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Should Value Investors Buy Group 1 Automotive (GPI) 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.
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 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.
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), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.98, which compares to its industry's average of 10.09. Over the last 12 months, GPI's Forward P/E has been as high as 9.67 and as low as 2.64, with a median of 7.41.
GPI is also sporting a PEG ratio of 0.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GPI's industry has an average PEG of 1.70 right now. Over the last 12 months, GPI's PEG has been as high as 4.33 and as low as 0.52, with a median of 1.38.
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 0.2. This compares to its industry's average P/S of 0.4.
Finally, we should also recognize that GPI has a P/CF ratio of 7.11. 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 current P/CF looks attractive when compared to its industry's average P/CF of 11.41. Over the past year, GPI's P/CF has been as high as 8.20 and as low as 2.43, with a median of 6.90.
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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Should Value Investors Buy Group 1 Automotive (GPI) Stock?
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.
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 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.
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), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.98, which compares to its industry's average of 10.09. Over the last 12 months, GPI's Forward P/E has been as high as 9.67 and as low as 2.64, with a median of 7.41.
GPI is also sporting a PEG ratio of 0.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GPI's industry has an average PEG of 1.70 right now. Over the last 12 months, GPI's PEG has been as high as 4.33 and as low as 0.52, with a median of 1.38.
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 0.2. This compares to its industry's average P/S of 0.4.
Finally, we should also recognize that GPI has a P/CF ratio of 7.11. 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 current P/CF looks attractive when compared to its industry's average P/CF of 11.41. Over the past year, GPI's P/CF has been as high as 8.20 and as low as 2.43, with a median of 6.90.
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.