David Jagielski: Magna International
Magna International (TSX:MG)(NYSE:MGA) is my stock pick for June. Magna is coming off a disappointing quarter that sent its share price to a new 52-week low. Although the company saw sales decline by 2% from a year ago, Magna has still proven to be a very consistent stock with revenues hitting more than US$10 billion in four of the past five quarters while showing no problems of staying in the black during that time.
The company is a great long-term buy as it still has strong fundamentals and trades at very modest multiples of both earnings and book value. It’s a great opportunity to get the stock at a low, as the last time Magna was trading below $60 for a prolonged period of time was back in early 2017. The price is very low for a company that has not only good fundamentals but great growth prospects and that also pays a solid dividend of over 3% per year.
What makes Magna an appealing investment is that it can work for any type of portfolio. Tariffs and geopolitical concerns may weigh the stock down in the short term, but over the longer term I don’t see these problems lasting and once resolved, the share price could soar.
Fool contributor David Jagielski owns shares of Magna International Inc.
