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AutoNation (AN) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, AutoNation (AN - Free Report) closed at $115.91, marking a -1.75% move from the previous day. This change lagged the S&P 500's daily loss of 1.23%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Coming into today, shares of the auto retailer had gained 12% in the past month. In that same time, the Retail-Wholesale sector gained 5.13%, while the S&P 500 gained 5.04%.
AutoNation will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $5.32, up 90.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, up 10.42% from the year-ago period.
AN's full-year Zacks Consensus Estimates are calling for earnings of $20.06 per share and revenue of $27.47 billion. These results would represent year-over-year changes of +10.58% and +6.3%, respectively.
Investors should also note any recent changes to analyst estimates for AutoNation. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 7.73% higher. AutoNation is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, AutoNation is currently trading at a Forward P/E ratio of 5.88. Its industry sports an average Forward P/E of 6.96, so we one might conclude that AutoNation is trading at a discount comparatively.
It is also worth noting that AN currently has a PEG ratio of 0.25. 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. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.43 based on yesterday's closing prices.
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 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, AutoNation (AN - Free Report) closed at $115.91, marking a -1.75% move from the previous day. This change lagged the S&P 500's daily loss of 1.23%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Coming into today, shares of the auto retailer had gained 12% in the past month. In that same time, the Retail-Wholesale sector gained 5.13%, while the S&P 500 gained 5.04%.
AutoNation will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $5.32, up 90.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, up 10.42% from the year-ago period.
AN's full-year Zacks Consensus Estimates are calling for earnings of $20.06 per share and revenue of $27.47 billion. These results would represent year-over-year changes of +10.58% and +6.3%, respectively.
Investors should also note any recent changes to analyst estimates for AutoNation. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 7.73% higher. AutoNation is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, AutoNation is currently trading at a Forward P/E ratio of 5.88. Its industry sports an average Forward P/E of 6.96, so we one might conclude that AutoNation is trading at a discount comparatively.
It is also worth noting that AN currently has a PEG ratio of 0.25. 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. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.43 based on yesterday's closing prices.
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 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.