility that has left many investors on the sidelines. Major car manufacturers, known as Original Equipment Manufacturers (OEMs), are locked in a capital-intensive battle for market share.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Magna (MGA) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.

Does Magna (MGA) have what it takes to be a top stock pick for momentum investors? Let's find out.

Magna International maintains strong operational execution, but the stock's valuation has outpaced underlying fundamentals, and volume growth remains absent. MGA's Q3 2025 results showed margin expansion and a surge in free cash flow, yet these were driven by working capital shifts, not sustainable organic growth. North American production is expected to decline in 2026, with weak consumer confidence and flat global volumes threatening margins and overall profitability.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.