Stock pick 2-7-13 – Magna International – MGA

My pick for 2-7-13 is Magna International – MGA. Their current stock price is $52.96 as of the previous close.

They have been in a holding pattern the last couple of weeks after gaining over $8 in the previous couple of months. Their last three earnings reports had the company beat estimates by a healthy margin and subsequently the stock gained after each of those reports. They should be reporting again within the next month.

In the short-term, the market is looking for the stock to possibly gain up to the $56 range. The analyst covering them from KeyBanc upgraded the stock to a buy back on January 28th and looks for a target price of $61. They said that they are bullish on automotive supplier stocks over the next few quarters.

On the chart, the stock has entered a pennant bullish pattern and is poised to breakout. The stock has been steady so this is a good point to get in before the expected rise.