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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 $104.45, moving +1.05% from the previous trading session. This change outpaced the S&P 500's 1.69% loss on the day. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the auto retailer had lost 6.53% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.49% and the S&P 500's gain of 7.88% in that time.
Wall Street will be looking for positivity from AutoNation as it approaches its next earnings report date. This is expected to be April 21, 2022. On that day, AutoNation is projected to report earnings of $5.39 per share, which would represent year-over-year growth of 93.19%. Our most recent consensus estimate is calling for quarterly revenue of $6.63 billion, up 12.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $20.16 per share and revenue of $27.19 billion, which would represent changes of +11.14% and +5.21%, respectively, from the prior year.
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. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% higher. AutoNation currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, AutoNation currently has a Forward P/E ratio of 5.13. Its industry sports an average Forward P/E of 6.24, so we one might conclude that AutoNation is trading at a discount comparatively.
We can also see that AN currently has a PEG ratio of 0.22. 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. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.4 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 21, putting it in the top 9% 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.
To follow AN in the coming trading sessions, be sure to utilize 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 $104.45, moving +1.05% from the previous trading session. This change outpaced the S&P 500's 1.69% loss on the day. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the auto retailer had lost 6.53% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.49% and the S&P 500's gain of 7.88% in that time.
Wall Street will be looking for positivity from AutoNation as it approaches its next earnings report date. This is expected to be April 21, 2022. On that day, AutoNation is projected to report earnings of $5.39 per share, which would represent year-over-year growth of 93.19%. Our most recent consensus estimate is calling for quarterly revenue of $6.63 billion, up 12.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $20.16 per share and revenue of $27.19 billion, which would represent changes of +11.14% and +5.21%, respectively, from the prior year.
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. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% higher. AutoNation currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, AutoNation currently has a Forward P/E ratio of 5.13. Its industry sports an average Forward P/E of 6.24, so we one might conclude that AutoNation is trading at a discount comparatively.
We can also see that AN currently has a PEG ratio of 0.22. 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. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.4 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 21, putting it in the top 9% 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.
To follow AN in the coming trading sessions, be sure to utilize Zacks.com.