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Is Group 1 Automotive (GPI) a Great Value Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Group 1 Automotive (GPI - Free Report) . GPI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 4.56. This compares to its industry's average Forward P/E of 5.66. GPI's Forward P/E has been as high as 8.32 and as low as 4.11, with a median of 5.79, all within the past year.
We also note that GPI holds a PEG ratio of 0.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GPI's PEG compares to its industry's average PEG of 0.33. Within the past year, GPI's PEG has been as high as 0.88 and as low as 0.31, with a median of 0.47.
Investors should also recognize that GPI has a P/B ratio of 1.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.17. Over the past year, GPI's P/B has been as high as 2.11 and as low as 1.28, with a median of 1.76.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPI has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.34.
Finally, we should also recognize that GPI has a P/CF ratio of 4.13. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. GPI's P/CF compares to its industry's average P/CF of 5.83. Over the past 52 weeks, GPI's P/CF has been as high as 6.45 and as low as 3.39, with a median of 5.19.
Investors could also keep in mind Titan Machinery (TITN - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Titan Machinery also has a P/B ratio of 1.40 compared to its industry's price-to-book ratio of 2.17. Over the past year, its P/B ratio has been as high as 2.09, as low as 1.16, with a median of 1.62.
These are just a handful of the figures considered in Group 1 Automotive and Titan Machinery's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPI and TITN is an impressive value stock right now.
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Is Group 1 Automotive (GPI) a Great Value Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Group 1 Automotive (GPI - Free Report) . GPI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 4.56. This compares to its industry's average Forward P/E of 5.66. GPI's Forward P/E has been as high as 8.32 and as low as 4.11, with a median of 5.79, all within the past year.
We also note that GPI holds a PEG ratio of 0.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GPI's PEG compares to its industry's average PEG of 0.33. Within the past year, GPI's PEG has been as high as 0.88 and as low as 0.31, with a median of 0.47.
Investors should also recognize that GPI has a P/B ratio of 1.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.17. Over the past year, GPI's P/B has been as high as 2.11 and as low as 1.28, with a median of 1.76.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPI has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.34.
Finally, we should also recognize that GPI has a P/CF ratio of 4.13. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. GPI's P/CF compares to its industry's average P/CF of 5.83. Over the past 52 weeks, GPI's P/CF has been as high as 6.45 and as low as 3.39, with a median of 5.19.
Investors could also keep in mind Titan Machinery (TITN - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Titan Machinery also has a P/B ratio of 1.40 compared to its industry's price-to-book ratio of 2.17. Over the past year, its P/B ratio has been as high as 2.09, as low as 1.16, with a median of 1.62.
These are just a handful of the figures considered in Group 1 Automotive and Titan Machinery's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPI and TITN is an impressive value stock right now.