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Group 1 Automotive (GPI) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Group 1 Automotive (GPI - Free Report) closed at $184.46, marking a -1.81% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%.

Coming into today, shares of the auto dealer had gained 14.39% in the past month. In that same time, the Retail-Wholesale sector lost 4.97%, while the S&P 500 lost 2.37%.

Investors will be hoping for strength from GPI as it approaches its next earnings release. The company is expected to report EPS of $9.17, up 31.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.43 billion, up 12.76% from the prior-year quarter.

GPI's full-year Zacks Consensus Estimates are calling for earnings of $33.09 per share and revenue of $13.28 billion. These results would represent year-over-year changes of +83.22% and +22.41%, respectively.

Investors should also note any recent changes to analyst estimates for GPI. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 4.05% higher. GPI currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, GPI is holding a Forward P/E ratio of 5.68. This represents a discount compared to its industry's average Forward P/E of 8.68.

Also, we should mention that GPI has a PEG ratio of 0.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GPI's industry had an average PEG ratio of 0.47 as of yesterday's close.

The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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.

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