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Group 1 Automotive Acquires a Couple of Dealerships in Texas

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Group 1 Automotive, Inc. (GPI - Free Report) has announced the acquisition of two dealerships in Texas in order to bolster its business presence. Both dealerships are located in El Paso, TX, catering two automotive brands namely Audi and Subaru. On a more positive note, these purchased dealerships are projected to add roughly $65 million to the company’s annualized revenues.

Per management, this dealership accretion will enable the company to strengthen its footprint in the rapidly growing El Paso market as well as cement its existing partnership with Audi and Subaru.

Notably, the above-mentioned dealerships sum up the company’s total automotive franchises to seven. At El Paso, Group 1 Automotive’s dealership line-up includes the likes of BMW, Buick, Ford, GMC and MINI apart from Audi and Subaru.

Group 1 Automotive, Inc. Price and Consensus

 

Significantly, at the start of this January, Group 1 Automotive announced acquiring a new Land Rover franchise at Watford, United Kingdom, taking the total count to 56 franchises under the U.K. operations.

Earlier in July 2017, the company bought Beadles Group Ltd, adding seven brands including Jaguar, Land Rover, Volkswagen, Skoda, Toyota, Vauxhall and Kia across 12 dealerships.

The company now operates in the United Kingdom, the United States and Brazil through its 175 automotive dealerships and 230 franchises of 32 automotive brands.

Price Performance

Shares of Group 1 Automotive have rallied 12.3% in the last 30 days, underperforming the 14.4% rise of the industry it belongs to.

 

Zacks Rank & Key Picks

Group 1 Automotive has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Daimler A.G. and Allison Transmission Holding, Inc. (ALSN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oshkosh has an expected long-term growth rate of 14.5%. Shares of the company have surged 34.6% in the last six months.

Daimler has an expected long-term growth rate of 7.1%. In the last six months, shares of the company have climbed 32.2%.

Allison Transmission has an expected long-term growth rate of 2.8%. The stock has gained 6.2% in the last three months.

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