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Penske Automotive (PAG) Dips More Than Broader Markets: What You Should Know
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Penske Automotive (PAG - Free Report) closed at $140 in the latest trading session, marking a -1.12% move from the prior day. This move lagged the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 4.08%.
Prior to today's trading, shares of the auto dealership chain had gained 5.04% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.55% and the S&P 500's gain of 6.51% in that time.
Investors will be hoping for strength from Penske Automotive as it approaches its next earnings release. In that report, analysts expect Penske Automotive to post earnings of $3.90 per share. This would mark a year-over-year decline of 18.07%. Meanwhile, our latest consensus estimate is calling for revenue of $6.66 billion, down 4.48% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.18 per share and revenue of $26.65 billion, which would represent changes of -18.17% and -4.18%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Penske Automotive. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Penske Automotive is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Penske Automotive is holding a Forward P/E ratio of 9.33. Its industry sports an average Forward P/E of 6.75, 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 6.14. 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 industry currently had an average PEG ratio of 1.73 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Dips More Than Broader Markets: What You Should Know
Penske Automotive (PAG - Free Report) closed at $140 in the latest trading session, marking a -1.12% move from the prior day. This move lagged the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 4.08%.
Prior to today's trading, shares of the auto dealership chain had gained 5.04% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.55% and the S&P 500's gain of 6.51% in that time.
Investors will be hoping for strength from Penske Automotive as it approaches its next earnings release. In that report, analysts expect Penske Automotive to post earnings of $3.90 per share. This would mark a year-over-year decline of 18.07%. Meanwhile, our latest consensus estimate is calling for revenue of $6.66 billion, down 4.48% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.18 per share and revenue of $26.65 billion, which would represent changes of -18.17% and -4.18%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Penske Automotive. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Penske Automotive is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Penske Automotive is holding a Forward P/E ratio of 9.33. Its industry sports an average Forward P/E of 6.75, 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 6.14. 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 industry currently had an average PEG ratio of 1.73 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.