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Should Value Investors Buy Asbury Automotive Group (ABG) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

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) and an A for Value. The stock has a Forward P/E ratio of 8.38. This compares to its industry's average Forward P/E of 10.35. Over the past 52 weeks, ABG's Forward P/E has been as high as 12.94 and as low as 4.06, with a median of 9.19.

Finally, we should also recognize that ABG has a P/CF ratio of 8.44. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.41. Over the past 52 weeks, ABG's P/CF has been as high as 9.87 and as low as 3.53, with a median of 8.

These are only a few of the key metrics included in Asbury Automotive Group'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, ABG looks like an impressive value stock at the moment.


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