In the latest trading session, Asbury Automotive Group (ABG) closed at $164.10, marking a -1.08% move from the previous day. This change lagged the S&P 500’s daily loss of 1.03%. At the same time, the Dow lost 1.48%, and the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the auto dealership chain had lost 1.97% over the past month, outpacing the Retail-Wholesale sector’s loss of 7.03% and lagging the S&P 500’s loss of 0.62% in that time.
Wall Street will be looking for positivity from Asbury Automotive Group as it approaches its next earnings report date. The company is expected to report EPS of $5.89, up 32.66% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.37 billion, up 6.17% from the prior-year quarter.
ABG’s full-year Zacks Consensus Estimates are calling for earnings of $25.58 per share and revenue of $9.42 billion. These results would represent year-over-year changes of +98.29% and +32.12%, respectively.
Any recent changes to analyst estimates for Asbury Automotive Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.96% higher. Asbury Automotive Group is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Asbury Automotive Group currently has a Forward P/E ratio of 6.48. This valuation marks a discount compared to its industry’s average Forward P/E of 6.86.
Also, we should mention that ABG has a PEG ratio of 0.35. 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. The Automotive – Retail and Whole Sales was holding an average PEG ratio of 0.36 at yesterday’s closing price.
The Automotive – Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% 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.
To follow ABG in the coming trading sessions, be sure to utilize Zacks.com.
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