In the latest trading session, Asbury Automotive Group (ABG) closed at $156.90, marking a +1.27% move from the previous day. The stock lagged the S&P 500’s daily gain of 2.44%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 0.28%.
Coming into today, shares of the auto dealership chain had lost 8.91% in the past month. In that same time, the Retail-Wholesale sector lost 13.11%, while the S&P 500 lost 9.65%.
Asbury Automotive Group will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2022. On that day, Asbury Automotive Group is projected to report earnings of $5.87 per share, which would represent year-over-year growth of 32.21%. Our most recent consensus estimate is calling for quarterly revenue of $2.45 billion, up 9.49% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Asbury Automotive Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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 21.35% higher. Asbury Automotive Group is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Asbury Automotive Group’s current valuation metrics, including its Forward P/E ratio of 5.19. This valuation marks a discount compared to its industry’s average Forward P/E of 7.1.
It is also worth noting that ABG currently has a PEG ratio of 0.28. 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. ABG’s industry had an average PEG ratio of 0.35 as of yesterday’s close.
The Automotive – Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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