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Are Investors Undervaluing Group 1 Automotive (GPI) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Group 1 Automotive (GPI - Free Report) . GPI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.88 right now. For comparison, its industry sports an average P/E of 8.46. Over the past year, GPI's Forward P/E has been as high as 9.63 and as low as 5.56, with a median of 7.74.
Investors should also recognize that GPI has a P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with 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 1.47. Over the past 12 months, GPI's P/B has been as high as 1.46 and as low as 0.82, with a median of 1.19.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPI has a P/S ratio of 0.1. This compares to its industry's average P/S of 0.21.
Finally, investors will want to recognize that GPI has a P/CF ratio of 3.83. 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. GPI's P/CF compares to its industry's average P/CF of 5.27. Within the past 12 months, GPI's P/CF has been as high as 5.78 and as low as 3.11, with a median of 4.70.
These are only a few of the key metrics included in Group 1 Automotive's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GPI looks like an impressive value stock at the moment.
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Are Investors Undervaluing Group 1 Automotive (GPI) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Group 1 Automotive (GPI - Free Report) . GPI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.88 right now. For comparison, its industry sports an average P/E of 8.46. Over the past year, GPI's Forward P/E has been as high as 9.63 and as low as 5.56, with a median of 7.74.
Investors should also recognize that GPI has a P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with 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 1.47. Over the past 12 months, GPI's P/B has been as high as 1.46 and as low as 0.82, with a median of 1.19.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPI has a P/S ratio of 0.1. This compares to its industry's average P/S of 0.21.
Finally, investors will want to recognize that GPI has a P/CF ratio of 3.83. 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. GPI's P/CF compares to its industry's average P/CF of 5.27. Within the past 12 months, GPI's P/CF has been as high as 5.78 and as low as 3.11, with a median of 4.70.
These are only a few of the key metrics included in Group 1 Automotive's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GPI looks like an impressive value stock at the moment.