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Group 1 Automotive (GPI) Gains But Lags Market: What You Should Know
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In the latest trading session, Group 1 Automotive (GPI - Free Report) closed at $187.89, marking a +0.2% move from the previous day. The stock lagged the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.4%.
Prior to today's trading, shares of the auto dealer had lost 8.79% over the past month. This has lagged the Retail-Wholesale sector's loss of 6.04% and the S&P 500's loss of 0.91% in that time.
Group 1 Automotive will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $8.92, up 57.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.46 billion, up 15.82% from the year-ago period.
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.
It is also important to note the recent changes to analyst estimates for Group 1 Automotive. These recent revisions tend to reflect the evolving nature of short-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. 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.
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 1.62% 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 5.45. This valuation marks a discount compared to its industry's average Forward P/E of 6.81.
Investors should also note that GPI has a PEG ratio of 0.45 right now. 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 was holding an average PEG ratio of 0.36 at yesterday's closing price.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 20, which puts 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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Group 1 Automotive (GPI) Gains But Lags Market: What You Should Know
In the latest trading session, Group 1 Automotive (GPI - Free Report) closed at $187.89, marking a +0.2% move from the previous day. The stock lagged the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.4%.
Prior to today's trading, shares of the auto dealer had lost 8.79% over the past month. This has lagged the Retail-Wholesale sector's loss of 6.04% and the S&P 500's loss of 0.91% in that time.
Group 1 Automotive will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $8.92, up 57.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.46 billion, up 15.82% from the year-ago period.
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.
It is also important to note the recent changes to analyst estimates for Group 1 Automotive. These recent revisions tend to reflect the evolving nature of short-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. 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.
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 1.62% 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 5.45. This valuation marks a discount compared to its industry's average Forward P/E of 6.81.
Investors should also note that GPI has a PEG ratio of 0.45 right now. 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 was holding an average PEG ratio of 0.36 at yesterday's closing price.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 20, which puts 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.