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Penske Automotive (PAG) Outpaces Stock Market Gains: What You Should Know
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Penske Automotive (PAG - Free Report) closed at $145.15 in the latest trading session, marking a +0.67% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Prior to today's trading, shares of the auto dealership chain had gained 6.95% over the past month. This has outpaced the Retail-Wholesale sector's loss of 6.23% and the S&P 500's loss of 4.07% in that time.
Investors will be hoping for strength from Penske Automotive as it approaches its next earnings release. The company is expected to report EPS of $4.09, down 14.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.66 billion, down 4.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.18 per share and revenue of $26.65 billion. These totals would mark changes of -18.17% and -4.18%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Penske Automotive. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 3.67% higher within the past month. Penske Automotive is currently a Zacks Rank #2 (Buy).
Investors should also note Penske Automotive's current valuation metrics, including its Forward P/E ratio of 9.5. Its industry sports an average Forward P/E of 8, so we one might conclude that Penske Automotive is trading at a premium comparatively.
It is also worth noting that PAG currently has a PEG ratio of 6.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Retail and Whole Sales was holding an average PEG ratio of 1.89 at yesterday's closing price.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Penske Automotive (PAG) Outpaces Stock Market Gains: What You Should Know
Penske Automotive (PAG - Free Report) closed at $145.15 in the latest trading session, marking a +0.67% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Prior to today's trading, shares of the auto dealership chain had gained 6.95% over the past month. This has outpaced the Retail-Wholesale sector's loss of 6.23% and the S&P 500's loss of 4.07% in that time.
Investors will be hoping for strength from Penske Automotive as it approaches its next earnings release. The company is expected to report EPS of $4.09, down 14.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.66 billion, down 4.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.18 per share and revenue of $26.65 billion. These totals would mark changes of -18.17% and -4.18%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Penske Automotive. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 3.67% higher within the past month. Penske Automotive is currently a Zacks Rank #2 (Buy).
Investors should also note Penske Automotive's current valuation metrics, including its Forward P/E ratio of 9.5. Its industry sports an average Forward P/E of 8, so we one might conclude that Penske Automotive is trading at a premium comparatively.
It is also worth noting that PAG currently has a PEG ratio of 6.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Retail and Whole Sales was holding an average PEG ratio of 1.89 at yesterday's closing price.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.