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Asbury Automotive Group (ABG) Gains As Market Dips: What You Should Know

Asbury Automotive Group (ABG) closed the most recent trading day at $184.71, moving +1.97% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq added 0.15%.

Heading into today, shares of the auto dealership chain had lost 6.96% over the past month, lagging the Retail-Wholesale sector's loss of 4.57% and the S&P 500's gain of 0.32% in that time.

Wall Street will be looking for positivity from Asbury Automotive Group as it approaches its next earnings report date. On that day, Asbury Automotive Group is projected to report earnings of $9.05 per share, which would represent year-over-year growth of 16.32%. Meanwhile, our latest consensus estimate is calling for revenue of $4.1 billion, up 58.63% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $35.58 per share and revenue of $16.43 billion. These totals would mark changes of +30.38% and +66.97%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Asbury Automotive Group. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.23% higher. Asbury Automotive Group currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Asbury Automotive Group is currently trading at a Forward P/E ratio of 5.09. This valuation marks a discount compared to its industry's average Forward P/E of 6.36.

It is also worth noting that ABG currently has a PEG ratio of 0.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.44 as of yesterday's close.

The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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