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28500.0 | 2023-07-27 00:00:00 UTC | 4 Low Price-to-Cash Flow Stocks to Buy for Optimum Returns | ABG | https://www.nasdaq.com/articles/4-low-price-to-cash-flow-stocks-to-buy-for-optimum-returns-0 | nan | nan | Investment in stocks made on diligent value analysis is usually considered one of the best practices. In value investing, investors pick stocks that are cheap but fundamentally sound. There are a number of ratios to identify value stocks but none alone can conclusively determine their inherent potential. Each ratio helps an investor understand a particular aspect of the company’s business.
One such ratio, Price to Cash Flow (or P/CF), can work wonders in stock picking if used prudently. This metric evaluates the market price of a stock relative to the amount of cash flow that the company is generating on a per share basis — the lower the number, the better. StoneCo Ltd. STNE, Unum Group UNM, Asbury Automotive Group, Inc. ABG and Magna International Inc. MGA boast a low P/CF ratio.
Why P/CF Ratio?
You must be wondering why we are considering this when the most widely used valuation metric is Price/Earnings (or P/E). Well, an important factor that makes P/CF a highly dependable metric is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly diagnosing a company’s financial health.
Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. Then again, cash flow is quite reliable. Net cash flow unveils how much money a company generates and how effectively management is deploying the same.
A positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, meet its expenses, reinvest in the business, endure downturns and finally undertake shareholder-friendly moves. Negative cash flow implies a decline in the company’s liquidity, which, in turn, lowers its flexibility to support these endeavors.
However, an investment decision solely based on the P/CF metric may not fetch the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and take into account the price-to-book ratio, price-to-earnings ratio and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chances of falling into a value trap.
The Bargain Hunting Strategy
Here are the parameters for selecting true-value stocks:
P/CF less than or equal to X-Industry Median.
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
P/E using (F1) less than or equal to X-Industry Median: This parameter shortlists stocks that are trading at a discount or are equal to its peers.
P/B less than or equal to X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
P/S less than or equal to X-Industry Median: The P/S ratio determines how a stock price compares to the company’s sales — the lower the ratio the more attractive the stock is.
PEG less than 1: The ratio is used to determine a stock's value by taking the company's earnings growth into account. The PEG ratio gives a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and that investors need to pay less for a stock that has robust earnings growth prospects.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Here are four of the nine stocks that qualified the screening:
StoneCo, a leading provider of financial technology and software solutions, sports a Zacks Rank #1 and has an expected EPS growth rate of 55.2% for three-five years. The company has a trailing four-quarter earnings surprise of 11.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for StoneCo’s current financial year sales and EPS suggests growth of 4.4% and 115.2%, respectively, from the year-ago period. STNE has a Value Score of B. Shares of STNE have rallied 39.1% in the past year.
Unum Group, which provides financial protection benefit solutions, carries a Zacks Rank #2 and has an expected EPS growth rate of 8.4% for three-five years. The company has a trailing four-quarter earnings surprise of 18.6%, on average.
The Zacks Consensus Estimate for Unum Group’s current financial year sales and EPS suggests growth of 2.4% and 20.8%, respectively, from the year-ago period. Unum Group has a Value Score of A. Shares of UNM have gained 53.8% in the past year.
Asbury Automotive Group, which operates as an automotive retailer in the United States, carries a Zacks Rank #2. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years.
Asbury Automotive Group has a trailing four-quarter earnings surprise of 6.6%, on average. Shares of ABG have rallied 29% in the past year.
Magna International, one of the world’s largest suppliers in the automotive space, carries a Zacks Rank #2. It has an expected EPS growth rate of 20.4% for three-five years. The company delivered an earnings surprise of 16.8% in the last reported quarter.
The Zacks Consensus Estimate for Magna International’s current financial year sales and EPS suggests growth of 8.9% and 20.5%, respectively, from the year-ago period. Magna International has a Value Score of A. Shares of MGA have declined 1.6% in the past year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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Unum Group (UNM) : Free Stock Analysis Report
Magna International Inc. (MGA) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
StoneCo Ltd. (STNE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | StoneCo Ltd. STNE, Unum Group UNM, Asbury Automotive Group, Inc. ABG and Magna International Inc. MGA boast a low P/CF ratio. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. Shares of ABG have rallied 29% in the past year. | StoneCo Ltd. STNE, Unum Group UNM, Asbury Automotive Group, Inc. ABG and Magna International Inc. MGA boast a low P/CF ratio. Click to get this free report Unum Group (UNM) : Free Stock Analysis Report Magna International Inc. (MGA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. | Click to get this free report Unum Group (UNM) : Free Stock Analysis Report Magna International Inc. (MGA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report To read this article on Zacks.com click here. StoneCo Ltd. STNE, Unum Group UNM, Asbury Automotive Group, Inc. ABG and Magna International Inc. MGA boast a low P/CF ratio. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. | StoneCo Ltd. STNE, Unum Group UNM, Asbury Automotive Group, Inc. ABG and Magna International Inc. MGA boast a low P/CF ratio. Click to get this free report Unum Group (UNM) : Free Stock Analysis Report Magna International Inc. (MGA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. |
28501.0 | 2023-07-26 00:00:00 UTC | Is Asbury Automotive Group (ABG) Outperforming Other Retail-Wholesale Stocks This Year? | ABG | https://www.nasdaq.com/articles/is-asbury-automotive-group-abg-outperforming-other-retail-wholesale-stocks-this-year-4 | nan | nan | The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Asbury Automotive Group (ABG) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Asbury Automotive Group is a member of our Retail-Wholesale group, which includes 221 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Asbury Automotive Group is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ABG's full-year earnings has moved 5.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ABG has returned 21.8% so far this year. In comparison, Retail-Wholesale companies have returned an average of 17.5%. This means that Asbury Automotive Group is performing better than its sector in terms of year-to-date returns.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Arcos Dorados (ARCO). The stock has returned 33.1% year-to-date.
The consensus estimate for Arcos Dorados' current year EPS has increased 12.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Asbury Automotive Group belongs to the Automotive - Retail and Whole Sales industry, which includes 9 individual stocks and currently sits at #35 in the Zacks Industry Rank. On average, this group has gained an average of 33.8% so far this year, meaning that ABG is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Arcos Dorados belongs to the Retail - Restaurants industry. This 41-stock industry is currently ranked #42. The industry has moved +12.4% year to date.
Investors with an interest in Retail-Wholesale stocks should continue to track Asbury Automotive Group and Arcos Dorados. These stocks will be looking to continue their solid performance.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Is Asbury Automotive Group (ABG) one of those stocks right now? Over the past three months, the Zacks Consensus Estimate for ABG's full-year earnings has moved 5.1% higher. Based on the most recent data, ABG has returned 21.8% so far this year. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here. Is Asbury Automotive Group (ABG) one of those stocks right now? Over the past three months, the Zacks Consensus Estimate for ABG's full-year earnings has moved 5.1% higher. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here. Is Asbury Automotive Group (ABG) one of those stocks right now? Over the past three months, the Zacks Consensus Estimate for ABG's full-year earnings has moved 5.1% higher. | Is Asbury Automotive Group (ABG) one of those stocks right now? Over the past three months, the Zacks Consensus Estimate for ABG's full-year earnings has moved 5.1% higher. Based on the most recent data, ABG has returned 21.8% so far this year. |
28502.0 | 2023-07-26 00:00:00 UTC | Asbury (ABG) Q2 Earnings & Revenues Beat Estimates | ABG | https://www.nasdaq.com/articles/asbury-abg-q2-earnings-revenues-beat-estimates | nan | nan | Asbury Automotive Group ABG reported second-quarter 2023 adjusted earnings of $8.95 per share, which decreased 10.9% year over year. Earnings, however, topped the Zacks Consensus Estimate of $8.15 per share.
In the reported quarter, revenues amounted to $3,742.5 million, down 5% year over year. The top line, however, surpassed the Zacks Consensus Estimate of $3,741 million.
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
Asbury Automotive Group, Inc. price-consensus-eps-surprise-chart | Asbury Automotive Group, Inc. Quote
Segment Details
In the quarter, new-vehicle revenues rose 4% year over year to $1,942.7 million, beating the Zacks Consensus Estimate of $1,849 million. Gross profit from the segment came in at $185 million, contracting 16.1% from the prior-year quarter but topping the consensus mark of $177 million.
Used-vehicle revenues slid 19% from the year-ago figure to $1,107.3 million, missing the consensus mark of $1,135 million. Gross profit from the segment came in at $71 million, which fell 31.7% and missed the Zacks Consensus Estimate of $73 million.
Net revenues in the finance and insurance businesses amounted to $166.3 million, down 18% from the year-ago quarter and lagging the consensus mark of $168 million. Gross profit was $165 million, declining 12.2% year over year but outpacing the Zacks Consensus Estimate of $164 million.
Revenues from the parts and service business rose 1% from the prior-year quarter to $526.1 million but missed the consensus mark of $546 million. Gross profit from this segment came in at $292 million, inching up 0.7% year over year but missing the consensus estimate of $299 million.
Other Tidbits
Adjusted selling, general & administrative (SG&A) expenses as a percentage of gross profit rose to 57%, marking an increase of 112 basis points year over year. Asbury sold over 11,400 vehicles, an all-time record high, through the “end-to-end” online sales platform, Clicklane.
As of Jun 30, 2023, the company had cash and cash equivalents of $77.5 million, down from $235.3 million on Dec 31, 2022. It had long-term debt of $3,240.5 million as of Jun 30, 2023, down from $3,301.2 million on Dec 31, 2022.
During the quarter under review, Asbury repurchased approximately 960,000 shares for nearly $190 million. On Jul 24, 2023, Asbury had $250 million in share repurchase authorization remaining.
Zacks Rank & Key Picks
ABG currently carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the auto space include Ford Motor Company F, Lear Corporation LEA and Oshkosh Corporation OSK. While F sports a Zacks Rank #1 (Strong Buy), LEA and OSK each carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for F’s 2023 sales implies year-over-year growth of 4.9%. The 2023 EPS estimate has been revised upward by 4 cents in the past 30 days. The EPS estimate for 2024 has moved north by 3 cents in the past 30 days.
The Zacks Consensus Estimate for LEA’s 2023 sales and earnings implies year-over-year growth of 14.1% and 75.4%, respectively. The EPS estimate for 2023 has moved north by 20 cents in the past seven days. The 2024 EPS estimate has moved up by 8 cents in the past seven days.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 8.6% and 295.1%, respectively. The EPS estimate for 2023 has moved up by a cent in the past seven days. The 2024 EPS estimate has remained unchanged in the past seven days.
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Ford Motor Company (F) : Free Stock Analysis Report
Lear Corporation (LEA) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group ABG reported second-quarter 2023 adjusted earnings of $8.95 per share, which decreased 10.9% year over year. Zacks Rank & Key Picks ABG currently carries a Zacks Rank #2 (Buy). Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG reported second-quarter 2023 adjusted earnings of $8.95 per share, which decreased 10.9% year over year. Zacks Rank & Key Picks ABG currently carries a Zacks Rank #2 (Buy). | Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG reported second-quarter 2023 adjusted earnings of $8.95 per share, which decreased 10.9% year over year. Zacks Rank & Key Picks ABG currently carries a Zacks Rank #2 (Buy). | Asbury Automotive Group ABG reported second-quarter 2023 adjusted earnings of $8.95 per share, which decreased 10.9% year over year. Zacks Rank & Key Picks ABG currently carries a Zacks Rank #2 (Buy). Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here. |
28503.0 | 2023-07-25 00:00:00 UTC | Asbury Automotive Group (ABG) Q2 Earnings and Revenues Surpass Estimates | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-q2-earnings-and-revenues-surpass-estimates | nan | nan | Asbury Automotive Group (ABG) came out with quarterly earnings of $8.95 per share, beating the Zacks Consensus Estimate of $8.15 per share. This compares to earnings of $10.04 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 9.82%. A quarter ago, it was expected that this auto dealership chain would post earnings of $7.94 per share when it actually produced earnings of $8.37, delivering a surprise of 5.42%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.74 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 0.05%. This compares to year-ago revenues of $3.95 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Asbury Automotive shares have added about 30% since the beginning of the year versus the S&P 500's gain of 18.6%.
What's Next for Asbury Automotive?
While Asbury Automotive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Asbury Automotive: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $7.54 on $3.63 billion in revenues for the coming quarter and $31.91 on $14.57 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Sonic Automotive (SAH), another stock in the same industry, has yet to report results for the quarter ended June 2023. The results are expected to be released on July 27.
This auto dealer is expected to post quarterly earnings of $1.63 per share in its upcoming report, which represents a year-over-year change of -33.5%. The consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level.
Sonic Automotive's revenues are expected to be $3.64 billion, down 0.2% from the year-ago quarter.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG) came out with quarterly earnings of $8.95 per share, beating the Zacks Consensus Estimate of $8.15 per share. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG) came out with quarterly earnings of $8.95 per share, beating the Zacks Consensus Estimate of $8.15 per share. Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.74 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 0.05%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $8.95 per share, beating the Zacks Consensus Estimate of $8.15 per share. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.74 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 0.05%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $8.95 per share, beating the Zacks Consensus Estimate of $8.15 per share. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. |
28504.0 | 2023-07-24 00:00:00 UTC | Zacks Value Investor Highlights: Asbury, Beazer Homes, Delta Air Lines, Arrow and Dave & Buster's | ABG | https://www.nasdaq.com/articles/zacks-value-investor-highlights%3A-asbury-beazer-homes-delta-air-lines-arrow-and-dave | nan | nan | For Immediate Release
Chicago, IL – July 24, 2023 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2125441/5-value-stocks-breaking-out-in-2023
What's Working in 2022? Value Stocks
5 Value Stocks Breaking Out
Welcome to Episode #336 of the Value Investor Podcast.
(0:30) - Finding Value Stocks Benefiting From Growth
(4:00) - Tracey’s Top Stock Picks
(15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY
Podcast@Zacks.com
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Have you been depressed that growth stocks have rallied big in 2023 but as a value investor you’re missing out? Never fear value investors. Some value stocks have caught a bid too but you just have to know which industries to look in.
Screening for Hot Value Stocks
How do you find the top hot value stocks? Tracey screened for cheap stocks by looking for companies with P/Es under 15 and P/S ratios under 1.0. In addition, she added a Zacks Rank of #1 (Strong Buy) or #2 (Buy), both top recommendations, in order to get stocks where the analysts were raising earnings estimates.
To find the “hotness” factor, Tracey looked for stocks trading within 5% of their 52-week highs.
This screen returned 41 stocks. That’s a lot of cheap stocks that are hot with the top Zacks Ranks.
5 Value Stocks Breaking Out in 2023
1. Asbury Automotive Group ABG
Asbury Automotive is one of the largest auto retailers in North America. Even though earnings are expected to decline year-over-year for the auto retailers in 2023, the shares are still up 35.6% year-to-date.
Recently, shares of Asbury were at 5-year highs, up 260% over that period. That beats the S&P 500 which is up 62.6% during the same time period.
Asbury is cheap, with a P/S ratio of 0.4. It’s a Zacks Rank #2 (Buy).
Asbury is expected to report earnings on July 25. Should you buy before the earnings report?
2. Beazer Homes USA, Inc. BZH
Beazer Homes is a large US homebuilder. Shares of Beazer Homes have been on a tear this year and are up 117.6% year-to-date. It’s also at 5-year highs, up 83.3% during that time.
After this huge rally, some are worried about “valuation” with the homebuilders. But Beazer Homes trades with a forward P/E of just 7.3.
Should you buy Beazer Homes ahead of its July 27, 2023 earnings report?
3. Delta Air Lines, Inc. DAL
Delta Air Lines, one of the largest United States airlines, continues to report stronger-than-expected demand now that the pandemic has receded. What recession? Shares are up 48.2% year-to-date and are near new 52-week highs.
Delta Air Lines is still cheap. It has a forward P/E of just 7.3. It’s a Zacks Rank #2 (Buy).
Is there still time to buy Delta Air Lines?
4. Arrow Electronics, Inc. ARW
Arrow Electronics provides technology solutions. It’s not a small company. In 2022, Arrow Electronics had sales of $37 billion.
Shares of Arrow Electronics are up 35.3% year-to-date and are trading near a 52-week high. It’s still cheap, with a P/S ratio of just 0.2. It will report earnings again in early Aug 2023.
If you are looking for a cheap technology stock, should Arrow Electronics be on your short list?
5. Dave & Buster’s Entertainment, Inc. PLAY
Dave & Buster’s shares have caught a bid in 2023. Shares are up 30.9% year-to-date and are trading at new 52-week highs.
Dave & Buster’s is still cheap with a P/S ratio of just 0.9. Remember, a P/S ratio under 1.0 means a company is undervalued. It’s got a Zacks Rank of #1 (Strong Buy).
Does Dave & Buster’s have more gas left in the tank?
What Else Should You Know about the Red-Hot Cheap Stocks?
Tune into this week’s podcast to find out.
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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report
Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (0:30) - Finding Value Stocks Benefiting From Growth (4:00) - Tracey’s Top Stock Picks (15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Asbury Automotive Group ABG Asbury Automotive is one of the largest auto retailers in North America. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report To read this article on Zacks.com click here. | (0:30) - Finding Value Stocks Benefiting From Growth (4:00) - Tracey’s Top Stock Picks (15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG Asbury Automotive is one of the largest auto retailers in North America. | (0:30) - Finding Value Stocks Benefiting From Growth (4:00) - Tracey’s Top Stock Picks (15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG Asbury Automotive is one of the largest auto retailers in North America. | (0:30) - Finding Value Stocks Benefiting From Growth (4:00) - Tracey’s Top Stock Picks (15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG Asbury Automotive is one of the largest auto retailers in North America. |
28505.0 | 2023-07-22 00:00:00 UTC | ABG Quantitative Stock Analysis | ABG | https://www.nasdaq.com/articles/abg-quantitative-stock-analysis-0 | nan | nan | Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC.
ABG Guru Analysis
ABG Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. |
28506.0 | 2023-07-21 00:00:00 UTC | Factors to Note Ahead of Tractor Supply's (TSCO) Q2 Earnings | ABG | https://www.nasdaq.com/articles/factors-to-note-ahead-of-tractor-supplys-tsco-q2-earnings | nan | nan | Tractor Supply Company TSCO is likely to register increases in the top and bottom lines when it reports second-quarter 2023 results on Jul 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $4,282 million, indicating 9.7% growth from the prior-year reported figure.
The bottom line of the largest rural lifestyle retailer in the United States is expected to have increased year over year. The Zacks Consensus Estimate for earnings per share for the second quarter has moved down by 1.3% to $3.93 in the past 30 days. However, the figure suggests growth of 11.3% from the year-ago period’s reported figure.
Tractor Supply has a trailing four-quarter earnings surprise of 0.5%, on average. In the last reported quarter, this Brentwood, TN-based company’s earnings missed the Zacks Consensus Estimate by 2.4%.
Tractor Supply Company Price and EPS Surprise
Tractor Supply Company price-eps-surprise | Tractor Supply Company Quote
Key Factors to Note
Tractor Supply has been grappling with inflationary pressure and rising costs for a while now. For instance, in the first quarter of 2023, its cost of merchandise sold and selling, general and administrative expenses (SG&A) increased by 8.2% and 12.7%, respectively, on a year-over-year basis. SG&A expenses, including depreciation and amortization, as a percentage of sales expanded 119 basis points (bps) year over year to 28.1% in the quarter.
Higher costs, including elevated transaction expenses and integration costs related to the Orscheln Farm and Home acquisition, are expected to have hurt its margins and profitability in the second quarter of 2023. The company’s high capital expenditures related to its investments in new distribution centers and other growth initiatives might have impacted its margin performance.
We anticipate Tractor Supply’s operating margin to contract by 10 bps in the second quarter. The company is likely to have witnessed an increase in SG&A expenses, weighing on its operating margin. Our model indicates an 11.6% increase in SG&A expenses on a year-over-year basis, with a 30-bps increase in the SG&A rate.
The company’s high-debt profile might have also been a concern. Exiting the first quarter, its long-term debt (including finance lease liabilities) was $1,164.1 million, reflecting an increase of 37.6% on a sequential basis. The rise in debt levels might have increased the company’s financial obligations and hurt its performance.
However, the company has been benefiting from continued market share growth and progress on its strategic initiatives. Sturdy demand for everyday merchandise, including consumable, usable and edible products, as well as year-round products, is likely to have driven its top-line performance in the quarter to be reported. Solid demand for CUE products and DIY categories is also likely to have boosted the company’s performance. We anticipate Tractor Supply’s comparable store sales to increase by 5.3% in the second quarter.
Tractor Supply has been focused on integrating its physical and digital operations to offer consumers a seamless shopping experience. The company has been on track with the ‘ONETractor’ strategy, which is aimed at connecting stores and online shopping. The company’s omnichannel investments include curbside pickup, same-day and next-day delivery, a re-launched website and a new mobile app. Gains from these efforts are expected to have led to strong e-commerce growth in the to-be-reported quarter.
It has been on track with the Project Fusion remodels and Side Lot transformation to remain nationally strong and locally relevant by bringing the latest merchandising strategies to life. These have been significant investments toward stores and are expected to have boosted productivity across the existing and new stores. TSCO’s Neighbor's Club loyalty program is also likely to have driven its sales in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Tractor Supply this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Tractor Supply has a Zacks Rank #4 (Sell) and an Earnings ESP of -1.84%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some companies that have the right combination of elements to post an earnings beat:
Asbury Automotive Group ABG has an Earnings ESP of +9.43% and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ABG is likely to register top- and bottom-line declines when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.7 billion, suggesting a 6.4% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ABG’s fiscal second-quarter earnings is pegged at $8.04, suggesting a 19.9% decline from the reported figure in the year-ago quarter. The consensus estimate for earnings has declined by 2% in the past 30 days. ABG has delivered an earnings beat of 7.4%, on average, in the trailing four quarters.
Lowe’s Companies LOW currently has an Earnings ESP of +0.10% and a Zacks Rank #3. The company is expected to register a top-line decline when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for LOW’s quarterly revenues is pegged at $25 billion, which suggests a decline of 9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Lowe’s earnings has increased 0.9% to $4.49 in the past 30 days. However, the consensus estimate for earnings suggests a decline of 3.9% from the year-ago quarter’s reported figure. LOW has delivered a bottom-line beat of 3.7%, on average, in the trailing four quarters.
Arhaus, Inc. ARHS has an Earnings ESP of +7.69% and currently sports a Zacks Rank #1. ARHS is likely to register top-line growth when it reports second-quarter fiscal 2023, while its bottom line is expected to decline year-over-year. The Zacks Consensus Estimate for its quarterly revenues is pegged at $325.7 million, suggesting 6.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ARHS’ fiscal second-quarter earnings is pegged at 26 cents, suggesting a 7.1% decline from the reported figure in the year-ago quarter. The consensus estimate for earnings has been stable in the past 30 days. ARHS has delivered an earnings beat of 82.4%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
Tractor Supply Company (TSCO) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
Arhaus, Inc. (ARHS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group ABG has an Earnings ESP of +9.43% and currently carries a Zacks Rank #2. ABG is likely to register top- and bottom-line declines when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for ABG’s fiscal second-quarter earnings is pegged at $8.04, suggesting a 19.9% decline from the reported figure in the year-ago quarter. | The Zacks Consensus Estimate for ABG’s fiscal second-quarter earnings is pegged at $8.04, suggesting a 19.9% decline from the reported figure in the year-ago quarter. Click to get this free report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG has an Earnings ESP of +9.43% and currently carries a Zacks Rank #2. | The Zacks Consensus Estimate for ABG’s fiscal second-quarter earnings is pegged at $8.04, suggesting a 19.9% decline from the reported figure in the year-ago quarter. Click to get this free report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG has an Earnings ESP of +9.43% and currently carries a Zacks Rank #2. | Asbury Automotive Group ABG has an Earnings ESP of +9.43% and currently carries a Zacks Rank #2. ABG is likely to register top- and bottom-line declines when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for ABG’s fiscal second-quarter earnings is pegged at $8.04, suggesting a 19.9% decline from the reported figure in the year-ago quarter. |
28507.0 | 2023-07-21 00:00:00 UTC | 5 Value Stocks Breaking Out in 2023 | ABG | https://www.nasdaq.com/articles/5-value-stocks-breaking-out-in-2023 | nan | nan | (0:30) - Finding Value Stocks Benefiting From Growth
(4:00) - Tracey’s Top Stock Picks
(15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY
Podcast@Zacks.com
Welcome to Episode #336 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Have you been depressed that growth stocks have rallied big in 2023 but as a value investor you’re missing out? Never fear value investors. Some value stocks have caught a bid too but you just have to know which industries to look in.
Screening for Hot Value Stocks
How do you find the top hot value stocks? Tracey screened for cheap stocks by looking for companies with P/Es under 15 and P/S ratios under 1.0. In addition, she added a Zacks Rank of #1 (Strong Buy) or #2 (Buy), both top recommendations, in order to get stocks where the analysts were raising earnings estimates.
To find the “hotness” factor, Tracey looked for stocks trading within 5% of their 52-week highs.
This screen returned 41 stocks. That’s a lot of cheap stocks that are hot with the top Zacks Ranks.
5 Value Stocks Breaking Out in 2023
1. Asbury Automotive Group (ABG)
Asbury Automotive is one of the largest auto retailers in North America. Even though earnings are expected to decline year-over-year for the auto retailers in 2023, the shares are still up 35.6% year-to-date.
Recently, shares of Asbury were at 5-year highs, up 260% over that period. That beats the S&P 500 which is up 62.6% during the same time period.
Asbury is cheap, with a P/S ratio of 0.4. It’s a Zacks Rank #2 (Buy).
Asbury is expected to report earnings on July 25. Should you buy before the earnings report?
2. Beazer Homes USA, Inc. (BZH)
Beazer Homes is a large US homebuilder. Shares of Beazer Homes have been on a tear this year and are up 117.6% year-to-date. It’s also at 5-year highs, up 83.3% during that time.
After this huge rally, some are worried about “valuation” with the homebuilders. But Beazer Homes trades with a forward P/E of just 7.3.
Should you buy Beazer Homes ahead of its July 27, 2023 earnings report?
3. Delta Air Lines, Inc. (DAL)
Delta Air Lines, one of the largest United States airlines, continues to report stronger-than-expected demand now that the pandemic has receded. What recession? Shares are up 48.2% year-to-date and are near new 52-week highs.
Delta Air Lines is still cheap. It has a forward P/E of just 7.3. It’s a Zacks Rank #2 (Buy).
Is there still time to buy Delta Air Lines?
4. Arrow Electronics, Inc. (ARW)
Arrow Electronics provides technology solutions. It’s not a small company. In 2022, Arrow Electronics had sales of $37 billion.
Shares of Arrow Electronics are up 35.3% year-to-date and are trading near a 52-week high. It’s still cheap, with a P/S ratio of just 0.2. It will report earnings again in early Aug 2023.
If you are looking for a cheap technology stock, should Arrow Electronics be on your short list?
5. Dave & Buster’s Entertainment, Inc. (PLAY)
Dave & Buster’s shares have caught a bid in 2023. Shares are up 30.9% year-to-date and are trading at new 52-week highs.
Dave & Buster’s is still cheap with a P/S ratio of just 0.9. Remember, a P/S ratio under 1.0 means a company is undervalued. It’s got a Zacks Rank of #1 (Strong Buy).
Does Dave & Buster’s have more gas left in the tank?
What Else Should You Know about the Red-Hot Cheap Stocks?
Tune into this week’s podcast to find out.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report
Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (0:30) - Finding Value Stocks Benefiting From Growth (4:00) - Tracey’s Top Stock Picks (15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY Podcast@Zacks.com Welcome to Episode #336 of the Value Investor Podcast. Asbury Automotive Group (ABG) Asbury Automotive is one of the largest auto retailers in North America. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report To read this article on Zacks.com click here. | (0:30) - Finding Value Stocks Benefiting From Growth (4:00) - Tracey’s Top Stock Picks (15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY Podcast@Zacks.com Welcome to Episode #336 of the Value Investor Podcast. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG) Asbury Automotive is one of the largest auto retailers in North America. | (0:30) - Finding Value Stocks Benefiting From Growth (4:00) - Tracey’s Top Stock Picks (15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY Podcast@Zacks.com Welcome to Episode #336 of the Value Investor Podcast. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG) Asbury Automotive is one of the largest auto retailers in North America. | Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report To read this article on Zacks.com click here. (0:30) - Finding Value Stocks Benefiting From Growth (4:00) - Tracey’s Top Stock Picks (15:10) - Episode Roundup: ABG, BZH, DAL, ARW, PLAY Podcast@Zacks.com Welcome to Episode #336 of the Value Investor Podcast. Asbury Automotive Group (ABG) Asbury Automotive is one of the largest auto retailers in North America. |
28508.0 | 2023-07-21 00:00:00 UTC | AutoNation (AN) Q2 Earnings and Revenues Surpass Estimates | ABG | https://www.nasdaq.com/articles/autonation-an-q2-earnings-and-revenues-surpass-estimates | nan | nan | AutoNation (AN) came out with quarterly earnings of $6.29 per share, beating the Zacks Consensus Estimate of $5.83 per share. This compares to earnings of $6.48 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 7.89%. A quarter ago, it was expected that this auto retailer would post earnings of $5.60 per share when it actually produced earnings of $6.05, delivering a surprise of 8.04%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
AutoNation, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $6.89 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 3.69%. This compares to year-ago revenues of $6.87 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AutoNation shares have added about 64.9% since the beginning of the year versus the S&P 500's gain of 18.1%.
What's Next for AutoNation?
While AutoNation has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AutoNation: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $5.19 on $6.48 billion in revenues for the coming quarter and $22 on $25.94 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the top 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended June 2023. The results are expected to be released on July 25.
This auto dealership chain is expected to post quarterly earnings of $8.04 per share in its upcoming report, which represents a year-over-year change of -19.9%. The consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level.
Asbury Automotive Group's revenues are expected to be $3.7 billion, down 6.4% from the year-ago quarter.
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AutoNation, Inc. (AN) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended June 2023. Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. | Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended June 2023. AutoNation, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $6.89 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 3.69%. | Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended June 2023. AutoNation (AN) came out with quarterly earnings of $6.29 per share, beating the Zacks Consensus Estimate of $5.83 per share. | Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended June 2023. Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. |
28509.0 | 2023-07-20 00:00:00 UTC | Noteworthy Thursday Option Activity: ABG, TGT, GPI | ABG | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-abg-tgt-gpi | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Asbury Automotive Group Inc (Symbol: ABG), where a total volume of 3,493 contracts has been traded thus far today, a contract volume which is representative of approximately 349,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 186.6% of ABG's average daily trading volume over the past month, of 187,195 shares. Especially high volume was seen for the $200 strike call option expiring August 18, 2023, with 1,637 contracts trading so far today, representing approximately 163,700 underlying shares of ABG. Below is a chart showing ABG's trailing twelve month trading history, with the $200 strike highlighted in orange:
Target Corp (Symbol: TGT) saw options trading volume of 70,946 contracts, representing approximately 7.1 million underlying shares or approximately 152% of TGT's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $135 strike call option expiring July 21, 2023, with 5,016 contracts trading so far today, representing approximately 501,600 underlying shares of TGT. Below is a chart showing TGT's trailing twelve month trading history, with the $135 strike highlighted in orange:
And Group 1 Automotive, Inc. (Symbol: GPI) options are showing a volume of 2,046 contracts thus far today. That number of contracts represents approximately 204,600 underlying shares, working out to a sizeable 138.5% of GPI's average daily trading volume over the past month, of 147,675 shares. Particularly high volume was seen for the $200 strike call option expiring July 21, 2023, with 958 contracts trading so far today, representing approximately 95,800 underlying shares of GPI. Below is a chart showing GPI's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for ABG options, TGT options, or GPI options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
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LRN market cap history
MFM market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $200 strike call option expiring August 18, 2023, with 1,637 contracts trading so far today, representing approximately 163,700 underlying shares of ABG. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Asbury Automotive Group Inc (Symbol: ABG), where a total volume of 3,493 contracts has been traded thus far today, a contract volume which is representative of approximately 349,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 186.6% of ABG's average daily trading volume over the past month, of 187,195 shares. | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Asbury Automotive Group Inc (Symbol: ABG), where a total volume of 3,493 contracts has been traded thus far today, a contract volume which is representative of approximately 349,300 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABG's trailing twelve month trading history, with the $200 strike highlighted in orange: Target Corp (Symbol: TGT) saw options trading volume of 70,946 contracts, representing approximately 7.1 million underlying shares or approximately 152% of TGT's average daily trading volume over the past month, of 4.7 million shares. That number works out to 186.6% of ABG's average daily trading volume over the past month, of 187,195 shares. | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Asbury Automotive Group Inc (Symbol: ABG), where a total volume of 3,493 contracts has been traded thus far today, a contract volume which is representative of approximately 349,300 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABG's trailing twelve month trading history, with the $200 strike highlighted in orange: Target Corp (Symbol: TGT) saw options trading volume of 70,946 contracts, representing approximately 7.1 million underlying shares or approximately 152% of TGT's average daily trading volume over the past month, of 4.7 million shares. That number works out to 186.6% of ABG's average daily trading volume over the past month, of 187,195 shares. | Below is a chart showing GPI's trailing twelve month trading history, with the $200 strike highlighted in orange: For the various different available expirations for ABG options, TGT options, or GPI options, visit StockOptionsChannel.com. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Asbury Automotive Group Inc (Symbol: ABG), where a total volume of 3,493 contracts has been traded thus far today, a contract volume which is representative of approximately 349,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 186.6% of ABG's average daily trading volume over the past month, of 187,195 shares. |
28510.0 | 2023-07-20 00:00:00 UTC | Should You Buy Asbury Automotive (ABG) Ahead of Earnings? | ABG | https://www.nasdaq.com/articles/should-you-buy-asbury-automotive-abg-ahead-of-earnings | nan | nan | Investors are always looking for stocks that are poised to beat at earnings season and Asbury Automotive Group, Inc. ABG may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Asbury Automotive is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABG in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $8.80 per share for ABG, compared to a broader Zacks Consensus Estimate of $8.04 per share. This suggests that analysts have very recently bumped up their estimates for ABG, giving the stock a Zacks Earnings ESP of +9.43% heading into earnings season.
Asbury Automotive Group, Inc. Price and EPS Surprise
Asbury Automotive Group, Inc. price-eps-surprise | Asbury Automotive Group, Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that ABG has a Zacks Rank #2 (Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Asbury Automotive, and that a beat might be in the cards for the upcoming report.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors are always looking for stocks that are poised to beat at earnings season and Asbury Automotive Group, Inc. ABG may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABG in this report. In fact, the Most Accurate Estimate for the current quarter is currently at $8.80 per share for ABG, compared to a broader Zacks Consensus Estimate of $8.04 per share. | This suggests that analysts have very recently bumped up their estimates for ABG, giving the stock a Zacks Earnings ESP of +9.43% heading into earnings season. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors are always looking for stocks that are poised to beat at earnings season and Asbury Automotive Group, Inc. ABG may be one such company. | This suggests that analysts have very recently bumped up their estimates for ABG, giving the stock a Zacks Earnings ESP of +9.43% heading into earnings season. Investors are always looking for stocks that are poised to beat at earnings season and Asbury Automotive Group, Inc. ABG may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABG in this report. | This suggests that analysts have very recently bumped up their estimates for ABG, giving the stock a Zacks Earnings ESP of +9.43% heading into earnings season. Given that ABG has a Zacks Rank #2 (Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Asbury Automotive Group, Inc. ABG may be one such company. |
28511.0 | 2023-07-19 00:00:00 UTC | Expedia (EXPE) Unveils One Key, Offers Rewards to Travelers | ABG | https://www.nasdaq.com/articles/expedia-expe-unveils-one-key-offers-rewards-to-travelers | nan | nan | Expedia Group EXPE has launched a loyalty program called One Key in a bid to deliver an enhanced travel booking experience.
Notably, the program brings the company’s three flagship brands namely Expedia, Hotels.com, and Vrbo under a single platform.
Further, it rewards every customer, which they can use across these three brands to avail various services, including online vacation rental booking, flight booking and hotel booking among others.
More precisely, these rewards can be used on selected flights, hotels, vacation rentals, car rentals, cruises and other activities.
With higher membership tiers of One Key, customers will be eligible for deeper discounts and in-stay perks at VIP Access properties.
Further, the program offers a single rewards currency called OneKeyCash that can be earned while traveling.
Currently, One Key is available in the United States. It will be launched globally at the beginning of next year.
We believe Expedia's latest move will boost customer engagement on its platform and accelerate bookings in the days ahead.
The Zacks Consensus for 2023 gross bookings is pegged at $109.12 billion, implying 14.8% growth from 2022.
Expedia Group, Inc. Price and Consensus
Expedia Group, Inc. price-consensus-chart | Expedia Group, Inc. Quote
Portfolio Strength
The latest move is in sync with the company’s growing efforts toward strengthening its portfolio offerings.
Recently, Expedia introduced SoFi Travel in collaboration with SoFi Technologies, to deliver an enhanced travel experience to members.
