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Group 1 Automotive (GPI) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Group 1 Automotive (GPI - Free Report) closed at $195.17, marking a -1.86% move from the previous day. This change lagged the S&P 500's daily loss of 0.87%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.43%.

Prior to today's trading, shares of the auto dealer had gained 5.25% over the past month. This has outpaced the Retail-Wholesale sector's loss of 4.65% and the S&P 500's gain of 0.7% in that time.

Wall Street will be looking for positivity from Group 1 Automotive as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue of $3.46 billion, up 15.82% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.38 per share and revenue of $13.64 billion. These totals would mark changes of +90.37% and +25.65%, respectively, from last year.

Any recent changes to analyst estimates for Group 1 Automotive should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 3.61% higher within the past month. Group 1 Automotive is currently a Zacks Rank #3 (Hold).

Digging into valuation, Group 1 Automotive currently has a Forward P/E ratio of 5.78. For comparison, its industry has an average Forward P/E of 6.94, which means Group 1 Automotive is trading at a discount to the group.

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. GPI's industry had an average PEG ratio of 0.37 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 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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