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

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Group 1 Automotive (GPI - Free Report) closed at $192.01 in the latest trading session, marking a -0.29% move from the prior day. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the auto dealer had lost 1.12% in the past month. In that same time, the Retail-Wholesale sector lost 2.19%, while the S&P 500 gained 4.32%.

Investors will be hoping for strength from Group 1 Automotive as it approaches its next earnings release. On that day, Group 1 Automotive is projected to report earnings of $8.92 per share, which would represent 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.

Investors might also notice recent changes to analyst estimates for Group 1 Automotive. 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. The Zacks Consensus EPS estimate has moved 0.52% higher within the past month. Group 1 Automotive currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Group 1 Automotive is holding a Forward P/E ratio of 5.6. This represents a discount compared to its industry's average Forward P/E of 7.13.

It is also worth noting that GPI currently has a PEG ratio of 0.46. 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. The Automotive - Retail and Whole Sales industry currently 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 industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.

To follow GPI in the coming trading sessions, be sure to utilize Zacks.com.


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