The recession in the automotive industry is in its early phases. This is already hurting the prospects of parts suppliers, such as Magna International (MGA), Advance Auto Parts (AAP), and Aptiv (APTV). Among them, watch MGA stock.
Magna is taking advantage of the stock’s weakness by buying back up to 10% of its public float. The buyback of up to 28.5 million common shares should give the stock some support from here.
In the last quarter, Magna cut its sales forecast. It expects its FY 2024 total sales to top up to $43.2 billion. This is below consensus estimates.
BioNTech (BNTX) is on a downtrend but its prospects might improve. In Q3, the firm posted revenue of EUR 1.2 billion, up by 34% Y/Y. The firm cut its SG&A expense target to EUR 600 – 700 million. It is also expecting capital expenditures of around EUR 300 – 400 million.
In the networking space, Ubiquiti (UI) gained 19.77% last Friday after posting solid results. In addition to declaring a $0.60 a share dividend, the EPS strength increases the stock’s attractiveness. Ubiquiti earned $2.14 a share after revenue grew by 18.8% Y/Y. New products and new features will drive sales of the company’s network products. For example, corporate customers will buy its enterprise and UniFi protect products.
