-
Intuitive Surgical Inc. (ISRG $480.26)
-
Magna International Inc. (MG $61.20)
-
Axon Enterprise Inc. (AXON $754.24)
Q: I have held a position of about 2.5% in MG (was higher, but its performance has lagged that of my overall portfolio, thus the decrease in relative exposure) for years now, and have maintained the investment due to a decent dividend (about 4.5% at today's price) and low P/E (trailing P/E listed as 11.59, current forward P/E quoted as 6.75 with Yahoo! Finance). I am concerned that the potential of the US exercising tariffs on goods imported to their country could profoundly impact MG's future performance. I believe that Magna does have some factories in the US: would this exclude them from having tariffs levied on US consumers of their goods?
If MG would be affected by tariffs, and a pivot to another investment would be prudent, I have been considering AXON and ISRG as potential replacements (my portfolio could tolerate a decrease in Consumer Cyclical exposure, and I feel I have room to increase exposure to Industrials and/or Health Care).
Ultimately, my questions are as follows:
1. Will MG be affected by the potential for tariffs to an extent strong enough that an exit from the investment should be seriously considered?
2. Of AXON and ISRG, which company do you feel is poised for greater growth in the next 36 months?
If MG would be affected by tariffs, and a pivot to another investment would be prudent, I have been considering AXON and ISRG as potential replacements (my portfolio could tolerate a decrease in Consumer Cyclical exposure, and I feel I have room to increase exposure to Industrials and/or Health Care).
Ultimately, my questions are as follows:
1. Will MG be affected by the potential for tariffs to an extent strong enough that an exit from the investment should be seriously considered?
2. Of AXON and ISRG, which company do you feel is poised for greater growth in the next 36 months?