Additionally, Expedia launched Shoppable, a streaming platform that combines travel-related content with booking options. Using this platform, the company joined forces with Brand USA to create a channel for their content to be “shopped” called GoUSA. This allows users to watch and book content simultaneously, enabling Brand USA to track and measure its impact on booking decisions.
Expedia also introduced a ChatGPT-powered in-app travel planning experience in collaboration with OpenAI. The new experience enables open-ended conversation for Expedia members and aids them in planning an organized and cost-efficient trip.
Users can seamlessly check the availability of hotels and flights on the back of an easy conversation through the new experience. Further, they can add a car or cab facility to the trip.
Growth Prospect
Expedia’s strengthening portfolio is expected to continue boosting its presence in the booming online travel booking market.
Per a report from Grand View Research, the global online travel booking market is expected to witness a CAGR of 9% between 2022 and 2030.
According to an Allied Market Research report, the market is likely to reach $1.8 trillion by 2031, registering a CAGR of 14.8% between 2022 and 2031.
We believe the company’s growing prospects in this promising market are expected to aid it in winning investors’ confidence and boost its financial performance.
For 2023, Expedia expects double-digit top-line growth.
The Zacks Consensus Estimate for the same is pegged at $12.89 billion, indicating growth of 10.5% from the 2022 reported figure.
The consensus mark for 2023 earnings is pegged $9.22 per share, indicating year-over-year growth of 35.8%. The figure has moved north by 0.4% over the past 30 days.
EXPE shares have gained 16.6% in the year-to-date period, outperforming the Zacks Retail-Wholesale sector’s return of 9.7%
Expedia’s diversified business approach and stable demand patterns in certain markets remain positives.
Zacks Rank & Stocks to Consider
Currently, Expedia carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Retail-Wholesale sector are BJ’s Restaurant BJRI, Pinduoduo PDD and Asbury Automotive Group ABG. BJ’s Restaurant and Pinduoduo Inc. sport a Zacks Rank #1 (Strong Buy) each, while Asbury Automotive Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ’s Restaurant shares have gained 30.2% in the year-to-date period. The long-term earnings growth rate for BJRI is currently projected at 15%.
Pinduoduo shares have lost 3% in the year-to-date period. The long-term earnings growth rate for PDD is currently projected at 19.59%.
Asbury Automotive Group shares have gained 36.3% in the year-to-date period. The long-term earnings growth rate for ABG is currently projected at 18.52%.
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BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the Retail-Wholesale sector are BJ’s Restaurant BJRI, Pinduoduo PDD and Asbury Automotive Group ABG. The long-term earnings growth rate for ABG is currently projected at 18.52%. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report PDD Holdings Inc. (PDD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some better-ranked stocks in the Retail-Wholesale sector are BJ’s Restaurant BJRI, Pinduoduo PDD and Asbury Automotive Group ABG. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report PDD Holdings Inc. (PDD) : Free Stock Analysis Report To read this article on Zacks.com click here. The long-term earnings growth rate for ABG is currently projected at 18.52%. | Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report PDD Holdings Inc. (PDD) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Retail-Wholesale sector are BJ’s Restaurant BJRI, Pinduoduo PDD and Asbury Automotive Group ABG. The long-term earnings growth rate for ABG is currently projected at 18.52%. | Some better-ranked stocks in the Retail-Wholesale sector are BJ’s Restaurant BJRI, Pinduoduo PDD and Asbury Automotive Group ABG. The long-term earnings growth rate for ABG is currently projected at 18.52%. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report PDD Holdings Inc. (PDD) : Free Stock Analysis Report To read this article on Zacks.com click here. |
28512.0 | 2023-07-19 00:00:00 UTC | Group 1 Automotive (GPI) Expected to Beat Earnings Estimates: Should You Buy? | ABG | https://www.nasdaq.com/articles/group-1-automotive-gpi-expected-to-beat-earnings-estimates%3A-should-you-buy-0 | nan | nan | The market expects Group 1 Automotive (GPI) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 26. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This auto dealer is expected to post quarterly earnings of $10.91 per share in its upcoming report, which represents a year-over-year change of -9.1%.
Revenues are expected to be $4.35 billion, up 5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.69% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Group 1 Automotive?
For Group 1 Automotive, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +9.99%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Group 1 Automotive will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Group 1 Automotive would post earnings of $9.70 per share when it actually produced earnings of $10.93, delivering a surprise of +12.68%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Group 1 Automotive appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Asbury Automotive Group (ABG), another stock in the Zacks Automotive - Retail and Whole Sales industry, is expected to report earnings per share of $8.04 for the quarter ended June 2023. This estimate points to a year-over-year change of -19.9%. Revenues for the quarter are expected to be $3.7 billion, down 6.4% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Asbury Automotive has been revised 0.6% up to the current level. Nevertheless, the company now has an Earnings ESP of 9.43%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Asbury Automotive will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Expected Results of an Industry Player Asbury Automotive Group (ABG), another stock in the Zacks Automotive - Retail and Whole Sales industry, is expected to report earnings per share of $8.04 for the quarter ended June 2023. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. | Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Expected Results of an Industry Player Asbury Automotive Group (ABG), another stock in the Zacks Automotive - Retail and Whole Sales industry, is expected to report earnings per share of $8.04 for the quarter ended June 2023. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | Expected Results of an Industry Player Asbury Automotive Group (ABG), another stock in the Zacks Automotive - Retail and Whole Sales industry, is expected to report earnings per share of $8.04 for the quarter ended June 2023. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | Expected Results of an Industry Player Asbury Automotive Group (ABG), another stock in the Zacks Automotive - Retail and Whole Sales industry, is expected to report earnings per share of $8.04 for the quarter ended June 2023. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 26. |
28513.0 | 2023-07-19 00:00:00 UTC | Are Investors Undervaluing Asbury Automotive Group (ABG) Right Now? | ABG | https://www.nasdaq.com/articles/are-investors-undervaluing-asbury-automotive-group-abg-right-now-1 | nan | nan | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.96 right now. For comparison, its industry sports an average P/E of 7.99. ABG's Forward P/E has been as high as 8.28 and as low as 4.21, with a median of 6.13, all within the past year.
Investors should also note that ABG holds a PEG ratio of 0.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABG's industry currently sports an average PEG of 0.70. ABG's PEG has been as high as 0.45 and as low as 0.23, with a median of 0.33, all within the past year.
Another notable valuation metric for ABG is its P/B ratio of 1.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.40. Over the past year, ABG's P/B has been as high as 1.85 and as low as 1.18, with a median of 1.50.
Finally, investors will want to recognize that ABG has a P/CF ratio of 5.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.89. Within the past 12 months, ABG's P/CF has been as high as 5.51 and as low as 3.56, with a median of 4.47.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at Group 1 Automotive (GPI). GPI is a # 2 (Buy) stock with a Value score of A.
Shares of Group 1 Automotive currently holds a Forward P/E ratio of 6.74, and its PEG ratio is 2.19. In comparison, its industry sports average P/E and PEG ratios of 7.99 and 0.70.
Over the past year, GPI's P/E has been as high as 6.98, as low as 3.66, with a median of 5.02; its PEG ratio has been as high as 2.58, as low as 0.26, with a median of 0.33 during the same time period.
Additionally, Group 1 Automotive has a P/B ratio of 1.57 while its industry's price-to-book ratio sits at 2.40. For GPI, this valuation metric has been as high as 1.60, as low as 0.94, with a median of 1.34 over the past year.
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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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One company to watch right now is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. ABG's Forward P/E has been as high as 8.28 and as low as 4.21, with a median of 6.13, all within the past year. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report To read this article on Zacks.com click here. One company to watch right now is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report To read this article on Zacks.com click here. One company to watch right now is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. | Investors should also note that ABG holds a PEG ratio of 0.43. One company to watch right now is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. |
28514.0 | 2023-07-18 00:00:00 UTC | Asbury Automotive Group (ABG) Expected to Beat Earnings Estimates: Should You Buy? | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-expected-to-beat-earnings-estimates%3A-should-you-buy | nan | nan | The market expects Asbury Automotive Group (ABG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 25. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This auto dealership chain is expected to post quarterly earnings of $8.04 per share in its upcoming report, which represents a year-over-year change of -19.9%.
Revenues are expected to be $3.7 billion, down 6.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.57% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Asbury Automotive?
For Asbury Automotive, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +9.43%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Asbury Automotive will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Asbury Automotive would post earnings of $7.94 per share when it actually produced earnings of $8.37, delivering a surprise of +5.42%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Asbury Automotive appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
AutoNation (AN), another stock in the Zacks Automotive - Retail and Whole Sales industry, is expected to report earnings per share of $5.74 for the quarter ended June 2023. This estimate points to a year-over-year change of -11.4%. Revenues for the quarter are expected to be $6.61 billion, down 3.8% from the year-ago quarter.
The consensus EPS estimate for AutoNation has been revised 0.1% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 9.85%.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that AutoNation will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The market expects Asbury Automotive Group (ABG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2023. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. | The market expects Asbury Automotive Group (ABG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2023. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | The market expects Asbury Automotive Group (ABG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2023. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | The market expects Asbury Automotive Group (ABG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2023. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 25. |
28515.0 | 2023-07-18 00:00:00 UTC | Strength Seen in America's Car-Mart (CRMT): Can Its 15.3% Jump Turn into More Strength? | ABG | https://www.nasdaq.com/articles/strength-seen-in-americas-car-mart-crmt%3A-can-its-15.3-jump-turn-into-more-strength | nan | nan | America's Car-Mart (CRMT) shares soared 15.3% in the last trading session to close at $119.52. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.7% gain over the past four weeks.
Shares of the automotive retailer rallied yesterday after the financial services firm Stephens upgraded the CRMT to Overweight from Equal-Weight, and raised the price target of the stock to $135 from $70.
The company is expected to post quarterly earnings of $0.98 per share in its upcoming report, which represents a year-over-year change of -51%. Revenues are expected to be $364.84 million, up 5.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For America's Car-Mart, the consensus EPS estimate for the quarter has been revised 9.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CRMT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
America's Car-Mart is part of the Zacks Automotive - Retail and Whole Sales industry. Asbury Automotive Group (ABG), another stock in the same industry, closed the last trading session 0.4% higher at $244.23. ABG has returned 9.7% in the past month.
For Asbury Automotive, the consensus EPS estimate for the upcoming report has changed +0.6% over the past month to $8.04. This represents a change of -19.9% from what the company reported a year ago. Asbury Automotive currently has a Zacks Rank of #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG), another stock in the same industry, closed the last trading session 0.4% higher at $244.23. ABG has returned 9.7% in the past month. Click to get this free report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. | Asbury Automotive Group (ABG), another stock in the same industry, closed the last trading session 0.4% higher at $244.23. Click to get this free report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG has returned 9.7% in the past month. | Click to get this free report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG), another stock in the same industry, closed the last trading session 0.4% higher at $244.23. ABG has returned 9.7% in the past month. | Asbury Automotive Group (ABG), another stock in the same industry, closed the last trading session 0.4% higher at $244.23. ABG has returned 9.7% in the past month. Click to get this free report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
28516.0 | 2023-07-13 00:00:00 UTC | Group 1 Automotive, Inc. (GPI) Hits Fresh High: Is There Still Room to Run? | ABG | https://www.nasdaq.com/articles/group-1-automotive-inc.-gpi-hits-fresh-high%3A-is-there-still-room-to-run | nan | nan | Have you been paying attention to shares of Group 1 Automotive (GPI)? Shares have been on the move with the stock up 12% over the past month. The stock hit a new 52-week high of $270.05 in the previous session. Group 1 Automotive has gained 47.9% since the start of the year compared to the 16.5% move for the Zacks Retail-Wholesale sector and the 44.2% return for the Zacks Automotive - Retail and Whole Sales industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 26, 2023, Group 1 Automotive reported EPS of $10.93 versus consensus estimate of $9.7.
For the current fiscal year, Group 1 Automotive is expected to post earnings of $40.94 per share on $16.91 billion in revenues. This represents a -10.44% change in EPS on a 4.23% change in revenues. For the next fiscal year, the company is expected to earn $36.43 per share on $16.72 billion in revenues. This represents a year-over-year change of -11.02% and -1.09%, respectively.
Valuation Metrics
Group 1 Automotive may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Group 1 Automotive has a Value Score of A. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 6.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 8.2X. On a trailing cash flow basis, the stock currently trades at 4.9X versus its peer group's average of 5.8X. Additionally, the stock has a PEG ratio of 2.12. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Group 1 Automotive currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Group 1 Automotive meets the list of requirements. Thus, it seems as though Group 1 Automotive shares could have potential in the weeks and months to come.
How Does GPI Stack Up to the Competition?
Shares of GPI have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Asbury Automotive Group, Inc. (ABG). ABG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Asbury Automotive Group, Inc. beat our consensus estimate by 5.42%, and for the current fiscal year, ABG is expected to post earnings of $31.71 per share on revenue of $14.51 billion.
Shares of Asbury Automotive Group, Inc. have gained 13.2% over the past month, and currently trade at a forward P/E of 7.92X and a P/CF of 6.01X.
The Automotive - Retail and Whole Sales industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GPI and ABG, even beyond their own solid fundamental situation.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group, Inc. beat our consensus estimate by 5.42%, and for the current fiscal year, ABG is expected to post earnings of $31.71 per share on revenue of $14.51 billion. One industry peer that looks good is Asbury Automotive Group, Inc. (ABG). ABG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A. | Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. One industry peer that looks good is Asbury Automotive Group, Inc. (ABG). ABG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A. | Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. One industry peer that looks good is Asbury Automotive Group, Inc. (ABG). ABG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A. | One industry peer that looks good is Asbury Automotive Group, Inc. (ABG). ABG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A. Asbury Automotive Group, Inc. beat our consensus estimate by 5.42%, and for the current fiscal year, ABG is expected to post earnings of $31.71 per share on revenue of $14.51 billion. |
28517.0 | 2023-07-12 00:00:00 UTC | Asbury Automotive Group, Inc. (ABG) Hit a 52 Week High, Can the Run Continue? | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-inc.-abg-hit-a-52-week-high-can-the-run-continue | nan | nan | Have you been paying attention to shares of Asbury Automotive Group (ABG)? Shares have been on the move with the stock up 10.1% over the past month. The stock hit a new 52-week high of $256.39 in the previous session. Asbury Automotive Group has gained 39.9% since the start of the year compared to the 15.1% move for the Zacks Retail-Wholesale sector and the 44.1% return for the Zacks Automotive - Retail and Whole Sales industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 25, 2023, Asbury Automotive reported EPS of $8.37 versus consensus estimate of $7.94 while it missed the consensus revenue estimate by 3.3%.
For the current fiscal year, Asbury Automotive is expected to post earnings of $31.71 per share on $14.49 billion in revenues. This represents a -15.8% change in EPS on a -6.13% change in revenues. For the next fiscal year, the company is expected to earn $29.84 per share on $14.89 billion in revenues. This represents a year-over-year change of -5.88% and 2.79%, respectively.
Valuation Metrics
Asbury Automotive may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Asbury Automotive has a Value Score of A. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 8.1X. On a trailing cash flow basis, the stock currently trades at 6X versus its peer group's average of 5.9X. Additionally, the stock has a PEG ratio of 0.43. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Asbury Automotive currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Asbury Automotive passes the test. Thus, it seems as though Asbury Automotive shares could have a bit more room to run in the near term.
How Does ABG Stack Up to the Competition?
Shares of ABG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is AutoNation, Inc. (AN). AN has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. AutoNation, Inc. beat our consensus estimate by 8.04%, and for the current fiscal year, AN is expected to post earnings of $21.77 per share on revenue of $25.86 billion.
Shares of AutoNation, Inc. have gained 17% over the past month, and currently trade at a forward P/E of 8.14X and a P/CF of 5.49X.
The Automotive - Retail and Whole Sales industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ABG and AN, even beyond their own solid fundamental situation.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Have you been paying attention to shares of Asbury Automotive Group (ABG)? How Does ABG Stack Up to the Competition? Shares of ABG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. Have you been paying attention to shares of Asbury Automotive Group (ABG)? How Does ABG Stack Up to the Competition? | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. Have you been paying attention to shares of Asbury Automotive Group (ABG)? How Does ABG Stack Up to the Competition? | Have you been paying attention to shares of Asbury Automotive Group (ABG)? How Does ABG Stack Up to the Competition? Shares of ABG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? |
28518.0 | 2023-07-03 00:00:00 UTC | Is Asbury Automotive Group (ABG) Stock Undervalued Right Now? | ABG | https://www.nasdaq.com/articles/is-asbury-automotive-group-abg-stock-undervalued-right-now-0 | nan | nan | 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that ABG holds a PEG ratio of 0.42. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ABG's industry currently sports an average PEG of 0.67. Over the past 52 weeks, ABG's PEG has been as high as 0.45 and as low as 0.23, with a median of 0.31.
Investors should also recognize that ABG has a P/B ratio of 1.70. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. ABG's current P/B looks attractive when compared to its industry's average P/B of 2.31. ABG's P/B has been as high as 1.86 and as low as 1.18, with a median of 1.50, over the past year.
Finally, investors should note that ABG has a P/CF ratio of 5.09. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.60. Within the past 12 months, ABG's P/CF has been as high as 5.51 and as low as 3.56, with a median of 4.47.
Investors could also keep in mind AutoNation (AN), an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of AutoNation are currently trading at a forward earnings multiple of 7.81 and a PEG ratio of 0.28 compared to its industry's P/E and PEG ratios of 7.68 and 0.67, respectively.
Over the last 12 months, AN's P/E has been as high as 8.13, as low as 4.47, with a median of 5.79, and its PEG ratio has been as high as 1.99, as low as 0.21, with a median of 0.76.
AutoNation also has a P/B ratio of 3.70 compared to its industry's price-to-book ratio of 2.31. Over the past year, its P/B ratio has been as high as 3.81, as low as 2.10, with a median of 2.91.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group and AutoNation are likely undervalued currently. And when considering the strength of its earnings outlook, ABG and AN sticks out as one of the market's strongest value stocks.
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. We also note that ABG holds a PEG ratio of 0.42. | ABG's industry currently sports an average PEG of 0.67. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. One company value investors might notice is Asbury Automotive Group (ABG). | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. | One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. We also note that ABG holds a PEG ratio of 0.42. |
28519.0 | 2023-06-29 00:00:00 UTC | Asbury Automotive Group Reaches Analyst Target Price | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-reaches-analyst-target-price-0 | nan | nan | In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $238.00, changing hands for $240.99/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 6 different analyst targets within the Zacks coverage universe contributing to that average for Asbury Automotive Group Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $128.00. And then on the other side of the spectrum one analyst has a target as high as $330.00. The standard deviation is $70.526.
But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABG crossing above that average target price of $238.00/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $238.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Asbury Automotive Group Inc:
RECENT ABG ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 3 3 3 3
Buy ratings: 0 0 0 0
Hold ratings: 2 2 2 2
Sell ratings: 0 0 0 0
Strong sell ratings: 1 1 1 1
Average rating: 2.22 2.22 2.22 2.22
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABG — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $238.00, changing hands for $240.99/share. And so with ABG crossing above that average target price of $238.00/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $238.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $238.00, changing hands for $240.99/share. But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABG crossing above that average target price of $238.00/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $238.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | And so with ABG crossing above that average target price of $238.00/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $238.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $238.00, changing hands for $240.99/share. But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $238.00, changing hands for $240.99/share. And so with ABG crossing above that average target price of $238.00/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $238.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. |
28520.0 | 2023-06-24 00:00:00 UTC | ABG Quantitative Stock Analysis | ABG | https://www.nasdaq.com/articles/abg-quantitative-stock-analysis | nan | nan | Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC.
ABG Guru Analysis
ABG Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. |
28521.0 | 2023-06-01 00:00:00 UTC | Noteworthy Thursday Option Activity: DASH, FCX, ABG | ABG | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-dash-fcx-abg | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in DoorDash Inc (Symbol: DASH), where a total volume of 24,331 contracts has been traded thus far today, a contract volume which is representative of approximately 2.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.5% of DASH's average daily trading volume over the past month, of 4.1 million shares. Especially high volume was seen for the $60 strike put option expiring August 18, 2023, with 5,427 contracts trading so far today, representing approximately 542,700 underlying shares of DASH. Below is a chart showing DASH's trailing twelve month trading history, with the $60 strike highlighted in orange:
Freeport-McMoran Copper & Gold (Symbol: FCX) options are showing a volume of 71,363 contracts thus far today. That number of contracts represents approximately 7.1 million underlying shares, working out to a sizeable 55.7% of FCX's average daily trading volume over the past month, of 12.8 million shares. Especially high volume was seen for the $40 strike call option expiring July 21, 2023, with 10,488 contracts trading so far today, representing approximately 1.0 million underlying shares of FCX. Below is a chart showing FCX's trailing twelve month trading history, with the $40 strike highlighted in orange:
And Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,183 contracts thus far today. That number of contracts represents approximately 118,300 underlying shares, working out to a sizeable 55% of ABG's average daily trading volume over the past month, of 215,110 shares. Especially high volume was seen for the $200 strike call option expiring July 21, 2023, with 1,105 contracts trading so far today, representing approximately 110,500 underlying shares of ABG. Below is a chart showing ABG's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for DASH options, FCX options, or ABG options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $200 strike call option expiring July 21, 2023, with 1,105 contracts trading so far today, representing approximately 110,500 underlying shares of ABG. Below is a chart showing FCX's trailing twelve month trading history, with the $40 strike highlighted in orange: And Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,183 contracts thus far today. That number of contracts represents approximately 118,300 underlying shares, working out to a sizeable 55% of ABG's average daily trading volume over the past month, of 215,110 shares. | Below is a chart showing FCX's trailing twelve month trading history, with the $40 strike highlighted in orange: And Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,183 contracts thus far today. That number of contracts represents approximately 118,300 underlying shares, working out to a sizeable 55% of ABG's average daily trading volume over the past month, of 215,110 shares. Especially high volume was seen for the $200 strike call option expiring July 21, 2023, with 1,105 contracts trading so far today, representing approximately 110,500 underlying shares of ABG. | Below is a chart showing FCX's trailing twelve month trading history, with the $40 strike highlighted in orange: And Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,183 contracts thus far today. That number of contracts represents approximately 118,300 underlying shares, working out to a sizeable 55% of ABG's average daily trading volume over the past month, of 215,110 shares. Especially high volume was seen for the $200 strike call option expiring July 21, 2023, with 1,105 contracts trading so far today, representing approximately 110,500 underlying shares of ABG. | That number of contracts represents approximately 118,300 underlying shares, working out to a sizeable 55% of ABG's average daily trading volume over the past month, of 215,110 shares. Below is a chart showing ABG's trailing twelve month trading history, with the $200 strike highlighted in orange: For the various different available expirations for DASH options, FCX options, or ABG options, visit StockOptionsChannel.com. Below is a chart showing FCX's trailing twelve month trading history, with the $40 strike highlighted in orange: And Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,183 contracts thus far today. |
28522.0 | 2023-05-27 00:00:00 UTC | Validea Joel Greenblatt Strategy Daily Upgrade Report - 5/27/2023 | ABG | https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-5-27-2023 | nan | nan | The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Asbury Automotive Group, Inc. is an automotive retailer company. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. It owns and operates approximately 186 new vehicle franchises, representing 31 brands of automobiles at 139 dealership locations, 32 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 14 states. The Company's store operations are conducted by its subsidiaries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL
Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC.
ABG Guru Analysis
ABG Fundamental Analysis
STAGWELL INC (STGW) is a small-cap growth stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Stagwell Inc. is a digital-first global marketing network. The Company's primary capabilities include digital transformation, performance media and data, consumer insights and strategy, and creativity and communications. The Company's segments include Integrated Agencies Network, Brand Performance Network (BPN) and Communications Network. The Integrated Agencies Network segment consists of the Anomaly Alliance, Constellation, the Doner Partner Network, Code and Theory, and National Research Group. The Brand Performance Network segment includes a unified media and data management structure with omnichannel media placement, creative media consulting, influencer and business-to-business marketing capabilities. The Communications Network segment includes a network that provides advocacy, strategic corporate communications, investor relations, public relations, online fundraising and other services to both corporations and political and advocacy organizations.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of STAGWELL INC
STGW Guru Analysis
STGW Fundamental Analysis
Joel Greenblatt Portfolio
Top Joel Greenblatt Stocks
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis STAGWELL INC (STGW) is a small-cap growth stock in the Business Services industry. The Company's primary capabilities include digital transformation, performance media and data, consumer insights and strategy, and creativity and communications. | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis STAGWELL INC (STGW) is a small-cap growth stock in the Business Services industry. ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. | ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis STAGWELL INC (STGW) is a small-cap growth stock in the Business Services industry. The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. | ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis STAGWELL INC (STGW) is a small-cap growth stock in the Business Services industry. The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. |
28523.0 | 2023-05-26 00:00:00 UTC | Penske (PAG) Up 3.2% Since Last Earnings Report: Can It Continue? | ABG | https://www.nasdaq.com/articles/penske-pag-up-3.2-since-last-earnings-report%3A-can-it-continue | nan | nan | A month has gone by since the last earnings report for Penske Automotive (PAG). Shares have added about 3.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Penske due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Penske Beats Q1 Earnings Estimates
Penske reported first-quarter 2023 adjusted earnings of $4.31 per share, which decreased 9% year over year but surpassed the Zacks Consensus Estimate of $4.03. Higher-than-expected gross profit in the Retail Automotive, Retail Commercial Truck and Commercial Vehicle Distribution and Other segments resulted in this outperformance. This marked the 12th consecutive earnings beat for the company.
The auto retailer registered net sales of $7,339 million, which topped the Zacks Consensus Estimate of $6,833 million. The top line rose 5.3% from the year-ago quarter.
Penske’s gross profit in the reported quarter increased 1.7% on a year-over-year basis to $1,252.3 million. The operating income went down 7.1% to $373.5 million. In the reported quarter, same-store retail units rose 4.8% year over year to 117,619. Within the Retail Automotive segment, same-store new-vehicle revenues were up 8.7% to $2,646.8 million. Same-store used-vehicle revenues fell 7.2% to $2,216.3 million.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment came in at $6,299.8 million, increasing 4% from a year ago and topping the consensus mark of $5,646 million. Gross profit of $1,062.6 inched up 1% year over year came and came ahead of the consensus mark of $946 million.
Revenues in the Retail Commercial Truck segment increased 13% to $895.6 million but fell short of the consensus mark of $870 million. Gross profit in the segment was $147 million, rising from $141.2 million in the year-earlier quarter figure and topping the consensus mark of $123 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter decreased 6.6% to $143.6 million and lagged the consensus mark of $160 million. Gross profit came in at $42.7 million, up from $39.8 million in the year-ago period and higher than the Zacks Consensus Estimate of $36.46 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $844.9 million, up 5.9% year over year. Penske had cash and cash equivalents of $100.6 million as of Mar 31, 2023. The long-term debt amounted to $1,619.8 million, up from $1,546.9 million as of Mar 31, 2023. During the quarter under discussion, PAG repurchased 0.9 million shares of common stock for $110.2 million. In February, the company boosted its buyback program by an additional $250 million. As of Mar 31, 2023, $214.1 million of stock repurchase authorization remained outstanding.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Penske has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Penske has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Penske belongs to the Zacks Automotive - Retail and Whole Sales industry. Another stock from the same industry, Asbury Automotive Group (ABG), has gained 4.1% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Asbury Automotive reported revenues of $3.58 billion in the last reported quarter, representing a year-over-year change of -8.4%. EPS of $8.37 for the same period compares with $9.27 a year ago.
For the current quarter, Asbury Automotive is expected to post earnings of $7.88 per share, indicating a change of -21.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Asbury Automotive. Also, the stock has a VGM Score of A.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another stock from the same industry, Asbury Automotive Group (ABG), has gained 4.1% over the past month. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Will the recent positive trend continue leading up to its next earnings release, or is Penske due for a pullback? | Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Asbury Automotive Group (ABG), has gained 4.1% over the past month. Penske Beats Q1 Earnings Estimates Penske reported first-quarter 2023 adjusted earnings of $4.31 per share, which decreased 9% year over year but surpassed the Zacks Consensus Estimate of $4.03. | Another stock from the same industry, Asbury Automotive Group (ABG), has gained 4.1% over the past month. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Penske Beats Q1 Earnings Estimates Penske reported first-quarter 2023 adjusted earnings of $4.31 per share, which decreased 9% year over year but surpassed the Zacks Consensus Estimate of $4.03. | Another stock from the same industry, Asbury Automotive Group (ABG), has gained 4.1% over the past month. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. A month has gone by since the last earnings report for Penske Automotive (PAG). |
28524.0 | 2023-05-23 00:00:00 UTC | EU closes antitrust investigation into Belgium's Alcogroup | ABG | https://www.nasdaq.com/articles/eu-closes-antitrust-investigation-into-belgiums-alcogroup | nan | nan | Adds Alcogroup comment
BRUSSELS, May 23 (Reuters) - The European Commission has closed an antitrust investigation into Belgium's Alcogroup over alleged participation in an ethanol cartel, the EU executive said on Tuesday.
A statement from Alcogroup welcomed the European Commission's decision, with CEO Charles-Albert Peers saying it "puts an end to a difficult period" for the company.
Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators last year with taking part in a bioethanol cartel that rigged benchmark prices.
The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation.
The investigation into Alcogroup, however, yielded insufficient evidence to pursue it further, the commission said.
The Agroetanol investigation is ongoing.
(Reporting by Bart Meijer and Charlotte Van Campenhout Editing by Jason Neely and David Goodman )
((Bart.Meijer@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation. A statement from Alcogroup welcomed the European Commission's decision, with CEO Charles-Albert Peers saying it "puts an end to a difficult period" for the company. Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators last year with taking part in a bioethanol cartel that rigged benchmark prices. | The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation. Adds Alcogroup comment BRUSSELS, May 23 (Reuters) - The European Commission has closed an antitrust investigation into Belgium's Alcogroup over alleged participation in an ethanol cartel, the EU executive said on Tuesday. A statement from Alcogroup welcomed the European Commission's decision, with CEO Charles-Albert Peers saying it "puts an end to a difficult period" for the company. | The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation. Adds Alcogroup comment BRUSSELS, May 23 (Reuters) - The European Commission has closed an antitrust investigation into Belgium's Alcogroup over alleged participation in an ethanol cartel, the EU executive said on Tuesday. Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators last year with taking part in a bioethanol cartel that rigged benchmark prices. | The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation. Adds Alcogroup comment BRUSSELS, May 23 (Reuters) - The European Commission has closed an antitrust investigation into Belgium's Alcogroup over alleged participation in an ethanol cartel, the EU executive said on Tuesday. A statement from Alcogroup welcomed the European Commission's decision, with CEO Charles-Albert Peers saying it "puts an end to a difficult period" for the company. |
28525.0 | 2023-05-23 00:00:00 UTC | EU closes antitrust probe into Belgium's Alcogroup | ABG | https://www.nasdaq.com/articles/eu-closes-antitrust-probe-into-belgiums-alcogroup | nan | nan | BRUSSELS, May 23 (Reuters) - The European Commission on Tuesday said it had closed an antitrust investigation into Belgium's Alcogroup for its alleged participation in an ethanol cartel.
Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators last year with taking part in a bioethanol cartel which rigged benchmark prices.
The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation.
The investigation into Alcogroup, however, yielded insufficient evidence to pursue it further, the commission said.
The probe regarding Agroethanol is ongoing.
(Reporting by Bart Meijer; editing by Jason Neely)
((Bart.Meijer@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation. BRUSSELS, May 23 (Reuters) - The European Commission on Tuesday said it had closed an antitrust investigation into Belgium's Alcogroup for its alleged participation in an ethanol cartel. Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators last year with taking part in a bioethanol cartel which rigged benchmark prices. | The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation. BRUSSELS, May 23 (Reuters) - The European Commission on Tuesday said it had closed an antitrust investigation into Belgium's Alcogroup for its alleged participation in an ethanol cartel. Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators last year with taking part in a bioethanol cartel which rigged benchmark prices. | The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation. BRUSSELS, May 23 (Reuters) - The European Commission on Tuesday said it had closed an antitrust investigation into Belgium's Alcogroup for its alleged participation in an ethanol cartel. Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators last year with taking part in a bioethanol cartel which rigged benchmark prices. | The commission at the time said both companies had breached EU antitrust rules together with Spain's Abengoa ABG.MC, which in a settlement at the end of 2021 was fined 20 million euros by the EU competition enforcer for illegal price formation. BRUSSELS, May 23 (Reuters) - The European Commission on Tuesday said it had closed an antitrust investigation into Belgium's Alcogroup for its alleged participation in an ethanol cartel. Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators last year with taking part in a bioethanol cartel which rigged benchmark prices. |
28526.0 | 2023-04-28 00:00:00 UTC | Asbury's (ABG) Q1 Earnings Beat, Sales Miss, Decline Y/Y | ABG | https://www.nasdaq.com/articles/asburys-abg-q1-earnings-beat-sales-miss-decline-y-y | nan | nan | Asbury Automotive Group ABG reported first-quarter 2023 adjusted earnings of $8.37 per share, which decreased 19% year over year. Earnings however topped the Zacks Consensus Estimate of $7.94 per share. This beat can be primarily attributed to higher-than-expected revenues and gross profit from the new-vehicle unit. In the reported quarter, revenues amounted to $3,582.3 million, down 8% year over year. The top line also fell short of the Zacks Consensus Estimate of $3,705 million.
Asbury currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
Asbury Automotive Group, Inc. price-consensus-eps-surprise-chart | Asbury Automotive Group, Inc. Quote
Segment Details
In the quarter, new-vehicle revenues declined 5% year over year to $1,767.7 million but beat the Zacks Consensus Estimate of $1,731 million. Gross profit from the segment came in at $178.9 million, contracting 20% from the prior-year quarter but topping the consensus mark of $171 million.
Used-vehicle revenues slid 17% from the year-ago figure to $1,126.5 million and missed the consensus mark of $1,238 million. Gross profit from the segment came in at $77 million, which fell 22% but surpassed the Zacks Consensus Estimate of $68 million.
Net revenues in the finance and insurance business amounted to $172.5 million, down 15% from the year-ago quarter and in line with the consensus mark. Gross profit was $158.2 million, declining 18% year over year and missing the consensus estimate of $167 million.
Revenues from the parts and service business rose 3% from the prior-year quarter to $515.6 million but missed the consensus mark of $526 million. Gross profit from this segment came in at $282.1 million, inching up 2% year over year but missing the consensus estimate of $299 million.
Other Tidbits
Adjusted selling, general & administrative (SG&A) expenses as a percentage of gross profit rose to 57.9%, marking an increase of 37 basis points year over year. Asbury sold nearly 10,800 vehicles, an uptick of 28% from the fourth quarter of 2022, through the “end-to-end” online sales platform, Clicklane.
As of Mar 31, 2023, the company had cash and cash equivalents of $296.8 million, up from $235.3 million on Dec 31, 2022. It had long-term debt of $3,277.9 million as of Mar 31, 2023, down from $3,301.2 million on Dec 31, 2022.
During the quarter under review, Asbury repurchased approximately 110,000 shares for nearly $21 million. On Apr 24, 2023, Asbury had $184 million share repurchase authorization remaining.
Key Releases From the Auto Space
Tesla TSLA reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of $1.07 but outpaced the Zacks Consensus Estimate of 83 cents. This marked an earnings beat for the electric vehicle behemoth for the ninth time in a row. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%. Management stuck to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
General Motors GM reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profits from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded an adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
PACCAR’s PCAR earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance. Consolidated revenues (including trucks and financial services) came in at $8,473.3 billion, up from $6,472.6 million recorded in the corresponding quarter of 2022.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter. Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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PACCAR Inc. (PCAR) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group ABG reported first-quarter 2023 adjusted earnings of $8.37 per share, which decreased 19% year over year. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. General Motors GM reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. | Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG reported first-quarter 2023 adjusted earnings of $8.37 per share, which decreased 19% year over year. Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise Asbury Automotive Group, Inc. price-consensus-eps-surprise-chart | Asbury Automotive Group, Inc. Quote Segment Details In the quarter, new-vehicle revenues declined 5% year over year to $1,767.7 million but beat the Zacks Consensus Estimate of $1,731 million. | Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG reported first-quarter 2023 adjusted earnings of $8.37 per share, which decreased 19% year over year. Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise Asbury Automotive Group, Inc. price-consensus-eps-surprise-chart | Asbury Automotive Group, Inc. Quote Segment Details In the quarter, new-vehicle revenues declined 5% year over year to $1,767.7 million but beat the Zacks Consensus Estimate of $1,731 million. | Asbury Automotive Group ABG reported first-quarter 2023 adjusted earnings of $8.37 per share, which decreased 19% year over year. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. In the reported quarter, revenues amounted to $3,582.3 million, down 8% year over year. |
28527.0 | 2023-04-27 00:00:00 UTC | Zacks.com featured highlights Deutsche Bank, General Motors, Unum, PVH and Asbury Automotive | ABG | https://www.nasdaq.com/articles/zacks.com-featured-highlights-deutsche-bank-general-motors-unum-pvh-and-asbury-automotive | nan | nan | For Immediate Release
Chicago, IL – April 27, 2023 – Stocks in this week’s article are Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG.
