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AutoNation (AN) Gains But Lags Market: What You Should Know
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In the latest trading session, AutoNation (AN - Free Report) closed at $112.12, marking a +0.34% move from the previous day. The stock lagged the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the auto retailer had lost 12.01% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.69% and the S&P 500's gain of 0.39% in that time.
Investors will be hoping for strength from AutoNation as it approaches its next earnings release. On that day, AutoNation is projected to report earnings of $4.99 per share, which would represent year-over-year growth of 105.35%. Meanwhile, our latest consensus estimate is calling for revenue of $6.44 billion, up 11.26% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.51 per share and revenue of $25.69 billion. These totals would mark changes of +145.93% and +26.01%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AutoNation. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. AutoNation currently has a Zacks Rank of #3 (Hold).
Investors should also note AutoNation's current valuation metrics, including its Forward P/E ratio of 6.38. Its industry sports an average Forward P/E of 6.91, so we one might conclude that AutoNation is trading at a discount comparatively.
Investors should also note that AN has a PEG ratio of 0.26 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. 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 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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AutoNation (AN) Gains But Lags Market: What You Should Know
In the latest trading session, AutoNation (AN - Free Report) closed at $112.12, marking a +0.34% move from the previous day. The stock lagged the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the auto retailer had lost 12.01% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.69% and the S&P 500's gain of 0.39% in that time.
Investors will be hoping for strength from AutoNation as it approaches its next earnings release. On that day, AutoNation is projected to report earnings of $4.99 per share, which would represent year-over-year growth of 105.35%. Meanwhile, our latest consensus estimate is calling for revenue of $6.44 billion, up 11.26% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.51 per share and revenue of $25.69 billion. These totals would mark changes of +145.93% and +26.01%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AutoNation. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. AutoNation currently has a Zacks Rank of #3 (Hold).
Investors should also note AutoNation's current valuation metrics, including its Forward P/E ratio of 6.38. Its industry sports an average Forward P/E of 6.91, so we one might conclude that AutoNation is trading at a discount comparatively.
Investors should also note that AN has a PEG ratio of 0.26 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. 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 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.