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Are These Retail-Wholesale Stocks a Great Value Stocks Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Group 1 Automotive (GPI - Free Report) is a stock many investors are watching right now. GPI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 4.57. This compares to its industry's average Forward P/E of 5.60. Over the past year, GPI's Forward P/E has been as high as 9.44 and as low as 4.57, with a median of 6.20.
Investors should also recognize that GPI has a P/B ratio of 1.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2. Within the past 52 weeks, GPI's P/B has been as high as 2.11 and as low as 1.54, with a median of 1.81.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GPI has a P/S ratio of 0.2. This compares to its industry's average P/S of 0.37.
Finally, investors should note that GPI has a P/CF ratio of 4.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GPI's P/CF compares to its industry's average P/CF of 6.14. GPI's P/CF has been as high as 7.71 and as low as 4.58, with a median of 5.36, all within the past year.
Another great Automotive - Retail and Whole Sales stock you could consider is Sonic Automotive (SAH - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Sonic Automotive has a P/B ratio of 1.61 while its industry's price-to-book ratio sits at 2. For SAH, this valuation metric has been as high as 2.67, as low as 1.61, with a median of 2.14 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Group 1 Automotive and Sonic Automotive are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GPI and SAH feels like a great value stock at the moment.
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Are These Retail-Wholesale Stocks a Great Value Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Group 1 Automotive (GPI - Free Report) is a stock many investors are watching right now. GPI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 4.57. This compares to its industry's average Forward P/E of 5.60. Over the past year, GPI's Forward P/E has been as high as 9.44 and as low as 4.57, with a median of 6.20.
Investors should also recognize that GPI has a P/B ratio of 1.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2. Within the past 52 weeks, GPI's P/B has been as high as 2.11 and as low as 1.54, with a median of 1.81.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GPI has a P/S ratio of 0.2. This compares to its industry's average P/S of 0.37.
Finally, investors should note that GPI has a P/CF ratio of 4.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GPI's P/CF compares to its industry's average P/CF of 6.14. GPI's P/CF has been as high as 7.71 and as low as 4.58, with a median of 5.36, all within the past year.
Another great Automotive - Retail and Whole Sales stock you could consider is Sonic Automotive (SAH - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Sonic Automotive has a P/B ratio of 1.61 while its industry's price-to-book ratio sits at 2. For SAH, this valuation metric has been as high as 2.67, as low as 1.61, with a median of 2.14 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Group 1 Automotive and Sonic Automotive are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GPI and SAH feels like a great value stock at the moment.