Enhance Your Portfolio with These 5 Low Price-to-Book Sales
When considering valuation metrics, the price-to-earnings (P/E) ratio has always been the obvious choice, as calculations based on earnings are easy and come in handy. However, in the case of companies that are incurring losses or are in an early cycle of development, generating meager or no profits, price-to-sales (P/S) is a good valuation metric. It helps investors identify cheap stocks.
Other than P/E and P/S, the price-to-book ratio (P/B ratio) is also an easy-to-use tool for zeroing in on low-priced stocks that have high-growth prospects.
The P/B ratio is used to calculate how much an investor needs to pay for each dollar of book value of a stock. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
Now let us understand the concept of book value.
The P/B ratio helps to identify low-priced stocks that have high growth prospects. Deutsche Bank, General Motors, Unum Group, PVH Corp and Asbury Automotive Group are some such stocks.
Now let us understand the concept of book value.
What’s Book Value?
Book value is the total value that would be left over, according to the company’s balance sheet, if it goes bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to the common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from the total assets to determine book value.
Understanding P/B Ratio
By comparing the book value of equity to its market price, we get an idea of whether a company is under-or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value, or the stock is undervalued and, therefore a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a caveat. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated, in which case the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio isn't without limitations. It is useful for businesses — like finance, investments, insurance, and banking or manufacturing companies — with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Here are our five picks out of the 10 stocks that qualified the screening:
Headquartered in Frankfurt am Main, Deutsche Bank Aktiengesellschaft, also called Deutsche Bank AG, is the largest bank in Germany and one of the largest financial institutions in Europe and the world, as measured by total assets.
Deutsche Bank has a Zacks Rank #2 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
DB has a projected 3–5 year EPS growth rate of 6.53%.
General Motors is one of the world’s largest automakers. Headquartered in Detroit, the auto giant held the largest share of the U.S. auto market at 17.09% in 2022. From going bankrupt in 2009 to becoming one of the world’s best-run car companies, General Motors has indeed come a long way.
General Motors has a Zacks Rank #2 and a Value Score of A. The company has a projected 3-5-year EPS growth rate of 9.9%.
Headquartered in Chattanooga, TN, Unum Group was created following the June 1999 merger of Provident Companies, Inc. and Unum Corporation. Along with disability insurance, the company provides long-term care insurance, life insurance, employer- and employee-paid group benefits and related services.
Unum Group has a projected 3–5-year EPS growth rate of 7.51%. UNM currently has a Zacks Rank #1 and a Value Score of A.
PVH Corp specializes in designing and marketing branded dress shirts, neckwear, sportswear, jeanswear, intimate apparel, swim products, footwear, handbags and related products.
PVH has a Zacks Rank #2 and a Value Score of A. PVH has a projected 3–5 year EPS growth rate of 16.08%.
Asbury Automotive is one of the largest automotive retailers of new and used vehicles, and related services in the United States.
Asbury Automotive has a projected 3-5-year EPS growth rate of 18.52%. ABG currently has a Zacks Rank #1 and a Value Score of A.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2084722/enhance-your-portfolio-with-these-5-low-price-to-book-stocks
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report
Unum Group (UNM) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – April 27, 2023 – Stocks in this week’s article are Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG. ABG currently has a Zacks Rank #1 and a Value Score of A. Click to get this free report Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. | For Immediate Release Chicago, IL – April 27, 2023 – Stocks in this week’s article are Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG. Click to get this free report Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG currently has a Zacks Rank #1 and a Value Score of A. | Click to get this free report Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – April 27, 2023 – Stocks in this week’s article are Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG. ABG currently has a Zacks Rank #1 and a Value Score of A. | For Immediate Release Chicago, IL – April 27, 2023 – Stocks in this week’s article are Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG. ABG currently has a Zacks Rank #1 and a Value Score of A. Click to get this free report Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
28528.0 | 2023-04-26 00:00:00 UTC | Enhance Your Portfolio With These 5 Low Price-to-Book Stocks | ABG | https://www.nasdaq.com/articles/enhance-your-portfolio-with-these-5-low-price-to-book-stocks-0 | nan | nan | When considering valuation metrics, the price-to-earnings (P/E) ratio has always been the obvious choice, as calculations based on earnings are easy and come in handy. However, in the case of companies that are incurring losses or are in an early cycle of development, generating meager or no profits, price-to-sales (P/S) is a good valuation metric. It helps investors identify cheap stocks.
Other than P/E and P/S, the price-to-book ratio (P/B ratio) is also an easy-to-use tool for zeroing in on low-priced stocks that have high-growth prospects.
The P/B ratio is used to calculate how much an investor needs to pay for each dollar of book value of a stock. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
Now let us understand the concept of book value.
The P/B ratio helps to identify low-priced stocks that have high growth prospects. Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG are some such stocks.
Now let us understand the concept of book value.
What’s Book Value?
Book value is the total value that would be left over, according to the company’s balance sheet, if it goes bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to the common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from the total assets to determine book value.
Understanding P/B Ratio
By comparing the book value of equity to its market price, we get an idea of whether a company is under-or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value, or the stock is undervalued and, therefore a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a caveat. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated, in which case the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio isn't without limitations. It is useful for businesses — like finance, investments, insurance, and banking or manufacturing companies — with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening Parameters
Price to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
Here are our five picks out of the 10 stocks that qualified the screening:
Headquartered in Frankfurt am Main, Deutsche Bank Aktiengesellschaft, also called Deutsche Bank AG, is the largest bank in Germany and one of the largest financial institutions in Europe and the world, as measured by total assets.
Deutsche Bank has a Zacks Rank #2 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
DB has a projected 3–5 year EPS growth rate of 6.53%.
General Motors is one of the world’s largest automakers. Headquartered in Detroit, the auto giant held the largest share of the U.S. auto market at 17.09% in 2022. From going bankrupt in 2009 to becoming one of the world’s best-run car companies, General Motors has indeed come a long way.
General Motors has a Zacks Rank #2 and a Value Score of A. The company has a projected 3-5-year EPS growth rate of 9.9%.
Headquartered in Chattanooga, TN, Unum Group was created following the June 1999 merger of Provident Companies, Inc. and Unum Corporation. Along with disability insurance, the company provides long-term care insurance, life insurance, employer- and employee-paid group benefits and related services.
Unum Group has a projected 3–5-year EPS growth rate of 7.51%. UNM currently has a Zacks Rank #1 and a Value Score of A.
PVH Corp specializes in designing and marketing branded dress shirts, neckwear, sportswear, jeanswear, intimate apparel, swim products, footwear, handbags and related products.
PVH has a Zacks Rank #2 and a Value Score of A. PVH has a projected 3–5 year EPS growth rate of 16.08%.
Asbury Automotive is one of the largest automotive retailers of new and used vehicles, and related services in the United States.
Asbury Automotive has a projected 3-5-year EPS growth rate of 18.52%. ABG currently has a Zacks Rank #1 and a Value Score of A.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report
Unum Group (UNM) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG are some such stocks. ABG currently has a Zacks Rank #1 and a Value Score of A. Click to get this free report Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. | Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG are some such stocks. Click to get this free report Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG currently has a Zacks Rank #1 and a Value Score of A. | Click to get this free report Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG are some such stocks. ABG currently has a Zacks Rank #1 and a Value Score of A. | Deutsche Bank DB, General Motors GM, Unum Group UNM, PVH Corp PVH and Asbury Automotive Group ABG are some such stocks. ABG currently has a Zacks Rank #1 and a Value Score of A. Click to get this free report Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
28529.0 | 2023-04-25 00:00:00 UTC | Compared to Estimates, Asbury Automotive (ABG) Q1 Earnings: A Look at Key Metrics | ABG | https://www.nasdaq.com/articles/compared-to-estimates-asbury-automotive-abg-q1-earnings%3A-a-look-at-key-metrics | nan | nan | For the quarter ended March 2023, Asbury Automotive Group (ABG) reported revenue of $3.58 billion, down 8.4% over the same period last year. EPS came in at $8.37, compared to $9.27 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.7 billion, representing a surprise of -3.30%. The company delivered an EPS surprise of +5.42%, with the consensus EPS estimate being $7.94.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Asbury Automotive performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- New vehicle: $1.77 billion versus the four-analyst average estimate of $1.73 billion. The reported number represents a year-over-year change of -4.7%.
Revenues- Used vehicle: $1.13 billion compared to the $1.24 billion average estimate based on four analysts. The reported number represents a change of -16.6% year over year.
Revenues- Parts and service: $515.60 million compared to the $525.67 million average estimate based on four analysts. The reported number represents a change of +2.7% year over year.
Revenues- Finance and insurance net: $172.50 million compared to the $172.99 million average estimate based on four analysts. The reported number represents a change of -15.2% year over year.
Revenues- Used vehicle retail: $1.02 billion compared to the $1.11 billion average estimate based on three analysts. The reported number represents a change of -16.1% year over year.
Revenues- Used vehicle wholesale: $104.90 million versus the three-analyst average estimate of $85.94 million. The reported number represents a year-over-year change of -21.7%.
Gross profit- New vehicle: $178.90 million versus $171.17 million estimated by four analysts on average.
Gross profit- Used vehicle: $77 million versus $68.10 million estimated by four analysts on average.
Gross profit- Parts and service: $282.10 million versus $298.58 million estimated by four analysts on average.
Gross profit- Finance and insurance, net: $158.20 million compared to the $167 million average estimate based on three analysts.
Gross profit- used vehicle retail: $70.60 million versus the three-analyst average estimate of $65.35 million.
View all Key Company Metrics for Asbury Automotive here>>>
Shares of Asbury Automotive have returned +4.2% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the quarter ended March 2023, Asbury Automotive Group (ABG) reported revenue of $3.58 billion, down 8.4% over the same period last year. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. | For the quarter ended March 2023, Asbury Automotive Group (ABG) reported revenue of $3.58 billion, down 8.4% over the same period last year. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how Asbury Automotive performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- New vehicle: $1.77 billion versus the four-analyst average estimate of $1.73 billion. | For the quarter ended March 2023, Asbury Automotive Group (ABG) reported revenue of $3.58 billion, down 8.4% over the same period last year. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how Asbury Automotive performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- New vehicle: $1.77 billion versus the four-analyst average estimate of $1.73 billion. | For the quarter ended March 2023, Asbury Automotive Group (ABG) reported revenue of $3.58 billion, down 8.4% over the same period last year. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. The reported revenue compares to the Zacks Consensus Estimate of $3.7 billion, representing a surprise of -3.30%. |
28530.0 | 2023-04-25 00:00:00 UTC | Asbury Automotive Group (ABG) Q1 Earnings Beat Estimates | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-q1-earnings-beat-estimates | nan | nan | Asbury Automotive Group (ABG) came out with quarterly earnings of $8.37 per share, beating the Zacks Consensus Estimate of $7.94 per share. This compares to earnings of $9.27 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 5.42%. A quarter ago, it was expected that this auto dealership chain would post earnings of $8.23 per share when it actually produced earnings of $9.12, delivering a surprise of 10.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.58 billion for the quarter ended March 2023, missing the Zacks Consensus Estimate by 3.30%. This compares to year-ago revenues of $3.91 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Asbury Automotive shares have added about 15.4% since the beginning of the year versus the S&P 500's gain of 7.8%.
What's Next for Asbury Automotive?
While Asbury Automotive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Asbury Automotive: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $7.58 on $3.69 billion in revenues for the coming quarter and $30.49 on $14.42 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
America's Car-Mart (CRMT), another stock in the same industry, has yet to report results for the quarter ended April 2023.
This auto retailer is expected to post quarterly earnings of $1.13 per share in its upcoming report, which represents a year-over-year change of -71.8%. The consensus EPS estimate for the quarter has been revised 18.4% lower over the last 30 days to the current level.
America's Car-Mart's revenues are expected to be $373.68 million, up 6.2% from the year-ago quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG) came out with quarterly earnings of $8.37 per share, beating the Zacks Consensus Estimate of $7.94 per share. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG) came out with quarterly earnings of $8.37 per share, beating the Zacks Consensus Estimate of $7.94 per share. Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.58 billion for the quarter ended March 2023, missing the Zacks Consensus Estimate by 3.30%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $8.37 per share, beating the Zacks Consensus Estimate of $7.94 per share. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.58 billion for the quarter ended March 2023, missing the Zacks Consensus Estimate by 3.30%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $8.37 per share, beating the Zacks Consensus Estimate of $7.94 per share. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.58 billion for the quarter ended March 2023, missing the Zacks Consensus Estimate by 3.30%. |
28531.0 | 2023-04-24 00:00:00 UTC | Wolfspeed (WOLF) to Report Q3 Earnings: What's in Store? | ABG | https://www.nasdaq.com/articles/wolfspeed-wolf-to-report-q3-earnings%3A-whats-in-store | nan | nan | Wolfspeed WOLF is scheduled to report third-quarter fiscal 2023 results on Apr 26.
Wolfspeed’s third-quarter fiscal 2023 revenues are expected to be between $210 million and $230 million. Loss is anticipated to be in the range of 12-16 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $218.5 million, suggesting an increase of 16.2% from the year-ago quarter’s reported number.
The consensus mark for third-quarter fiscal 2023 loss is pegged at 15 cents per share. Wolfspeed incurred a loss of 12 cents per share in the year-ago quarter.
Wolfspeed beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 33.9%.
Wolfspeed Price and EPS Surprise
Wolfspeed price-eps-surprise | Wolfspeed Quote
Factors to Note
Wolfspeed has been benefiting from a strong pipeline of design-ins across a wide range of applications, including automotive, industrial and energy end markets in the quarter under review.
Further, strong demand for merchant and captive materials is likely to have favored the company in the to-be-reported quarter.
Moreover, Wolfspeed’s top-line growth is expected to have benefited from strong power devices and material product lines.
The gross margin is expected to have improved due to continued improvements in power device and material product lines supply execution. Wolfspeed expects non-GAAP gross margin between 32% and 34%. The same was 33.6% in the year-ago quarter.
However, softness in RF products demand because of secular headwinds and a recession-related pullback in 5G demand are expected to have acted as headwinds for the company in the fiscal third quarter.
Wolfspeed expects fiscal third-quarter non-GAAP operating loss to be between $22 million and $30 million. WOLF reported an operating loss of $35.5 million in the year-ago quarter.
Further, rising supply chain constraints due to geopolitical tensions and higher inflationary costs are likely to have negatively impacted its overall performance in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Wolfspeed currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
American Airlines AAL has an Earnings ESP of +85.71% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Airlines shares have fallen 32.9% in the past year. AAL is set to report its first-quarter 2023 results on Apr 27.
CNO Financial Group CNO has an Earnings ESP of +5.65% and a Zacks Rank #1.
CNO Financial Group shares have declined 12% in the past year. CNO is set to report its first-quarter 2023 results on May 1.
Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1.
Asbury Automotive shares have gained 23.3% in the past year. ABG is set to report its first-quarter 2023 results on Apr 25.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
Wolfspeed (WOLF) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1. ABG is set to report its first-quarter 2023 results on Apr 25. Click to get this free report CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report Wolfspeed (WOLF) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report Wolfspeed (WOLF) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1. ABG is set to report its first-quarter 2023 results on Apr 25. | Click to get this free report CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report Wolfspeed (WOLF) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1. ABG is set to report its first-quarter 2023 results on Apr 25. | Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1. Click to get this free report CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report Wolfspeed (WOLF) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG is set to report its first-quarter 2023 results on Apr 25. |
28532.0 | 2023-04-24 00:00:00 UTC | Here's Why Tractor Supply (TSCO) is Poised for Q1 Earnings Beat | ABG | https://www.nasdaq.com/articles/heres-why-tractor-supply-tsco-is-poised-for-q1-earnings-beat | nan | nan | Tractor Supply Company TSCO is likely to register increases in the top and bottom lines when it reports first-quarter 2023 results on Apr 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.3 billion, indicating growth of 9.2% from the prior-year reported figure.
The bottom line of the largest rural lifestyle retailer in the United States is expected to have increased year over year. The Zacks Consensus Estimate for earnings per share for the first quarter has moved down by a penny in the past 30 days. The figure suggests growth of 2.4% from the year-ago period’s reported figure.
We expect the company’s first-quarter total revenues to increase 8.9% year over year to $3,294.4 million and the bottom line to grow 1.5% to $1.67 per share.
Tractor Supply has a trailing four-quarter earnings surprise of 3.9%, on average. In the last reported quarter, this Brentwood, TN-based company’s earnings surpassed the Zacks Consensus Estimate by 5.6%.
Tractor Supply Company Price and EPS Surprise
Tractor Supply Company price-eps-surprise | Tractor Supply Company Quote
Key Factors to Note
Tractor Supply has been benefiting from continued market share growth and progress on its strategic initiatives. Moreover, it benefited from its Life Out Here Strategy, Neighbor’s Club membership program and healthy product demand. The strategy is essentially based on five key pillars, including customers, digitization, execution, team members and total shareholder return.
Earlier, the company launched the Field Activity Support Team (“FAST”) and implemented various technology and service enhancements across the enterprise. It has also been in the initial phase of transforming its side lots and mature stores to improve space productivity, bringing the latest merchandising strategies to life and advancing efforts to remain nationally strong and locally relevant.
Given the changing consumer trends, Tractor Supply has been focused on integrating its physical and digital operations to offer consumers a seamless shopping experience. Incidentally, the company has been on track with the ‘ONETractor’ strategy aimed at connecting store and online shopping. The company’s omni-channel investments include curbside pickup, same-day and next-day delivery, a re-launched website, and a new mobile app. Gains from these efforts are expected to have led to strong e-commerce growth in the to-be-reported quarter.
The company’s rebranding of Petsense by Tractor Supply and the expansion of its Neighbor's Club program to Petsense stores received positive customer feedback. This move will enable it to gain pet customers for both banners.
Tractor Supply has been on track with the Project Fusion remodels and Side Lot transformation to remain nationally strong and locally relevant by bringing the latest merchandising strategies to life. These have been significant investments toward stores and are expected to have boosted productivity across the existing and new stores.
However, Tractor Supply has been reeling under inflation woes and rising costs. Higher costs due to elevated transaction expenses and early integration costs related to the Orscheln Farm and Home acquisition are likely to have been concerning.
Investments in strategic efforts, and team member compensation and benefits are also expected to have added to high costs. Transportation costs are likely to have continued to be higher year over year in the first quarter of 2023.
What the Zacks Model Unveils
Our proven conclusively predicts an earnings beat for Tractor Supply this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Tractor Supply has a Zacks Rank #3 and an Earnings ESP of +0.30%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies that have the right combination of elements to post an earnings beat:
Asbury Automotive Group ABG has an Earnings ESP of +1.39% and currently flaunts a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.6 billion, suggesting a 6.1% decline from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. The consensus estimate for earnings has been unchanged in the past 30 days. ABG has delivered an earnings beat of 7.1%, on average, in the trailing four quarters.
Lowe’s Companies LOW currently has an Earnings ESP of 1.32% and a Zacks Rank of 3. The company is expected to register a top-line decline when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for LOW’s quarterly revenues is pegged at $21.9 billion, which suggests a decline of 7.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Lowe’s earnings has been unchanged at $3.54 in the past 30 days. However, the consensus estimate for loss suggests an improvement of 0.9% from the year-ago quarter’s reported figure of $3.51 per share. LOW has delivered a bottom-line miss of 4.4%, on average, in the trailing four quarters.
Target Corporation TGT currently has an Earnings ESP of +1.38% and a Zacks Rank #3. TGT is anticipated to register top-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $25.4 billion, indicating an improvement of 0.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Target’s earnings of $1.77 per share has moved up by a penny in the past 30 days. The consensus estimate suggests a decline of 19.2% from the $1.77 reported in the year-ago quarter. TGT has delivered an earnings miss of 16.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Target Corporation (TGT) : Free Stock Analysis Report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
Tractor Supply Company (TSCO) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group ABG has an Earnings ESP of +1.39% and currently flaunts a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. | Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG has an Earnings ESP of +1.39% and currently flaunts a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. | The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG has an Earnings ESP of +1.39% and currently flaunts a Zacks Rank #1. | Asbury Automotive Group ABG has an Earnings ESP of +1.39% and currently flaunts a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. |
28533.0 | 2023-04-24 00:00:00 UTC | Design a Balanced Portfolio With These 4 Low P/CF Stocks | ABG | https://www.nasdaq.com/articles/design-a-balanced-portfolio-with-these-4-low-p-cf-stocks-0 | nan | nan | Investment in stocks made on diligent value analysis is usually considered one of the best practices. In value investing, investors pick stocks that are cheap but fundamentally sound. There are a number of ratios to identify value stocks but none alone can conclusively determine their inherent potential.
Each ratio helps an investor understand a particular aspect of the company’s business. One such ratio, Price to Cash Flow (or P/CF), can work wonders in stock picking if used prudently. This metric evaluates the market price of a stock relative to the amount of cash flow that the company is generating on a per-share basis – the lower the number, the better. Unum Group UNM, Asbury Automotive Group, Inc. ABG, PVH Corp. PVH and General Motors Company GM boast a low P/CF ratio.
Why P/CF Ratio?
You must be wondering why we are considering this when the most widely used valuation metric is Price/Earnings (or P/E). Well, one of the important factors that make P/CF a highly dependable metric is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly diagnosing a company’s financial health.
Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. Then again, cash flow is quite reliable. Net cash flow unveils how much money a company generates and how effectively management is deploying the same.
A positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, meet its expenses, reinvest in the business, endure downturns and finally undertake shareholder-friendly moves. Negative cash flow implies a decline in the company’s liquidity, which, in turn, lowers its flexibility to support these endeavors.
However, an investment decision solely based on the P/CF metric may not fetch the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and take into account the price-to-book ratio, price-to-earnings ratio and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chances of falling into a value trap.
The Bargain Hunting Strategy
Here are the parameters for selecting true-value stocks:
P/CF less than or equal to X-Industry Median.
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
P/E using (F1) less than or equal to X-Industry Median: This parameter shortlists stocks that are trading at a discount or are equal to its peers.
P/B less than or equal to X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
P/S less than or equal to X-Industry Median: The P/S ratio determines how a stock price compares to the company’s sales — the lower the ratio the more attractive the stock is.
PEG less than 1: The ratio is used to determine a stock's value by taking the company's earnings growth into account. The PEG ratio gives a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and that investors need to pay less for a stock that has robust earnings growth prospects.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Here are four of the seven stocks that qualified the screening:
Unum Group, which provides financial protection benefit solutions, sports a Zacks Rank #1 and has an expected EPS growth rate of 7.5% for three-five years. The company has a trailing four-quarter earnings surprise of 32.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Unum Group’s current financial year sales and EPS suggests growth of 2.9% and 9%, respectively, from the year-ago period. Unum Group has a Value Score of A. Shares of UNM have gained 23.1% in the past year.
Asbury Automotive Group, which operates as an automotive retailer in the United States, flaunts a Zacks Rank #1. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years.
Asbury Automotive Group has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of ABG have rallied 23.3% in the past year.
PVH Corp., which operates as an apparel company, carries a Zacks Rank #2 and has an expected EPS growth rate of 16.1% for three-five years. The company has a trailing four-quarter earnings surprise of 23.4%, on average.
The Zacks Consensus Estimate for PVH’s current financial year sales and EPS suggests growth of 3.7% and 11.8%, respectively, from the year-ago period. PVH has a Value Score of A. Shares of PVH have gained 14.2% in the past year.
General Motors, which designs, builds, and sells cars, trucks, crossovers, and automobile parts globally, carries a Zacks Rank #2. It has an expected EPS growth rate of 9.9% for three-five years. The company has a trailing four-quarter earnings surprise of 15.3%, on average.
The Zacks Consensus Estimate for General Motors’ current financial year sales suggests growth of 3.2% from the year-ago period. General Motors has a Value Score of A. Shares of GM have declined 15.7% in the past year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Unum Group (UNM) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Unum Group UNM, Asbury Automotive Group, Inc. ABG, PVH Corp. PVH and General Motors Company GM boast a low P/CF ratio. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. Shares of ABG have rallied 23.3% in the past year. | Unum Group UNM, Asbury Automotive Group, Inc. ABG, PVH Corp. PVH and General Motors Company GM boast a low P/CF ratio. Click to get this free report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. | Click to get this free report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Unum Group UNM, Asbury Automotive Group, Inc. ABG, PVH Corp. PVH and General Motors Company GM boast a low P/CF ratio. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. | Unum Group UNM, Asbury Automotive Group, Inc. ABG, PVH Corp. PVH and General Motors Company GM boast a low P/CF ratio. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. Shares of ABG have rallied 23.3% in the past year. |
28534.0 | 2023-04-21 00:00:00 UTC | What's in Store for United Microelectronics (UMC) Q1 Earnings? | ABG | https://www.nasdaq.com/articles/whats-in-store-for-united-microelectronics-umc-q1-earnings-0 | nan | nan | United Microelectronics UMC is slated to report first-quarter 2023 results on Apr 26.
The Zacks Consensus Estimate for first-quarter earnings currently stands at 16 cents per share, indicating a decline of 42.7% from the year-ago reported figure.
The consensus mark for first-quarter net sales is pegged at $1.78 billion, indicating a fall of 19.5% from the year-ago quarter’s reported figure.
UMC’s earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters while missing the same in three quarters, the average negative surprise being 3.79%.
United Microelectronics Corporation Price and EPS Surprise
United Microelectronics Corporation price-eps-surprise | United Microelectronics Corporation Quote
Let’s see how things have shaped up for the upcoming announcement:
Factors to Note
United Microelectronics first-quarter 2023 performance is likely to have benefited from an expanded 22/28 nanometer portfolio.
UMC's strengths in specialized technology leadership, geographically diversified capacity offering, and quality and operational excellence position it well to capture demand in the semiconductor foundry market.
Furthermore, the company is expected to benefit from the ongoing trend of digital transformation across industries in the quarter under review.
UMC’s growing efforts to focus on cost reduction and productivity improvement to remain competitive may have favored the to-be-reported quarter’s top line.
However, rising supply chain constraints due to geopolitical tensions and higher inflationary costs are likely to have negatively impacted its overall performance in the to-be-reported quarter.
Sluggish demand in the smartphone and PC consumer market is expected to have acted as a headwind for the company in the first-quarter results.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
United Microelectronics has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
American Airlines AAL has an Earnings ESP of +85.71% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Airlines shares have fallen 34.1% in the year-to-date period compared with the Zacks Transportation Airline industry’s decline of 21.9%.
AGNC Investment AGNC has an Earnings ESP of +3.7% and a Zacks Rank #1.
AGNC Investment shares have fallen 15.9% in the year-to-date period compared with the Zacks REIT and Equity Trust industry’s decline of 32.3%.
Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1.
Asbury Automotive shares have gained 29.2% in the year-to-date period compared with the Zacks Automotive – Retail and Whole sales industry’s gain of 14.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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AGNC Investment Corp. (AGNC) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
United Microelectronics Corporation (UMC) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report United Microelectronics Corporation (UMC) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. UMC's strengths in specialized technology leadership, geographically diversified capacity offering, and quality and operational excellence position it well to capture demand in the semiconductor foundry market. | Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report United Microelectronics Corporation (UMC) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1. What Our Model Indicates Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. | Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report United Microelectronics Corporation (UMC) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1. United Microelectronics Corporation Price and EPS Surprise United Microelectronics Corporation price-eps-surprise | United Microelectronics Corporation Quote Let’s see how things have shaped up for the upcoming announcement: Factors to Note United Microelectronics first-quarter 2023 performance is likely to have benefited from an expanded 22/28 nanometer portfolio. | Asbury Automotive Group ABG has an Earnings ESP of +1.39% and a Zacks Rank #1. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report United Microelectronics Corporation (UMC) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for first-quarter earnings currently stands at 16 cents per share, indicating a decline of 42.7% from the year-ago reported figure. |
28535.0 | 2023-04-20 00:00:00 UTC | AutoNation (AN) Surpasses Q1 Earnings Estimates | ABG | https://www.nasdaq.com/articles/autonation-an-surpasses-q1-earnings-estimates | nan | nan | AutoNation (AN) came out with quarterly earnings of $6.05 per share, beating the Zacks Consensus Estimate of $5.60 per share. This compares to earnings of $5.78 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 8.04%. A quarter ago, it was expected that this auto retailer would post earnings of $5.89 per share when it actually produced earnings of $6.37, delivering a surprise of 8.15%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
AutoNation, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $6.4 billion for the quarter ended March 2023, missing the Zacks Consensus Estimate by 4.25%. This compares to year-ago revenues of $6.75 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AutoNation shares have added about 27.1% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for AutoNation?
While AutoNation has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AutoNation: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $5.51 on $6.7 billion in revenues for the coming quarter and $20.73 on $26.42 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the top 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Asbury Automotive Group (ABG), has yet to report results for the quarter ended March 2023. The results are expected to be released on April 25.
This auto dealership chain is expected to post quarterly earnings of $7.94 per share in its upcoming report, which represents a year-over-year change of -14.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Asbury Automotive Group's revenues are expected to be $3.7 billion, down 5.3% from the year-ago quarter.
4 Oil Stocks with Massive Upsides
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In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another stock from the same industry, Asbury Automotive Group (ABG), has yet to report results for the quarter ended March 2023. Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Asbury Automotive Group (ABG), has yet to report results for the quarter ended March 2023. AutoNation, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $6.4 billion for the quarter ended March 2023, missing the Zacks Consensus Estimate by 4.25%. | Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Asbury Automotive Group (ABG), has yet to report results for the quarter ended March 2023. AutoNation (AN) came out with quarterly earnings of $6.05 per share, beating the Zacks Consensus Estimate of $5.60 per share. | Another stock from the same industry, Asbury Automotive Group (ABG), has yet to report results for the quarter ended March 2023. Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. AutoNation, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $6.4 billion for the quarter ended March 2023, missing the Zacks Consensus Estimate by 4.25%. |
28536.0 | 2023-04-19 00:00:00 UTC | Group 1 Automotive (GPI) Expected to Beat Earnings Estimates: Should You Buy? | ABG | https://www.nasdaq.com/articles/group-1-automotive-gpi-expected-to-beat-earnings-estimates%3A-should-you-buy | nan | nan | Wall Street expects a year-over-year decline in earnings on higher revenues when Group 1 Automotive (GPI) reports results for the quarter ended March 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on April 26, 2023, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This auto dealer is expected to post quarterly earnings of $9.08 per share in its upcoming report, which represents a year-over-year change of -16%.
Revenues are expected to be $3.85 billion, up 0.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.63% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Group 1 Automotive?
For Group 1 Automotive, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +6.83%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Group 1 Automotive will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Group 1 Automotive would post earnings of $10.51 per share when it actually produced earnings of $10.86, delivering a surprise of +3.33%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Group 1 Automotive appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Among the stocks in the Zacks Automotive - Retail and Whole Sales industry, Asbury Automotive Group (ABG) is soon expected to post earnings of $7.94 per share for the quarter ended March 2023. This estimate indicates a year-over-year change of -14.4%. This quarter's revenue is expected to be $3.7 billion, down 5.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Asbury Automotive has remained unchanged. Nevertheless, the company now has an Earnings ESP of 1.39%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #1 (Strong Buy), suggests that Asbury Automotive will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | An Industry Player's Expected Results Among the stocks in the Zacks Automotive - Retail and Whole Sales industry, Asbury Automotive Group (ABG) is soon expected to post earnings of $7.94 per share for the quarter ended March 2023. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. | Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. An Industry Player's Expected Results Among the stocks in the Zacks Automotive - Retail and Whole Sales industry, Asbury Automotive Group (ABG) is soon expected to post earnings of $7.94 per share for the quarter ended March 2023. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | An Industry Player's Expected Results Among the stocks in the Zacks Automotive - Retail and Whole Sales industry, Asbury Automotive Group (ABG) is soon expected to post earnings of $7.94 per share for the quarter ended March 2023. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | An Industry Player's Expected Results Among the stocks in the Zacks Automotive - Retail and Whole Sales industry, Asbury Automotive Group (ABG) is soon expected to post earnings of $7.94 per share for the quarter ended March 2023. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, it was expected that Group 1 Automotive would post earnings of $10.51 per share when it actually produced earnings of $10.86, delivering a surprise of +3.33%. |
28537.0 | 2023-04-18 00:00:00 UTC | Spanish judge awards troubled Abengoa to Cox Energy | ABG | https://www.nasdaq.com/articles/spanish-judge-awards-troubled-abengoa-to-cox-energy | nan | nan | MADRID, April 18 (Reuters) - A judge has awarded Spanish engineering and energy group Abengoa, which was under insolvency proceedings, to Spanish renewable energy company Cox Energy, a court document showed on Tuesday.
Cox Energy, a solar photovoltaic firm founded in 2014, submitted a bid valuing Abengoa at 564 million euros ($618 million) that prevailed over several total and partial offers, according to the document.
Abengoa has been under insolvency proceedings since June 2022, after a 6 billion euro debt restructuring process unravelled as Spain rejected an aid package that would have allowed it more time to evaluate a takeover bid from private equity firm TerraMar Capital LLC.
The Seville-based group had borrowed heavily for over a decade to fund an aggressive expansion into clean energy from its traditional infrastructure projects. It was delisted in September 2022 after trading of its shares was suspended for more than two years due to its debt woes.
In 2016, Abengoa had already avoided bankruptcy by striking a refinancing deal on debt worth 9 billion euros, which handed control of the company to creditors.
Cox Energy's bid includes 206 million euros of debt and outstanding guarantees for Abengoa projects, as well as another 252 million euros in project finance debt, the company said in a press release.
The judge highlighted that recently-founded Cox Energy is a small company whose business is complementary to Abengoa's and has committed to maintaining the latter's operations and staff. Abengoa has more than 9,000 employees worldwide.
The company frontloaded 2.5 million euros in February to pay Abengoa's workers' payroll delays.
Cox Energy, which has projects in Mexico, Chile, Panama, Colombia and Spain and a portfolio potentially capable of generating more than 5,000 megawatts at peak, prevailed over bids from Ultramar Energy Limited, Terramar/Nox Engineering and Urbas, as well as some partial bids such as those submitted by Acciona or Elecnor, according to the document.
