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Are Investors Undervaluing Asbury Automotive Group (ABG) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Asbury Automotive Group (ABG - Free Report) is a stock many investors are watching right now. ABG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.20 right now. For comparison, its industry sports an average P/E of 8.22. ABG's Forward P/E has been as high as 11.71 and as low as 7.40, with a median of 9.01, all within the past year.

Investors will also notice that ABG has a PEG ratio of 0.52. 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 currently sports an average PEG of 1.03. Over the past 52 weeks, ABG's PEG has been as high as 1.30 and as low as 0.51, with a median of 0.97.

These are just a handful of the figures considered in Asbury Automotive Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ABG is an impressive value stock right now.


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