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Is Group 1 Automotive (GPI) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Group 1 Automotive (GPI - Free Report) is a stock many investors are watching right now. GPI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.62. This compares to its industry's average Forward P/E of 8.93. Over the past 52 weeks, GPI's Forward P/E has been as high as 9.13 and as low as 5.56, with a median of 7.32.
Investors should also recognize that GPI has a P/B ratio of 1.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GPI's current P/B looks attractive when compared to its industry's average P/B of 1.38. Over the past 12 months, GPI's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.12.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.12. This compares to its industry's average P/S of 0.22.
Finally, we should also recognize that GPI has a P/CF ratio of 5.97. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.74. Over the past year, GPI's P/CF has been as high as 6.18 and as low as 3.11, with a median of 4.89.
Value investors will likely look at more than just these metrics, but the above data helps show that Group 1 Automotive is likely undervalued currently. And when considering the strength of its earnings outlook, GPI sticks out at as one of the market's strongest value stocks.
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Is Group 1 Automotive (GPI) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Group 1 Automotive (GPI - Free Report) is a stock many investors are watching right now. GPI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.62. This compares to its industry's average Forward P/E of 8.93. Over the past 52 weeks, GPI's Forward P/E has been as high as 9.13 and as low as 5.56, with a median of 7.32.
Investors should also recognize that GPI has a P/B ratio of 1.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GPI's current P/B looks attractive when compared to its industry's average P/B of 1.38. Over the past 12 months, GPI's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.12.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.12. This compares to its industry's average P/S of 0.22.
Finally, we should also recognize that GPI has a P/CF ratio of 5.97. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.74. Over the past year, GPI's P/CF has been as high as 6.18 and as low as 3.11, with a median of 4.89.
Value investors will likely look at more than just these metrics, but the above data helps show that Group 1 Automotive is likely undervalued currently. And when considering the strength of its earnings outlook, GPI sticks out at as one of the market's strongest value stocks.