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Group 1 Automotive (GPI) Gains But Lags Market: What You Should Know

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Group 1 Automotive (GPI - Free Report) closed the most recent trading day at $202.57, moving +0.28% from the previous trading session. This move lagged the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.04%.

Prior to today's trading, shares of the auto dealer had lost 0.83% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 3.97% and lagged the S&P 500's loss of 0.21% in that time.

Investors will be hoping for strength from Group 1 Automotive as it approaches its next earnings release. In that report, analysts expect Group 1 Automotive to post earnings of $8.92 per share. This would mark year-over-year growth of 57.6%. Meanwhile, our latest consensus estimate is calling for revenue of $3.46 billion, up 15.82% from the prior-year quarter.

GPI's full-year Zacks Consensus Estimates are calling for earnings of $34.38 per share and revenue of $13.64 billion. These results would represent year-over-year changes of +90.37% and +25.65%, respectively.

Any recent changes to analyst estimates for Group 1 Automotive should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.51% higher within the past month. Group 1 Automotive is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Group 1 Automotive is holding a Forward P/E ratio of 5.87. This represents a discount compared to its industry's average Forward P/E of 7.04.

Meanwhile, GPI's PEG ratio is currently 0.48. 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 0.36 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 19, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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