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Group 1 Automotive (GPI) Focuses on Expanding Footprint

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On Jun 28, we issued an updated research report on Group 1 Automotive, Inc. (GPI - Free Report) .

The company is a leading automotive retailer in the world. As of Dec 31, 2018, the company operated 238 franchises, which includes 30 automobile brands through 183 dealerships and 47 collision service centers worldwide.

Group 1 Automotive is engaged in acquisitions and divestment on a regular basis to expand its business. The company has been able to expand footprint in the U.K. through buyouts. Also, it intends to fortify its presence in the United States. The company aims to acquire highly potential and attractive businesses as well as divest less profitable ones.

However, Group 1 Automotive’s financials are strained by softening retail automotive industry conditions. Additionally, the company’s supply chain is hurt by promulgation of the Harmonised Light Vehicles Test Procedure (WLTP) legislation. Moreover, rent and facility costs, advertising as well as employee salaries are primarily included in SG&A costs.

In the past three months, shares of Group 1 Automotive have outperformed the industry it belongs to. Shares of the company have rallied 23.1% compared with the industry’s rise of 11.4%.



 

Zacks Rank & Stocks to Consider

Group 1 Automotive currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Ford Motor Company (F - Free Report) , Fox Factory Holding Corp (FOXF - Free Report) and Cummins Inc (CMI - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ford has an expected long-term growth rate of 7.3%. In the past six months, shares of the company have gained 29.5%.

Fox Factory has an expected long-term growth rate of 16.4%. In the past six months, shares of the company have gained 44.8%.

Cummins has an expected long-term growth rate of 8%. In the past six months, shares of the company have gained 28.4%.

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