($1 = 0.9119 euros)
(Reporting by Emma Pinedo Editing by David Latona and Mark Potter)
((emma.pinedo@thomsonreuters.com; +918 35 68 34;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abengoa has been under insolvency proceedings since June 2022, after a 6 billion euro debt restructuring process unravelled as Spain rejected an aid package that would have allowed it more time to evaluate a takeover bid from private equity firm TerraMar Capital LLC. In 2016, Abengoa had already avoided bankruptcy by striking a refinancing deal on debt worth 9 billion euros, which handed control of the company to creditors. The judge highlighted that recently-founded Cox Energy is a small company whose business is complementary to Abengoa's and has committed to maintaining the latter's operations and staff. | MADRID, April 18 (Reuters) - A judge has awarded Spanish engineering and energy group Abengoa, which was under insolvency proceedings, to Spanish renewable energy company Cox Energy, a court document showed on Tuesday. Cox Energy, a solar photovoltaic firm founded in 2014, submitted a bid valuing Abengoa at 564 million euros ($618 million) that prevailed over several total and partial offers, according to the document. Cox Energy's bid includes 206 million euros of debt and outstanding guarantees for Abengoa projects, as well as another 252 million euros in project finance debt, the company said in a press release. | MADRID, April 18 (Reuters) - A judge has awarded Spanish engineering and energy group Abengoa, which was under insolvency proceedings, to Spanish renewable energy company Cox Energy, a court document showed on Tuesday. Cox Energy, a solar photovoltaic firm founded in 2014, submitted a bid valuing Abengoa at 564 million euros ($618 million) that prevailed over several total and partial offers, according to the document. Cox Energy's bid includes 206 million euros of debt and outstanding guarantees for Abengoa projects, as well as another 252 million euros in project finance debt, the company said in a press release. | MADRID, April 18 (Reuters) - A judge has awarded Spanish engineering and energy group Abengoa, which was under insolvency proceedings, to Spanish renewable energy company Cox Energy, a court document showed on Tuesday. Cox Energy, a solar photovoltaic firm founded in 2014, submitted a bid valuing Abengoa at 564 million euros ($618 million) that prevailed over several total and partial offers, according to the document. Cox Energy's bid includes 206 million euros of debt and outstanding guarantees for Abengoa projects, as well as another 252 million euros in project finance debt, the company said in a press release. |
28538.0 | 2023-04-17 00:00:00 UTC | Noteworthy Monday Option Activity: RNG, ABG, PAYO | ABG | https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-rng-abg-payo | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in RingCentral Inc (Symbol: RNG), where a total volume of 11,989 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.2% of RNG's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $25 strike put option expiring May 19, 2023, with 10,256 contracts trading so far today, representing approximately 1.0 million underlying shares of RNG. Below is a chart showing RNG's trailing twelve month trading history, with the $25 strike highlighted in orange:
Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,307 contracts thus far today. That number of contracts represents approximately 130,700 underlying shares, working out to a sizeable 58.6% of ABG's average daily trading volume over the past month, of 223,180 shares. Particularly high volume was seen for the $180 strike call option expiring April 21, 2023, with 642 contracts trading so far today, representing approximately 64,200 underlying shares of ABG. Below is a chart showing ABG's trailing twelve month trading history, with the $180 strike highlighted in orange:
And Payoneer Global Inc (Symbol: PAYO) saw options trading volume of 16,319 contracts, representing approximately 1.6 million underlying shares or approximately 53.7% of PAYO's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $5 strike put option expiring May 19, 2023, with 8,232 contracts trading so far today, representing approximately 823,200 underlying shares of PAYO. Below is a chart showing PAYO's trailing twelve month trading history, with the $5 strike highlighted in orange:
For the various different available expirations for RNG options, ABG options, or PAYO options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Funds Holding COLM
QFIN YTD Return
INTF shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $180 strike call option expiring April 21, 2023, with 642 contracts trading so far today, representing approximately 64,200 underlying shares of ABG. Below is a chart showing RNG's trailing twelve month trading history, with the $25 strike highlighted in orange: Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,307 contracts thus far today. That number of contracts represents approximately 130,700 underlying shares, working out to a sizeable 58.6% of ABG's average daily trading volume over the past month, of 223,180 shares. | Below is a chart showing ABG's trailing twelve month trading history, with the $180 strike highlighted in orange: And Payoneer Global Inc (Symbol: PAYO) saw options trading volume of 16,319 contracts, representing approximately 1.6 million underlying shares or approximately 53.7% of PAYO's average daily trading volume over the past month, of 3.0 million shares. Below is a chart showing RNG's trailing twelve month trading history, with the $25 strike highlighted in orange: Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,307 contracts thus far today. That number of contracts represents approximately 130,700 underlying shares, working out to a sizeable 58.6% of ABG's average daily trading volume over the past month, of 223,180 shares. | Below is a chart showing ABG's trailing twelve month trading history, with the $180 strike highlighted in orange: And Payoneer Global Inc (Symbol: PAYO) saw options trading volume of 16,319 contracts, representing approximately 1.6 million underlying shares or approximately 53.7% of PAYO's average daily trading volume over the past month, of 3.0 million shares. Below is a chart showing RNG's trailing twelve month trading history, with the $25 strike highlighted in orange: Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,307 contracts thus far today. That number of contracts represents approximately 130,700 underlying shares, working out to a sizeable 58.6% of ABG's average daily trading volume over the past month, of 223,180 shares. | Below is a chart showing ABG's trailing twelve month trading history, with the $180 strike highlighted in orange: And Payoneer Global Inc (Symbol: PAYO) saw options trading volume of 16,319 contracts, representing approximately 1.6 million underlying shares or approximately 53.7% of PAYO's average daily trading volume over the past month, of 3.0 million shares. Below is a chart showing RNG's trailing twelve month trading history, with the $25 strike highlighted in orange: Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 1,307 contracts thus far today. That number of contracts represents approximately 130,700 underlying shares, working out to a sizeable 58.6% of ABG's average daily trading volume over the past month, of 223,180 shares. |
28539.0 | 2023-04-17 00:00:00 UTC | Will Asbury Automotive (ABG) Beat Estimates Again in Its Next Earnings Report? | ABG | https://www.nasdaq.com/articles/will-asbury-automotive-abg-beat-estimates-again-in-its-next-earnings-report | nan | nan | Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry.
This auto dealership chain has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 5.62%.
For the most recent quarter, Asbury Automotive was expected to post earnings of $8.23 per share, but it reported $9.12 per share instead, representing a surprise of 10.81%. For the previous quarter, the consensus estimate was $9.19 per share, while it actually produced $9.23 per share, a surprise of 0.44%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Asbury Automotive lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Asbury Automotive currently has an Earnings ESP of +1.39%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #1 (Strong Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on April 25, 2023.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. | It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. | It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. |
28540.0 | 2023-04-17 00:00:00 UTC | Factors Likely to Influence Rite Aid (RAD) in Q4 Earnings | ABG | https://www.nasdaq.com/articles/factors-likely-to-influence-rite-aid-rad-in-q4-earnings | nan | nan | Rite Aid Corporation RAD is scheduled to report fourth-quarter fiscal 2023 results on Apr 20, before the opening bell.
The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at a loss of 77 cents, suggesting growth of 52.8% from the loss of $1.68 reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The Zacks Consensus Estimate for its fiscal fourth-quarter revenues is pegged at $5.7 billion, suggesting a 6% decline from the prior-year quarter’s reported figure of $6.1 billion.
In the last reported quarter, RAD witnessed a positive earnings surprise of 56.3%. The company has a trailing four-quarter earnings miss of 38.1%, on average.
Key Factors to Note
Rite Aid has been gaining from its expanded home delivery service to customers with an eligible prescription, with the benefit of a zero delivery fee. It has also been providing pickup and drive-through services for prescriptions and over-the-counter products at its stores. RAD launched the Buy Online Pickup In Store initiative to offer better drive-through and curbside pickup options.
The company has been focused on accelerating growth of riteaid.com’s e-commerce sales and expanding its buy online, pick up at store offerings. Continued strength in on-demand delivery, third-party marketplaces, and buy online, pick up at store options are likely to have aided the company’s performance in the to-be-reported quarter.
Rite Aid has been focusing on strengthening its foothold in mid-market PBM, innovating across its retail and mail-order pharmacy channels, enhancing the in-store experience by curating digital offerings, improving merchandise, and rebranding its image with a new logo.
Rite Aid’s Stores of the Future and the acquisition of Bartell are anticipated to have helped expand the customer base. Alongside this, it launched a loyalty program to improve front-end margins, expanded its brands and enhanced PBM margins via its new rebate aggregation agreement. The company has been making efforts to grow the Elixir membership and reposition its approach to the Elixir Insurance Part D business. These efforts are likely to have boosted earnings in the fiscal
fourth quarter.
In its last earnings report, management raised its sales view for fiscal 2023 on the back of strength in the Elixir business, increased non-COVID prescriptions and lower SG&A. Management anticipated revenues of $23.7-$24 million compared with the earlier mentioned $23.6-$24 million and our estimate of $23.7 billion. The Retail Pharmacy segment’s revenues were predicted to be $17.4-$17.6 billion compared with the prior stated $17.35-$17.65. The Pharmacy Services segment’s revenues are expected to be $6.3-$6.4 billion, which compares favorably with the previously communicated $6.25-$6.35 billion.
However, Rite Aid’s Retail Pharmacy and Pharmacy Services segments have been sluggish. The company has been witnessing muted demand for flu immunizations and COVID-19 vaccines, as well as the adverse impacts of closed stores, and reduced Elixir insurance memberships. Such factors are likely to have dented Rite Aid’s top-line performance in the fiscal fourth quarter.
As a result, management trimmed the adjusted EBITDA view for fiscal 2023. Adjusted EBITDA is anticipated to be $410-$440 million compared with the earlier stated $450-$490 million and our estimate of $440 million, induced by the expectations of cautious consumer demand and supply-chain headwinds. The Retail Pharmacy segment’s adjusted EBITDA is predicted between $265 million and $285 million, down from the prior stated $305-$335 million. The Pharmacy Services segment’s adjusted EBITDA is projected to be $145-$155 million.
Rite Aid Corporation Price and EPS Surprise
Rite Aid Corporation price-eps-surprise | Rite Aid Corporation Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Rite Aid this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Rite Aid has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Asbury Automotive Group ABG currently has an Earnings ESP of +1.39% and a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.6 billion, suggesting a 6.1% decline from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. The consensus estimate for earnings has been unchanged in the past 30 days. ABG has delivered an earnings beat of 7.1%, on average, in the trailing four quarters.
Lowe’s Companies LOW currently has an Earnings ESP of 1.32% and a Zacks Rank of 3. The company is expected to register a top-line decline when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for LOW’s quarterly revenues is pegged at $21.9 billion, which suggests a decline of 7.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Lowe’s earnings has been unchanged at $3.54 in the past 30 days. However, the consensus estimate for loss suggests an improvement of 0.9% from the year-ago quarter’s reported figure of $3.51 per share. LOW has delivered a bottom-line miss of 4.4%, on average, in the trailing four quarters.
Target Corporation TGT currently has an Earnings ESP of +1.38% and a Zacks Rank #3. TGT is anticipated to register top-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $25.4 billion, indicating an improvement of 0.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Target’s earnings of $1.77 per share has moved up by a penny in the past 30 days. The consensus estimate suggests a decline of 19.2% from the $1.77 reported in the year-ago quarter. TGT has delivered an earnings miss of 16.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rite Aid Corporation (RAD) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group ABG currently has an Earnings ESP of +1.39% and a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. | Click to get this free report Rite Aid Corporation (RAD) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG currently has an Earnings ESP of +1.39% and a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. | The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. Click to get this free report Rite Aid Corporation (RAD) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG currently has an Earnings ESP of +1.39% and a Zacks Rank #1. | The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. Asbury Automotive Group ABG currently has an Earnings ESP of +1.39% and a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. |
28541.0 | 2023-04-17 00:00:00 UTC | Here's How Much You'd Have If You Invested $1000 in Asbury Automotive Group a Decade Ago | ABG | https://www.nasdaq.com/articles/heres-how-much-youd-have-if-you-invested-%241000-in-asbury-automotive-group-a-decade-ago | nan | nan | For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Asbury Automotive Group (ABG) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today?
Asbury Automotive Group's Business In-Depth
With that in mind, let's take a look at Asbury Automotive Group's main business drivers.
Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. As of December 31, 2021, Asbury owned 205 new vehicle franchises at 155 locations. It also operates 35 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The company offers 31 automotive brands including Lexus, Mercedes-Benz, Acura, BMW, Genesis, Infiniti, Jaguar, Land Rover, Lincoln, Porsche, Volvo, Audi, Bentley, Toyota, Honda, Nissan, Hyundai, Sprinter, Volkswagen, Subaru, Fiat, Kia, MINI, Isuzu, Dodge, Chrysler, Jeep, Ford, Chevrolet, Buick and GMC.
Apart from a wide range of new and used vehicles, the company provides finance and insurance products, and automotive repair and maintenance services. Asbury’s omni-channel platform is designed to increase its market share through digital innovation. In December 2020, Asbury introduced Clicklane, the online shopping platform, which ensures a true online car-buying and selling experience.
Asbury’s business mix consisted of New Vehicles (accounted for about 47.7% of the company’s revenues in 2022), Used Vehicles (33.6%), Parts and Services (13.4%), and Finance and insurance (5.3%).
In 2021, Asbury acquired Larry H. Miller Dealerships, the eighth largest dealership in the United States, adding 54 new vehicle dealerships, seven used cars stores, 11 collision centers, a used vehicle wholesale business to its existing portfolio. Additionally, Asbury acquired Total Care Auto (TCA), a leading provider of service contracts and other vehicle protection products. Subsequent to the Larry H. Miller buyout closed in December 2021, Asbury has reportable segments: Dealerships and TCA. The Dealerships segment revenues would be derived primarily from the sale of new vehicles, sale of used vehicles to retail customers and dealers, repair and maintenance services, and the arrangement of third-party vehicle financing. Revenues from the TCA segment, reflected in F&I Revenues, will be derived from the vehicle service contracts, guaranteed asset protection insurance, prepaid maintenance contracts, vehicle theft assistance contracts and appearance protection contracts.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Asbury Automotive Group a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in April 2013 would be worth $5,642.64, or a gain of 464.26%, as of April 17, 2023, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 160.42% and gold's return of 40.26% over the same time frame.
Analysts are anticipating more upside for ABG.
Asbury’s diversified product mix and multiple streams of income reduce its risk profile and positions it for top-line growth. Strategic buyouts are helping the auto retailer increase its market share and boost portfolio. Acquisition of Larry H. Miller Dealerships in 2021 has added nearly $5.7 billion in expected annualized revenues, giving Asbury an edge to execute its five-year plan. Its ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The company’s end-to-end e-commerce platform, Clicklane, is also set to buoy prospects. Asbury's commitment to increase shareholder value is another positive. For full year 2022, Asbury repurchased approximately 1.6 million shares for $287 million. In January, it boosted its buyback authorization by $108 million. These tailwinds support our bullish stance on the stock.
Shares have gained 6.24% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What if you'd invested in Asbury Automotive Group (ABG) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today? Analysts are anticipating more upside for ABG. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. What if you'd invested in Asbury Automotive Group (ABG) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today? | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. What if you'd invested in Asbury Automotive Group (ABG) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today? | It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today? What if you'd invested in Asbury Automotive Group (ABG) ten years ago? Analysts are anticipating more upside for ABG. |
28542.0 | 2023-04-17 00:00:00 UTC | Zacks Value Trader Highlights: Asbury Automotive Group, General Motors, Embraer, Valero Energy and Toll Brothers | ABG | https://www.nasdaq.com/articles/zacks-value-trader-highlights%3A-asbury-automotive-group-general-motors-embraer-valero | nan | nan | For Immediate Release
Chicago, IL – April 17, 2023 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2079226/what-industries-have-the-most-classic-value-stocks-right-now)
What Industries Have the Most Classic Value Stocks Right Now?
Welcome to Episode #325 of the Value Investor Podcast.
(0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview
(6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks
(22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL
Podcast@Zacks.com
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
In Apr 2023, Warren Buffett sat down with CNBC's Becky Quick, for a wide-ranging, 3-hour interview in Japan. It covered topics from his oil investments to what he thinks about Bitcoin to his insights into the banking crisis.
Due to the pandemic, it has been over 3 years since Warren Buffett and Becky Quick were in the same room for a far reaching, one-on-one interview. He gave his usual folksy advice, such as that investors should focus on the business, not on the economy. But his investing tidbits really never get old.
Where are the Top Classic Value Stocks Right Now?
Seeing him on the interview, Tracey decided to screen for value stocks that were dirt cheap across numerous value metrics, including P/E, P/S, P/B, PEG and P/CF ratio along with the Zacks Rank and high Value Style Score.
The screen returned 16 stocks.
What industries were represented? Energy, foreign banks and autos were popular. Here's 5 of those 16.
5 Top Classic Value Stocks for 2023
1. Asbury Automotive Group ABG
Asbury Automotive Group is an auto retailer with a $4.4 billion market cap.
Analysts expect 2022 to be the year of "peak" earnings for the auto retailers. Asbury Automotive Group's earnings are expected to fall 19.2% in 2023.
Shares of Asbury Automotive Group are up 14.5% year-to-date. But shares are still dirt cheap with a forward P/E of just 6.8.
Should you be buying Asbury Automotive Group even with falling earnings?
2. General Motors Corp. GM
General Motors has long been a value stock but in 2023 it remains cheap. It has a forward P/E of 5.7 and a P/S ratio of just 0.3.
However, GM's earnings are expected to fall 18.2% to $6.21 from $7.59 last year.
Is General Motors a value or a trap?
3. Embraer S.A. ERJ
Embraer is a Brazilian airplane manufacturer. It makes commercial and executive jets. In 2022, Embraer delivered 159 jets, up 12.7% from 2021. It expects to deliver 65 to 70 commercial jets and 120 to 130 executive jets in 2023.
Shares of Embraer have been red-hot in 2023, soaring 50%. But earnings are also red-hot, with analysts expecting earnings to rise 433% to $1.12 this year from $0.21 in 2022.
It's still cheap, with a PEG ratio of 0.9 and a P/S ratio of 0.7.
Should Embraer be on your short list?
4. Valero Energy VLO
Valero is a large cap U.S. oil refiner. It's shareholder friendly and pays a dividend, yielding 3.1%.
Earnings for Valero are expected to fall 14.4% in 2023 to $24.95 from $29.16 last year but the analysts have recently gotten bullish with 4 estimates revised higher in the last week.
Valero is a Zacks Rank #2 (Buy) stock but it has the highest Style Score of A in Value, Growth and Momentum. Having all three style scores of A is rare.
Valero is cheap, with a forward P/E of 5.5 and a P/S ratio of 0.3.
Should value investors be taking a look at Valero Energy?
5. Toll Brothers TOL
Toll Brothers is a luxury new home builder with a market cap of $6.6 billion. Shares are up 19.7% year-to-date even though Toll Brothers earnings are expected to fall in fiscal 2023 and fiscal 2024.
Toll Brothers shares are cheap, with a forward P/E of 6.9 and a PEG ratio of 0.6.
Should investors be dipping their toes back into the home builder stocks like Toll Brothers or are they value traps?
What Else do Value Investors Need to Know About Classic Value Stocks in 2023?
Listen to this week's podcast to find out.
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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview (6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks (22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Asbury Automotive Group ABG Asbury Automotive Group is an auto retailer with a $4.4 billion market cap. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. | (0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview (6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks (22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Asbury Automotive Group ABG Asbury Automotive Group is an auto retailer with a $4.4 billion market cap. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. | (0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview (6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks (22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG Asbury Automotive Group is an auto retailer with a $4.4 billion market cap. | (0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview (6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks (22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL Podcast@Zacks.com Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Asbury Automotive Group ABG Asbury Automotive Group is an auto retailer with a $4.4 billion market cap. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
28543.0 | 2023-04-14 00:00:00 UTC | What Industries Have the Most Classic Value Stocks Right Now? | ABG | https://www.nasdaq.com/articles/what-industries-have-the-most-classic-value-stocks-right-now | nan | nan | (0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview
(6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks
(22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL
Podcast@Zacks.com
Welcome to Episode #325 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
In Apr 2023, Warren Buffett sat down with CNBC’s Becky Quick, for a wide-ranging, 3-hour interview in Japan. It covered topics from his oil investments to what he thinks about Bitcoin to his insights into the banking crisis.
Due to the pandemic, it has been over 3 years since Warren Buffett and Becky Quick were in the same room for a far reaching, one-on-one interview. He gave his usual folksy advice, such as that investors should focus on the business, not on the economy. But his investing tidbits really never get old.
Where are the Top Classic Value Stocks Right Now?
Seeing him on the interview, Tracey decided to screen for value stocks that were dirt cheap across numerous value metrics, including P/E, P/S, P/B, PEG and P/CF ratio along with the Zacks Rank and high Value Style Score.
The screen returned 16 stocks.
What industries were represented? Energy, foreign banks and autos were popular. Here’s 5 of those 16.
5 Top Classic Value Stocks for 2023
1. Asbury Automotive Group (ABG)
Asbury Automotive Group is an auto retailer with a $4.4 billion market cap.
Analysts expect 2022 to be the year of “peak” earnings for the auto retailers. Asbury Automotive Group’s earnings are expected to fall 19.2% in 2023.
Shares of Asbury Automotive Group are up 14.5% year-to-date. But shares are still dirt cheap with a forward P/E of just 6.8.
Should you be buying Asbury Automotive Group even with falling earnings?
2. General Motors Corp. (GM)
General Motors has long been a value stock but in 2023 it remains cheap. It has a forward P/E of 5.7 and a P/S ratio of just 0.3.
However, GM’s earnings are expected to fall 18.2% to $6.21 from $7.59 last year.
Is General Motors a value or a trap?
3. Embraer S.A. (ERJ)
Embraer is a Brazilian airplane manufacturer. It makes commercial and executive jets. In 2022, Embraer delivered 159 jets, up 12.7% from 2021. It expects to deliver 65 to 70 commercial jets and 120 to 130 executive jets in 2023.
Shares of Embraer have been red-hot in 2023, soaring 50%. But earnings are also red-hot, with analysts expecting earnings to rise 433% to $1.12 this year from $0.21 in 2022.
It’s still cheap, with a PEG ratio of 0.9 and a P/S ratio of 0.7.
Should Embraer be on your short list?
4. Valero Energy (VLO)
Valero is a large cap U.S. oil refiner. It’s shareholder friendly and pays a dividend, yielding 3.1%.
Earnings for Valero are expected to fall 14.4% in 2023 to $24.95 from $29.16 last year but the analysts have recently gotten bullish with 4 estimates revised higher in the last week.
Valero is a Zacks Rank #2 (Buy) stock but it has the highest Style Score of A in Value, Growth and Momentum. Having all three style scores of A is rare.
Valero is cheap, with a forward P/E of 5.5 and a P/S ratio of 0.3.
Should value investors be taking a look at Valero Energy?
5. Toll Brothers (TOL)
Toll Brothers is a luxury new home builder with a market cap of $6.6 billion. Shares are up 19.7% year-to-date even though Toll Brothers earnings are expected to fall in fiscal 2023 and fiscal 2024.
Toll Brothers shares are cheap, with a forward P/E of 6.9 and a PEG ratio of 0.6.
Should investors be dipping their toes back into the home builder stocks like Toll Brothers or are they value traps?
What Else do Value Investors Need to Know About Classic Value Stocks in 2023?
Listen to this week’s podcast to find out.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview (6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks (22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL Podcast@Zacks.com Welcome to Episode #325 of the Value Investor Podcast. Asbury Automotive Group (ABG) Asbury Automotive Group is an auto retailer with a $4.4 billion market cap. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. | (0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview (6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks (22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL Podcast@Zacks.com Welcome to Episode #325 of the Value Investor Podcast. Asbury Automotive Group (ABG) Asbury Automotive Group is an auto retailer with a $4.4 billion market cap. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. | (0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview (6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks (22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL Podcast@Zacks.com Welcome to Episode #325 of the Value Investor Podcast. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG) Asbury Automotive Group is an auto retailer with a $4.4 billion market cap. | (0:45) - Big Takeaways From The Warren Buffett 3 Hour Interview (6:10) - Stock Screener To Find Strong Value Stocks Right Now: Tracey’s Top Stock Picks (22:30) - Episode Roundup: ABG, GM, ERJ, VLO, TOL Podcast@Zacks.com Welcome to Episode #325 of the Value Investor Podcast. Asbury Automotive Group (ABG) Asbury Automotive Group is an auto retailer with a $4.4 billion market cap. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
28544.0 | 2023-04-14 00:00:00 UTC | Should Value Investors Buy Asbury Automotive Group (ABG) Stock? | ABG | https://www.nasdaq.com/articles/should-value-investors-buy-asbury-automotive-group-abg-stock-0 | nan | nan | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
ABG is also sporting a PEG ratio of 0.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABG's industry has an average PEG of 0.92 right now. Over the past 52 weeks, ABG's PEG has been as high as 0.45 and as low as 0.23, with a median of 0.29.
Another notable valuation metric for ABG is its P/B ratio of 1.52. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. ABG's current P/B looks attractive when compared to its industry's average P/B of 2. Over the past 12 months, ABG's P/B has been as high as 2.13 and as low as 1.18, with a median of 1.56.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ABG has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.3.
Finally, investors should note that ABG has a P/CF ratio of 4.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ABG's current P/CF looks attractive when compared to its industry's average P/CF of 5.32. Within the past 12 months, ABG's P/CF has been as high as 6.17 and as low as 3.56, with a median of 4.66.
Rush Enterprises (RUSHA) may be another strong Automotive - Retail and Whole Sales stock to add to your shortlist. RUSHA is a # 2 (Buy) stock with a Value grade of A.
Rush Enterprises is currently trading with a Forward P/E ratio of 10.49 while its PEG ratio sits at 0.70. Both of the company's metrics compare favorably to its industry's average P/E of 6.49 and average PEG ratio of 0.92.
Over the last 12 months, RUSHA's P/E has been as high as 11.78, as low as 8.03, with a median of 9.80, and its PEG ratio has been as high as 0.79, as low as 0.54, with a median of 0.65.
Additionally, Rush Enterprises has a P/B ratio of 1.66 while its industry's price-to-book ratio sits at 2. For RUSHA, this valuation metric has been as high as 1.94, as low as 1.43, with a median of 1.66 over the past year.
These are only a few of the key metrics included in Asbury Automotive Group and Rush Enterprises strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ABG and RUSHA look like an impressive value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One stock to keep an eye on is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. ABG is also sporting a PEG ratio of 0.36. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Rush Enterprises, Inc. (RUSHA) : Free Stock Analysis Report To read this article on Zacks.com click here. One stock to keep an eye on is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Rush Enterprises, Inc. (RUSHA) : Free Stock Analysis Report To read this article on Zacks.com click here. One stock to keep an eye on is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. | ABG has a P/S ratio of 0.29. One stock to keep an eye on is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. |
28545.0 | 2023-04-06 00:00:00 UTC | 3 Auto Retail Stocks to Buy Now as Inventory Levels Improve | ABG | https://www.nasdaq.com/articles/3-auto-retail-stocks-to-buy-now-as-inventory-levels-improve | nan | nan | The Zacks Auto Retail and Whole Sales industry is thriving, thanks to pent-up vehicle demand and sales with inventory levels improving. Additionally, new vehicle prices are still high, aiding margins of auto retailers. Digitization is also yielding results and propelling businesses to reach new heights. Companies are registering impressive profits and cash flows and remain committed to increasing shareholder value. Multiple industry tailwinds augur well for industry participants, including Penske Automotive PAG, AutoNation Inc. AN and Asbury Automotive ABG.
Industry Overview
The automotive sector’s performance depends on its retail and wholesale network. Through dealership and retail chains, companies in the Zacks Auto Retail and Whole Sales industry carry out several tasks. These include the sale of new and used vehicles, light trucks as well as auto parts, execution of repair and maintenance services along with the arrangement of vehicle financing. The industry, being consumer cyclical, is dependent on business cycles and economic conditions. Consumers and businesses spend more on big-ticket items when they have higher disposable income. On the contrary, when income is tight, discretionary expenses are the first to be slashed. Importantly, the coronavirus pandemic has brought considerable changes in the operating environment, with the industry laying more emphasis on e-commerce retailing.
Factors Aiding the Industry
Strong Vehicle Demand Despite Economic Concerns: U.S. vehicle sales are off to a decent start this year. Cox Automotive expects U.S. auto sales to have grown around 6% year over year in the first quarter of 2023. Despite economic headwinds and interest rate hikes, pent-up demand has boosted sales as inventory continues to improve, providing customers with more choices. Inventories have surged approximately 70% from the early months of 2022.A recession may be on the horizon but one can’t see the signs of it in the vehicle market just yet. Most auto biggies have reported year-over-year sales growth in first-quarter deliveries.
E-Commerce Ramp Up: Digitization has been in high gear and the trend is here to stay. Consumers prefer buying vehicles online as enhanced digital solutions are providing them with a truly comprehensive and personal experience. Initiatives like ship-to-home next day, curbside pick-up option, and buy online, pick-up in stores options are picking pace, driving additional traffic to companies’ websites. With auto retailers ramping up their omni-channel marketing, companies are poised to reach new heights.
New Vehicle Prices Remain High: The average price of a new vehicle is still somewhere around $49,000, per Kelley Blue Book. To put it in perspective, the average transaction price for a new vehicle was $37,876 prior to the pandemic. Amid high sticker prices, auto retailers are recording stronger margins, which are boosting their bottom line.
Robust Cash Flows Supporting Investor-Friendly Moves: Strong vehicle margins, robust demand and enhancement of digitization capabilities are enabling auto retailers to generate strong results. Free cash flow is soaring and companies are actively boosting shareholder value via dividends and share buybacks.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Auto Retail & Whole Sales industry is a nine-stock group within the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #18, which places it in the top 7% of around 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are upbeat about this group’s earnings growth potential. Over the past three months, the industry’s earnings estimates for 2023 have moved up 1.2%.
Before we present you a few top-ranked stocks to capitalize on the thriving prospects of the auto retail space, let’s take a look at the industry’s recent stock-market performance and the valuation picture.
Industry Tops Sector and S&P 500
The Zacks Auto Retail & Whole Sales industry has outperformed the Zacks S&P 500 composite as well as the Auto, Tires and Truck sector over the past year. The industry has gained 14.9% over this period in contrast to the S&P 500 and sector’s decline of 10% and 41.2%, respectively.
One-Year Price Performance
Industry's Current Valuation
Since automotive companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio.
On the basis of the trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 5.33X compared with the S&P 500’s 12.51X and the sector’s trailing 12-month EV/EBITDA of 9.15X.
Over the past five years, the industry has traded as high as 10.09X, as low as 4.25X and at a median of 6.65X, as the chart below shows.
EV/EBITDA Ratio (Past 5 Years)
3 Auto Retailers to Pick Now
Penske:The company engages in the operation of automotive and commercial truck dealerships in the United States, Canada and Western Europe. Penske is riding high on strategic acquisitions. It has become the largest dealership group for Freightliner in North America with the Warner Truck Centers buyout. The buyouts of Kansas City Freightliner, McCoy and Team Trucks Centers are boosting Penske’s top line. In addition to its low leverage of 27%, Penske has more than $1.1 billion in liquidity.In 2022, the company hiked its quarterly dividend four times. In January 2023, it hiked its payout by 7%. In February, Penske boosted its buyback authorization by $250 million.
Penske currently sports a Zacks Rank #1 (Strong Buy) and Value Score of A. The Zacks Consensus Estimate for its 2023 and 2024 EPS has moved north by 54 cents and $1.85, respectively, over the past 60 days. Penske managed to pull off earnings beat in the last four quarters, with the average being 11%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: PAG
AutoNation: It is one of the largest automotive retailers in the United States. Its diversified product mix and multiple streams of income reduce risk profile and augur well for sales growth. Strong footprint, large dealer network and aggressive store expansion efforts along with brand extension strategy and alliances are praiseworthy. With the launch of its digital platform AutoNation Express, the company has stepped up its digitization game. AutoNation posted record fourth-quarter EPS. Thanks to solid income generation, the firm is committed to shareholder value maximization, boosting investors’ confidence. In 2022, AutoNation repurchased 15.6 million shares.
AutoNation currently carries a Zacks Rank #2 (Buy) and has a Value Score of A. The Zacks Consensus Estimate for its 2023 and 2024 EPS has moved north by 96 cents and $2.63, respectively, over the past 60 days. AutoNation managed to pull off earnings beat in three of the last four quarters and missed once, with the average being 5%.
Price & Consensus: AN
Asbury: It is one of the noted automotive retailers of new and used vehicles and related services in the United States. The acquisition of Larry H. Miller Dealerships has bolstered Asbury’s regional footprint and added nearly $5.7 billion in annualized revenues. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The company’s end-to-end e-commerce platform—Clicklane—is on track to generate around $2.5 billion in sales in 2023.For full-year 2022, Asbury repurchased approximately 1.6 million shares for $287 million. In January 2023, it boosted its buyback authorization by $108 million to $200 million.
Asbury currently carries a Zacks Rank #2 and has a Value Score of A. The Zacks Consensus Estimate for its 2023 and 2024 EPS has moved north by 26 cents and 18 cents, respectively, over the past 60 days. Asbury managed to pull off an earnings beat in the last four quarters, with the average being 7%.
Price & Consensus: ABG
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
AutoNation, Inc. (AN) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Multiple industry tailwinds augur well for industry participants, including Penske Automotive PAG, AutoNation Inc. AN and Asbury Automotive ABG. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. Price & Consensus: ABG Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. | Multiple industry tailwinds augur well for industry participants, including Penske Automotive PAG, AutoNation Inc. AN and Asbury Automotive ABG. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. | Multiple industry tailwinds augur well for industry participants, including Penske Automotive PAG, AutoNation Inc. AN and Asbury Automotive ABG. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. Price & Consensus: ABG Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. | Multiple industry tailwinds augur well for industry participants, including Penske Automotive PAG, AutoNation Inc. AN and Asbury Automotive ABG. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. Price & Consensus: ABG Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. |
28546.0 | 2023-04-05 00:00:00 UTC | 4 Low Price-to-Cash Flow Stocks to Garner Superior Returns | ABG | https://www.nasdaq.com/articles/4-low-price-to-cash-flow-stocks-to-garner-superior-returns | nan | nan | We always try to hit the jackpot while picking stocks. But striking the right chord each time is not easy unless blessed with Midas touch. When it comes to the investment market, experts consider value style as one of the most effective approaches. Value investing is essentially about selecting stocks that have good things going on for them, even at a time when they have been beaten down by some external factors.
There are different valuation metrics to determine a stock’s inherent strength but a random selection of ratios cannot serve your purpose if you want a realistic assessment of a company’s financial position. For this, we recommend Price to Cash Flow (or P/CF) as one of the key metrics. This metric evaluates the market price of a stock relative to the amount of cash flow that the company is generating on a per-share basis — the lower the number, the better. PVH Corp. PVH, Unum Group UNM, General Motors Company GM and Asbury Automotive Group, Inc. ABG boast a low P/CF ratio.
Price to Cash Flow Reveals Financial Health
Questions may arise as to why we are considering the Price to Cash Flow valuation metric, when the most widely used metric is Price/Earnings (or P/E). Well, what makes P/CF stand out is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly reflecting the financial health of a company.
Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. However, cash flow is reliable. It is net cash flow that reveals how much money a company is actually generating and how effectively management is putting the same to use.
A positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, shell out for its expenses, reinvest in its business, endure downturns and finally pay back its shareholders. Then again, a negative cash flow implies a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.
What’s the Best Strategy?
An investment decision solely based on the P/CF metric may not fetch the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and also consider the price-to-book ratio, price-to-earnings ratio and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chance of falling into a value trap.
Here are the parameters for selecting true value stocks:
P/CF less than or equal to X-Industry Median.
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
P/E using (F1) less than or equal to X-Industry Median: This parameter shortlists stocks that are trading at a discount or are equal to their peers.
P/B less than or equal to X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
P/S less than or equal to X-Industry Median: The P/S ratio determines how a stock price compares to the company’s sales — the lower the ratio the more attractive the stock is.
PEG less than 1: The ratio is used to determine a stock's value by taking the company's earnings growth into account. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and that investors need to pay less for a stock that has robust earnings growth prospects.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here are four of the eight stocks that qualified the screening:
PVH Corp., which operates as an apparel company, carries a Zacks Rank #2 and has an expected EPS growth rate of 16.1% for three-five years. The company has a trailing four-quarter earnings surprise of 23.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PVH’s current financial year sales and EPS suggests growth of 3.8% and 8.7%, respectively, from the year-ago period. PVH has a Value Score of A. Shares of PVH have gained 22.7% in the past year.
Unum Group, which provides financial protection benefit solutions, carries a Zacks Rank #2 and has an expected EPS growth rate of 8.1% for three-five years. The company has a trailing four-quarter earnings surprise of 32.3%, on average.
The Zacks Consensus Estimate for Unum Group’s current financial year sales and EPS suggests growth of 2.7% and 7.3%, respectively, from the year-ago period. Unum Group has a Value Score of A. Shares of UNM have gained 23.5% in the past year.
General Motors, which designs, builds, and sells cars, trucks, crossovers, and automobile parts globally, carries a Zacks Rank #2. It has an expected EPS growth rate of 9.9% for three-five years. The company has a trailing four-quarter earnings surprise of 15.3%, on average.
The Zacks Consensus Estimate for General Motors’ current financial year sales suggests growth of 3.2% from the year-ago period. General Motors has a Value Score of A. Shares of GM have declined 9.6% in the past year.
Asbury Automotive Group, which operates as an automotive retailer in the United States, carries a Zacks Rank #2. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years.
Asbury Automotive Group has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of ABG have rallied 29.7% in the past year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PVH Corp. PVH, Unum Group UNM, General Motors Company GM and Asbury Automotive Group, Inc. ABG boast a low P/CF ratio. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. Shares of ABG have rallied 29.7% in the past year. | PVH Corp. PVH, Unum Group UNM, General Motors Company GM and Asbury Automotive Group, Inc. ABG boast a low P/CF ratio. Click to get this free report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. | Click to get this free report Unum Group (UNM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. PVH Corp. PVH, Unum Group UNM, General Motors Company GM and Asbury Automotive Group, Inc. ABG boast a low P/CF ratio. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. | PVH Corp. PVH, Unum Group UNM, General Motors Company GM and Asbury Automotive Group, Inc. ABG boast a low P/CF ratio. ABG has a Value Score of A and an expected EPS growth rate of 18.5% for three-five years. Shares of ABG have rallied 29.7% in the past year. |
28547.0 | 2023-04-02 00:00:00 UTC | Guru Fundamental Report for ABG | ABG | https://www.nasdaq.com/articles/guru-fundamental-report-for-abg | nan | nan | Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC.
ABG Guru Analysis
ABG Fundamental Analysis
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Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ABG rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ASBURY AUTOMOTIVE GROUP, INC. (ABG). ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. |
28548.0 | 2023-03-29 00:00:00 UTC | Are Investors Undervaluing Asbury Automotive Group (ABG) Right Now? | ABG | https://www.nasdaq.com/articles/are-investors-undervaluing-asbury-automotive-group-abg-right-now-0 | nan | nan | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors will also notice that ABG has a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ABG's industry has an average PEG of 0.90 right now. Within the past year, ABG's PEG has been as high as 0.45 and as low as 0.23, with a median of 0.28.
We should also highlight that ABG has a P/B ratio of 1.51. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.89. Over the past 12 months, ABG's P/B has been as high as 2.13 and as low as 1.18, with a median of 1.59.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ABG has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.31.
Finally, we should also recognize that ABG has a P/CF ratio of 4.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.28. Over the past year, ABG's P/CF has been as high as 6.37 and as low as 3.56, with a median of 4.70.
