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Volkswagen AG (VWAGY) Gains As Market Dips: What You Should Know

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·3-min read
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Volkswagen AG (VWAGY) closed at $34.85 in the latest trading session, marking a +0.09% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%.

Coming into today, shares of the company had gained 6.65% in the past month. In that same time, the Auto-Tires-Trucks sector gained 8.64%, while the S&P 500 gained 1.35%.

Wall Street will be looking for positivity from VWAGY as it approaches its next earnings report date.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.37 per share and revenue of $301.79 billion. These totals would mark changes of +70.2% and +19.61%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for VWAGY. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.74% higher within the past month. VWAGY is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that VWAGY has a Forward P/E ratio of 10.33 right now. Its industry sports an average Forward P/E of 11.07, so we one might conclude that VWAGY is trading at a discount comparatively.

Meanwhile, VWAGY's PEG ratio is currently 0.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Foreign was holding an average PEG ratio of 0.8 at yesterday's closing price.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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