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28600.0 | 2022-08-08 00:00:00 UTC | Is Asbury Automotive Group (ABG) Stock Outpacing Its Retail-Wholesale Peers This Year? | ABG | https://www.nasdaq.com/articles/is-asbury-automotive-group-abg-stock-outpacing-its-retail-wholesale-peers-this-year-0 | 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. Has Asbury Automotive Group (ABG) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Asbury Automotive Group is one of 229 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit 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 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).
The Zacks Consensus Estimate for ABG's full-year earnings has moved 6.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that ABG has returned about 3.8% since the start of the calendar year. At the same time, Retail-Wholesale stocks have lost an average of 17.4%. This shows that Asbury Automotive Group is outperforming its peers so far this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Dollar General (DG). The stock has returned 7.3% year-to-date.
In Dollar General's case, the consensus EPS estimate for the current year increased 0.4% 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 #23 in the Zacks Industry Rank. This group has lost an average of 2.1% so far this year, so ABG is performing better in this area.
In contrast, Dollar General falls under the Retail - Discount Stores industry. Currently, this industry has 8 stocks and is ranked #156. Since the beginning of the year, the industry has moved -10.6%.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Asbury Automotive Group and Dollar General as they attempt to continue their solid performance.
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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. | Has Asbury Automotive Group (ABG) been one of those stocks this year? The Zacks Consensus Estimate for ABG's full-year earnings has moved 6.5% higher within the past quarter. Our latest available data shows that ABG has returned about 3.8% since the start of the calendar year. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Has Asbury Automotive Group (ABG) been one of those stocks this year? The Zacks Consensus Estimate for ABG's full-year earnings has moved 6.5% higher within the past quarter. | Has Asbury Automotive Group (ABG) been one of those stocks this year? The Zacks Consensus Estimate for ABG's full-year earnings has moved 6.5% higher within the past quarter. Our latest available data shows that ABG has returned about 3.8% since the start of the calendar year. | Has Asbury Automotive Group (ABG) been one of those stocks this year? The Zacks Consensus Estimate for ABG's full-year earnings has moved 6.5% higher within the past quarter. Our latest available data shows that ABG has returned about 3.8% since the start of the calendar year. |
28601.0 | 2022-08-03 00:00:00 UTC | Asbury Automotive Group (ABG) is a Top-Ranked Value Stock: Should You Buy? | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-is-a-top-ranked-value-stock%3A-should-you-buy | nan | nan | For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of 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 assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out 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 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
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only as a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking 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 #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 4.74; value investors should take notice.
For fiscal 2022, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.98 to $36.89 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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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%. | 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%. | 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%. |
28602.0 | 2022-08-02 00:00:00 UTC | Is First Trust Small Cap Value AlphaDEX ETF (FYT) a Strong ETF Right Now? | ABG | https://www.nasdaq.com/articles/is-first-trust-small-cap-value-alphadex-etf-fyt-a-strong-etf-right-now-2 | nan | nan | The First Trust Small Cap Value AlphaDEX ETF (FYT) made its debut on 04/19/2011, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by First Trust Advisors. FYT has been able to amass assets over $224.11 million, making it one of the average sized ETFs in the Style Box - Small Cap Value. Before fees and expenses, FYT seeks to match the performance of the Nasdaq AlphaDEX Small Cap Value Index.
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.
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.
Annual operating expenses for this ETF are 0.71%, making it one of the most expensive products in the space.
FYT's 12-month trailing dividend yield is 1.27%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 31.90% of the portfolio, the fund has heaviest allocation to the Financials sector; Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of the fund's total assets, followed by Group 1 Automotive, Inc. (GPI) and Sanmina Corporation (SANM).
FYT's top 10 holdings account for about 7.31% of its total assets under management.
Performance and Risk
The ETF has lost about -8.64% and is down about -1.62% so far this year and in the past one year (as of 08/02/2022), respectively. FYT has traded between $42.85 and $54.42 during this last 52-week period.
The ETF has a beta of 1.37 and standard deviation of 36.05% 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 is a reasonable option for investors seeking to outperform the Style Box - Small Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 2000 Value ETF (IWN) tracks Russell 2000 Value Index and the Vanguard SmallCap Value ETF (VBR) tracks CRSP U.S. Small Cap Value Index. IShares Russell 2000 Value ETF has $12.31 billion in assets, Vanguard SmallCap Value ETF has $23.87 billion. IWN has an expense ratio of 0.24% and VBR charges 0.07%.