Another great Automotive - Retail and Whole Sales stock you could consider is AutoNation (AN), which is a # 2 (Buy) stock with a Value Score of A.
AutoNation is currently trading with a Forward P/E ratio of 6.23 while its PEG ratio sits at 1.76. Both of the company's metrics compare favorably to its industry's average P/E of 6.26 and average PEG ratio of 0.90.
AN's Forward P/E has been as high as 8.13 and as low as 4.47, with a median of 5.50. During the same time period, its PEG ratio has been as high as 1.99, as low as 0.19, with a median of 0.69.
Additionally, AutoNation has a P/B ratio of 3.08 while its industry's price-to-book ratio sits at 1.89. For AN, this valuation metric has been as high as 3.81, as low as 2.10, with a median of 2.81 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group and AutoNation are likely undervalued currently. And when considering the strength of its earnings outlook, ABG and AN sticks out as one of the market's strongest value stocks.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. Investors will also notice that ABG has a PEG ratio of 0.35. | One company value investors might notice is Asbury Automotive Group (ABG). Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report To read this article on Zacks.com click here. One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. | Investors will also notice that ABG has a PEG ratio of 0.35. ABG has a P/S ratio of 0.28. One company value investors might notice is Asbury Automotive Group (ABG). |
28549.0 | 2023-03-28 00:00:00 UTC | Implied Volatility Surging for Asbury Automotive (ABG) Stock Options | ABG | https://www.nasdaq.com/articles/implied-volatility-surging-for-asbury-automotive-abg-stock-options | nan | nan | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. That is because the Apr 21, 2023 $280 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Asbury Automotive shares, but what is the fundamental picture for the company? Currently, Asbury Automotive is a Zacks Rank #3 (Hold) in the Automotive - Retail and Whole Sales industry that ranks in the Top 15% of our Zacks Industry Rank. Over the last 30 days, one analyst has increased the earnings estimate for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $7.59 per share to $7.84 in that period.
Given the way analysts feel about Asbury Automotive right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Given the way analysts feel about Asbury Automotive right now, this huge implied volatility could mean there’s a trade developing. |
28550.0 | 2023-03-17 00:00:00 UTC | U.S. auto dealer profits ease from 2022 peak, M&A drive stays high - report | ABG | https://www.nasdaq.com/articles/u.s.-auto-dealer-profits-ease-from-2022-peak-ma-drive-stays-high-report | nan | nan | March 17 (Reuters) - Earnings of U.S. auto dealers have eased over the past few months from record levels hit in 2022 as margins came under pressure from high interest rates and inflation, a report showed on Friday.
In 2022, profits reached an estimated $6.5 million per location for dealerships owned by public auto retailers, more than triple of pre-pandemic levels, according to the report from Haig Partners, a buy-sell advisory firm to auto dealers.
"We've polled owners of hundreds of dealerships over the past few weeks, and most expect profits will decline 10%-15% in 2023," said Alan Haig, president of the firm.
But dealers still expect profits to remain over twice as high as 2019,powering demand for acquisitions in the drive to expand, the report said.
"The result of high profits and strong demand is that we have seen record-high prices being paid for dealerships in the last six months," Haig said.
Last year, 566 dealerships were acquired.
Lithia Motors Inc LAD.N, Asbury Automotive Group Inc ABG.N and Sonic Automotive Inc SAH.Nhave set lofty revenue goals to achieve by the end of 2025.
To hit those targets, the three auto dealers would together need $48.7 billion in revenue and purchases of nearly 500 dealerships, the report said.
The Haig Report tracks trends in auto retail. It is based on data gathered from public sources and interviews with leading dealer groups and dealers, bankers, lawyers, and accountants who specialize in auto retail.
(Reporting by Kannaki Deka in Bengaluru; Editing by Devika Syamnath)
((Kannaki.Deka@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Lithia Motors Inc LAD.N, Asbury Automotive Group Inc ABG.N and Sonic Automotive Inc SAH.Nhave set lofty revenue goals to achieve by the end of 2025. March 17 (Reuters) - Earnings of U.S. auto dealers have eased over the past few months from record levels hit in 2022 as margins came under pressure from high interest rates and inflation, a report showed on Friday. "We've polled owners of hundreds of dealerships over the past few weeks, and most expect profits will decline 10%-15% in 2023," said Alan Haig, president of the firm. | Lithia Motors Inc LAD.N, Asbury Automotive Group Inc ABG.N and Sonic Automotive Inc SAH.Nhave set lofty revenue goals to achieve by the end of 2025. March 17 (Reuters) - Earnings of U.S. auto dealers have eased over the past few months from record levels hit in 2022 as margins came under pressure from high interest rates and inflation, a report showed on Friday. In 2022, profits reached an estimated $6.5 million per location for dealerships owned by public auto retailers, more than triple of pre-pandemic levels, according to the report from Haig Partners, a buy-sell advisory firm to auto dealers. | Lithia Motors Inc LAD.N, Asbury Automotive Group Inc ABG.N and Sonic Automotive Inc SAH.Nhave set lofty revenue goals to achieve by the end of 2025. March 17 (Reuters) - Earnings of U.S. auto dealers have eased over the past few months from record levels hit in 2022 as margins came under pressure from high interest rates and inflation, a report showed on Friday. In 2022, profits reached an estimated $6.5 million per location for dealerships owned by public auto retailers, more than triple of pre-pandemic levels, according to the report from Haig Partners, a buy-sell advisory firm to auto dealers. | Lithia Motors Inc LAD.N, Asbury Automotive Group Inc ABG.N and Sonic Automotive Inc SAH.Nhave set lofty revenue goals to achieve by the end of 2025. March 17 (Reuters) - Earnings of U.S. auto dealers have eased over the past few months from record levels hit in 2022 as margins came under pressure from high interest rates and inflation, a report showed on Friday. In 2022, profits reached an estimated $6.5 million per location for dealerships owned by public auto retailers, more than triple of pre-pandemic levels, according to the report from Haig Partners, a buy-sell advisory firm to auto dealers. |
28551.0 | 2023-03-15 00:00:00 UTC | Asbury Automotive Group Enters Oversold Territory (ABG) | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-enters-oversold-territory-abg-1 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $189.065 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 39.0. A bullish investor could look at ABG's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares:
Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $253.67 as the 52 week high point — that compares with a last trade of $195.05.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABG's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares: Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $253.67 as the 52 week high point — that compares with a last trade of $195.05. In trading on Wednesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $189.065 per share. | A bullish investor could look at ABG's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares: Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $253.67 as the 52 week high point — that compares with a last trade of $195.05. In trading on Wednesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $189.065 per share. | In trading on Wednesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $189.065 per share. A bullish investor could look at ABG's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares: Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $253.67 as the 52 week high point — that compares with a last trade of $195.05. | In trading on Wednesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $189.065 per share. A bullish investor could look at ABG's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares: Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $253.67 as the 52 week high point — that compares with a last trade of $195.05. |
28552.0 | 2023-03-10 00:00:00 UTC | Penske (PAG) Up 4.5% Since Last Earnings Report: Can It Continue? | ABG | https://www.nasdaq.com/articles/penske-pag-up-4.5-since-last-earnings-report%3A-can-it-continue | nan | nan | It has been about a month since the last earnings report for Penske Automotive (PAG). Shares have added about 4.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Penske due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Penske Beats Q4 Earnings Estimates
Penske reported fourth-quarter 2022 adjusted earnings of $4.21 per share, which increased from $4.10 and surpassed the Zacks Consensus Estimate of $4.03. Higher-than-expected revenues in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance. The auto retailer registered net sales of $7,012 million, which topped the Zacks Consensus Estimate of $6,378 million. The top line rose 11.4% from the year-ago quarter.
Penske’s gross profit in the reported quarter increased 0.3% on a year-over-year basis to $1,183.2 million. The operating income went down 5.8% to $335.5 million.
In the reported quarter, same-store retail units rose 2.3% year over year to 102,906. Within the Retail Automotive segment, same-store new-vehicle revenues were up 12.7% to $2,618.8 million, and same-store used-vehicle revenues fell 8.5% to $1,909.2 million.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment came in at $5,910.4 million, increasing 8% from a year ago and topping the consensus mark of $5,384 million. Gross profit of $1,008.8 million declined from $1019 million recorded in 2022.
Revenues in the Retail Commercial Truck segment increased 39.6% to $960.8 million and exceeded the consensus mark of $826 million. Gross profit in the segment was $138.2 million, rising 16.2% from the year-earlier quarter’s figure.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 5% to $140.6 million and lagged the consensus mark of $143 million. Gross profit came in at $36.2 million, declining from $41.3 million in the year-ago period.
Financial Tidbits
In the quarter under review, SG&A costs totaled $815.5 million, up 3.1% year over year. Penske had cash and cash equivalents of $106.5 million as of Dec 31, 2022, up from $100.7 million in 2021 end. The long-term debt amounted to $1,546.9 million, up from $1,392 million as of Dec 31, 2021. In 2022, PAG repurchased 8.2 million shares of common stock for $886.5 million. The company also hiked its payout by 7% to 61 cents a share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 12.01% due to these changes.
VGM Scores
At this time, Penske has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Penske has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Penske belongs to the Zacks Automotive - Retail and Whole Sales industry. Another stock from the same industry, Asbury Automotive Group (ABG), has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Asbury Automotive reported revenues of $3.71 billion in the last reported quarter, representing a year-over-year change of +39.6%. EPS of $9.12 for the same period compares with $7.46 a year ago.
Asbury Automotive is expected to post earnings of $7.84 per share for the current quarter, representing a year-over-year change of -15.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Asbury Automotive. Also, the stock has a VGM Score of A.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another stock from the same industry, Asbury Automotive Group (ABG), has gained 1.4% over the past month. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. | Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Asbury Automotive Group (ABG), has gained 1.4% over the past month. Penske Beats Q4 Earnings Estimates Penske reported fourth-quarter 2022 adjusted earnings of $4.21 per share, which increased from $4.10 and surpassed the Zacks Consensus Estimate of $4.03. | Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Asbury Automotive Group (ABG), has gained 1.4% over the past month. Penske Beats Q4 Earnings Estimates Penske reported fourth-quarter 2022 adjusted earnings of $4.21 per share, which increased from $4.10 and surpassed the Zacks Consensus Estimate of $4.03. | Another stock from the same industry, Asbury Automotive Group (ABG), has gained 1.4% over the past month. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. It has been about a month since the last earnings report for Penske Automotive (PAG). |
28553.0 | 2023-03-04 00:00:00 UTC | Validea Warren Buffett Strategy Daily Upgrade Report - 3/4/2023 | ABG | https://www.nasdaq.com/articles/validea-warren-buffett-strategy-daily-upgrade-report-3-4-2023 | nan | nan | The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Warren Buffett changed from 75% to 82% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Asbury Automotive Group, Inc. is an automotive retailer company. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. It owns and operates approximately 198 new vehicle franchises, representing 31 brands of automobiles at 148 dealership locations, 34 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The Company's store operations are conducted by its subsidiaries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: FAIL
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC.
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Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. |
28554.0 | 2023-03-03 00:00:00 UTC | 5 Broker-Friendly Stocks to Watch as Inflation Stays Hot | ABG | https://www.nasdaq.com/articles/5-broker-friendly-stocks-to-watch-as-inflation-stays-hot | nan | nan | After making a strong start to the year, major indexes are slipping again and ended February in the red. The hotter-than-expected inflation reading for the month of January implies that inflation-related concerns are certainly not a thing of the past.
With inflation rising again, many market watchers believe that the central bank will resort to a 50-basis point hike in the March FOMC meeting as opposed to the 25-basis point hike witnessed in its February FOMC meeting.
Hotter-than-expected inflation has once again raised fears that the Fed might continue with its tight monetary control and interest rate hike policy for a longer- than-expected period. Higher interest rates shoot up the cost of borrowing, escalating the chances of an economic slowdown.
Inflationary woes primarily resulted in extreme market volatility and with rate hike worries getting stronger, such volatility is unlikely to dissipate any time soon. Does the current turbulence and economic uncertainty imply that investors should turn their backs on equities? The answer is an absolute no. So, what’s the way forward to reap handsome returns from one’s portfolio even during the current uncertainty?
One way to proceed in this scenario is by adhering to broker advice. By following this method, broker-friendly stocks like, American Airlines AAL, CVR Energy CVI, Beazer Homes USA BZH, Asbury Automotive ABG and Avnet AVT should be included in an investor’s watchlist for healthy returns.
Brokers, irrespective of their types (sell-side, buy-side or independent), undertake thorough research of the stocks covered by them. They have at their disposal a lot more information on a company and its prospects than individual investors. To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations.
Since brokers follow the stocks in their coverage minutely, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. In fact, a rating upgrade or downgrade by brokers has the potential to immediately influence the price of the stock.
Given the expertise of brokers the field of investing, it is natural for investors to believe that there is a solid reason/logic behind brokers improving their recommendation on a particular stock. In fact, a rating upgrade generally leads to stock price appreciation and vice versa. Estimates can move north for a number of reasons — favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.
To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.
Ignore the Top Line at Your Peril
To design a winning strategy, considering the bottom line alone is not prudent. In fact, according to some market watchers, a top-line outperformance is more creditable for a stock than a mere earnings beat under some circumstances.
Therefore, to make the strategy full-proof, one needs to address top-line concerns as well. We have considered the price/sales ratio, which serves as a strong complementary valuation metric, for screening stocks.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of the top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio the better, companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This eliminates the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2023 earnings being revised 31.1% upward. AAL currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVR Energy is an independent refiner and marketer of high-value transportation fuels. CVI is also a producer of ammonia and urea ammonia nitrate fertilizers. CVI's petroleum business includes a full-coking sour crude refinery in Coffeyville, KS. Its efforts to reward its shareholders underline its strong financial position. The robust Nitrogen Fertilizer unit is supporting growth.
CVR Energy, currently sporting a Zacks Rank #1, surpassed the Zacks Consensus Estimate in each of the past four quarters by an average of 40.85%. The Zacks Consensus Estimate for current-year earnings has improved 85% over the past 60 days.
Beazer Homes: This Atlanta, GA-based homebuilder designs, builds and sells single-family homes. BZH, currently carrying a Zacks Rank #3 (Hold), designs homes that appeal primarily to entry-level and first move-up homebuyers. BZH’s subsidiary, Beazer Mortgage, originates the mortgages for the company's homebuyers.
The company’s Balanced Growth strategy, higher pricing, lower sales incentives and a solid backlog level are expected to improve profitability. BZH has seen an upward estimate revision of 2.9% for current-year earnings over the past 60 days. This depicts analysts’ optimism about the company’s prospects.
Asbury: Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. The acquisition of Larry H. Miller Dealerships has bolstered Asbury’s regional footprint and strengthened its revenue base. ABG’s end-to-end e-commerce platform—Clicklane—is also anticipated to be an impressive revenue generator.
Asbury carries a Zacks Rank #3 presently. ABG surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 7.06%.
Avnet is benefiting from robust demand for its products across Asia, Europe, the Middle East and Africa regions. Improvement in the Americas also served as a tailwind. Its continued focus on boosting IoT capabilities is helping it expand in the newer markets and win customers. Moreover, cost-saving efforts are aiding profitability.
Avnet, currently carrying a Zacks Rank of 3, has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in each of the last four quarters, the average being 15.5%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Avnet, Inc. (AVT) : Free Stock Analysis Report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By following this method, broker-friendly stocks like, American Airlines AAL, CVR Energy CVI, Beazer Homes USA BZH, Asbury Automotive ABG and Avnet AVT should be included in an investor’s watchlist for healthy returns. ABG’s end-to-end e-commerce platform—Clicklane—is also anticipated to be an impressive revenue generator. ABG surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. | By following this method, broker-friendly stocks like, American Airlines AAL, CVR Energy CVI, Beazer Homes USA BZH, Asbury Automotive ABG and Avnet AVT should be included in an investor’s watchlist for healthy returns. Click to get this free report Avnet, Inc. (AVT) : Free Stock Analysis Report CVR Energy Inc. (CVI) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG’s end-to-end e-commerce platform—Clicklane—is also anticipated to be an impressive revenue generator. | By following this method, broker-friendly stocks like, American Airlines AAL, CVR Energy CVI, Beazer Homes USA BZH, Asbury Automotive ABG and Avnet AVT should be included in an investor’s watchlist for healthy returns. Click to get this free report Avnet, Inc. (AVT) : Free Stock Analysis Report CVR Energy Inc. (CVI) : Free Stock Analysis Report Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG’s end-to-end e-commerce platform—Clicklane—is also anticipated to be an impressive revenue generator. | By following this method, broker-friendly stocks like, American Airlines AAL, CVR Energy CVI, Beazer Homes USA BZH, Asbury Automotive ABG and Avnet AVT should be included in an investor’s watchlist for healthy returns. ABG’s end-to-end e-commerce platform—Clicklane—is also anticipated to be an impressive revenue generator. ABG surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. |
28555.0 | 2023-02-17 00:00:00 UTC | Lithia's (LAD) Q4 Earnings Miss Estimates, Fall 20% Y/Y | ABG | https://www.nasdaq.com/articles/lithias-lad-q4-earnings-miss-estimates-fall-20-y-y | nan | nan | Lithia Motors LAD reported fourth-quarter 2022 adjusted earnings of $9.05 per share, which decreased from the prior-year quarter’s $11.39. The bottom line also missed the Zacks Consensus Estimate of $10.11 per share. Lower-than-expected revenues from used vehicle retail and F&I segments resulted in the downslide. Total revenues jumped 10.8% year over year to $6,990.2 million. The top line also topped the Zacks Consensus Estimate of $6,893 million.
Lithia Motors, Inc. Price, Consensus and EPS Surprise
Lithia Motors, Inc. price-consensus-eps-surprise-chart | Lithia Motors, Inc. Quote
Segmental Performance
New vehicle retail revenues increased 10.6% year over year to $3,275.1 million and surpassed the Zacks Consensus Estimate of $3,228 million. The new vehicle units sold rose 5.2% from the prior-year quarter to 68,159 units and beat the consensus metric of 67,892 units. The average selling price of new-vehicle retail rose to $48,051 from $45,671 in the prior quarter and beat the consensus mark of $46,399. However, the gross margin in the segment decreased 240 basis points (bps) to 11.1% amid high cost of sales, which flared up 13.7% year over year.
Used-vehicle retail revenues climbed 10.4% year over year to $2,229.5 million but fell short of the Zacks Consensus Estimate of $2,243 million. The used-vehicle retail units sold grew 8.5% from the year-ago quarter to 75,834 units and missed the consensus metric of 79,486 units. The average selling price of used-vehicle retail was $29,399, increasing 1.8% year over year and beating the consensus mark of $28,729. The gross margin in the segment came down 390 bps to 7.3%. Revenues from used-vehicle wholesale inched down 2.2% to $336 million but outpaced the consensus mark of $319 million.
Revenues from service, body and parts were up 17.9% from the prior-year period to $716.2 million and crossed the Zacks Consensus Estimate of $711 million. The gross margin in the segment increased 260 bps to 53.9%. The company’s F&I business revenues grew 7.7% to $308.4 million but the figure missed the consensus estimate of $327 million. Revenues from fleet and others were $125 million, up 34% year over year and exceeded the consensus mark of $105 million.
While same-store new-vehicle revenues fell 0.9% year over year, the same-store used-vehicle retail sales increased 2%. The same-store revenues from the F&I business dipped 3.4%, and that of the service, body and parts unit grew 8.5%.
Financial Tidbits
Cost of sales jumped 14.1% year over year in fourth-quarter 2022. SG&A expenses were $753.4 million, increasing 6.8% from $705.7 million in the year-ago quarter. Adjusted SG&A as a percentage of gross profit was 62.8%. Pretax and net profit margins declined from the year-ago levels.
The company approved a dividend of 42 cents per share, which is to be paid on Mar 24, 2032, to shareholders of record on Mar 10, 2023.
During the quarter under review, Lithia bought back 174,000 shares at an average price of $198. In 2022, it repurchased 2.4 million shares at a weighted average price of roughly $276. Under the current share repurchase authorization, approximately $501 million remains available.
Lithia had cash/cash equivalents/restricted cash of $246.7 million as of Dec 31, 2022, up from $174.8 million as of Dec 31, 2021. Long-term debt was $5,088.3 million as of 2022-end, marking an increase from $2,868.1 million as of Dec 31, 2021.
Lithia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong) stocks here.
Peer Releases
Group 1 Automotive GPI reported fourth-quarter 2022 adjusted earnings per share of $10.86, beating the Zacks Consensus Estimate of $10.51. The outperformance can be attributed to higher-than-anticipated gross profit from the company’s New-vehicle retail and Parts/Service segments. The bottom line increased 15.1% from the prior-year quarter’s $9.43 per share. The company registered net sales of $4,069 million, beating the Zacks Consensus Estimate of $3,872 million. Also, the top line rose 16.6% from the year-ago quarter’s $3,489.6 million.
Selling, general and administrative expenses were up 7.8% year over year to $453.8 million. Group 1 had cash and cash equivalents of $47.9 million as of Dec 31, 2022, up from $14.9 million as of 2021-end. Total debt was $2,082.5 million as of Dec 31, 2022, up from $2,035.7 million recorded on Dec 31, 2021. During the quarter under review, GPI repurchased 973,365 shares at an average price of $166.14 per common share for a total of $161.7 million. As of Dec 31, 2022, the company had 14.3 million common shares outstanding. (Group 1 Q4 Earnings Surpass Estimates, Rise 15% Y/Y)
Asbury Automotive ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. This outperformance can be primarily attributed to higher-than-expected gross profit from the new vehicle and finance & insurance units. In the reported quarter, revenues amounted to $3.7 billion, surging 40% year over year. The top line, however, fell short of the Zacks Consensus Estimate of $3.8 billion.
As of Dec 31, 2022, the company had cash and cash equivalents of $235.3 million, up from $178.9 million on Dec 31, 2021. It had long-term debt of $3,301.2 million as of Dec 31, 2022, down from $3,582.6 million on Dec 31, 2021. During 2022, Asbury repurchased approximately 1.6 million shares for nearly $300 million. During the last reported quarter, the company adopted a Rule 10b5-1 trading plan, effective for trading Dec 19, 2022, through Feb 1, 2023. From Oct 1, 2022 through Feb 1, 2023, the company repurchased around 600,000 shares for $108 million. On Jan 26, 2023, Asbury boosted its share repurchase authorization to $200 million. As of Feb 1, the company had $200 million share repurchase authorization remaining. (Asbury Q4 Earnings Outstrip Estimates, Jump 22.2% Y/Y)
Penske Automotive Group PAG reported fourth-quarter 2022 adjusted earnings of $4.21 per share, which increased from $4.10 and surpassed the Zacks Consensus Estimate of $4.03. Higher-than-expected revenues in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance. The auto retailer registered net sales of $7,012 million, which topped the Zacks Consensus Estimate of $6,378 million. The top line rose 11.4% from the year-ago quarter.
In the quarter under review, SG&A costs totaled $815.5 million, up 3.1% year over year. Penske had cash and cash equivalents of $106.5 million as of Dec 31, 2022, up from $100.7 million in 2021 end. Penske’s gross profit in the reported quarter increased 0.3% on a year-over-year basis to $1,183.2 million. The operating income went down 5.8% to $335.5 million. The long-term debt was $1,546.9 million, up from $1,392 million as of Dec 31, 2021. In 2022, PAG repurchased 8.2 million shares of common stock for $886.5 million. The company also hiked its payout by 7% to 61 cents a share. (Penske Surpasses Q4 Earnings and Sales Estimates)
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
Lithia Motors, Inc. (LAD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (Group 1 Q4 Earnings Surpass Estimates, Rise 15% Y/Y) Asbury Automotive ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Lithia Motors LAD reported fourth-quarter 2022 adjusted earnings of $9.05 per share, which decreased from the prior-year quarter’s $11.39. | (Group 1 Q4 Earnings Surpass Estimates, Rise 15% Y/Y) Asbury Automotive ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Lithia Motors, Inc. Price, Consensus and EPS Surprise Lithia Motors, Inc. price-consensus-eps-surprise-chart | Lithia Motors, Inc. Quote Segmental Performance New vehicle retail revenues increased 10.6% year over year to $3,275.1 million and surpassed the Zacks Consensus Estimate of $3,228 million. | (Group 1 Q4 Earnings Surpass Estimates, Rise 15% Y/Y) Asbury Automotive ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Lithia Motors, Inc. Price, Consensus and EPS Surprise Lithia Motors, Inc. price-consensus-eps-surprise-chart | Lithia Motors, Inc. Quote Segmental Performance New vehicle retail revenues increased 10.6% year over year to $3,275.1 million and surpassed the Zacks Consensus Estimate of $3,228 million. | (Group 1 Q4 Earnings Surpass Estimates, Rise 15% Y/Y) Asbury Automotive ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Total revenues jumped 10.8% year over year to $6,990.2 million. |
28556.0 | 2023-02-07 00:00:00 UTC | Auto Roundup: GM Tops Q4 Earnings Mark, Ford Misses & More | ABG | https://www.nasdaq.com/articles/auto-roundup%3A-gm-tops-q4-earnings-mark-ford-misses-more | nan | nan | Last week, many auto biggies released U.S. vehicle sales data for January 2023. Among the automakers that revealed monthly sales numbers, Honda, Ford, Mazda, Hyundai, Kia, Subaru and Volvo registered year-over-year gains, while Toyota posted a decline in sales. Per Motor Intelligence, the seasonally adjusted annualized rate of sales reached 16.21 million last month, marking the best level since May 2021. Per LMC Automotive, U.S. light vehicle sales totaled 1.04 million units in January, up 4.5% year over year. But lest we forget, January 2022 was the first January since 2012 that couldn’t record vehicle sales of even 1 million units amid severe supply chain issues. While sales in the last month rose year over year, it’s certainly not a sign that the auto industry is rebounding to pre-pandemic levels. In fact, January 2023 recorded the weakest vehicle sales since 2014 if we exclude January 2022 sales data.
Meanwhile, a host of auto players released fourth-quarter results last week. U.S. legacy automaker General Motors GM beat earnings estimates, while its cross-town rival Ford F missed the same. U.S. motorcycle giant Harley-Davidson HOG, auto retailer Asbury Automotive ABG and automotive equipment provider Lear Corporation LEA surpassed fourth-quarter earnings estimates.
GM, F, HOG, ABG and LEA carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Snapshot of Last Week’s Key Earnings Releases
General Motors reported fourth-quarter 2022 adjusted earnings of $2.12 per share, surpassing the Zacks Consensus Estimate of $1.68. Higher-than-expected revenues and profit from the North America segment led to the outperformance. The bottom line also surged from the year-ago quarter’s earnings of $1.35 per share. Revenues of $43,108 million beat the Zacks Consensus Estimate of $41,313 million. The top line soared 28.3% from the year-ago figure of $33,584 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $3,799 million, higher than $2,839 million in the prior-year quarter.
General Motors had cash and cash equivalents of $19,153 million as of Dec 31, 2022, compared with $20,067 million as of Dec 31, 2021. The long-term automotive debt at the end of the quarter was $15,885 million compared with $16,355 million as of Dec 31, 2021. General Motors’ automotive cash provided by operating activities amounted to $7,488 million during the quarter under review, down 20.2% year over year. The company recorded an adjusted automotive free cash flow of $4,460 million in fourth-quarter 2022, down 30.3% year over year. (General Motors Q4 Earnings Beat on GMNA Unit Strength)
Ford reported adjusted earnings of 51 cents per share in fourth-quarter 2022, missing the Zacks Consensus Estimate of 60 cents. Lower-than-expected profits from all but International Markets Group unit led to this downslide. The bottom line improved 96.2% from the year-ago quarter’s earnings of 26 cents. The company’s consolidated fourth-quarter revenues came in at $44 billion, rising 17% year over year. Revenues from Ford Automotive segment increased 18% to $41.8 billion and surpassed the Zacks Consensus Estimate of $39.4 billion.
Ford reported an adjusted FCF of $2.4 billion during the quarter. It had cash and cash equivalents of $25,134 million as of Dec 31, 2022, compared with $20,540 million on Dec 31, 2021. Long-term debt excluding Ford Credit totaled $19.2 billion at the end of 2022, up from $17.2 billion as of Dec 31, 2021. Adjusted EBIT for 2023 is estimated to be in the range of $9 billion - $11 billion. Adjusted FCF is envisioned to be $6 billion. Along with the regular first-quarter dividend of 15 cents per, Ford declared a supplemental dividend of 65 cents per share, aided by robust FCF. (Ford Q4 Earnings Miss Estimates, Sales Grow 17% Y/Y)
Harley-Davidson reported fourth-quarter 2022 adjusted earnings of 28 cents per share, beating the Zacks Consensus Estimate of 3 cents. Higher-than-anticipated revenues from the Motorcycles & Related Products and Financial Services segments resulted in this outperformance. The bottom line also shot up 100% from 14 cents per share reported in the year-ago quarter. The motorcycle manufacturer generated consolidated revenues (including motorcycle sales and financial services revenues) of $1,142 million, up 12% from the year-earlier quarter.
Harley-Davidson had cash and cash equivalents of $1.4 billion as of Dec 31, 2022, down from $1.8 billion as of Dec 31, 2021. In the same period, the long-term debt decreased to $4,457 million from $4,595.6 million recorded on Dec 31, 2021. For 2023, the company expects revenues from the motorcycles segment to grow in the band of 4%-7%. The operating income margin expectation for the motorcycles segment is in the range of 14.1% to 14.6%. HOG expects its operating income for Financial Services to decline by 20-25%. Capital expenditure projection for the full year is in the range of $225-$250 million. (Harley-Davidson's Q4 Earnings Breeze Past Estimates)
Lear reported fourth-quarter 2022 adjusted earnings of $2.81 per share, surging from $1.22 recorded in the year-ago quarter. The bottom line also surpassed the Zacks Consensus Estimate of $2.54 per share. Higher-than-expected earnings across both business segments led to the outperformance. In the reported quarter, revenues increased 10% year over year to $5,370.9 million. The top line also beat the Zacks Consensus Estimate of $5,226 million.
The company had $1,114.9 million in cash and cash equivalents at the quarter’s end versus $1,318.3 million recorded as of Dec 31, 2021. Lear had long-term debt of $2,591.2 million at quarter end, lower than a debt of $2,595.2 million as of 2021-end.Lear projects full-year net sales in the band of $21,200-$22,200 million, up from $20,891 million recorded in 2022. Core operating earnings are envisioned in the range of $875-$1,075 million, implying an uptick from $871 generated in 2022. Operating cash flow is projected within $1,075-$1,225 million. Lear anticipates FCF in the band of $375-$525 million. Capital spending forecast is $700 million. Adjusted EBITDA is envisioned within the range of $1,475-$1,675 million. (Lear Q4 Earnings Surpass Estimates, '23 View Upbeat)
Asbury reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. This outperformance can be primarily attributed to higher-than-expected gross profit from the new vehicle and finance & insurance units. In the reported quarter, revenues amounted to $3.7 billion, surging 40% year over year. The top line, however, fell short of the Zacks Consensus Estimate of $3.8 billion.
As of Dec 31, 2022, the company had cash and cash equivalents of $235.3 million, up from $178.9 million on Dec 31, 2021. It had long-term debt of $3,301.2 million as of Dec 31, 2022, down from $3,582.6 million on Dec 31, 2021. During 2022, Asbury repurchased approximately 1.6 million shares for nearly $300 million. During the last reported quarter, the company adopted a Rule 10b5-1 trading plan, effective for trading Dec 19, 2022, through Feb 1, 2023. From Oct 1, 2022 through Feb 1, 2023, the company repurchased around 600,000 shares for $108 million. On Jan 26, 2023, Asbury boosted its share repurchase authorization to $200 million. As of Feb 1, the company had $200 million share repurchase authorization remaining. (Asbury Q4 Earnings Outstrip Estimates, Jump 22.2% Y/Y)
Price Performance
The following table shows the price movement of some of the major auto players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Auto Space?
Industry watchers will track China vehicle sales data for January 2023, which is likely to be released by the China Association of Automobile Manufacturers this week. Also, stay tuned for the quarterly results of major S&P 500 sector companies like O’Reilly and BorgWarner, which will report soon.
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Ford Motor Company (F) : Free Stock Analysis Report
Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Lear Corporation (LEA) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S. motorcycle giant Harley-Davidson HOG, auto retailer Asbury Automotive ABG and automotive equipment provider Lear Corporation LEA surpassed fourth-quarter earnings estimates. GM, F, HOG, ABG and LEA carry a Zacks Rank #3 (Hold). Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. | U.S. motorcycle giant Harley-Davidson HOG, auto retailer Asbury Automotive ABG and automotive equipment provider Lear Corporation LEA surpassed fourth-quarter earnings estimates. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. GM, F, HOG, ABG and LEA carry a Zacks Rank #3 (Hold). | Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. motorcycle giant Harley-Davidson HOG, auto retailer Asbury Automotive ABG and automotive equipment provider Lear Corporation LEA surpassed fourth-quarter earnings estimates. GM, F, HOG, ABG and LEA carry a Zacks Rank #3 (Hold). | U.S. motorcycle giant Harley-Davidson HOG, auto retailer Asbury Automotive ABG and automotive equipment provider Lear Corporation LEA surpassed fourth-quarter earnings estimates. GM, F, HOG, ABG and LEA carry a Zacks Rank #3 (Hold). Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
28557.0 | 2023-02-06 00:00:00 UTC | Asbury (ABG) Q4 Earnings Outstrip Estimates, Jump 22.2% Y/Y | ABG | https://www.nasdaq.com/articles/asbury-abg-q4-earnings-outstrip-estimates-jump-22.2-y-y | nan | nan | Asbury Automotive Group ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. This outperformance can be primarily attributed to higher-than-expected gross profit from the new-vehicle and finance & insurance units. In the reported quarter, revenues amounted to $3.7 billion, surging 40% year over year. The top line, however, fell short of the Zacks Consensus Estimate of $3.8 billion.
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
Asbury Automotive Group, Inc. price-consensus-eps-surprise-chart | Asbury Automotive Group, Inc. Quote
Segment Details
In the quarter, new-vehicle revenues jumped 44% year over year to $1,846 million, missing the Zacks Consensus Estimate of $1,867 million. Gross profit from the segment came in at $198.4 million, soaring 20% from the prior-year quarter and beating the consensus mark of $197 million.
Used-vehicle revenues rose 24% from the year-ago figure to $1,153 million but missed the consensus mark of $1,249 million. Gross profit from the segment came in at $68 million, which fell 11.7% and lagged the Zacks Consensus Estimate of $69 million.
Net revenues in the finance and insurance business amounted to $190.6 million, up 74% from the year-ago quarter and outpacing the consensus mark of $183 million. Gross profit was $183.9 million, rising 74% year over year and beating the consensus estimate of $182 million.
Revenues from the parts and service business rose 56% from the prior-year quarter to $516.1 million, but missed the consensus mark of $533 million. Gross profit from this segment came in at $288 million, rising 48% year over year but missing the consensus estimate of $301 million.
Other Tidbits
Adjusted selling, general & administrative (SG&A) expenses as a percentage of gross profit rose to 57.1%, marking an increase of 258 basis points year over year. Asbury sold nearly 8,400 vehicles, an uptick of 24% from the prior-year quarter, through the “end-to-end” online sales platform, Clicklane.
As of Dec 31,2022, the company had cash and cash equivalents of $235.3 million, up from $178.9 million on Dec 31, 2021. It had long-term debt of $3,301.2 million as of Dec 31,2022, down from $3,582.6 million on Dec 31, 2021.
During 2022, Asbury repurchased approximately 1.6 million shares for nearly $300 million. During the last reported quarter, the company adopted a Rule 10b5-1 trading plan, effective for trading Dec 19, 2022, through Feb 1, 2023. From Oct 1, 2022 through Feb 1, 2023, the company repurchased around 600,000 shares for $108 million. On Jan 26, 2023, Asbury boosted its share repurchase authorization to $200 million. As of Feb 1, the company had $200 million share repurchase authorization remaining.
Zacks Rank & Key Picks
ABG carries a Zacks Rank #4 (Sell)
A couple of top-ranked players in the same industry are Wabash WNC and Byd Co BYDDY, both sporting a Zacks Rank #1 (Strong Buy).
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 earnings implies year-over-year growth of 17.78%.
