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Is Asbury Automotive Group (ABG) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Asbury Automotive Group (ABG - Free Report) . ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.89, while its industry has an average P/E of 5.41. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 4.49, with a median of 5.57.
Investors will also notice that ABG has a PEG ratio of 0.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ABG's PEG compares to its industry's average PEG of 0.53. Within the past year, ABG's PEG has been as high as 9.42 and as low as 0.24, with a median of 0.30.
Investors should also recognize that ABG has a P/B ratio of 1.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.96. ABG's P/B has been as high as 3.42 and as low as 1.39, with a median of 1.93, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ABG has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.31.
Finally, we should also recognize that ABG has a P/CF ratio of 4.72. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.24. ABG's P/CF has been as high as 8.22 and as low as 4.19, with a median of 5.89, all within the past year.
Another great Automotive - Retail and Whole Sales stock you could consider is Rush Enterprises (RUSHA - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Rush Enterprises are currently trading at a forward earnings multiple of 9.19 and a PEG ratio of 0.61 compared to its industry's P/E and PEG ratios of 5.41 and 0.53, respectively.
Over the past year, RUSHA's P/E has been as high as 15.39, as low as 9.01, with a median of 11.42; its PEG ratio has been as high as 1.03, as low as 0.60, with a median of 0.30 during the same time period.
Rush Enterprises also has a P/B ratio of 1.61 compared to its industry's price-to-book ratio of 1.96. Over the past year, its P/B ratio has been as high as 2.28, as low as 1.58, with a median of 1.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group and Rush Enterprises are likely undervalued currently. And when considering the strength of its earnings outlook, ABG and RUSHA sticks out as one of the market's strongest value stocks.
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Is Asbury Automotive Group (ABG) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Asbury Automotive Group (ABG - Free Report) . ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.89, while its industry has an average P/E of 5.41. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 4.49, with a median of 5.57.
Investors will also notice that ABG has a PEG ratio of 0.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ABG's PEG compares to its industry's average PEG of 0.53. Within the past year, ABG's PEG has been as high as 9.42 and as low as 0.24, with a median of 0.30.
Investors should also recognize that ABG has a P/B ratio of 1.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.96. ABG's P/B has been as high as 3.42 and as low as 1.39, with a median of 1.93, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ABG has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.31.
Finally, we should also recognize that ABG has a P/CF ratio of 4.72. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.24. ABG's P/CF has been as high as 8.22 and as low as 4.19, with a median of 5.89, all within the past year.
Another great Automotive - Retail and Whole Sales stock you could consider is Rush Enterprises (RUSHA - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Rush Enterprises are currently trading at a forward earnings multiple of 9.19 and a PEG ratio of 0.61 compared to its industry's P/E and PEG ratios of 5.41 and 0.53, respectively.
Over the past year, RUSHA's P/E has been as high as 15.39, as low as 9.01, with a median of 11.42; its PEG ratio has been as high as 1.03, as low as 0.60, with a median of 0.30 during the same time period.
Rush Enterprises also has a P/B ratio of 1.61 compared to its industry's price-to-book ratio of 1.96. Over the past year, its P/B ratio has been as high as 2.28, as low as 1.58, with a median of 1.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group and Rush Enterprises are likely undervalued currently. And when considering the strength of its earnings outlook, ABG and RUSHA sticks out as one of the market's strongest value stocks.