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Are Investors Undervaluing Group 1 Automotive (GPI) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 5.79. This compares to its industry's average Forward P/E of 6.19. GPI's Forward P/E has been as high as 6.67 and as low as 3.66, with a median of 4.69, all within the past year.
Another valuation metric that we should highlight is GPI's P/B ratio of 1.36. 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 attractive against its industry's average P/B of 1.59. GPI's P/B has been as high as 1.61 and as low as 0.94, with a median of 1.36, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GPI has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.32.
Finally, investors should note that GPI has a P/CF ratio of 3.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.50. GPI's P/CF has been as high as 4.37 and as low as 2.92, with a median of 3.89, 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 # 2 (Buy) stock with a Value Score of A.
Shares of Rush Enterprises currently holds a Forward P/E ratio of 9.84, and its PEG ratio is 0.66. In comparison, its industry sports average P/E and PEG ratios of 6.19 and 0.42.
RUSHA's Forward P/E has been as high as 11.78 and as low as 8.03, with a median of 9.80. During the same time period, its PEG ratio has been as high as 0.79, as low as 0.54, with a median of 0.65.
Additionally, Rush Enterprises has a P/B ratio of 1.55 while its industry's price-to-book ratio sits at 1.59. For RUSHA, this valuation metric has been as high as 1.94, as low as 1.43, with a median of 1.66 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Group 1 Automotive and Rush Enterprises are likely undervalued currently. And when considering the strength of its earnings outlook, GPI and RUSHA sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Group 1 Automotive (GPI) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 5.79. This compares to its industry's average Forward P/E of 6.19. GPI's Forward P/E has been as high as 6.67 and as low as 3.66, with a median of 4.69, all within the past year.
Another valuation metric that we should highlight is GPI's P/B ratio of 1.36. 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 attractive against its industry's average P/B of 1.59. GPI's P/B has been as high as 1.61 and as low as 0.94, with a median of 1.36, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GPI has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.32.
Finally, investors should note that GPI has a P/CF ratio of 3.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.50. GPI's P/CF has been as high as 4.37 and as low as 2.92, with a median of 3.89, 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 # 2 (Buy) stock with a Value Score of A.
Shares of Rush Enterprises currently holds a Forward P/E ratio of 9.84, and its PEG ratio is 0.66. In comparison, its industry sports average P/E and PEG ratios of 6.19 and 0.42.
RUSHA's Forward P/E has been as high as 11.78 and as low as 8.03, with a median of 9.80. During the same time period, its PEG ratio has been as high as 0.79, as low as 0.54, with a median of 0.65.
Additionally, Rush Enterprises has a P/B ratio of 1.55 while its industry's price-to-book ratio sits at 1.59. For RUSHA, this valuation metric has been as high as 1.94, as low as 1.43, with a median of 1.66 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Group 1 Automotive and Rush Enterprises are likely undervalued currently. And when considering the strength of its earnings outlook, GPI and RUSHA sticks out as one of the market's strongest value stocks.