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Is Asbury Automotive Group (ABG) Stock Undervalued 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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Asbury Automotive Group (ABG - Free Report) is a stock many investors are watching right now. ABG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.11, while its industry has an average P/E of 8.34. Over the past year, ABG's Forward P/E has been as high as 11.66 and as low as 7.37, with a median of 8.83.
We also note that ABG holds a PEG ratio of 0.51. 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 1.17. Over the last 12 months, ABG's PEG has been as high as 1.09 and as low as 0.47, with a median of 0.85.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group is likely undervalued currently. And when considering the strength of its earnings outlook, ABG sticks out at as one of the market's strongest value stocks.
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Is Asbury Automotive Group (ABG) Stock Undervalued Right Now?
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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Asbury Automotive Group (ABG - Free Report) is a stock many investors are watching right now. ABG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.11, while its industry has an average P/E of 8.34. Over the past year, ABG's Forward P/E has been as high as 11.66 and as low as 7.37, with a median of 8.83.
We also note that ABG holds a PEG ratio of 0.51. 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 1.17. Over the last 12 months, ABG's PEG has been as high as 1.09 and as low as 0.47, with a median of 0.85.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group is likely undervalued currently. And when considering the strength of its earnings outlook, ABG sticks out at as one of the market's strongest value stocks.