While the price of shares of Canada-based Magna International (NYSE:MGA) dipped slightly over the past month on investors’ concerns regarding the global semiconductor chip shortage, the auto parts company reported revenue growth across all major segments for the first quarter, ended March 31, 2021. So, the question is, can the stock gain in the coming months relying on the company’s growing portfolio of products and solutions? Let’s find out.Headquartered in Aurora, Canada, Magna International Inc. (MGA) is one of the world’s largest manufacturers of auto parts. The company has managed to stay afloat despite a global semiconductor chip shortage that is plaguing the automotive industry. In fact, MGA delivered significant top-line and bottom-line growth in the first quarter (ended March 31, 2021). This can be attributed mainly to its consistent product innovations and presence across five continents and 28 countries.
The stock has lost 7.7% over the past month on investors’ concerns related to the semiconductor chip shortage. However, it has advanced 31.1% year-to-date and 6.7% over the past three months to close yesterday’s trading session at $92.80. MGA also raised its fiscal year 2021 outlook to reflect modestly higher sales and adjusted EBIT margin expectations.
According to a Grand View Research report, the global automotive aftermarket is expected to grow at a 3.8% CAGR over the next seven years and MGA is favorably positioned to benefit from the industry tailwinds.