BYD Company Limited is principally engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings implies year-over-year growth of 41.83% and 31.77%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. Zacks Rank & Key Picks ABG carries a Zacks Rank #4 (Sell) Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Wabash National Corporation (WNC) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here. | Asbury Automotive Group ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Wabash National Corporation (WNC) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank & Key Picks ABG carries a Zacks Rank #4 (Sell) | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Wabash National Corporation (WNC) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. Zacks Rank & Key Picks ABG carries a Zacks Rank #4 (Sell) | Asbury Automotive Group ABG reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. Zacks Rank & Key Picks ABG carries a Zacks Rank #4 (Sell) Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Wabash National Corporation (WNC) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here. |
28558.0 | 2023-02-03 00:00:00 UTC | Validea Joel Greenblatt Strategy Daily Upgrade Report - 2/3/2023 | ABG | https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-2-3-2023 | nan | nan | The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
MATADOR RESOURCES CO (MTDR) is a mid-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Matador Resources Company is an independent energy company. The Company is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its segments include exploration and production and midstream. The exploration and production segment is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The midstream segment conducts midstream operations through its midstream joint venture, San Mateo, in support of its exploration, development and production operations, provide natural gas processing, oil transportation services, oil, natural gas, produced water gathering services, produced water disposal services to third parties.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of MATADOR RESOURCES CO
MTDR Guru Analysis
MTDR Fundamental Analysis
ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Asbury Automotive Group, Inc. is an automotive retailer company. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. It owns and operates approximately 198 new vehicle franchises, representing 31 brands of automobiles at 148 dealership locations, 34 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The Company's store operations are conducted by its subsidiaries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC.
ABG Guru Analysis
ABG Fundamental Analysis
BUILDERS FIRSTSOURCE, INC. (BLDR) is a large-cap value stock in the Forestry & Wood Products industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Builders FirstSource, Inc. is a supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling. The Company provides customers an integrated homebuilding solution, offering manufacturing, supply, delivery and installation of a full range of structural and related building products. Its services customers from its distribution and manufacturing facilities that produce products such as roof and floor trusses, wall panels, vinyl windows, custom millwork and pre-hung doors. The Company also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products. The Company is also a provider of pre-fabricated roof and floor trusses as well as value-added building components and services, including for the multifamily sector. The Company operates approximately 565 locations in 42 states across the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of BUILDERS FIRSTSOURCE, INC.
BLDR Guru Analysis
BLDR Fundamental Analysis
AMERISOURCEBERGEN CORP. (ABC) is a large-cap growth stock in the Major Drugs industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AmerisourceBergen Corporation is a global pharmaceutical sourcing and distribution services company. The Company's U.S. Healthcare Solutions segment distributes an offering of brand-name, specialty brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a wide variety of healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers. The International Healthcare Solutions segment consists of businesses that focus on international pharmaceutical wholesale and related service operations and global commercialization services. This segment consists of Alliance Healthcare, World Courier, Innomar, Profarma, and Profarma Specialty. The Company also focuses on specialty services and a global platform of pharma manufacturer services capabilities.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL
Detailed Analysis of AMERISOURCEBERGEN CORP.
ABC Guru Analysis
ABC Fundamental Analysis
COVENANT LOGISTICS GROUP INC (CVLG) is a small-cap value stock in the Trucking industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to customers throughout the United States. The Company's segments include Expedited, Dedicated, Managed Freight business and Warehousing. The Expedited business operates primarily provides truckload services to customers with high service freight and delivery standards. The Dedicated business provides customers with committed truckload capacity over contracted periods. The Managed Freight business includes brokerage services and transportation management services (TMS). The Brokerage services provide logistics capacity by outsourcing the carriage of customers' freight to third parties. The Warehousing segment provides day-to-day warehouse management services to customers. The Company also provides shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of COVENANT LOGISTICS GROUP INC
CVLG Guru Analysis
CVLG Fundamental Analysis
Joel Greenblatt Portfolio
Top Joel Greenblatt Stocks
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of MATADOR RESOURCES CO MTDR Guru Analysis MTDR Fundamental Analysis ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis BUILDERS FIRSTSOURCE, INC. (BLDR) is a large-cap value stock in the Forestry & Wood Products industry. Company Description: Builders FirstSource, Inc. is a supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling. | Detailed Analysis of MATADOR RESOURCES CO MTDR Guru Analysis MTDR Fundamental Analysis ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis BUILDERS FIRSTSOURCE, INC. (BLDR) is a large-cap value stock in the Forestry & Wood Products industry. The midstream segment conducts midstream operations through its midstream joint venture, San Mateo, in support of its exploration, development and production operations, provide natural gas processing, oil transportation services, oil, natural gas, produced water gathering services, produced water disposal services to third parties. | Detailed Analysis of MATADOR RESOURCES CO MTDR Guru Analysis MTDR Fundamental Analysis ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis BUILDERS FIRSTSOURCE, INC. (BLDR) is a large-cap value stock in the Forestry & Wood Products industry. The midstream segment conducts midstream operations through its midstream joint venture, San Mateo, in support of its exploration, development and production operations, provide natural gas processing, oil transportation services, oil, natural gas, produced water gathering services, produced water disposal services to third parties. | Detailed Analysis of MATADOR RESOURCES CO MTDR Guru Analysis MTDR Fundamental Analysis ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. ABG Guru Analysis ABG Fundamental Analysis BUILDERS FIRSTSOURCE, INC. (BLDR) is a large-cap value stock in the Forestry & Wood Products industry. Company Description: Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to customers throughout the United States. |
28559.0 | 2023-02-01 00:00:00 UTC | Noteworthy Wednesday Option Activity: CC, ABG, AVGO | ABG | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-cc-abg-avgo | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Chemours Co (Symbol: CC), where a total of 4,267 contracts have traded so far, representing approximately 426,700 underlying shares. That amounts to about 52.6% of CC's average daily trading volume over the past month of 810,480 shares. Especially high volume was seen for the $30 strike put option expiring July 21, 2023, with 1,128 contracts trading so far today, representing approximately 112,800 underlying shares of CC. Below is a chart showing CC's trailing twelve month trading history, with the $30 strike highlighted in orange:
Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 950 contracts thus far today. That number of contracts represents approximately 95,000 underlying shares, working out to a sizeable 51.5% of ABG's average daily trading volume over the past month, of 184,360 shares. Particularly high volume was seen for the $220 strike call option expiring February 17, 2023, with 616 contracts trading so far today, representing approximately 61,600 underlying shares of ABG. Below is a chart showing ABG's trailing twelve month trading history, with the $220 strike highlighted in orange:
And Broadcom Inc (Symbol: AVGO) options are showing a volume of 11,437 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 51.3% of AVGO's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $595 strike call option expiring February 03, 2023, with 1,876 contracts trading so far today, representing approximately 187,600 underlying shares of AVGO. Below is a chart showing AVGO's trailing twelve month trading history, with the $595 strike highlighted in orange:
For the various different available expirations for CC options, ABG options, or AVGO options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Healthcare Stocks Hedge Funds Are Buying
BKKT Options Chain
CALX Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $220 strike call option expiring February 17, 2023, with 616 contracts trading so far today, representing approximately 61,600 underlying shares of ABG. Below is a chart showing CC's trailing twelve month trading history, with the $30 strike highlighted in orange: Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 950 contracts thus far today. That number of contracts represents approximately 95,000 underlying shares, working out to a sizeable 51.5% of ABG's average daily trading volume over the past month, of 184,360 shares. | That number of contracts represents approximately 95,000 underlying shares, working out to a sizeable 51.5% of ABG's average daily trading volume over the past month, of 184,360 shares. Below is a chart showing ABG's trailing twelve month trading history, with the $220 strike highlighted in orange: And Broadcom Inc (Symbol: AVGO) options are showing a volume of 11,437 contracts thus far today. Below is a chart showing CC's trailing twelve month trading history, with the $30 strike highlighted in orange: Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 950 contracts thus far today. | Particularly high volume was seen for the $220 strike call option expiring February 17, 2023, with 616 contracts trading so far today, representing approximately 61,600 underlying shares of ABG. Below is a chart showing AVGO's trailing twelve month trading history, with the $595 strike highlighted in orange: For the various different available expirations for CC options, ABG options, or AVGO options, visit StockOptionsChannel.com. Below is a chart showing CC's trailing twelve month trading history, with the $30 strike highlighted in orange: Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 950 contracts thus far today. | Particularly high volume was seen for the $220 strike call option expiring February 17, 2023, with 616 contracts trading so far today, representing approximately 61,600 underlying shares of ABG. Below is a chart showing AVGO's trailing twelve month trading history, with the $595 strike highlighted in orange: For the various different available expirations for CC options, ABG options, or AVGO options, visit StockOptionsChannel.com. Below is a chart showing CC's trailing twelve month trading history, with the $30 strike highlighted in orange: Asbury Automotive Group Inc (Symbol: ABG) options are showing a volume of 950 contracts thus far today. |
28560.0 | 2023-02-01 00:00:00 UTC | Auto Sector Q4 Earnings Roster for Feb 2: F, HOG & More | ABG | https://www.nasdaq.com/articles/auto-sector-q4-earnings-roster-for-feb-2%3A-f-hog-more | nan | nan | The fourth-quarter 2022 earnings season for the Auto-Tires-Trucks sector kicked off last week. So far this earnings season, three S&P sector components— namely Tesla, PACCAR and General Motors— have come up with quarterly numbers. Despite the industry odds, all three companies not only managed to pull off a comprehensive beat but also witnessed year-over-year growth in the top and bottom lines.
Ford F, Harley-Davidson HOG, Asbury Automotive ABG and Lear Corporation LEA are some of the auto stocks lined up to report tomorrow. Before glancing through the key projections for these stocks, let's take a look at the general factors that are likely to shape the companies’ upcoming results.
Factors Setting the Tone for Auto Stocks’ Q4 Results
The fourth-quarter of 2022 was a mixed bag for the auto space, with some automakers witnessing a year-over-year increase in the number of vehicles sold while others saw a decline. In general, what aided the industry was the gradual abatement of chip woes and a slight improvement in supply chain systems. As such, inventory levels were on the rise. Inventory levels in December came in more than one million units for the third consecutive month, per J.D. Power and LMC Automotive. Per TrueCar, the total new light-vehicle inventory, including fleet and commercial vehicles, totaled 1.8 million in December 2022, up from 1.1 million recorded in December 2021.
Despite economic uncertainty, demand for vehicles largely managed to show resilience during the last three months of 2022. The rising deliveries of new energy vehicles (including all-electric, hybrids and fuel-cell) are expected to have fueled revenues. However, for the less-affluent and subprime consumers, the rising cost of financing is expected to have played spoilsport. Per estimates of J.D. Power and LMC Automotive, average interest rates for new vehicle loans were up around 250 basis points from the year-ago levels. High interest rates eat away vehicle buyers' willingness and ability to purchase. This may have limited revenues to some extent.
As for the average price of vehicles, used car prices are on a decline, while new car prices during the quarter under discussion have remained high. High new vehicle prices are likely to have offset the commodity cost inflation partially. High costs of raw materials, manufacturing inefficiency, rising freight and fuel costs may have limited margins.
Per the latest Earnings Trend report dated Jan 25, the auto sector’s earnings for Q4 are expected to grow 43.6% on a year-over-year basis. As for revenues, they are estimated to rise 19.5% year over year.
Key Releases on Feb 2
Ford: This legacy automaker missed earnings estimates in the last reported quarter on lower-than-expected profits in North America and a pretax loss in China. Over the trailing four quarters, Ford missed earnings estimates on three occasions and surpassed them once, with the average surprise being 3.2%. This is depicted in the graph below:
Ford Motor Company Price and EPS Surprise
Ford Motor Company price-eps-surprise | Ford Motor Company Quote
Our proprietary model clearly indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our proven model doesn’t conclusively predict an earnings beat for Ford this time around. This is because it has an Earnings ESP of -3.01% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings is pegged at 60 cents per share. F is set to report quarterly results after the closing bell.
The consensus mark for fourth-quarter revenues from automotive sales is $39,402 million, implying an uptick from $35,300 million recorded in the corresponding quarter of 2021. The Zacks Consensus Estimate for adjusted EBIT from the segment is pegged at $3,631 million, implying growth from $1,638 million recorded in the fourth quarter of 2021. The consensus mark for revenues from Ford Credit is pegged at $2,235 million, implying a decrease from $2,373 million. The consensus mark for revenues from Ford Mobility is pegged at $42.9 million, implying a decline from $48 million. While stronger year-over-year results from the firm’s Automotive segment bode well, poor performances from Ford Credit and Mobility units are likely to have played spoilsports. Further, massive spending on modernization, including connectivity, IT and new product launches, is expected to have limited earnings to some extent.
Harley-Davidson: This iconic motorcycle manufacturer posted an earnings beat in the last reported quarter on higher-than-anticipated revenues from the Motorcycles & Related Products and Financial Services segments. HOG surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average being 43.24%. This is depicted in the graph below:
Harley-Davidson, Inc. Price and EPS Surprise
Harley-Davidson, Inc. price-eps-surprise | Harley-Davidson, Inc. Quote
Our model does not conclusively predict an earnings beat for Harley-Davidson this time around, as it carries a Zacks Rank #2 and an Earnings ESP of 0.00%. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 3 cents a share. HOG will unveil results before market open.
Harley-Davidson is likely to have benefitted from the Hardwire strategic plan, which aims at growth through refreshed product offerings. The Zacks Consensus Estimate for HOG’s revenues from the Motorcycles and Related Products segment — which constitutes the bulk of the firm’s overall revenues — is pegged at $868 million for the December-end quarter, suggesting an increase from the $816 million reported in the year-ago quarter. The consensus mark for operating loss from the segment is pegged at $69 million, narrower than a loss of $102 million recorded in the corresponding quarter of 2021. On the flip side, the Zacks Consensus Estimate for operating income from Financial Services is pegged at $182 million, depicting a drop from $200 million generated in the comparable year-ago period. The consensus mark for operating profit from the segment is $74 million, implying a decline from $95 million recorded in the fourth quarter of 2021.
Asbury: This automotive retailer came up with better-than-expected earnings in the last reported quarter, thanks to higher-than-expected gross profit from the Parts & Services and Finance & Insurance units. ABG surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 11.2%. This is depicted in the graph below:
Asbury Automotive Group, Inc. Price and EPS Surprise
Asbury Automotive Group, Inc. price-eps-surprise | Asbury Automotive Group, Inc. Quote
Things are not looking up for Asbury this time around, as it carries a Zacks Rank #4 (Sell) and an Earnings ESP of -2.59%. The Zacks Consensus Estimate for fourth-quarter earnings and revenues is pegged at $8.23 a share and $3.82 billion, respectively. ABG will report results before the opening bell.
The Zacks Consensus Estimate for ABG’s revenues from Used Vehicle segment is pegged at $1,249 million, suggesting a decline from $1,331 million in the last reported quarter. The consensus mark for gross profit from the segment is $68 million, down from $84 million. Declining used vehicle prices and high cost of sales are likely to have played spoilsport. The consensus estimate for gross profit from New Vehicle segment is pegged at $197 million, down from $201 million generated in the prior quarter. The consensus mark for gross profit from the Finance/Insurance unit is pegged at $182 million, down from $187 million generated in the third quarter of 2022. On a bright note, the Zacks Consensus Estimate for Parts/Services segment stands at $301 million, implying a slight improvement from $298 million recorded in the three months ended September 2022. Asbury is bearing the brunt of escalating SG&A expenses amid expansion plans and digitization ramp, which may have clipped operating margins in the to-be-reported quarter.
Lear: This automotive equipment provider delivered an earnings beat in the last reported quarter on higher-than-expected sales and earnings across both its business segments. LEA surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 18%. This is depicted in the graph below:
Lear Corporation Price and EPS Surprise
Lear Corporation price-eps-surprise | Lear Corporation Quote
Investors expect LEA to maintain its beat run and our model also predicts the same. This is because the company has an Earnings ESP of +0.04% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter earnings and revenues is pegged at $2.51 per share and $5.24 billion, respectively. LEA will post results before the opening bell.
The buyouts of M&N Plastics and Kongsberg Automotive have strengthened Lear’s E-Systems and Seating business, respectively. Rising consumer demand for vehicle content — requiring signal, data and power management — and increasing electrification efforts by the company augur well. The Zacks Consensus Estimate for fourth-quarter revenues from the E-Systems unit is pegged at $1,337 million, up from $1,239 million generated in the year-ago quarter. The consensus mark for operating profit from the segment is $61 million, implying growth from $37.7 million in the fourth quarter of 2021. The Zacks Consensus Estimate for revenues from the Seating unit is $3,918 million, up from $3,641 million in the year-ago period. The consensus mark for operating profit from the segment stands at $263 million, implying growth of 32% year over year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ford F, Harley-Davidson HOG, Asbury Automotive ABG and Lear Corporation LEA are some of the auto stocks lined up to report tomorrow. ABG surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 11.2%. ABG will report results before the opening bell. | Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Ford F, Harley-Davidson HOG, Asbury Automotive ABG and Lear Corporation LEA are some of the auto stocks lined up to report tomorrow. ABG surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 11.2%. | The Zacks Consensus Estimate for ABG’s revenues from Used Vehicle segment is pegged at $1,249 million, suggesting a decline from $1,331 million in the last reported quarter. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Ford F, Harley-Davidson HOG, Asbury Automotive ABG and Lear Corporation LEA are some of the auto stocks lined up to report tomorrow. | The Zacks Consensus Estimate for ABG’s revenues from Used Vehicle segment is pegged at $1,249 million, suggesting a decline from $1,331 million in the last reported quarter. Ford F, Harley-Davidson HOG, Asbury Automotive ABG and Lear Corporation LEA are some of the auto stocks lined up to report tomorrow. ABG surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 11.2%. |
28561.0 | 2023-02-01 00:00:00 UTC | Asbury Automotive Group Reaches Analyst Target Price | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-reaches-analyst-target-price | nan | nan | In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $217.17, changing hands for $220.00/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 6 different analyst targets within the Zacks coverage universe contributing to that average for Asbury Automotive Group Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $128.00. And then on the other side of the spectrum one analyst has a target as high as $310.00. The standard deviation is $66.844.
But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABG crossing above that average target price of $217.17/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $217.17 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Asbury Automotive Group Inc:
RECENT ABG ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 3 3 3 3
Buy ratings: 0 0 0 0
Hold ratings: 2 2 2 2
Sell ratings: 0 0 0 0
Strong sell ratings: 1 1 1 1
Average rating: 2.22 2.22 2.22 2.22
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABG — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $217.17, changing hands for $220.00/share. And so with ABG crossing above that average target price of $217.17/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $217.17 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $217.17, changing hands for $220.00/share. But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABG crossing above that average target price of $217.17/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $217.17 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | And so with ABG crossing above that average target price of $217.17/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $217.17 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $217.17, changing hands for $220.00/share. But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Asbury Automotive Group Inc (Symbol: ABG) have crossed above the average analyst 12-month target price of $217.17, changing hands for $220.00/share. But the whole reason to look at the average ABG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABG crossing above that average target price of $217.17/share, investors in ABG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $217.17 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? |
28562.0 | 2023-01-31 00:00:00 UTC | Asbury Automotive Group Inc Shares Climb 3.7% Past Previous 52-Week High - Market Mover | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-inc-shares-climb-3.7-past-previous-52-week-high-market-mover | nan | nan | Asbury Automotive Group Inc (ABG) shares closed 3.7% higher than its previous 52 week high, giving the company a market cap of $4B. The stock is currently up 22.7% year-to-date, up 36.7% over the past 12 months, and up 202.8% over the past five years. This week, the Dow Jones Industrial Average rose 1.1%, and the S&P 500 rose 1.6%.
Trading Activity
Trading volume this week was 114.8% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 1.1.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 54.2%
The company's stock price performance over the past 12 months beats the peer average by 985.8%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -26.6% lower than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group Inc (ABG) shares closed 3.7% higher than its previous 52 week high, giving the company a market cap of $4B. Beta, a measure of the stock’s volatility relative to the overall market stands at 1.1. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 54.2% The company's stock price performance over the past 12 months beats the peer average by 985.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -26.6% lower than the average peer. | Asbury Automotive Group Inc (ABG) shares closed 3.7% higher than its previous 52 week high, giving the company a market cap of $4B. This week, the Dow Jones Industrial Average rose 1.1%, and the S&P 500 rose 1.6%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 54.2% The company's stock price performance over the past 12 months beats the peer average by 985.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -26.6% lower than the average peer. | Asbury Automotive Group Inc (ABG) shares closed 3.7% higher than its previous 52 week high, giving the company a market cap of $4B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 54.2% The company's stock price performance over the past 12 months beats the peer average by 985.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -26.6% lower than the average peer. This story was produced by the Kwhen Automated News Generator. | Asbury Automotive Group Inc (ABG) shares closed 3.7% higher than its previous 52 week high, giving the company a market cap of $4B. Trading Activity Trading volume this week was 114.8% higher than the 20-day average. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
28563.0 | 2023-01-26 00:00:00 UTC | Asbury Automotive Group (ABG) Reports Next Week: Wall Street Expects Earnings Growth | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-reports-next-week%3A-wall-street-expects-earnings-growth-0 | nan | nan | Asbury Automotive Group (ABG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2022. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 2, 2023, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This auto dealership chain is expected to post quarterly earnings of $8.23 per share in its upcoming report, which represents a year-over-year change of +10.3%.
Revenues are expected to be $3.82 billion, up 43.9% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 12.62% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Asbury Automotive?
For Asbury Automotive, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.59%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Asbury Automotive will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Asbury Automotive would post earnings of $9.19 per share when it actually produced earnings of $9.23, delivering a surprise of +0.44%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Asbury Automotive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2022. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. | Asbury Automotive Group (ABG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2022. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | Asbury Automotive Group (ABG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2022. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | Asbury Automotive Group (ABG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2022. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). |
28564.0 | 2023-01-13 00:00:00 UTC | Why Asbury Automotive (ABG) is Poised to Beat Earnings Estimates Again | ABG | https://www.nasdaq.com/articles/why-asbury-automotive-abg-is-poised-to-beat-earnings-estimates-again-0 | nan | nan | Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry, could be a great candidate to consider.
When looking at the last two reports, this auto dealership chain has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 6.75%, on average, in the last two quarters.
For the most recent quarter, Asbury Automotive was expected to post earnings of $9.19 per share, but it reported $9.23 per share instead, representing a surprise of 0.44%. For the previous quarter, the consensus estimate was $8.88 per share, while it actually produced $10.04 per share, a surprise of 13.06%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Asbury Automotive. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Asbury Automotive currently has an Earnings ESP of +0.48%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on February 2, 2023.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry, could be a great candidate to consider. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Price and EPS Surprise With this earnings history in mind, recent estimates have been moving higher for Asbury Automotive. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry, could be a great candidate to consider. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. | Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry, could be a great candidate to consider. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. | Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry, could be a great candidate to consider. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? |
28565.0 | 2023-01-05 00:00:00 UTC | Is the Options Market Predicting a Spike in Asbury (ABG) Stock? | ABG | https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-asbury-abg-stock | nan | nan | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 20, 2023 $95.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Asbury shares, but what is the fundamental picture for the company? Currently, Asbury is a Zacks Rank #3 (Hold) in the Automotive - Retail and Whole Sales industry that ranks in the Top 40% of our Zacks Industry Rank. Over the last 60 days, the Zacks Consensus Estimate for the current quarter has moved from $8.13 per share to $8.18.
Given the way analysts feel about Asbury right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Given the way analysts feel about Asbury right now, this huge implied volatility could mean there’s a trade developing. |
28566.0 | 2022-12-12 00:00:00 UTC | Zacks.com featured highlights American Airlines, Delek US Holdings, Builders FirstSource, Asbury Automotive and Foot Locker | ABG | https://www.nasdaq.com/articles/zacks.com-featured-highlights-american-airlines-delek-us-holdings-builders-firstsource | nan | nan | For Immediate Release
Chicago, IL – December 12, 2022 – Stocks in this week’s article are American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL.
These 5 Stocks Look Attractive Following Broker Upgrades
With uncertainty and volatility plaguing the U.S. equity markets, it is very hard for individual investors to design a winning portfolio of stocks. No one wants to see their hard-earned money go down the drain.
Moreover, with multiple stocks flooding the market from every possible corner, at any point of time, it is next to impossible to design one’s portfolio with appropriate stocks in the absence of guidance from experts who are equipped with proper knowhow about the market. The experts in the field of investing are the brokers.
We believe that investors should include broker-favorite stocks like American Airlines, Delek US Holdings, Builders FirstSource, Asbury Automotive and Foot Locker in their watchlist.
Brokers, irrespective of their types (sell-side, buy-side or independent), undertake thorough research of the stocks covered by them. They have at their disposal a lot more information on a company and its prospects than individual investors.
To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Consequently, the opinion of brokers should act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Movement of Earnings Estimates: An Invaluable Pointer
Since brokers follow the stocks in their coverage minutely, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. In fact, a rating upgrade or downgrade by brokers has the potential to immediately influence the price of the stock.
Given the expertise of brokers in investment matters, it is natural for investors to believe that there is a solid reason/logic behind brokers improving their recommendation on a particular stock. In fact, a rating upgrade generally leads to stock price appreciation and vice versa. Estimates can move north for a number of reasons — favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.
To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.
Ignore Top line at Your Own Peril
To design a winning strategy, it is not prudent to consider only the bottom line only. In fact, according to some market watchers, a top-line outperformance is more creditable for a stock than a mere earnings beat under some circumstances. Therefore, to make our strategy full-proof, one needs to address top-line concerns as well. We have considered the price/sales ratio, which serves as a strong complementary valuation metric, for screening stocks.
Here are five of the 10 stocks that passed the screen test:
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 69.6% upward. AAL currently carries a Zacks Rank #3 (Hold).
Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. DK’s extensive downstream operations within the Permian Basin grant it a fairly significant competitive edge over its peers in the long term.
Delek US Holdings currently carries a Zacks Rank #3. The Zacks Consensus Estimate for current-quarter earnings has improved 5.3% over the past 60 days.
Builders FirstSource: Dallas, TX-based BLDR manufactures and supplies building materials. Builders FirstSource has been benefiting from its focus on cost synergies, strategic acquisition and robust demand from solid housing and repair and remodeling activities.
Builders FirstSource is currently Zacks #3 Ranked. The Zacks Consensus Estimate for current-quarter earnings has improved 39.7% over the past 60 days.
Asbury: Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. The acquisition of Larry H. Miller Dealerships has bolstered Asbury’s regional footprint and will add nearly $5.7 billion in expected annualized revenues. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The company’s end-to-end e-commerce platform—Clicklane—is on track to generate around $1 billion in sales in 2022 and $2.2 billion by the end of 2023.
Asbury carries a Zacks Rank #3 presently. ABG surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 11.2%.
Foot Locker’s digital business has been performing well. Over the past few years, Foot Locker has been investing significantly to reinforce its digital presence and augment its direct-to-consumer operations. Foot Locker is trying to improve its performance through operational and financial initiatives.
Foot Locker carries a Zacks Rank #3 presently. FL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average beat being 11.2%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2027101/these-5-stocks-look-attractive-following-broker-upgrades
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
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Foot Locker, Inc. (FL) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – December 12, 2022 – Stocks in this week’s article are American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. ABG surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. | For Immediate Release Chicago, IL – December 12, 2022 – Stocks in this week’s article are American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL. Click to get this free report Foot Locker, Inc. (FL) : Free Stock Analysis Report Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. | Click to get this free report Foot Locker, Inc. (FL) : Free Stock Analysis Report Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – December 12, 2022 – Stocks in this week’s article are American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. | For Immediate Release Chicago, IL – December 12, 2022 – Stocks in this week’s article are American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. ABG surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. |
28567.0 | 2022-12-09 00:00:00 UTC | These 5 Stocks Look Attractive Following Broker Upgrades | ABG | https://www.nasdaq.com/articles/these-5-stocks-look-attractive-following-broker-upgrades | nan | nan | With uncertainty and volatility plaguing the U.S. equity markets, it is very hard for individual investors to design a winning portfolio of stocks. No one wants to see their hard-earned money go down the drain. Moreover, with multiple stocks flooding the market from every possible corner, at any point of time, it is next to impossible to design one’s portfolio with appropriate stocks in the absence of guidance from experts who are equipped with proper knowhow about the market. The experts in the field of investing are the brokers.
We believe that investors should include broker-favorite stocks like American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL in their watchlist.
Brokers, irrespective of their types (sell-side, buy-side or independent), undertake thorough research of the stocks covered by them. They have at their disposal a lot more information on a company and its prospects than individual investors. To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Consequently, the opinion of brokers should act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Movement of Earnings Estimates: An Invaluable Pointer
Since brokers follow the stocks in their coverage minutely, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. In fact, a rating upgrade or downgrade by brokers has the potential to immediately influence the price of the stock.
Given the expertise of brokers in investment matters, it is natural for investors to believe that there is a solid reason/logic behind brokers improving their recommendation on a particular stock. In fact, a rating upgrade generally leads to stock price appreciation and vice versa. Estimates can move north for a number of reasons — favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.
To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.
Ignore Top line at Your Own Peril
To design a winning strategy, it is not prudent to consider only the bottom line only. In fact, according to some market watchers, a top-line outperformance is more creditable for a stock than a mere earnings beat under some circumstances. Therefore, to make our strategy full-proof, one needs to address top-line concerns as well. We have considered the price/sales ratio, which serves as a strong complementary valuation metric, for screening stocks.
Screening Criteria
# (Up-Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks.
Price greater than 5: A stock trading below $5 will not likely be of significant interest to most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 in terms of market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that passed the screen test:
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 69.6% upward. AAL currently carries a Zacks Rank #3 (Hold).
Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. DK’s extensive downstream operations within the Permian Basin grant it a fairly significant competitive edge over its peers in the long term.
Delek US Holdings currently carries a Zacks Rank #3. The Zacks Consensus Estimate for current-quarter earnings has improved 5.3% over the past 60 days.
Builders FirstSource: Dallas, TX-based BLDR manufactures and supplies building materials. Builders FirstSource has been benefiting from its focus on cost synergies, strategic acquisition and robust demand from solid housing and repair and remodeling activities.
Builders FirstSource is currently Zacks #3 Ranked. The Zacks Consensus Estimate for current-quarter earnings has improved 39.7% over the past 60 days.
Asbury: Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. The acquisition of Larry H. Miller Dealerships has bolstered Asbury’s regional footprint and will add nearly $5.7 billion in expected annualized revenues. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The company’s end-to-end e-commerce platform—Clicklane—is on track to generate around $1 billion in sales in 2022 and $2.2 billion by the end of 2023.
Asbury carries a Zacks Rank #3 presently. ABG surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 11.2%.
Foot Locker’s digital business has been performing well. Over the past few years, Foot Locker has been investing significantly to reinforce its digital presence and augment its direct-to-consumer operations. Foot Locker is trying to improve its performance through operational and financial initiatives.
Foot Locker carries a Zacks Rank #3 presently. FL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average beat being 11.2%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Foot Locker, Inc. (FL) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We believe that investors should include broker-favorite stocks like American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL in their watchlist. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. ABG surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. | We believe that investors should include broker-favorite stocks like American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL in their watchlist. Click to get this free report Foot Locker, Inc. (FL) : Free Stock Analysis Report Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. | We believe that investors should include broker-favorite stocks like American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL in their watchlist. Click to get this free report Foot Locker, Inc. (FL) : Free Stock Analysis Report Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. | We believe that investors should include broker-favorite stocks like American Airlines AAL, Delek US Holdings DK, Builders FirstSource BLDR, Asbury Automotive ABG and Foot Locker FL in their watchlist. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. ABG surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. |
28568.0 | 2022-12-01 00:00:00 UTC | This 1 Retail and Wholesale Stock Could Beat Earnings: Why It Should Be on Your Radar | ABG | https://www.nasdaq.com/articles/this-1-retail-and-wholesale-stock-could-beat-earnings%3A-why-it-should-be-on-your-radar-22 | nan | nan | Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Cracker Barrel Old Country Store?
The final step today is to look at a stock that meets our ESP qualifications. Cracker Barrel Old Country Store (CBRL) earns a #1 (Strong Buy) one day from its next quarterly earnings release on December 2, 2022, and its Most Accurate Estimate comes in at $1.28 a share.
By taking the percentage difference between the $1.28 Most Accurate Estimate and the $1.27 Zacks Consensus Estimate, Cracker Barrel Old Country Store has an Earnings ESP of +0.59%. Investors should also know that CBRL is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CBRL is just one of a large group of Retail and Wholesale stocks with a positive ESP figure. Asbury Automotive Group (ABG) is another qualifying stock you may want to consider.
Asbury Automotive Group, which is readying to report earnings on February 21, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $8.22 a share, and ABG is 82 days out from its next earnings report.
For Asbury Automotive Group, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $8.18 is +0.51%.
CBRL and ABG's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | CBRL and ABG's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. Asbury Automotive Group (ABG) is another qualifying stock you may want to consider. It's Most Accurate Estimate is currently $8.22 a share, and ABG is 82 days out from its next earnings report. | Click to get this free report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report To read this article on Zacks.com click here. Asbury Automotive Group (ABG) is another qualifying stock you may want to consider. It's Most Accurate Estimate is currently $8.22 a share, and ABG is 82 days out from its next earnings report. | Asbury Automotive Group (ABG) is another qualifying stock you may want to consider. It's Most Accurate Estimate is currently $8.22 a share, and ABG is 82 days out from its next earnings report. CBRL and ABG's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. | Asbury Automotive Group (ABG) is another qualifying stock you may want to consider. It's Most Accurate Estimate is currently $8.22 a share, and ABG is 82 days out from its next earnings report. CBRL and ABG's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. |
28569.0 | 2022-11-29 00:00:00 UTC | Surprising Analyst 12-Month Target For SLYG | ABG | https://www.nasdaq.com/articles/surprising-analyst-12-month-target-for-slyg-0 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR S&P 600 Small Cap Growth ETF (Symbol: SLYG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $92.52 per unit.
With SLYG trading at a recent price near $75.75 per unit, that means that analysts see 22.14% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SLYG's underlying holdings with notable upside to their analyst target prices are Sun Country Airlines Holdings Inc (Symbol: SNCY), Hillenbrand Inc (Symbol: HI), and Asbury Automotive Group Inc (Symbol: ABG). Although SNCY has traded at a recent price of $19.39/share, the average analyst target is 29.79% higher at $25.17/share. Similarly, HI has 28.05% upside from the recent share price of $48.42 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting ABG to reach a target price of $228.00/share, which is 26.36% above the recent price of $180.44. Below is a twelve month price history chart comparing the stock performance of SNCY, HI, and ABG:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
SPDR S&P 600 Small Cap Growth ETF SLYG $75.75 $92.52 22.14%
Sun Country Airlines Holdings Inc SNCY $19.39 $25.17 29.79%
Hillenbrand Inc HI $48.42 $62.00 28.05%
Asbury Automotive Group Inc ABG $180.44 $228.00 26.36%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Stocks Analysts Like But Hedge Funds Are Selling
SBS Price Target
VCTR Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | SPDR S&P 600 Small Cap Growth ETF SLYG $75.75 $92.52 22.14% Sun Country Airlines Holdings Inc SNCY $19.39 $25.17 29.79% Hillenbrand Inc HI $48.42 $62.00 28.05% Asbury Automotive Group Inc ABG $180.44 $228.00 26.36% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SLYG's underlying holdings with notable upside to their analyst target prices are Sun Country Airlines Holdings Inc (Symbol: SNCY), Hillenbrand Inc (Symbol: HI), and Asbury Automotive Group Inc (Symbol: ABG). Similarly, HI has 28.05% upside from the recent share price of $48.42 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting ABG to reach a target price of $228.00/share, which is 26.36% above the recent price of $180.44. | Three of SLYG's underlying holdings with notable upside to their analyst target prices are Sun Country Airlines Holdings Inc (Symbol: SNCY), Hillenbrand Inc (Symbol: HI), and Asbury Automotive Group Inc (Symbol: ABG). Similarly, HI has 28.05% upside from the recent share price of $48.42 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting ABG to reach a target price of $228.00/share, which is 26.36% above the recent price of $180.44. SPDR S&P 600 Small Cap Growth ETF SLYG $75.75 $92.52 22.14% Sun Country Airlines Holdings Inc SNCY $19.39 $25.17 29.79% Hillenbrand Inc HI $48.42 $62.00 28.05% Asbury Automotive Group Inc ABG $180.44 $228.00 26.36% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, HI has 28.05% upside from the recent share price of $48.42 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting ABG to reach a target price of $228.00/share, which is 26.36% above the recent price of $180.44. Three of SLYG's underlying holdings with notable upside to their analyst target prices are Sun Country Airlines Holdings Inc (Symbol: SNCY), Hillenbrand Inc (Symbol: HI), and Asbury Automotive Group Inc (Symbol: ABG). Below is a twelve month price history chart comparing the stock performance of SNCY, HI, and ABG: Below is a summary table of the current analyst target prices discussed above: | SPDR S&P 600 Small Cap Growth ETF SLYG $75.75 $92.52 22.14% Sun Country Airlines Holdings Inc SNCY $19.39 $25.17 29.79% Hillenbrand Inc HI $48.42 $62.00 28.05% Asbury Automotive Group Inc ABG $180.44 $228.00 26.36% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SLYG's underlying holdings with notable upside to their analyst target prices are Sun Country Airlines Holdings Inc (Symbol: SNCY), Hillenbrand Inc (Symbol: HI), and Asbury Automotive Group Inc (Symbol: ABG). Similarly, HI has 28.05% upside from the recent share price of $48.42 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting ABG to reach a target price of $228.00/share, which is 26.36% above the recent price of $180.44. |
28570.0 | 2022-11-11 00:00:00 UTC | Validea Joel Greenblatt Strategy Daily Upgrade Report - 11/11/2022 | ABG | https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-11-11-2022 | nan | nan | The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Asbury Automotive Group, Inc. is an automotive retailer company. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. It owns and operates approximately 205 new vehicle franchises, representing 31 brands of automobiles at 155 dealership locations, 35 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The Company's store operations are conducted by its subsidiaries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL
Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC.
