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Are Investors Undervaluing Asbury Automotive Group (ABG) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Asbury Automotive Group (ABG - Free Report) . ABG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.81, which compares to its industry's average of 5.60. ABG's Forward P/E has been as high as 174.50 and as low as 4.59, with a median of 8.39, all within the past year.
Investors should also note that ABG holds a PEG ratio of 0.26. 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. ABG's industry has an average PEG of 0.46 right now. Over the last 12 months, ABG's PEG has been as high as 9.42 and as low as 0.25, with a median of 0.45.
Investors should also recognize that ABG has a P/B ratio of 1.77. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ABG's current P/B looks attractive when compared to its industry's average P/B of 2.04. Within the past 52 weeks, ABG's P/B has been as high as 4.17 and as low as 1.66, with a median of 2.97.
Finally, investors should note that ABG has a P/CF ratio of 5.92. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ABG's current P/CF looks attractive when compared to its industry's average P/CF of 6.03. Over the past 52 weeks, ABG's P/CF has been as high as 10.73 and as low as 5.55, with a median of 7.10.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at AutoNation (AN - Free Report) . AN is a # 1 (Strong Buy) stock with a Value score of A.
AutoNation is currently trading with a Forward P/E ratio of 5.31 while its PEG ratio sits at 0.23. Both of the company's metrics compare favorably to its industry's average P/E of 5.60 and average PEG ratio of 0.46.
AN's Forward P/E has been as high as 29.04 and as low as 4.99, with a median of 8.23. During the same time period, its PEG ratio has been as high as 1.23, as low as 0.21, with a median of 0.42.
Furthermore, AutoNation holds a P/B ratio of 2.70 and its industry's price-to-book ratio is 2.04. AN's P/B has been as high as 3.64, as low as 2.24, with a median of 2.95 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Asbury Automotive Group and AutoNation are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABG and AN feels like a great value stock at the moment.
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Are Investors Undervaluing Asbury Automotive Group (ABG) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Asbury Automotive Group (ABG - Free Report) . ABG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.81, which compares to its industry's average of 5.60. ABG's Forward P/E has been as high as 174.50 and as low as 4.59, with a median of 8.39, all within the past year.
Investors should also note that ABG holds a PEG ratio of 0.26. 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. ABG's industry has an average PEG of 0.46 right now. Over the last 12 months, ABG's PEG has been as high as 9.42 and as low as 0.25, with a median of 0.45.
Investors should also recognize that ABG has a P/B ratio of 1.77. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ABG's current P/B looks attractive when compared to its industry's average P/B of 2.04. Within the past 52 weeks, ABG's P/B has been as high as 4.17 and as low as 1.66, with a median of 2.97.
Finally, investors should note that ABG has a P/CF ratio of 5.92. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ABG's current P/CF looks attractive when compared to its industry's average P/CF of 6.03. Over the past 52 weeks, ABG's P/CF has been as high as 10.73 and as low as 5.55, with a median of 7.10.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at AutoNation (AN - Free Report) . AN is a # 1 (Strong Buy) stock with a Value score of A.
AutoNation is currently trading with a Forward P/E ratio of 5.31 while its PEG ratio sits at 0.23. Both of the company's metrics compare favorably to its industry's average P/E of 5.60 and average PEG ratio of 0.46.
AN's Forward P/E has been as high as 29.04 and as low as 4.99, with a median of 8.23. During the same time period, its PEG ratio has been as high as 1.23, as low as 0.21, with a median of 0.42.
Furthermore, AutoNation holds a P/B ratio of 2.70 and its industry's price-to-book ratio is 2.04. AN's P/B has been as high as 3.64, as low as 2.24, with a median of 2.95 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Asbury Automotive Group and AutoNation are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABG and AN feels like a great value stock at the moment.