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With U.S. automakers flush with success, auto systems maker Magna International is climbing right along with them. Shares of Magna International (MGA) were up nearly 5% Monday afternoon, on the heels of its 5.7% leap Friday on strong earnings. Meanwhile, the Relative Strength (RS) Rating for Magna stock jumped into a higher percentile Monday, with a rise from 70 to 80, passing a major milestone along the way. The best growth stocks have an 80 or higher RS Rating as they begin their biggest moves. Magna Stock Benefits From Its Global Presence Magna makes auto assemblies, components and even complete vehicles for various automakers globally, including in China and Europe. It's benefiting from the auto sector's improving performance. It says on its website it operates in 28 countries and has 338 manufacturing and assembly plants. Ford Motor (F) stock leapt 12.2% on Oct. 24 on better than expected earnings, and General Motors (GM) shares surged 14.9% Oct. 21, also on terrific earnings. On Friday, Magna reported a 4% rise in earnings last quarter to $1.33 per share, on a slim 2% increase in revenue to $10.5 billion. However, after another quiet period this quarter, analysts project Magna will report a 54% leap in earnings the first quarter of 2026, in part on rising profits and in part on an easy comp vs. the same quarter a year earlier. Among its other ratings Magna has a muscular 85 Composite Rating. That shows it's in the top 15% of all stocks, regardless of industry, for a group of the most important fundamental and technical metrics. Additionally, shares of the Aurora, Ontario, Canada-based company have a B+ Accumulation/Distribution Rating, showing that ETFs, mutual funds and the like are fairly eager buyers of its stock. One yellow flag is its so-so 63 EPS Rating based on recent weak gains. Look for that to improve starting next quarter. Shares Popped After An Outstanding Earnings Report Magna International stock has moved more than 5% past a 43.64 entry in a first-stage cup with handle, meaning it's now out of a proper buy range for The IBD Methodology investors. Look for the stock to create a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week line. Magna holds the No. 10 rank among its peers in the 40-stock Auto/Truck-Original Equipment industry group. Hesai Group (HSAI), Aptiv (APTV) and Garrett Motion (GTX) are among the top five highly rated stocks in the group. IBD's proprietary RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks matches up against that of all other stocks. This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article. Please follow James DeTar on Twitter @JimDeTar