Full Guru Analysis for ABG
Full Factor Report for ABG
JJILL INC (JILL) is a small-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: J.Jill, Inc. (J.Jill) is an omnichannel retailer of women's apparel. J.Jill is a women's apparel brand focused on customer in the 45 age segment. Its products are marketed under the J.Jill brand name and sold primarily through its Retail and Direct channels. It operates 249 stores nationwide and an e-commerce platform. Its diverse assortment of apparel spans knit and woven tops, bottoms and dresses as well as sweaters and outerwear. It also offers a range of complementary footwear and accessories, including scarves, jewelry and hosiery. Its products are available across the full range of sizes including Misses, Petites, Women's and Tall, and reflect a modern balance of style, quality, comfort and ease at accessible price points. It offers two sub-brands as extensions of its brand aesthetic: Pure Jill and Wearever. Pure Jill sub-brand reflects the art of understated ease. Wearever sub-brand consists of its refined rayon jersey knit collection that is designed for work, travel and home.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of JJILL INC
Full Guru Analysis for JILL
Full Factor Report for JILL
ATKORE INC (ATKR) is a mid-cap value stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Atkore Inc. is a manufacturer of electrical products primarily for the non-residential construction and renovation markets, as well as residential markets, and safety and infrastructure products for the construction and industrial markets. The Company's segments include Electrical, and Safety & Infrastructure. The Electrical segment manufactures products used in the construction of electrical power systems, including conduit, cable, and installation accessories. This segment serves contractors in partnership with the electrical wholesale channel. The Safety & Infrastructure segment designs and manufactures solutions, including metal framing, mechanical pipe, perimeter security, and cable management for the protection and reliability of critical infrastructure. These solutions are marketed to contractors, original equipment manufacturers, and end-users. It also offers high density polyethylene (HDPE) conduit, primarily serving telecommunications, utility, and transportation markets.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of ATKORE INC
Full Guru Analysis for ATKR
Full Factor Report for ATKR
More details on Validea's Joel Greenblatt strategy
Joel Greenblatt Stock Ideas
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. Full Guru Analysis for ABG Full Factor Report for ABG JJILL INC (JILL) is a small-cap value stock in the Retail (Apparel) industry. Its products are available across the full range of sizes including Misses, Petites, Women's and Tall, and reflect a modern balance of style, quality, comfort and ease at accessible price points. | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. Full Guru Analysis for ABG Full Factor Report for ABG JJILL INC (JILL) is a small-cap value stock in the Retail (Apparel) industry. ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. | ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. Full Guru Analysis for ABG Full Factor Report for ABG JJILL INC (JILL) is a small-cap value stock in the Retail (Apparel) industry. The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. | ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. Full Guru Analysis for ABG Full Factor Report for ABG JJILL INC (JILL) is a small-cap value stock in the Retail (Apparel) industry. The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. |
28571.0 | 2022-11-10 00:00:00 UTC | ABG Crosses Above Key Moving Average Level | ABG | https://www.nasdaq.com/articles/abg-crosses-above-key-moving-average-level-0 | nan | nan | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $170.68, changing hands as high as $177.48 per share. Asbury Automotive Group Inc shares are currently trading up about 11.2% on the day. The chart below shows the one year performance of ABG shares, versus its 200 day moving average:
Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $203.92 as the 52 week high point — that compares with a last trade of $176.56.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
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Preferred Stock Channel
ALTO Average Annual Return
ETFs Holding CSTE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $170.68, changing hands as high as $177.48 per share. The chart below shows the one year performance of ABG shares, versus its 200 day moving average: Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $203.92 as the 52 week high point — that compares with a last trade of $176.56. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: Preferred Stock Channel ALTO Average Annual Return ETFs Holding CSTE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $170.68, changing hands as high as $177.48 per share. The chart below shows the one year performance of ABG shares, versus its 200 day moving average: Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $203.92 as the 52 week high point — that compares with a last trade of $176.56. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: Preferred Stock Channel ALTO Average Annual Return ETFs Holding CSTE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $170.68, changing hands as high as $177.48 per share. The chart below shows the one year performance of ABG shares, versus its 200 day moving average: Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $203.92 as the 52 week high point — that compares with a last trade of $176.56. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: Preferred Stock Channel ALTO Average Annual Return ETFs Holding CSTE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $170.68, changing hands as high as $177.48 per share. The chart below shows the one year performance of ABG shares, versus its 200 day moving average: Looking at the chart above, ABG's low point in its 52 week range is $138.88 per share, with $203.92 as the 52 week high point — that compares with a last trade of $176.56. Asbury Automotive Group Inc shares are currently trading up about 11.2% on the day. |
28572.0 | 2022-11-01 00:00:00 UTC | Asbury (ABG) Q3 Earnings Surpass Estimates, Rise 39% Y/Y | ABG | https://www.nasdaq.com/articles/asbury-abg-q3-earnings-surpass-estimates-rise-39-y-y | nan | nan | Asbury Automotive Group ABG reported impressive third-quarter 2022 adjusted earnings of $9.23 per share, which increased 39% year over year and topped the Zacks Consensus Estimate of $9.19. This outperformance can be primarily attributed to higher-than-expected gross profit from the Parts & Services and Finance & Insurance units. In the reported quarter, revenues amounted to $3,866 million, surging 61% year over year. The top line, however, fell short of the Zacks Consensus Estimate of $3,970 million.
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
Asbury Automotive Group, Inc. price-consensus-eps-surprise-chart | Asbury Automotive Group, Inc. Quote
Segment Details
In the quarter, new-vehicle revenues jumped 59% year over year to $1,799 million but missed the Zacks Consensus Estimate of $1,911 million. Gross profit from the segment came in at $201 million, soaring 60% from the prior-year quarter but missing the consensus mark of $213 million.
Used-vehicle revenues rose 51% from the year-ago figure to $1,330.7 million, beating the consensus mark of $1,287 million. Gross profit from the segment came in at $82.1 million, which rose 14% but lagged the Zacks Consensus Estimate of $86 million.
Net revenues in the finance and insurance business amounted to $200 million, increasing 99% from the year-ago quarter and outpacing the consensus mark of $185 million. Gross profit was $186.9 million, rising 86% year over year and beating the consensus estimate of $177 million.
Revenues from the parts and service business rose 80% from the prior-year quarter to $536.1 million and topped the consensus mark of $502 million. Gross profit from this segment came in at $298 million, rising 64% year over year and crossing the consensus estimate of $283 million.
Other Tidbits
Adjusted selling, general & administrative (SG&A) expenses as a percentage of gross profit rose to 57.1%, marking an increase of 180 basis points year over year. Asbury sold nearly 6,800 vehicles, an uptick of 13% from the prior year quarter through the “end-to-end” online sales platform, Clicklane.
As of Sep 30, the company had cash/cash equivalents of $141.3 million, down from $178.9 million as of Dec 31, 2021. It had long-term debt of $3,325.5 million as of Sep 30, falling from $3,582.6 million on Dec 31, 2021.
ABG carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Peer Releases
Lithia Motors LAD: Lithia reported third-quarter 2022 adjusted earnings of $11.08 per share, which decreased a marginal 1% from the prior-year quarter’s $11.21. The bottom line also missed the Zacks Consensus Estimate of $11.91. Total revenues jumped 18.2% year over year to $7,295.7 million. The top line, however, missed the Zacks Consensus Estimate of $7,369 million.
Lithia had cash and cash equivalents of $233 million as of Sep 30, 2022, up from $174.8 million as of Dec 31, 2021. Long-term debt was $5,222.3 million, marking an increase from $3,185.7 million as of Dec 31, 2021. The company approved a dividend of 42 cents per share, which is to be payable on Nov 18, 2022, to shareholders of record on Nov 11, 2022.
Penske Automotive PAG: Penske reported third-quarter 2022 adjusted earnings of $4.61 per share, increasing 3% year over year from $4.46 and surpassing the Zacks Consensus Estimate of $4.38. The auto retailer registered net sales of $6,920.7 million, which topped the Zacks Consensus Estimate of $6,855 million. The top line rose 7% from the year-ago quarter.
Penske had cash and cash equivalents of $92.3 million as of Sep 30, 2022, down from $100.7 million in 2021 end. The long-term debt amounted to $1,561.9 million, up from $1,392 million as of Dec 31, 2021. During the quarter under discussion, PAG repurchased 2.8 million shares of common stock for $309.4 million. PAG also increased its share repurchase authorization by $250 million.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group ABG reported impressive third-quarter 2022 adjusted earnings of $9.23 per share, which increased 39% year over year and topped the Zacks Consensus Estimate of $9.19. ABG carries a Zacks Rank #3 (Hold), currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group ABG reported impressive third-quarter 2022 adjusted earnings of $9.23 per share, which increased 39% year over year and topped the Zacks Consensus Estimate of $9.19. ABG carries a Zacks Rank #3 (Hold), currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group ABG reported impressive third-quarter 2022 adjusted earnings of $9.23 per share, which increased 39% year over year and topped the Zacks Consensus Estimate of $9.19. ABG carries a Zacks Rank #3 (Hold), currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group ABG reported impressive third-quarter 2022 adjusted earnings of $9.23 per share, which increased 39% year over year and topped the Zacks Consensus Estimate of $9.19. ABG carries a Zacks Rank #3 (Hold), currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28573.0 | 2022-10-27 00:00:00 UTC | Asbury Automotive Group (ABG) Beats Q3 Earnings Estimates | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-beats-q3-earnings-estimates | nan | nan | Asbury Automotive Group (ABG) came out with quarterly earnings of $9.23 per share, beating the Zacks Consensus Estimate of $9.19 per share. This compares to earnings of $7.36 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 0.44%. A quarter ago, it was expected that this auto dealership chain would post earnings of $8.88 per share when it actually produced earnings of $10.04, delivering a surprise of 13.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.87 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 2.63%. This compares to year-ago revenues of $2.41 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Asbury Automotive shares have lost about 10.5% since the beginning of the year versus the S&P 500's decline of -19.6%.
What's Next for Asbury Automotive?
While Asbury Automotive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Asbury Automotive: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $8.47 on $3.96 billion in revenues for the coming quarter and $37.54 on $15.8 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Denny's (DENN), another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended September 2022. The results are expected to be released on November 1.
This restaurant operator is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Denny's' revenues are expected to be $114.01 million, up 9.9% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG) came out with quarterly earnings of $9.23 per share, beating the Zacks Consensus Estimate of $9.19 per share. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) came out with quarterly earnings of $9.23 per share, beating the Zacks Consensus Estimate of $9.19 per share. Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.87 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 2.63%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $9.23 per share, beating the Zacks Consensus Estimate of $9.19 per share. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.87 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 2.63%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $9.23 per share, beating the Zacks Consensus Estimate of $9.19 per share. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report While Asbury Automotive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? |
28574.0 | 2022-10-27 00:00:00 UTC | The Math Shows IUS Can Go To $43 | ABG | https://www.nasdaq.com/articles/the-math-shows-ius-can-go-to-%2443 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco RAFI Strategic US ETF (Symbol: IUS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $43.32 per unit.
With IUS trading at a recent price near $36.09 per unit, that means that analysts see 20.05% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IUS's underlying holdings with notable upside to their analyst target prices are Asbury Automotive Group Inc (Symbol: ABG), Tri Pointe Homes Inc (Symbol: TPH), and NIKE Inc (Symbol: NKE). Although ABG has traded at a recent price of $154.61/share, the average analyst target is 49.08% higher at $230.50/share. Similarly, TPH has 24.95% upside from the recent share price of $16.54 if the average analyst target price of $20.67/share is reached, and analysts on average are expecting NKE to reach a target price of $114.71/share, which is 24.16% above the recent price of $92.39. Below is a twelve month price history chart comparing the stock performance of ABG, TPH, and NKE:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco RAFI Strategic US ETF IUS $36.09 $43.32 20.05%
Asbury Automotive Group Inc ABG $154.61 $230.50 49.08%
Tri Pointe Homes Inc TPH $16.54 $20.67 24.95%
NIKE Inc NKE $92.39 $114.71 24.16%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although ABG has traded at a recent price of $154.61/share, the average analyst target is 49.08% higher at $230.50/share. Invesco RAFI Strategic US ETF IUS $36.09 $43.32 20.05% Asbury Automotive Group Inc ABG $154.61 $230.50 49.08% Tri Pointe Homes Inc TPH $16.54 $20.67 24.95% NIKE Inc NKE $92.39 $114.71 24.16% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IUS's underlying holdings with notable upside to their analyst target prices are Asbury Automotive Group Inc (Symbol: ABG), Tri Pointe Homes Inc (Symbol: TPH), and NIKE Inc (Symbol: NKE). | Three of IUS's underlying holdings with notable upside to their analyst target prices are Asbury Automotive Group Inc (Symbol: ABG), Tri Pointe Homes Inc (Symbol: TPH), and NIKE Inc (Symbol: NKE). Invesco RAFI Strategic US ETF IUS $36.09 $43.32 20.05% Asbury Automotive Group Inc ABG $154.61 $230.50 49.08% Tri Pointe Homes Inc TPH $16.54 $20.67 24.95% NIKE Inc NKE $92.39 $114.71 24.16% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although ABG has traded at a recent price of $154.61/share, the average analyst target is 49.08% higher at $230.50/share. | Three of IUS's underlying holdings with notable upside to their analyst target prices are Asbury Automotive Group Inc (Symbol: ABG), Tri Pointe Homes Inc (Symbol: TPH), and NIKE Inc (Symbol: NKE). Although ABG has traded at a recent price of $154.61/share, the average analyst target is 49.08% higher at $230.50/share. Below is a twelve month price history chart comparing the stock performance of ABG, TPH, and NKE: Below is a summary table of the current analyst target prices discussed above: | Invesco RAFI Strategic US ETF IUS $36.09 $43.32 20.05% Asbury Automotive Group Inc ABG $154.61 $230.50 49.08% Tri Pointe Homes Inc TPH $16.54 $20.67 24.95% NIKE Inc NKE $92.39 $114.71 24.16% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IUS's underlying holdings with notable upside to their analyst target prices are Asbury Automotive Group Inc (Symbol: ABG), Tri Pointe Homes Inc (Symbol: TPH), and NIKE Inc (Symbol: NKE). Although ABG has traded at a recent price of $154.61/share, the average analyst target is 49.08% higher at $230.50/share. |
28575.0 | 2022-10-26 00:00:00 UTC | Penske Automotive (PAG) Surpasses Q3 Earnings and Revenue Estimates | ABG | https://www.nasdaq.com/articles/penske-automotive-pag-surpasses-q3-earnings-and-revenue-estimates | nan | nan | Penske Automotive (PAG) came out with quarterly earnings of $4.61 per share, beating the Zacks Consensus Estimate of $4.38 per share. This compares to earnings of $4.46 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 5.25%. A quarter ago, it was expected that this auto dealership chain would post earnings of $4.35 per share when it actually produced earnings of $4.93, delivering a surprise of 13.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Penske, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $6.92 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 0.95%. This compares to year-ago revenues of $6.5 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Penske shares have lost about 3.2% since the beginning of the year versus the S&P 500's decline of -19%.
What's Next for Penske?
While Penske has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Penske: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.97 on $6.59 billion in revenues for the coming quarter and $18.04 on $27.33 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended September 2022. The results are expected to be released on October 27.
This auto dealership chain is expected to post quarterly earnings of $9.19 per share in its upcoming report, which represents a year-over-year change of +24.9%. The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level.
Asbury Automotive Group's revenues are expected to be $3.97 billion, up 65% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended September 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended September 2022. Penske, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $6.92 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 0.95%. | Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended September 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Penske Automotive (PAG) came out with quarterly earnings of $4.61 per share, beating the Zacks Consensus Estimate of $4.38 per share. | Asbury Automotive Group (ABG), another stock in the same industry, has yet to report results for the quarter ended September 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Penske Automotive (PAG) came out with quarterly earnings of $4.61 per share, beating the Zacks Consensus Estimate of $4.38 per share. |
28576.0 | 2022-10-25 00:00:00 UTC | Are Options Traders Betting on a Big Move in Asbury (ABG) Stock? | ABG | https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-asbury-abg-stock | nan | nan | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 16, 2022 $80.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Asbury shares, but what is the fundamental picture for the company? Currently, Asbury is a Zacks Rank #3 (Hold) in the Automotive - Retail and Whole Sales industry that ranks in the Bottom 30% of our Zacks Industry Rank. Over the last 60 days, the Zacks Consensus Estimate for the current quarter has moved from $9.17 per share to $9.19.
Given the way analysts feel about Asbury right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Investors in Asbury Automotive Group, Inc. ABG need to pay close attention to the stock based on moves in the options market lately. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. |
28577.0 | 2022-10-21 00:00:00 UTC | Zacks Industry Outlook Highlights Asbury Automotive, Rush Enterprises, Group 1 Automotive and Sonic Automotive | ABG | https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-asbury-automotive-rush-enterprises-group-1-automotive | nan | nan | For Immediate Release
Chicago, IL – October 21, 2022 – Today, Zacks Equity Research discusses Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH.
Industry: Auto - Retail & Wholesale
Link: https://www.zacks.com/commentary/1994693/4-stocks-to-watch-as-auto-retail-industry-holds-its-ground
High sticker prices of vehicles, digitalization ramp-up and strategic expansion initiatives are boosting the results of the Zacks Auto Retail and Whole Sales industry participants. Given their strong performance and cash flow generation, auto retailers are committed to actively pursuing capital deployment strategies through dividend and share repurchase programs to boost investors' value.
While the demand for vehicles has held strong so far, will consumers be willing to pay a premium for their preferred vehicles even in the face of rising interest rates? Or will the industry participants resort to sweeter financing deals and discounts to hold up the demand if customers get unwilling to shell more for these discretionary items? Despite macro challenges, companies like Asbury Automotive, Rush Enterprises, Group 1 Automotive and Sonic Automotive are well-placed to escape headwinds.
Industry Overview
The automotive sector’s performance depends on its retail and wholesale network. Through dealership and retail chains, companies in the Zacks Auto Retail and Whole Sales industry carry out several tasks. These include the sale of new and used vehicles, light trucks as well as auto parts, execution of repair and maintenance services along with the arrangement of vehicle financing.
The industry, being consumer cyclical, is dependent on business cycles and economic conditions. Consumers and businesses spend more on big-ticket items when they have higher disposable income. On the contrary, when income is tight, discretionary expenses are the first to be slashed. Importantly, the coronavirus pandemic has brought considerable changes in the operating environment, with the industry laying more emphasis on e-commerce retailing.
Key Themes to Decide the Industry's Fate
High Average Price of Vehicles Enhancing Margins: Shortage in the supply of semiconductors — a byproduct of COVID that only got worsened by the Russia-Ukraine conflict — has put a lid on inventory levels. And that’s resulting in higher average transaction prices of vehicles. While inventory is finally starting to pick up, as supply chain snafus are gradually easing, sticker prices of new vehicles are not likely to drop in 2022 amid persistent inflationary pressure. This should enable auto retailers to record high vehicle margins, thereby boosting their bottom line.
Transformation Toward E-commerce Augurs Well: Automotive e-commerce is flourishing and how! Today, consumers prefer buying vehicles online as enhanced digital solutions are providing them with a truly comprehensive and personal experience.Initiatives like ship-to-home next day, curbside pick-up option, and buy online, pick-up in stores options are picking pace, driving additional traffic to companies’ websites. With digitization gathering steam, auto retail companies are poised to reach new heights.
Expansion Initiative Continues: Last year, there was a flurry of dealership mergers and acquisition deals. The consolidation wave in the industry continues, with large retailers actively focusing on expanding their footprint and gaining economies of scale. Even smaller dealer groups are seeking to add more stores that can provide a wider selection of vehicles at all price points as well as broaden their geographic customer base. These expansion efforts are bolstering the scalability, revenues and competitive advantage of auto retailers.
Shareholder-Friendly Moves in Place: Strong vehicle margins, digitization ramp-up and strategic buyouts are enabling auto retailers to generate strong results. Free cash flow is soaring, and companies are actively boosting shareholder value via dividends and share buybacks.
Vehicle Affordability is the New Concern: While things have been going all hunky-dory for auto retailers, affordability challenges are emerging in the face of macro headwinds. It’s to be seen if Americans wish to continue to splurge on these high-ticket items, given the rising interest rates and economic uncertainty. Per Cox, the new vehicle loan rate at the end of the third quarter was 7%, up 2 percentage points. The cost of financing is only expected to keep rising.With borrowing getting expensive and threats of a recession looming large, consumers might be unwilling to pay a heavy premium for cars.
Zacks Industry Rank Instills Optimism
The Zacks Auto Retail & Wholesale industry is a nine-stock group within the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #87, which places it in the top 35% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are upbeat about this group’s earnings growth potential. Since May, the industry’s earnings estimates for 2022 have increased 3.4%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Tops Sector, Underperforms S&P 500
The Zacks Auto Retail & Wholesale industry has outperformed the Auto, Tires and Truck sector but underperformed the Zacks S&P 500 composite over the past year. The industry has declined 20.5% over this period compared with the sector and the S&P 500’s decline of 35% and 19.3%, respectively.
Industry's Current Valuation
Since automotive companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio.
On the basis of the trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 4.88X compared with the S&P 500’s 11.40X and the sector’s trailing 12-month EV/EBITDA of 13.32X.
Over the past five years, the industry has traded as high as 10.08X, as low as 4.28X and at a median of 7X.
4 Auto Retailers That Hold Promise
Rush: Rush operates a regional network of commercial vehicle dealerships and sells new and used heavy-duty and medium-duty trucks and buses. The purchase of certain assets of Summit Truck Group in December 2021 has strengthened its dealership network. The acquisition of an additional 30% interest in Rush Truck Centers of Canada Limited in May 2022 also expanded business. RUSHA’s current dividend yield is 1.75%, with a five-year dividend growth rate of 35%. The company has increased its payout six times in the last five years.
Rush carries a Zacks Rank #2 (Buy) and has a VGM Score of A. The Zacks Consensus Estimate for RUSHA’s 2022 earnings per share implies growth of 36.2%. The expected long-term earnings growth rate for the stock is 15%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Asbury: Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States.The acquisition of Larry H. Miller Dealerships has bolstered Asbury’s regional footprint and will add nearly $5.7 billion in expected annualized revenues. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The company’s end-to-end e-commerce platform—Clicklane—is on track to generate around $1 billion in sales in 2022 and $2.2 billion by the end of 2023.
Asbury carries a Zacks Rank #3 (Hold) and has a VGM Score of A. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. The expected long-term earnings growth rate for the stock is 18.5%.
Group 1: Another notable automotive retailer, Group 1 operates primarily in the United States and U.K. In 2021, the company acquired Prime Automotive in the Northeastern United States and the Robinsons Group in the U.K., which diversified Group 1’s footprint. The AcceleRide platform, Group 1’s online retailing initiative, is yielding positive results. Group 1 is also riding on the strength of its aftersales business and anticipates trends to remain robust for the rest of 2022. The company has hiked its dividend twelve times in the last five years, with an average annualized growth rate of 9.3%.
Group 1 carries a Zacks Rank #3 and has a VGM Score of A. The Zacks Consensus Estimate for GPI’s 2022 earnings per share implies growth of 30%. The expected long-term earnings growth rate for the stock is 14.1%.
Sonic: One of the leading retailers of new and used cars, Sonic is committed to optimizing its franchised dealership business through organic growth initiatives and strategic acquisitions. The RFJ buyout has substantially boosted Sonic’s portfolio and geographical footprint and has catapulted the company into the top-five biggest dealership groups in the United States. Sonic’s EchoPark unit is the major growth engine of the firm. Riding on a robust cash flow generation and sound capital allocation, Sonic increased its share repurchase authorization by $500 million in the last reported quarter.
Sonic carries a Zacks Rank #3 and has a Value Score of A. The Zacks Consensus Estimate for SAH’s 2022 earnings per share and sales implies growth of 17.5% and 18.7%, respectively.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – October 21, 2022 – Today, Zacks Equity Research discusses Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. | For Immediate Release Chicago, IL – October 21, 2022 – Today, Zacks Equity Research discusses Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. | For Immediate Release Chicago, IL – October 21, 2022 – Today, Zacks Equity Research discusses Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. | For Immediate Release Chicago, IL – October 21, 2022 – Today, Zacks Equity Research discusses Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. |
28578.0 | 2022-10-20 00:00:00 UTC | 4 Stocks to Watch as Auto Retail Industry Holds its Ground | ABG | https://www.nasdaq.com/articles/4-stocks-to-watch-as-auto-retail-industry-holds-its-ground | nan | nan | High sticker prices of vehicles, digitalization ramp-up and strategic expansion initiatives are boosting the results of the Zacks Auto Retail and Whole Sales industry participants. Given their strong performance and cash flow generation, auto retailers are committed to actively pursuing capital deployment strategies through dividend and share repurchase programs to boost investors value.
While the demand for vehicles has held strong so far, will consumers be willing to pay a premium for their preferred vehicles even in the face of rising interest rates? Or will the industry participants resort to sweeter financing deals and discounts to hold up the demand if customers get unwilling to shell more for these discretionary items? Despite macro challenges, companies like Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH are well-placed to escape headwinds.
Industry Overview
The automotive sector’s performance depends on its retail and wholesale network. Through dealership and retail chains, companies in the Zacks Auto Retail and Whole Sales industry carry out several tasks. These include the sale of new and used vehicles, light trucks as well as auto parts, execution of repair and maintenance services along with the arrangement of vehicle financing. The industry, being consumer cyclical, is dependent on business cycles and economic conditions. Consumers and businesses spend more on big-ticket items when they have higher disposable income. On the contrary, when income is tight, discretionary expenses are the first to be slashed. Importantly, the coronavirus pandemic has brought considerable changes in the operating environment, with the industry laying more emphasis on e-commerce retailing.
Key Themes to Decide the Industry's Fate
High Average Price of Vehicles Enhancing Margins: Shortage in the supply of semiconductors — a byproduct of COVID that only got worsened by the Russia-Ukraine conflict — has put a lid on inventory levels. And that’s resulting in higher average transaction prices of vehicles. While inventory is finally starting to pick up, as supply chain snafus are gradually easing, sticker prices of new vehicles are not likely to drop in 2022 amid persistent inflationary pressure. This should enable auto retailers to record high vehicle margins, thereby boosting their bottom line.
Transformation Toward E-commerce Augurs Well: Automotive e-commerce is flourishing and how! Today, consumers prefer buying vehicles online as enhanced digital solutions are providing them with a truly comprehensive and personal experience.Initiatives like ship-to-home next day, curbside pick-up option, and buy online, pick-up in stores options are picking pace, driving additional traffic to companies’ websites. With digitization gathering steam, auto retail companies are poised to reach new heights.
Expansion Initiative Continues: Last year, there was a flurry of dealership mergers and acquisition deals. The consolidation wave in the industry continues, with large retailers actively focusing on expanding their footprint and gaining economies of scale. Even smaller dealer groups are seeking to add more stores that can provide a wider selection of vehicles at all price points as well as broaden their geographic customer base. These expansion efforts are bolstering the scalability, revenues and competitive advantage of auto retailers.
Shareholder-Friendly Moves in Place: Strong vehicle margins, digitization ramp-up and strategic buyouts are enabling auto retailers to generate strong results. Free cash flow is soaring, and companies are actively boosting shareholder value via dividends and share buybacks.
Vehicle Affordability is the New Concern: Whilethings have been going all hunky-dory for auto retailers, affordability challenges are emerging in the face of macro headwinds. It’s to be seen if Americans wish to continue to splurge on these high-ticket items, given the rising interest rates and economic uncertainty. Per Cox, the new vehicle loan rate at the end of the third quarter was 7%, up 2 percentage points. The cost of financing is only expected to keep rising.With borrowing getting expensive and threats of a recession looming large, consumers might be unwilling to pay a heavy premium for cars.
Zacks Industry Rank Instills Optimism
The Zacks Auto Retail & Whole Sales industry is a nine-stock group within the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #87, which places it in the top 35% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are upbeat about this group’s earnings growth potential. Since May, the industry’s earnings estimates for 2022 have increased 3.4%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Tops Sector, Underperforms S&P 500
The Zacks Auto Retail & Whole Sales industry has outperformed the Auto, Tires and Truck sector but underperformed the Zacks S&P 500 composite over the past year. The industry has declined 20.5% over this period compared with the sector and the S&P 500’s decline of 35% and 19.3%, respectively.
One-Year Price Performance
Industry's Current Valuation
Since automotive companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio.
On the basis of the trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 4.88X compared with the S&P 500’s 11.40X and the sector’s trailing 12-month EV/EBITDA of 13.32X.
Over the past five years, the industry has traded as high as 10.08X, as low as 4.28X and at a median of 7X, as the chart below shows.
EV/EBITDA Ratio (Past 5 Years)
4 Auto Retailers That Hold Promise
Rush: Rush operates a regional network of commercial vehicle dealerships and sells new and used heavy-duty and medium-duty trucks and buses. The purchase of certain assets of Summit Truck Group in December 2021 has strengthened its dealership network. The acquisition of an additional 30% interest in Rush Truck Centers of Canada Limited in May 2022 also expanded business. RUSHA’s current dividend yield is 1.75%, with a five-year dividend growth rate of 35%. The company has increased its payout six times in the last five years.
Rush carries a Zacks Rank #2 (Buy) and has a VGM Score of A. The Zacks Consensus Estimate for RUSHA’s 2022 earnings per share implies growth of 36.2%. The expected long-term earnings growth rate for the stock is 15%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price & Consensus: RUSHA
Asbury: Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States.The acquisition of Larry H. Miller Dealerships has bolstered Asbury’s regional footprint and will add nearly $5.7 billion in expected annualized revenues. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The company’s end-to-end e-commerce platform—Clicklane—is on track to generate around $1 billion in sales in 2022 and $2.2 billion by the end of 2023.
Asbury carries a Zacks Rank #3 (Hold) and has a VGM Score of A. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. The expected long-term earnings growth rate for the stock is 18.5%.
Price & Consensus: ABG
Group 1: Another notable automotive retailer, Group 1 operates primarily in the United States and U.K. In 2021, the company acquired Prime Automotive in the Northeastern United States and the Robinsons Group in the U.K., which diversified Group 1’s footprint. The AcceleRide platform, Group 1’s online retailing initiative, is yielding positive results. Group 1 is also riding on the strength of its aftersales business and anticipates trends to remain robust for the rest of 2022. The company has hiked its dividend twelve times in the last five years, with an average annualized growth rate of 9.3%.
Group 1 carries a Zacks Rank #3 and has a VGM Score of A. The Zacks Consensus Estimate for GPI’s 2022 earnings per share implies growth of 30%. The expected long-term earnings growth rate for the stock is 14.1%.
Price & Consensus: GPI
Sonic: One of the leading retailers of new and used cars, Sonic is committed to optimizing its franchised dealership business through organic growth initiatives and strategic acquisitions. The RFJ buyout has substantially boosted Sonic’s portfolio and geographical footprint and has catapulted the company into the top-five biggest dealership groups in the United States. Sonic’s EchoPark unit is the major growth engine of the firm. Riding on a robust cash flow generation and sound capital allocation, Sonic increased its share repurchase authorization by $500 million in the last reported quarter.
Sonic carries a Zacks Rank #3 and has a Value Score of A. The Zacks Consensus Estimate for SAH’s 2022 earnings per share and sales implies growth of 17.5% and 18.7%, respectively.
Price & Consensus: SAH
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI): Free Stock Analysis Report
Sonic Automotive, Inc. (SAH): Free Stock Analysis Report
Rush Enterprises, Inc. (RUSHA): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Despite macro challenges, companies like Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH are well-placed to escape headwinds. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. | Despite macro challenges, companies like Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH are well-placed to escape headwinds. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. | Despite macro challenges, companies like Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH are well-placed to escape headwinds. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. | Despite macro challenges, companies like Asbury Automotive ABG, Rush Enterprises RUSHA, Group 1 Automotive GPI and Sonic Automotive SAH are well-placed to escape headwinds. ABG’s ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The Zacks Consensus Estimate for ABG’s 2022 earnings per share implies growth of 37%. |
28579.0 | 2022-10-20 00:00:00 UTC | Asbury Automotive Group (ABG) Reports Next Week: Wall Street Expects Earnings Growth | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-reports-next-week%3A-wall-street-expects-earnings-growth | nan | nan | Wall Street expects a year-over-year increase in earnings on higher revenues when Asbury Automotive Group (ABG) reports results for the quarter ended September 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on October 27, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This auto dealership chain is expected to post quarterly earnings of $9.11 per share in its upcoming report, which represents a year-over-year change of +23.8%.
Revenues are expected to be $3.97 billion, up 65% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 2.11% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Asbury Automotive?
For Asbury Automotive, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.51%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Asbury Automotive will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Asbury Automotive would post earnings of $8.88 per share when it actually produced earnings of $10.04, delivering a surprise of +13.06%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Asbury Automotive appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Group 1 Automotive (GPI), another stock in the Zacks Automotive - Retail and Whole Sales industry, is expected to report earnings per share of $11.18 for the quarter ended September 2022. This estimate points to a year-over-year change of +16.2%. Revenues for the quarter are expected to be $4.07 billion, up 16% from the year-ago quarter.
The consensus EPS estimate for Group 1 Automotive has been revised 0.2% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 2.84%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Group 1 Automotive will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Wall Street expects a year-over-year increase in earnings on higher revenues when Asbury Automotive Group (ABG) reports results for the quarter ended September 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. | Wall Street expects a year-over-year increase in earnings on higher revenues when Asbury Automotive Group (ABG) reports results for the quarter ended September 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | Wall Street expects a year-over-year increase in earnings on higher revenues when Asbury Automotive Group (ABG) reports results for the quarter ended September 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | Wall Street expects a year-over-year increase in earnings on higher revenues when Asbury Automotive Group (ABG) reports results for the quarter ended September 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report For Asbury Automotive, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. |
28580.0 | 2022-10-18 00:00:00 UTC | Why Asbury Automotive (ABG) Could Beat Earnings Estimates Again | ABG | https://www.nasdaq.com/articles/why-asbury-automotive-abg-could-beat-earnings-estimates-again-0 | nan | nan | Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry.
This auto dealership chain has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 8.49%.
For the most recent quarter, Asbury Automotive was expected to post earnings of $8.88 per share, but it reported $10.04 per share instead, representing a surprise of 13.06%. For the previous quarter, the consensus estimate was $8.92 per share, while it actually produced $9.27 per share, a surprise of 3.92%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Asbury Automotive lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Asbury Automotive currently has an Earnings ESP of +1.51%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 27, 2022.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. | It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. | It is worth considering Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. |
28581.0 | 2022-10-11 00:00:00 UTC | Are You a Value Investor? This 1 Stock Could Be the Perfect Pick | ABG | https://www.nasdaq.com/articles/are-you-a-value-investor-this-1-stock-could-be-the-perfect-pick-136 | nan | nan | Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Asbury Automotive Group (ABG)
Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. As of December 31, 2021, Asbury owned 205 new vehicle franchises at 155 locations. It also operates 35 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The company offers 31 automotive brands including Lexus, Mercedes-Benz, Acura, BMW, Genesis, Infiniti, Jaguar, Land Rover, Lincoln, Porsche, Volvo, Audi, Bentley, Toyota, Honda, Nissan, Hyundai, Sprinter, Volkswagen, Subaru, Fiat, Kia, MINI, Isuzu, Dodge, Chrysler, Jeep, Ford, Chevrolet, Buick and GMC.
ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 4.15; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.51 to $37.38 per share. ABG boasts an average earnings surprise of 14.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ABG should be on investors' short list.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. ABG boasts an average earnings surprise of 14.5%. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. | Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. ABG boasts an average earnings surprise of 14.5%. | Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. ABG boasts an average earnings surprise of 14.5%. |
28582.0 | 2022-09-27 00:00:00 UTC | A Note On Asbury Automotive Group, Inc.'s (NYSE:ABG) ROE and Debt To Equity | ABG | https://www.nasdaq.com/articles/a-note-on-asbury-automotive-group-inc.s-nyse%3Aabg-roe-and-debt-to-equity | nan | nan | Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Asbury Automotive Group, Inc. (NYSE:ABG).
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company's success at turning shareholder investments into profits.
How Do You Calculate Return On Equity?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Asbury Automotive Group is:
30% = US$727m ÷ US$2.4b (Based on the trailing twelve months to June 2022).
The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.30 in profit.
Does Asbury Automotive Group Have A Good ROE?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. You can see in the graphic below that Asbury Automotive Group has an ROE that is fairly close to the average for the Specialty Retail industry (30%).
NYSE:ABG Return on Equity September 27th 2022
That isn't amazing, but it is respectable. While at least the ROE is not lower than the industry, its still worth checking what role the company's debt plays as high debt levels relative to equity may also make the ROE appear high. If true, then it is more an indication of risk than the potential. To know the 3 risks we have identified for Asbury Automotive Group visit our risks dashboard for free.
