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Penske Automotive (PAG) Gains As Market Dips: What You Should Know
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Penske Automotive (PAG - Free Report) closed at $106.01 in the latest trading session, marking a +0.39% move from the prior day. This change outpaced the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.33%.
Prior to today's trading, shares of the auto dealership chain had gained 6.02% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.8% and the S&P 500's gain of 3.11% in that time.
Penske Automotive will be looking to display strength as it nears its next earnings release. On that day, Penske Automotive is projected to report earnings of $3.58 per share, which would represent year-over-year growth of 43.78%. Our most recent consensus estimate is calling for quarterly revenue of $6.28 billion, up 7.98% from the year-ago period.
PAG's full-year Zacks Consensus Estimates are calling for earnings of $14.75 per share and revenue of $25.68 billion. These results would represent year-over-year changes of +122.14% and +25.63%, respectively.
It is also important to note the recent changes to analyst estimates for Penske Automotive. Recent revisions tend to reflect the latest near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 0.23% higher. Penske Automotive is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Penske Automotive is currently trading at a Forward P/E ratio of 7.16. Its industry sports an average Forward P/E of 7.16, so we one might conclude that Penske Automotive is trading at a no noticeable deviation comparatively.
Meanwhile, PAG's PEG ratio is currently 0.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.36 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 15, which puts it in the top 6% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Penske Automotive (PAG) Gains As Market Dips: What You Should Know
Penske Automotive (PAG - Free Report) closed at $106.01 in the latest trading session, marking a +0.39% move from the prior day. This change outpaced the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.33%.
Prior to today's trading, shares of the auto dealership chain had gained 6.02% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.8% and the S&P 500's gain of 3.11% in that time.
Penske Automotive will be looking to display strength as it nears its next earnings release. On that day, Penske Automotive is projected to report earnings of $3.58 per share, which would represent year-over-year growth of 43.78%. Our most recent consensus estimate is calling for quarterly revenue of $6.28 billion, up 7.98% from the year-ago period.
PAG's full-year Zacks Consensus Estimates are calling for earnings of $14.75 per share and revenue of $25.68 billion. These results would represent year-over-year changes of +122.14% and +25.63%, respectively.
It is also important to note the recent changes to analyst estimates for Penske Automotive. Recent revisions tend to reflect the latest near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 0.23% higher. Penske Automotive is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Penske Automotive is currently trading at a Forward P/E ratio of 7.16. Its industry sports an average Forward P/E of 7.16, so we one might conclude that Penske Automotive is trading at a no noticeable deviation comparatively.
Meanwhile, PAG's PEG ratio is currently 0.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.36 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 15, which puts it in the top 6% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.