Autonomous vehicle stocks were in vogue in the second half of 2020. However, exuberance is fading as evidenced by the sector’s 30% tumble to start the new year.
Companies that make autonomous vehicles and related technology have the potential to soar to the moon or at least land among the stars in the years and decades ahead. The challenge lies in pinpointing the best autonomous vehicle stocks to buy.
Below, we provide a look at two of the autonomous vehicle industry’s most intriguing stocks in Foresight Autonomous Holdings (FRSX) and Magna International (MGA).
Foresight Autonomous Holdings (FRSX)
FRSX is a tech business that designs, develops, and brings three-dimensional diver assistance systems to market. These systems function with the use of several cameras. FRSX technology captures images around the vehicle to determine if there are threats, ultimately preventing potentially fatal accidents.
Headquartered in Ramat Gan, Israel, FRSX certainly has the potential to be in harm’s way as the violence in the Middle East continues to rage on. However, it appears as though FRSX is moving forward with business as usual as violence erupts.
FRSX POWR Ratings
FRSX has an F POWR Rating Grade. The stock has an F Value component grade along with Ds in the Quality, Stability, and Growth components of the POWR Ratings. Click here to learn more about how FRSX grades out in the Momentum and Sentiment components of the POWR Ratings.
Out of 66 publicly traded stocks in the Auto Parts segment, FRSX is ranked toward the bottom at 63rd. However, as a whole, this segment has an A POWR Rating grade. You can learn more about the Auto Parts segment by clicking here.
FRSX Points of Note
FRSX is currently trading at $3.77, which is well below its 52-week high of $12.14. The stock’s beta is quite high at 2.48, meaning it will prove excessively volatile amidst stock market fluctuations that are bound to occur as a result of the economic uncertainty following the final phase of the pandemic and economic recovery.
The single analyst who has provided a price target for FRSX believes the stock will drop to $2.50. If this prediction holds, FRSX investors will lose 43% of their investing dollars.
Magna International (MGA)
MGA, a maker and supplier of vehicle components, is located in Aurora, Canada. MGA specializes in the designing and manufacturing of automotive systems, modules, systems, and assemblies. These components and systems are sold to original equipment manufacturers of both light trucks and cars.
MGA has a forward P/E ratio of 12.92, meaning it is likely a bit undervalued, especially when you factor in the stock is trading only $5 below its 52-week high of $99.72. The stock’s 52-week low is $38.53. MGA’s beta is 1.59, meaning it will not be egregiously volatile if the market significantly fluctuates in the months ahead.
MGA POWR Ratings
MGA is a POWR Ratings success with a B overall grade, indicating the stock is a Buy. MGA has Bs in the Quality, Momentum, and Growth components of the POWR Ratings. Click here to learn more about how MGA fares in the rest of the POWR Ratings components such as Value, Sentiment, and Stability. Of the 66 publicly traded companies in the Auto Parts space, MGA is ranked 12th. You can learn more about the stocks in the Auto Parts sector by clicking here.
What are the Analysts Saying About MGA?
The analysts are predicting MGA will increase in value, establishing an average target price of $108.39. If MGA were to rise to this level, it would increase in value by 12.2%. The highest analyst target price for the stock is $132 while the lowest target price is $60. A total of 19 analysts have issued MGA recommendations. Three of these analysts view the stock as a Strong Buy, 11 consider it a Buy, five consider it a Hold and none view it as a Sell or Strong Sell.
The Better Buy is…
MGA. MGA has vastly superior POWR Ratings, making it the better of these two autonomous vehicle stocks. However, FRSX has the potential to pop as well because China recently approved its patent request, setting the stage for the auto tech specialist to make inroads in the world’s largest market. However, for the time being, MGA is the better play.
MGA shares were trading at $95.43 per share on Thursday morning, down $0.41 (-0.43%). Year-to-date, MGA has gained 34.79%, versus a 11.13% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More…
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