The Importance Of Debt To Return On Equity
Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
Asbury Automotive Group's Debt And Its 30% ROE
Asbury Automotive Group clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.48. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Conclusion
Return on equity is useful for comparing the quality of different businesses. In our books, the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREE visualization of analyst forecasts for the company.
Of course Asbury Automotive Group may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By way of learning-by-doing, we'll look at ROE to gain a better understanding of Asbury Automotive Group, Inc. (NYSE:ABG). NYSE:ABG Return on Equity September 27th 2022 That isn't amazing, but it is respectable. You can see in the graphic below that Asbury Automotive Group has an ROE that is fairly close to the average for the Specialty Retail industry (30%). | By way of learning-by-doing, we'll look at ROE to gain a better understanding of Asbury Automotive Group, Inc. (NYSE:ABG). NYSE:ABG Return on Equity September 27th 2022 That isn't amazing, but it is respectable. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Asbury Automotive Group is: 30% = US$727m ÷ US$2.4b (Based on the trailing twelve months to June 2022). | By way of learning-by-doing, we'll look at ROE to gain a better understanding of Asbury Automotive Group, Inc. (NYSE:ABG). NYSE:ABG Return on Equity September 27th 2022 That isn't amazing, but it is respectable. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Asbury Automotive Group is: 30% = US$727m ÷ US$2.4b (Based on the trailing twelve months to June 2022). | By way of learning-by-doing, we'll look at ROE to gain a better understanding of Asbury Automotive Group, Inc. (NYSE:ABG). NYSE:ABG Return on Equity September 27th 2022 That isn't amazing, but it is respectable. The Importance Of Debt To Return On Equity Virtually all companies need money to invest in the business, to grow profits. |
28583.0 | 2022-09-26 00:00:00 UTC | Here is Why Growth Investors Should Buy Asbury Automotive (ABG) Now | ABG | https://www.nasdaq.com/articles/here-is-why-growth-investors-should-buy-asbury-automotive-abg-now | nan | nan | Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Asbury Automotive Group (ABG) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this auto dealership chain is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings Growth
Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Asbury Automotive is 41.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 37.7% this year, crushing the industry average, which calls for EPS growth of 24.4%.
Cash Flow Growth
While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Asbury Automotive is 97.7%, which is higher than many of its peers. In fact, the rate compares to the industry average of 74%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 26.4% over the past 3-5 years versus the industry average of 24.1%.
Promising Earnings Estimate Revisions
Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Asbury Automotive. The Zacks Consensus Estimate for the current year has surged 0.9% over the past month.
Bottom Line
Asbury Automotive has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Asbury Automotive is a potential outperformer and a solid choice for growth investors.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG) is on the list of such stocks currently recommended by our proprietary system. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) is on the list of such stocks currently recommended by our proprietary system. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. | Asbury Automotive Group (ABG) is on the list of such stocks currently recommended by our proprietary system. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. | Asbury Automotive Group (ABG) is on the list of such stocks currently recommended by our proprietary system. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report While the historical EPS growth rate for Asbury Automotive is 41.7%, investors should actually focus on the projected growth. |
28584.0 | 2022-09-23 00:00:00 UTC | Asbury Automotive Group Enters Oversold Territory (ABG) | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-enters-oversold-territory-abg-0 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.99, after changing hands as low as $143.28 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 29.8. A bullish investor could look at ABG's 29.99 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares:
Looking at the chart above, ABG's low point in its 52 week range is $143.28 per share, with $230.965 as the 52 week high point — that compares with a last trade of $147.68.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABG's 29.99 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares: Looking at the chart above, ABG's low point in its 52 week range is $143.28 per share, with $230.965 as the 52 week high point — that compares with a last trade of $147.68. In trading on Friday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.99, after changing hands as low as $143.28 per share. | A bullish investor could look at ABG's 29.99 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares: Looking at the chart above, ABG's low point in its 52 week range is $143.28 per share, with $230.965 as the 52 week high point — that compares with a last trade of $147.68. In trading on Friday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.99, after changing hands as low as $143.28 per share. | In trading on Friday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.99, after changing hands as low as $143.28 per share. A bullish investor could look at ABG's 29.99 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares: Looking at the chart above, ABG's low point in its 52 week range is $143.28 per share, with $230.965 as the 52 week high point — that compares with a last trade of $147.68. | In trading on Friday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 29.99, after changing hands as low as $143.28 per share. A bullish investor could look at ABG's 29.99 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABG shares: Looking at the chart above, ABG's low point in its 52 week range is $143.28 per share, with $230.965 as the 52 week high point — that compares with a last trade of $147.68. |
28585.0 | 2022-09-22 00:00:00 UTC | Is First Trust Small Cap Core AlphaDEX ETF (FYX) a Strong ETF Right Now? | ABG | https://www.nasdaq.com/articles/is-first-trust-small-cap-core-alphadex-etf-fyx-a-strong-etf-right-now-2 | nan | nan | The First Trust Small Cap Core AlphaDEX ETF (FYX) made its debut on 05/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by First Trust Advisors, FYX has amassed assets over $782.39 million, making it one of the average sized ETFs in the Style Box - Small Cap Blend. FYX seeks to match the performance of the Nasdaq AlphaDEX Small Cap Core Index before fees and expenses.
The NASDAQ AlphaDEX Small Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.61% for FYX, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 1.23%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
FYX's heaviest allocation is in the Financials sector, which is about 24.30% of the portfolio. Its Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Lantheus Holdings, Inc. (LNTH) accounts for about 0.42% of total assets, followed by Asbury Automotive Group, Inc. (ABG) and Mgp Ingredients, Inc. (MGPI).
FYX's top 10 holdings account for about 3.93% of its total assets under management.
Performance and Risk
The ETF has lost about -20.21% so far this year and is down about -11.78% in the last one year (as of 09/22/2022). In the past 52-week period, it has traded between $74.54 and $101.
FYX has a beta of 1.26 and standard deviation of 32.79% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 526 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Small Cap Core AlphaDEX ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 2000 ETF (IWM) tracks Russell 2000 Index and the iShares Core S&P SmallCap ETF (IJR) tracks S&P SmallCap 600 Index. IShares Russell 2000 ETF has $49.31 billion in assets, iShares Core S&P SmallCap ETF has $62.74 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Lantheus Holdings, Inc. (LNTH) accounts for about 0.42% of total assets, followed by Asbury Automotive Group, Inc. (ABG) and Mgp Ingredients, Inc. (MGPI). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such. | Looking at individual holdings, Lantheus Holdings, Inc. (LNTH) accounts for about 0.42% of total assets, followed by Asbury Automotive Group, Inc. (ABG) and Mgp Ingredients, Inc. (MGPI). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The NASDAQ AlphaDEX Small Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Index. | Looking at individual holdings, Lantheus Holdings, Inc. (LNTH) accounts for about 0.42% of total assets, followed by Asbury Automotive Group, Inc. (ABG) and Mgp Ingredients, Inc. (MGPI). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The First Trust Small Cap Core AlphaDEX ETF (FYX) made its debut on 05/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend category of the market. | Looking at individual holdings, Lantheus Holdings, Inc. (LNTH) accounts for about 0.42% of total assets, followed by Asbury Automotive Group, Inc. (ABG) and Mgp Ingredients, Inc. (MGPI). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The First Trust Small Cap Core AlphaDEX ETF (FYX) made its debut on 05/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend category of the market. |
28586.0 | 2022-09-15 00:00:00 UTC | Amazon (AMZN) Unveils Marketing Solutions, Boosts Seller Focus | ABG | https://www.nasdaq.com/articles/amazon-amzn-unveils-marketing-solutions-boosts-seller-focus | nan | nan | Amazon AMZN is leaving no stone unturned to deliver an enhanced experience to sellers on its e-commerce platform with its robust solutions.
The introduction of the latest marketing solutions, which will be executed as part of Buy with Prime, testifies to the aforesaid fact.
Buy with Prime is a new program that helps direct-to-consumer (DTC) e-commerce sellers expand their customer reach by offering Prime shopping benefits such as fast, free delivery and a seamless checkout experience to shoppers off the Amazon website.
New solutions like advertising, social media ads and Buy with Prime marketing toolkits are likely to aid DTC sellers in gaining momentum among Amazon Shoppers.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Solutions in Detail
With the advertising solution, DTC sellers can showcase their products on Amazon. Sellers will be able to direct customers to their sites with the help of the Buy with Prime page and Sponsored Ads.
Social media ads enable the Buy with Prime sellers to expand their reach to shoppers on Facebook and Instagram and direct them to their sites.
Meanwhile, Buy with Prime Marketing Toolkit offers Buy with Prime badge, which sellers can use while marketing. With the Buy with Prime badge, sellers can convey that they provide Prime shopping benefits on their own DTC sites.
We note that the e-commerce giant strives to support Buy with Prime sellers in expanding their businesses and growing their sales on the heels of the new solutions. Also, the solutions are designed to boost traffic on the DTC sellers’ sites.
Bottom Line
We believe that the latest seller-oriented solutions, combined with Prime benefits, will aid Amazon in gaining solid momentum among third-party sellers, which have turned out to be crucial for AMZN’s business growth.
This, in turn, will contribute to the company’s financial performance in the days ahead.
This is likely to instill investor optimism in the stock in the near term.
In second-quarter 2022, sales generated by third-party seller services rose 9% on a year-over-year basis to $27.4 billion.
Coming to the price performance, Amazon has lost 22.9% on a year-to-date basis against the industry’s decline of 25.2%.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are The Kroger KR, Asbury Automotive Group ABG and Rush Enterprises RUSHA. All companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kroger has gained 8.1% over a year. The long-term earnings growth rate for the KR stock is currently projected at 11.3%.
Asbury Automotive Group has lost 6.7% on a year-to-date basis. The long-term earnings growth rate for the ABG stock is currently projected at 18.52%.
Rush Enterprises has lost 16.2% on a year-to-date basis. The long-term earnings growth rate for the RUSHA stock is currently projected at 15%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the retail-wholesale sector are The Kroger KR, Asbury Automotive Group ABG and Rush Enterprises RUSHA. The long-term earnings growth rate for the ABG stock is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked stocks in the retail-wholesale sector are The Kroger KR, Asbury Automotive Group ABG and Rush Enterprises RUSHA. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The long-term earnings growth rate for the ABG stock is currently projected at 18.52%. | Some better-ranked stocks in the retail-wholesale sector are The Kroger KR, Asbury Automotive Group ABG and Rush Enterprises RUSHA. The long-term earnings growth rate for the ABG stock is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked stocks in the retail-wholesale sector are The Kroger KR, Asbury Automotive Group ABG and Rush Enterprises RUSHA. The long-term earnings growth rate for the ABG stock is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28587.0 | 2022-09-14 00:00:00 UTC | Are You a Growth Investor? This 1 Stock Could Be the Perfect Pick | ABG | https://www.nasdaq.com/articles/are-you-a-growth-investor-this-1-stock-could-be-the-perfect-pick-115 | nan | nan | Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Asbury Automotive Group (ABG)
Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. As of December 31, 2021, Asbury owned 205 new vehicle franchises at 155 locations. It also operates 35 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The company offers 31 automotive brands including Lexus, Mercedes-Benz, Acura, BMW, Genesis, Infiniti, Jaguar, Land Rover, Lincoln, Porsche, Volvo, Audi, Bentley, Toyota, Honda, Nissan, Hyundai, Sprinter, Volkswagen, Subaru, Fiat, Kia, MINI, Isuzu, Dodge, Chrysler, Jeep, Ford, Chevrolet, Buick and GMC.
ABG is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. ABG has a Growth Style Score of A, forecasting year-over-year earnings growth of 37.7% for the current fiscal year.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $1.75 to $37.58 per share. ABG boasts an average earnings surprise of 14.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ABG should be on investors' short list.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #2 (Buy) on the Zacks Rank, with a VGM Score of A. Additionally, the company could be a top pick for growth investors. ABG has a Growth Style Score of A, forecasting year-over-year earnings growth of 37.7% for the current fiscal year. | ABG has a Growth Style Score of A, forecasting year-over-year earnings growth of 37.7% for the current fiscal year. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. | Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #2 (Buy) on the Zacks Rank, with a VGM Score of A. Additionally, the company could be a top pick for growth investors. ABG has a Growth Style Score of A, forecasting year-over-year earnings growth of 37.7% for the current fiscal year. | Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #2 (Buy) on the Zacks Rank, with a VGM Score of A. Additionally, the company could be a top pick for growth investors. ABG has a Growth Style Score of A, forecasting year-over-year earnings growth of 37.7% for the current fiscal year. |
28588.0 | 2022-09-13 00:00:00 UTC | Are Retail-Wholesale Stocks Lagging Asbury Automotive Group (ABG) This Year? | ABG | https://www.nasdaq.com/articles/are-retail-wholesale-stocks-lagging-asbury-automotive-group-abg-this-year | nan | nan | For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Asbury Automotive Group (ABG) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
Asbury Automotive Group is a member of our Retail-Wholesale group, which includes 229 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Asbury Automotive Group is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 6.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ABG has gained about 0.9% so far this year. Meanwhile, stocks in the Retail-Wholesale group have lost about 16.9% on average. As we can see, Asbury Automotive Group is performing better than its sector in the calendar year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is Dick's Sporting Goods (DKS). The stock is up 2.4% year-to-date.
For Dick's Sporting Goods, the consensus EPS estimate for the current year has increased 4.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Asbury Automotive Group belongs to the Automotive - Retail and Whole Sales industry, a group that includes 10 individual stocks and currently sits at #59 in the Zacks Industry Rank. On average, stocks in this group have lost 5.4% this year, meaning that ABG is performing better in terms of year-to-date returns.
In contrast, Dick's Sporting Goods falls under the Retail - Miscellaneous industry. Currently, this industry has 24 stocks and is ranked #183. Since the beginning of the year, the industry has moved -17.6%.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Asbury Automotive Group and Dick's Sporting Goods as they attempt to continue their solid performance.
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On average, stocks in this group have lost 5.4% this year, meaning that ABG is performing better in terms of year-to-date returns. Is Asbury Automotive Group (ABG) one of those stocks right now? Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 6.8% higher. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Is Asbury Automotive Group (ABG) one of those stocks right now? Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 6.8% higher. | Is Asbury Automotive Group (ABG) one of those stocks right now? Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 6.8% higher. Based on the latest available data, ABG has gained about 0.9% so far this year. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Is Asbury Automotive Group (ABG) one of those stocks right now? Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 6.8% higher. |
28589.0 | 2022-09-09 00:00:00 UTC | Looking for a Growth Stock? 3 Reasons Why Asbury Automotive (ABG) is a Solid Choice | ABG | https://www.nasdaq.com/articles/looking-for-a-growth-stock-3-reasons-why-asbury-automotive-abg-is-a-solid-choice | nan | nan | Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Asbury Automotive Group (ABG) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this auto dealership chain a great growth pick right now.
Earnings Growth
Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Asbury Automotive is 41.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 37.7% this year, crushing the industry average, which calls for EPS growth of 24.4%.
Cash Flow Growth
While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Asbury Automotive is 97.7%, which is higher than many of its peers. In fact, the rate compares to the industry average of 74%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 26.4% over the past 3-5 years versus the industry average of 24.1%.
Promising Earnings Estimate Revisions
Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Asbury Automotive have been revising upward. The Zacks Consensus Estimate for the current year has surged 1.9% over the past month.
Bottom Line
While the overall earnings estimate revisions have made Asbury Automotive a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Asbury Automotive is a potential outperformer and a solid choice for growth investors.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Our proprietary system currently recommends Asbury Automotive Group (ABG) as one such stock. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company's annualized cash flow growth rate has been 26.4% over the past 3-5 years versus the industry average of 24.1%. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Our proprietary system currently recommends Asbury Automotive Group (ABG) as one such stock. Bottom Line While the overall earnings estimate revisions have made Asbury Automotive a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above. | Our proprietary system currently recommends Asbury Automotive Group (ABG) as one such stock. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. | Our proprietary system currently recommends Asbury Automotive Group (ABG) as one such stock. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report This company not only has a favorable Growth Score, but also carries a top Zacks Rank. |
28590.0 | 2022-09-09 00:00:00 UTC | Asbury Automotive (ABG) Upgraded to Buy: Here's Why | ABG | https://www.nasdaq.com/articles/asbury-automotive-abg-upgraded-to-buy%3A-heres-why | nan | nan | Asbury Automotive Group (ABG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Asbury Automotive basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Asbury Automotive, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Asbury Automotive
This auto dealership chain is expected to earn $37.58 per share for the fiscal year ending December 2022, which represents a year-over-year change of 37.7%.
Analysts have been steadily raising their estimates for Asbury Automotive. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.8%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Asbury Automotive to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group (ABG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time. | Asbury Automotive Group (ABG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. | Asbury Automotive Group (ABG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. | Asbury Automotive Group (ABG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. |
28591.0 | 2022-09-09 00:00:00 UTC | Is Asbury Automotive Group (ABG) Stock Undervalued Right Now? | ABG | https://www.nasdaq.com/articles/is-asbury-automotive-group-abg-stock-undervalued-right-now | nan | nan | 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.89, while its industry has an average P/E of 5.41. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 4.49, with a median of 5.57.
Investors will also notice that ABG has a PEG ratio of 0.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ABG's PEG compares to its industry's average PEG of 0.53. Within the past year, ABG's PEG has been as high as 9.42 and as low as 0.24, with a median of 0.30.
Investors should also recognize that ABG has a P/B ratio of 1.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.96. ABG's P/B has been as high as 3.42 and as low as 1.39, with a median of 1.93, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ABG has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.31.
Finally, we should also recognize that ABG has a P/CF ratio of 4.72. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.24. ABG's P/CF has been as high as 8.22 and as low as 4.19, with a median of 5.89, all within the past year.
Another great Automotive - Retail and Whole Sales stock you could consider is Rush Enterprises (RUSHA), which is a # 2 (Buy) stock with a Value Score of A.
Shares of Rush Enterprises are currently trading at a forward earnings multiple of 9.19 and a PEG ratio of 0.61 compared to its industry's P/E and PEG ratios of 5.41 and 0.53, respectively.
Over the past year, RUSHA's P/E has been as high as 15.39, as low as 9.01, with a median of 11.42; its PEG ratio has been as high as 1.03, as low as 0.60, with a median of 0.30 during the same time period.
Rush Enterprises also has a P/B ratio of 1.61 compared to its industry's price-to-book ratio of 1.96. Over the past year, its P/B ratio has been as high as 2.28, as low as 1.58, with a median of 1.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group and Rush Enterprises are likely undervalued currently. And when considering the strength of its earnings outlook, ABG and RUSHA sticks out as one of the market's strongest value stocks.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 4.49, with a median of 5.57. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. | One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 4.49, with a median of 5.57. | ABG has a P/S ratio of 0.29. One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. |
28592.0 | 2022-09-05 00:00:00 UTC | Asbury Automotive Group (NYSE:ABG) sheds 7.2% this week, as yearly returns fall more in line with earnings growth | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-nyse%3Aabg-sheds-7.2-this-week-as-yearly-returns-fall-more-in-line | nan | nan | The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. Long term Asbury Automotive Group, Inc. (NYSE:ABG) shareholders would be well aware of this, since the stock is up 206% in five years. The last week saw the share price soften some 7.2%.
Since the long term performance has been good but there's been a recent pullback of 7.2%, let's check if the fundamentals match the share price.
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Asbury Automotive Group managed to grow its earnings per share at 33% a year. This EPS growth is higher than the 25% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. The reasonably low P/E ratio of 5.21 also suggests market apprehension.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
NYSE:ABG Earnings Per Share Growth September 5th 2022
It is of course excellent to see how Asbury Automotive Group has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Although it hurts that Asbury Automotive Group returned a loss of 4.6% in the last twelve months, the broader market was actually worse, returning a loss of 18%. Longer term investors wouldn't be so upset, since they would have made 25%, each year, over five years. In the best case scenario the last year is just a temporary blip on the journey to a brighter future. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Asbury Automotive Group is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...
Of course Asbury Automotive Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NYSE:ABG Earnings Per Share Growth September 5th 2022 It is of course excellent to see how Asbury Automotive Group has grown profits over the years, but the future is more important for shareholders. Long term Asbury Automotive Group, Inc. (NYSE:ABG) shareholders would be well aware of this, since the stock is up 206% in five years. Since the long term performance has been good but there's been a recent pullback of 7.2%, let's check if the fundamentals match the share price. | Long term Asbury Automotive Group, Inc. (NYSE:ABG) shareholders would be well aware of this, since the stock is up 206% in five years. NYSE:ABG Earnings Per Share Growth September 5th 2022 It is of course excellent to see how Asbury Automotive Group has grown profits over the years, but the future is more important for shareholders. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. | Long term Asbury Automotive Group, Inc. (NYSE:ABG) shareholders would be well aware of this, since the stock is up 206% in five years. NYSE:ABG Earnings Per Share Growth September 5th 2022 It is of course excellent to see how Asbury Automotive Group has grown profits over the years, but the future is more important for shareholders. Even so, be aware that Asbury Automotive Group is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious... Of course Asbury Automotive Group may not be the best stock to buy. | Long term Asbury Automotive Group, Inc. (NYSE:ABG) shareholders would be well aware of this, since the stock is up 206% in five years. NYSE:ABG Earnings Per Share Growth September 5th 2022 It is of course excellent to see how Asbury Automotive Group has grown profits over the years, but the future is more important for shareholders. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. |
28593.0 | 2022-09-01 00:00:00 UTC | ABG Crosses Below Key Moving Average Level | ABG | https://www.nasdaq.com/articles/abg-crosses-below-key-moving-average-level | nan | nan | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed below their 200 day moving average of $173.41, changing hands as low as $170.06 per share. Asbury Automotive Group Inc shares are currently trading off about 2.3% on the day. The chart below shows the one year performance of ABG shares, versus its 200 day moving average:
Looking at the chart above, ABG's low point in its 52 week range is $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $169.71.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed below their 200 day moving average of $173.41, changing hands as low as $170.06 per share. The chart below shows the one year performance of ABG shares, versus its 200 day moving average: Looking at the chart above, ABG's low point in its 52 week range is $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $169.71. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed below their 200 day moving average of $173.41, changing hands as low as $170.06 per share. The chart below shows the one year performance of ABG shares, versus its 200 day moving average: Looking at the chart above, ABG's low point in its 52 week range is $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $169.71. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed below their 200 day moving average of $173.41, changing hands as low as $170.06 per share. The chart below shows the one year performance of ABG shares, versus its 200 day moving average: Looking at the chart above, ABG's low point in its 52 week range is $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $169.71. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed below their 200 day moving average of $173.41, changing hands as low as $170.06 per share. The chart below shows the one year performance of ABG shares, versus its 200 day moving average: Looking at the chart above, ABG's low point in its 52 week range is $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $169.71. Asbury Automotive Group Inc shares are currently trading off about 2.3% on the day. |
28594.0 | 2022-08-26 00:00:00 UTC | Are You a Value Investor? This 1 Stock Could Be the Perfect Pick | ABG | https://www.nasdaq.com/articles/are-you-a-value-investor-this-1-stock-could-be-the-perfect-pick-105 | nan | nan | It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Asbury Automotive Group (ABG)
Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. As of December 31, 2021, Asbury owned 205 new vehicle franchises at 155 locations. It also operates 35 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The company offers 31 automotive brands including Lexus, Mercedes-Benz, Acura, BMW, Genesis, Infiniti, Jaguar, Land Rover, Lincoln, Porsche, Volvo, Audi, Bentley, Toyota, Honda, Nissan, Hyundai, Sprinter, Volkswagen, Subaru, Fiat, Kia, MINI, Isuzu, Dodge, Chrysler, Jeep, Ford, Chevrolet, Buick and GMC.
ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 5.06; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $1.63 to $37.26 per share. ABG boasts an average earnings surprise of 14.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ABG should be on investors' short list.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. ABG boasts an average earnings surprise of 14.5%. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. | Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. ABG boasts an average earnings surprise of 14.5%. | Stock to Watch: Asbury Automotive Group (ABG) Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. ABG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. ABG boasts an average earnings surprise of 14.5%. |
28595.0 | 2022-08-23 00:00:00 UTC | Should You Buy Asbury Automotive Group (ABG) After Golden Cross? | ABG | https://www.nasdaq.com/articles/should-you-buy-asbury-automotive-group-abg-after-golden-cross | nan | nan | Asbury Automotive Group, Inc. (ABG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ABG's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
Over the past four weeks, ABG has gained 10.3%. The company currently sits at a #3 (Hold) on the Zacks Rank, also indicating that the stock could be poised for a breakout.
Once investors consider ABG's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 4 revisions higher, and the Zacks Consensus Estimate has increased as well.
Investors may want to watch ABG for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asbury Automotive Group, Inc. (ABG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Investors may want to watch ABG for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Recently, ABG's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross." | Recently, ABG's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross." Investors may want to watch ABG for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Asbury Automotive Group, Inc. (ABG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. | Recently, ABG's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross." Asbury Automotive Group, Inc. (ABG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Over the past four weeks, ABG has gained 10.3%. | Investors may want to watch ABG for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Asbury Automotive Group, Inc. (ABG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ABG's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross." |
28596.0 | 2022-08-22 00:00:00 UTC | Should First Trust Small Cap Value AlphaDEX ETF (FYT) Be on Your Investing Radar? | ABG | https://www.nasdaq.com/articles/should-first-trust-small-cap-value-alphadex-etf-fyt-be-on-your-investing-radar-3 | nan | nan | The First Trust Small Cap Value AlphaDEX ETF (FYT) was launched on 04/19/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $228.99 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.71%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 1.24%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 31.90% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of total assets, followed by Group 1 Automotive, Inc. (GPI) and Sanmina Corporation (SANM).
The top 10 holdings account for about 7.31% of total assets under management.
Performance and Risk
FYT seeks to match the performance of the Nasdaq AlphaDEX Small Cap Value Index before fees and expenses. The NASDAQ AlphaDEX Small Cap Value Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Value Index.
The ETF has lost about -6.87% so far this year and is up roughly 2.25% in the last one year (as of 08/22/2022). In the past 52-week period, it has traded between $42.85 and $54.42.
The ETF has a beta of 1.37 and standard deviation of 35.90% for the trailing three-year period, making it a high risk choice in the space. With about 263 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Small Cap Value AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FYT is a sufficient option for those seeking exposure to the Style Box - Small Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 Value ETF (IWN) and the Vanguard SmallCap Value ETF (VBR) track a similar index. While iShares Russell 2000 Value ETF has $12.88 billion in assets, Vanguard SmallCap Value ETF has $24.46 billion. IWN has an expense ratio of 0.23% and VBR charges 0.07%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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First Trust Small Cap Value AlphaDEX ETF (FYT): ETF Research Reports
Sanmina Corporation (SANM): Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Vanguard SmallCap Value ETF (VBR): ETF Research Reports
iShares Russell 2000 Value ETF (IWN): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of total assets, followed by Group 1 Automotive, Inc. (GPI) and Sanmina Corporation (SANM). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report It has amassed assets over $228.99 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market. | Looking at individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of total assets, followed by Group 1 Automotive, Inc. (GPI) and Sanmina Corporation (SANM). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The NASDAQ AlphaDEX Small Cap Value Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Value Index. | Looking at individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of total assets, followed by Group 1 Automotive, Inc. (GPI) and Sanmina Corporation (SANM). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Alternatives First Trust Small Cap Value AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of total assets, followed by Group 1 Automotive, Inc. (GPI) and Sanmina Corporation (SANM). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The First Trust Small Cap Value AlphaDEX ETF (FYT) was launched on 04/19/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market. |
28597.0 | 2022-08-16 00:00:00 UTC | Asbury Automotive Group (NYSE:ABG) Could Be Struggling To Allocate Capital | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-nyse%3Aabg-could-be-struggling-to-allocate-capital | nan | nan | There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. However, after briefly looking over the numbers, we don't think Asbury Automotive Group (NYSE:ABG) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
Return On Capital Employed (ROCE): What Is It?
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Asbury Automotive Group:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.17 = US$1.1b ÷ (US$7.6b - US$1.2b) (Based on the trailing twelve months to June 2022).
So, Asbury Automotive Group has an ROCE of 17%. That's a pretty standard return and it's in line with the industry average of 17%.
NYSE:ABG Return on Capital Employed August 16th 2022
Above you can see how the current ROCE for Asbury Automotive Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
So How Is Asbury Automotive Group's ROCE Trending?
On the surface, the trend of ROCE at Asbury Automotive Group doesn't inspire confidence. Over the last five years, returns on capital have decreased to 17% from 23% five years ago. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. If these investments prove successful, this can bode very well for long term stock performance.
On a related note, Asbury Automotive Group has decreased its current liabilities to 15% of total assets. That could partly explain why the ROCE has dropped. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
What We Can Learn From Asbury Automotive Group's ROCE
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Asbury Automotive Group. And long term investors must be optimistic going forward because the stock has returned a huge 266% to shareholders in the last five years. So should these growth trends continue, we'd be optimistic on the stock going forward.
If you'd like to know more about Asbury Automotive Group, we've spotted 3 warning signs, and 1 of them can't be ignored.
While Asbury Automotive Group may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, after briefly looking over the numbers, we don't think Asbury Automotive Group (NYSE:ABG) has the makings of a multi-bagger going forward, but let's have a look at why that may be. NYSE:ABG Return on Capital Employed August 16th 2022 Above you can see how the current ROCE for Asbury Automotive Group compares to its prior returns on capital, but there's only so much you can tell from the past. Analysts use this formula to calculate it for Asbury Automotive Group: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.17 = US$1.1b ÷ (US$7.6b - US$1.2b) (Based on the trailing twelve months to June 2022). | However, after briefly looking over the numbers, we don't think Asbury Automotive Group (NYSE:ABG) has the makings of a multi-bagger going forward, but let's have a look at why that may be. NYSE:ABG Return on Capital Employed August 16th 2022 Above you can see how the current ROCE for Asbury Automotive Group compares to its prior returns on capital, but there's only so much you can tell from the past. Analysts use this formula to calculate it for Asbury Automotive Group: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.17 = US$1.1b ÷ (US$7.6b - US$1.2b) (Based on the trailing twelve months to June 2022). | NYSE:ABG Return on Capital Employed August 16th 2022 Above you can see how the current ROCE for Asbury Automotive Group compares to its prior returns on capital, but there's only so much you can tell from the past. However, after briefly looking over the numbers, we don't think Asbury Automotive Group (NYSE:ABG) has the makings of a multi-bagger going forward, but let's have a look at why that may be. Analysts use this formula to calculate it for Asbury Automotive Group: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.17 = US$1.1b ÷ (US$7.6b - US$1.2b) (Based on the trailing twelve months to June 2022). | NYSE:ABG Return on Capital Employed August 16th 2022 Above you can see how the current ROCE for Asbury Automotive Group compares to its prior returns on capital, but there's only so much you can tell from the past. However, after briefly looking over the numbers, we don't think Asbury Automotive Group (NYSE:ABG) has the makings of a multi-bagger going forward, but let's have a look at why that may be. Return On Capital Employed (ROCE): What Is It? |
28598.0 | 2022-08-09 00:00:00 UTC | If You Invested $1000 in Asbury Automotive Group a Decade Ago, This is How Much It'd Be Worth Now | ABG | https://www.nasdaq.com/articles/if-you-invested-%241000-in-asbury-automotive-group-a-decade-ago-this-is-how-much-itd-be | nan | nan | How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Asbury Automotive Group (ABG) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today?
Asbury Automotive Group's Business In-Depth
With that in mind, let's take a look at Asbury Automotive Group's main business drivers.
Headquartered in Duluth, GA, Asbury is one of the largest automotive retailers of new and used vehicles, and related services in the United States. As of December 31, 2021, Asbury owned 205 new vehicle franchises at 155 locations. It also operates 35 collision centers, seven stand-alone used vehicle dealerships, one used vehicle wholesale business and one auto auction within 15 states. The company offers 31 automotive brands including Lexus, Mercedes-Benz, Acura, BMW, Genesis, Infiniti, Jaguar, Land Rover, Lincoln, Porsche, Volvo, Audi, Bentley, Toyota, Honda, Nissan, Hyundai, Sprinter, Volkswagen, Subaru, Fiat, Kia, MINI, Isuzu, Dodge, Chrysler, Jeep, Ford, Chevrolet, Buick and GMC.
Apart from a wide range of new and used vehicles, the company provides finance and insurance products, and automotive repair and maintenance services. Asbury’s omni-channel platform is designed to increase its market share through digital innovation. In December 2020, Asbury introduced Clicklane, the online shopping platform, which ensures a true online car-buying and selling experience.
Asbury’s business mix consisted of New Vehicles (accounted for about 50% of the company’s revenues in 2021), Used Vehicles (34%), Parts and Services (12%), and Finance and insurance (4%).
Last year, Asbury acquired Larry H. Miller Dealerships, the eighth largest dealership in the United States, adding 54 new vehicle dealerships, seven used cars stores, 11 collision centers, a used vehicle wholesale business to its existing portfolio. Additionally, Asbury acquired Total Care Auto (TCA), a leading provider of service contracts and other vehicle protection products. Subsequent to the Larry H. Miller buyout closed in December 2021, Asbury will now have two reportable segments: Dealerships and TCA. The Dealerships segment revenues would be derived primarily from the sale of new vehicles, sale of used vehicles to retail customers and dealers, repair and maintenance services, and the arrangement of third-party vehicle financing. Revenues from the TCA segment, reflected in F&I Revenues, will be derived from the vehicle service contracts, guaranteed asset protection insurance, prepaid maintenance contracts, vehicle theft assistance contracts and appearance protection contracts.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Asbury Automotive Group, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in August 2012 would be worth $6,751.78, or a gain of 575.18%, as of August 9, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 195.25% and the price of gold increased 6.18% over the same time frame in comparison.
Analysts are anticipating more upside for ABG.
Asbury posted record EPS in the second quarter. Strategic buyouts are helping the auto retailer increase its market share and boost portfolio. Acquisition of Larry H. Miller Dealerships in 2021 has added nearly $5.7 billion in expected annualized revenues, giving Asbury an edge to execute its five-year plan. Its ambitious plan to generate $32 billion in revenues by 2025 instills optimism. The company’s end-to-end e-commerce platform, Clicklane. Is also set to buyo prospects. However, Asbury exited second quarter of 2022 with new vehicle inventory of 13 days’ supply. The company anticipates new inventory levels to remain low through 2022. Rising operating expenses and weak balance sheet (with elevated leverage and low cash/cash equivalents) and also raise concerns. As such, investors are advised to wait for a better entry point.
The stock has jumped 10.34% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2022; the consensus estimate has moved up as well.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What if you'd invested in Asbury Automotive Group (ABG) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today? Analysts are anticipating more upside for ABG. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report What if you'd invested in Asbury Automotive Group (ABG) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today? | What if you'd invested in Asbury Automotive Group (ABG) ten years ago? It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today? Analysts are anticipating more upside for ABG. | It may not have been easy to hold on to ABG for all that time, but if you did, how much would your investment be worth today? What if you'd invested in Asbury Automotive Group (ABG) ten years ago? Analysts are anticipating more upside for ABG. |
28599.0 | 2022-08-08 00:00:00 UTC | Can Asbury Automotive (ABG) Climb 32% to Reach the Level Wall Street Analysts Expect? | ABG | https://www.nasdaq.com/articles/can-asbury-automotive-abg-climb-32-to-reach-the-level-wall-street-analysts-expect | nan | nan | Shares of Asbury Automotive Group (ABG) have gained 4.7% over the past four weeks to close the last trading session at $179.22, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $236.43 indicates a potential upside of 31.9%.
The mean estimate comprises seven short-term price targets with a standard deviation of $73.35. While the lowest estimate of $135 indicates a 24.7% decline from the current price level, the most optimistic analyst expects the stock to surge 106.5% to reach $370. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in ABG. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why ABG Could Witness a Solid Upside
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 4.9% over the past month, as three estimates have gone higher compared to no negative revision.
Moreover, ABG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much ABG could gain, the direction of price movement it implies does appear to be a good guide.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of Asbury Automotive Group (ABG) have gained 4.7% over the past four weeks to close the last trading session at $179.22, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. However, an impressive consensus price target is not the only factor that indicates a potential upside in ABG. Why ABG Could Witness a Solid Upside Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Shares of Asbury Automotive Group (ABG) have gained 4.7% over the past four weeks to close the last trading session at $179.22, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. However, an impressive consensus price target is not the only factor that indicates a potential upside in ABG. | You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much ABG could gain, the direction of price movement it implies does appear to be a good guide. Shares of Asbury Automotive Group (ABG) have gained 4.7% over the past four weeks to close the last trading session at $179.22, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. However, an impressive consensus price target is not the only factor that indicates a potential upside in ABG. | However, an impressive consensus price target is not the only factor that indicates a potential upside in ABG. Shares of Asbury Automotive Group (ABG) have gained 4.7% over the past four weeks to close the last trading session at $179.22, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Why ABG Could Witness a Solid Upside Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. |
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