This story originally appeared on Zacks
Asbury Automotive Group (ABG) closed the most recent trading day at $167.51, moving -0.86% from the previous trading session. This change lagged the S&P 500’s 0.72% loss on the day.
Heading into today, shares of the auto dealership chain had lost 7.76% over the past month, lagging the Retail-Wholesale sector’s loss of 2.61% and the S&P 500’s gain of 0.11% in that time.
Asbury Automotive Group will be looking to display strength as it nears its next earnings release. In that report, analysts expect Asbury Automotive Group to post earnings of $5.89 per share. This would mark year-over-year growth of 32.66%. Our most recent consensus estimate is calling for quarterly revenue of $2.37 billion, up 6.17% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $25.58 per share and revenue of $9.42 billion, which would represent changes of +98.29% and +32.12%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Asbury Automotive Group. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.96% higher within the past month. Asbury Automotive Group is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Asbury Automotive Group is currently trading at a Forward P/E ratio of 6.6. Its industry sports an average Forward P/E of 7, so we one might conclude that Asbury Automotive Group is trading at a discount comparatively.
Meanwhile, ABG’s PEG ratio is currently 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Automotive – Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.36 based on yesterday’s closing prices.
The Automotive – Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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