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Are Investors Undervaluing These Retail-Wholesale Stocks 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Asbury Automotive Group (ABG - Free Report) . ABG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.11, while its industry has an average P/E of 6.47. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 5.12, with a median of 9.03.
Investors could also keep in mind Group 1 Automotive (GPI - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Group 1 Automotive is trading at a forward earnings multiple of 5.62 at the moment, with a PEG ratio of 0.46. This compares to its industry's average P/E of 6.47 and average PEG ratio of 0.33.
Over the past year, GPI's P/E has been as high as 9.62, as low as 4.73, with a median of 6.41; its PEG ratio has been as high as 4.58, as low as 0.39, with a median of 0.49 during the same time period.
Group 1 Automotive sports a P/B ratio of 1.93 as well; this compares to its industry's price-to-book ratio of 2.15. In the past 52 weeks, GPI's P/B has been as high as 2.19, as low as 1.54, with a median of 1.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Asbury Automotive Group and Group 1 Automotive are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABG and GPI feels like a great value stock at the moment.
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Are Investors Undervaluing These Retail-Wholesale Stocks 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Asbury Automotive Group (ABG - Free Report) . ABG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.11, while its industry has an average P/E of 6.47. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 5.12, with a median of 9.03.
Investors could also keep in mind Group 1 Automotive (GPI - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Group 1 Automotive is trading at a forward earnings multiple of 5.62 at the moment, with a PEG ratio of 0.46. This compares to its industry's average P/E of 6.47 and average PEG ratio of 0.33.
Over the past year, GPI's P/E has been as high as 9.62, as low as 4.73, with a median of 6.41; its PEG ratio has been as high as 4.58, as low as 0.39, with a median of 0.49 during the same time period.
Group 1 Automotive sports a P/B ratio of 1.93 as well; this compares to its industry's price-to-book ratio of 2.15. In the past 52 weeks, GPI's P/B has been as high as 2.19, as low as 1.54, with a median of 1.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Asbury Automotive Group and Group 1 Automotive are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABG and GPI feels like a great value stock at the moment.