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Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?
Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Penske Automotive Group, Inc. (PAG - Free Report) .
Penske in Focus
PAG may be an interesting play thanks to its forward PE of 9.7 its P/S ratio of 0.2 and its decent dividend yield of 2.8%. These factors suggest that Penske is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that PAG has decent revenue metrics to back up its earnings.
But before you think that Penske is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 1.2% in the past 30 days, thanks to one upward revision in the past one month compared to none lower.
So really, Penske is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Why Penske (PAG) Could Be a Top Value Stock Pick
Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?
Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Penske Automotive Group, Inc. (PAG - Free Report) .
Penske in Focus
PAG may be an interesting play thanks to its forward PE of 9.7 its P/S ratio of 0.2 and its decent dividend yield of 2.8%. These factors suggest that Penske is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that PAG has decent revenue metrics to back up its earnings.
Penske Automotive Group, Inc. PE Ratio (TTM)
Penske Automotive Group, Inc. PE Ratio (TTM) | Penske Automotive Group, Inc. Quote
But before you think that Penske is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 1.2% in the past 30 days, thanks to one upward revision in the past one month compared to none lower.
This estimate strength is actually enough to push PAG to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So really, Penske is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>