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AutoNation (AN) Gains As Market Dips: What You Should Know
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AutoNation (AN - Free Report) closed the most recent trading day at $114.58, moving +0.46% from the previous trading session. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the auto retailer had lost 8.45% over the past month, lagging the Retail-Wholesale sector's gain of 2.21% and the S&P 500's gain of 5.76% in that time.
Investors will be hoping for strength from AutoNation as it approaches its next earnings release. In that report, analysts expect AutoNation to post earnings of $4.99 per share. This would mark 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.
It is also important to note the recent changes to analyst estimates for AutoNation. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.4% higher. AutoNation is currently a Zacks Rank #2 (Buy).
In terms of valuation, AutoNation is currently trading at a Forward P/E ratio of 6.43. This represents a discount compared to its industry's average Forward P/E of 7.74.
Meanwhile, AN's PEG ratio is currently 0.26. 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 0.39 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 12, putting it in the top 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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AutoNation (AN) Gains As Market Dips: What You Should Know
AutoNation (AN - Free Report) closed the most recent trading day at $114.58, moving +0.46% from the previous trading session. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the auto retailer had lost 8.45% over the past month, lagging the Retail-Wholesale sector's gain of 2.21% and the S&P 500's gain of 5.76% in that time.
Investors will be hoping for strength from AutoNation as it approaches its next earnings release. In that report, analysts expect AutoNation to post earnings of $4.99 per share. This would mark 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.
It is also important to note the recent changes to analyst estimates for AutoNation. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.4% higher. AutoNation is currently a Zacks Rank #2 (Buy).
In terms of valuation, AutoNation is currently trading at a Forward P/E ratio of 6.43. This represents a discount compared to its industry's average Forward P/E of 7.74.
Meanwhile, AN's PEG ratio is currently 0.26. 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 0.39 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 12, putting it in the top 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.