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AutoNation (AN) Stock Sinks As Market Gains: What You Should Know

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AutoNation (AN - Free Report) closed at $74.84 in the latest trading session, marking a -1.21% move from the prior day. This move lagged the S&P 500's daily gain of 0.55%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 1.03%.

Coming into today, shares of the auto retailer had gained 13.87% in the past month. In that same time, the Retail-Wholesale sector lost 1.11%, while the S&P 500 gained 3.13%.

Wall Street will be looking for positivity from AN as it approaches its next earnings report date. On that day, AN is projected to report earnings of $2.01 per share, which would represent year-over-year growth of 53.44%. Our most recent consensus estimate is calling for quarterly revenue of $5.56 billion, up 0.29% from the year-ago period.

Any recent changes to analyst estimates for AN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AN is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AN has a Forward P/E ratio of 11.32 right now. Its industry sports an average Forward P/E of 11.28, so we one might conclude that AN is trading at a premium comparatively.

We can also see that AN currently has a PEG ratio of 1.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 1.09 as of yesterday's close.

The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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