Magna Int'l. (A) (MG.TO)

He has owned this in the past. He believes in e-cars, and his firm has a stake in GM. Magna is best of breed in car parts. The stock has moved too quickly for him. He likes their move into e-car parts.

Trades at 24x earnings. Really likes the auto sector and auto parts and assembly. This is the one he'd choose. Growing cashflow. 90% of the products they make are as applicable to EV as to traditional engines. They assemble full vehicles, and there's a real possibility they win a mandate from Apple. Dividend should grow. Yield is 1.8%.

Auto stocks are a great place to be right now. Tesla, GM, Ford, etc. MG had their investor day and they are well positioned to profit from EV and other auto innovations. The stock is still trading reasonably. 10.4x 2022, with 43% modelled EPS growth. The best is probably still to come.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The parts sector is preferable over the retailers for longer lead time on new models and multi year contracts. Valuation, management and strong balance sheet are all strong points. They also have international exposure and EV potential. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Markets liked the latest quarter results. EPS beat expectations and revenue was inline with what the street expected. They raised dividends by 8%. Auto sales is expected to rebound in the following year. Unlock Premium - Try 5i Free

It has had a strong rebound. The auto production is rebounding nicely from the 2020 lows. They make money on internal combustion engines, EVs and hybrids. He owns LNR-T instead.