We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Group 1 Automotive (GPI) Right Now?
Read MoreHide Full Article
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Group 1 Automotive (GPI - Free Report) . GPI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.88, which compares to its industry's average of 5.81. Over the past 52 weeks, GPI's Forward P/E has been as high as 6.14 and as low as 3.66, with a median of 4.68.
Another notable valuation metric for GPI is its P/B ratio of 1.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. GPI's current P/B looks attractive when compared to its industry's average P/B of 1.96. Within the past 52 weeks, GPI's P/B has been as high as 1.97 and as low as 0.94, with a median of 1.47.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GPI has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.33.
Finally, we should also recognize that GPI has a P/CF ratio of 3.91. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.43. GPI's P/CF has been as high as 5.69 and as low as 2.90, with a median of 4, all within the past year.
Another great Automotive - Retail and Whole Sales stock you could consider is Rush Enterprises (RUSHA - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of Rush Enterprises currently holds a Forward P/E ratio of 9.88, and its PEG ratio is 0.66. In comparison, its industry sports average P/E and PEG ratios of 5.81 and 0.63.
Over the last 12 months, RUSHA's P/E has been as high as 15.39, as low as 8.44, with a median of 9.93, and its PEG ratio has been as high as 1.03, as low as 0.56, with a median of 0.66.
Rush Enterprises sports a P/B ratio of 1.70 as well; this compares to its industry's price-to-book ratio of 1.96. In the past 52 weeks, RUSHA's P/B has been as high as 2.28, as low as 1.43, with a median of 1.76.
These are just a handful of the figures considered in Group 1 Automotive and Rush Enterprises'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 RUSHA is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Group 1 Automotive (GPI) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Group 1 Automotive (GPI - Free Report) . GPI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.88, which compares to its industry's average of 5.81. Over the past 52 weeks, GPI's Forward P/E has been as high as 6.14 and as low as 3.66, with a median of 4.68.
Another notable valuation metric for GPI is its P/B ratio of 1.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. GPI's current P/B looks attractive when compared to its industry's average P/B of 1.96. Within the past 52 weeks, GPI's P/B has been as high as 1.97 and as low as 0.94, with a median of 1.47.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GPI has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.33.
Finally, we should also recognize that GPI has a P/CF ratio of 3.91. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.43. GPI's P/CF has been as high as 5.69 and as low as 2.90, with a median of 4, all within the past year.
Another great Automotive - Retail and Whole Sales stock you could consider is Rush Enterprises (RUSHA - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of Rush Enterprises currently holds a Forward P/E ratio of 9.88, and its PEG ratio is 0.66. In comparison, its industry sports average P/E and PEG ratios of 5.81 and 0.63.
Over the last 12 months, RUSHA's P/E has been as high as 15.39, as low as 8.44, with a median of 9.93, and its PEG ratio has been as high as 1.03, as low as 0.56, with a median of 0.66.
Rush Enterprises sports a P/B ratio of 1.70 as well; this compares to its industry's price-to-book ratio of 1.96. In the past 52 weeks, RUSHA's P/B has been as high as 2.28, as low as 1.43, with a median of 1.76.
These are just a handful of the figures considered in Group 1 Automotive and Rush Enterprises'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 RUSHA is an impressive value stock right now.