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The TSX Composite Index surged more than 9% in the last 12 months, while Magna International (TSX:MG) stock fell 9.9%. This automotive component supplier has been in a downtrend since June 2021, falling 49% from its all-time high of over $121. At the time of writing, the stock is trading near its three-year low of less than $64. Is the stock done dropping?
Magna stock price momentum
Magna stock has been in a downtrend for multiple reasons. The automotive industry is undergoing various headwinds. With every headwind the stock falls but surges when the headwind clears. The company makes components such as body exterior, power and vision, and seating systems and supplies them to several top automakers. It also assembles complete vehicles for auto and tech companies.
Magna’s earnings have been volatile since the pandemic. When the pandemic restrictions were lifted, it saw a significant…