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 Value.
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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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
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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. | Taking into account individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of the fund's total assets, followed by Group 1 Automotive, Inc. (GPI) and Sanmina Corporation (SANM). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. | Taking into account individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of the fund's 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. | Taking into account individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of the fund's 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) made its debut on 04/19/2011, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Value category of the market. | Taking into account individual holdings, Asbury Automotive Group, Inc. (ABG) accounts for about 0.81% of the fund's total assets, followed by Group 1 Automotive, Inc. (GPI) and Sanmina Corporation (SANM). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Annual operating expenses for this ETF are 0.71%, making it one of the most expensive products in the space. |
28603.0 | 2022-08-01 00:00:00 UTC | ABG Crosses Above Key Moving Average Level | ABG | https://www.nasdaq.com/articles/abg-crosses-above-key-moving-average-level | nan | nan | In trading on Monday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $175.42, changing hands as high as $177.07 per share. Asbury Automotive Group Inc shares are currently trading up about 1.2% 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 $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $173.63.
Click here to find out which 9 other stocks recently crossed above 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 Monday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $175.42, changing hands as high as $177.07 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 $173.63. Click here to find out which 9 other stocks recently crossed above 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 Monday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $175.42, changing hands as high as $177.07 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 $173.63. Click here to find out which 9 other stocks recently crossed above 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 Monday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $175.42, changing hands as high as $177.07 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 $173.63. Click here to find out which 9 other stocks recently crossed above 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 Monday, shares of Asbury Automotive Group Inc (Symbol: ABG) crossed above their 200 day moving average of $175.42, changing hands as high as $177.07 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 $173.63. Asbury Automotive Group Inc shares are currently trading up about 1.2% on the day. |
28604.0 | 2022-07-29 00:00:00 UTC | Validea Joel Greenblatt Strategy Daily Upgrade Report - 7/29/2022 | ABG | https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-7-29-2022 | 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 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: 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
DOUGLAS ELLIMAN INC (DOUG) is a small-cap value stock in the Real Estate Operations 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: Douglas Elliman Inc. is engaged in the real estate services and property technology investment business. It is engaged in acquiring or investing in early-stage, disruptive property technology (PropTech) solutions, and companies and provides other real estate services, including development marketing, property management, and settlement and escrow services in select markets. The Company's Real Estate Brokerage segment includes the residential real estate brokerage services through its subsidiary Douglas Elliman Realty, which operates the residential brokerage company in the New York metropolitan area and conducts residential real estate brokerage operations in Florida, California, Connecticut, Massachusetts, Colorado, New Jersey, and Texas. Its Corporate and other segment is engaged in the operations of its holding company as well as the PropTech investment business investing in select PropTech opportunities through the New Valley Ventures subsidiary.
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 DOUGLAS ELLIMAN INC
Full Guru Analysis for DOUG
Full Factor Report for DOUG
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 DOUGLAS ELLIMAN INC (DOUG) is a small-cap value stock in the Real Estate Operations industry. The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. Full Guru Analysis for ABG Full Factor Report for ABG DOUGLAS ELLIMAN INC (DOUG) is a small-cap value stock in the Real Estate Operations industry. ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The Company's Real Estate Brokerage segment includes the residential real estate brokerage services through its subsidiary Douglas Elliman Realty, which operates the residential brokerage company in the New York metropolitan area and conducts residential real estate brokerage operations in Florida, California, Connecticut, Massachusetts, Colorado, New Jersey, and Texas. | 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 DOUGLAS ELLIMAN INC (DOUG) is a small-cap value stock in the Real Estate Operations 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 DOUGLAS ELLIMAN INC (DOUG) is a small-cap value stock in the Real Estate Operations industry. The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. |
28605.0 | 2022-07-29 00:00:00 UTC | Should First Trust Small Cap Core AlphaDEX ETF (FYX) Be on Your Investing Radar? | ABG | https://www.nasdaq.com/articles/should-first-trust-small-cap-core-alphadex-etf-fyx-be-on-your-investing-radar-4 | nan | nan | Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the First Trust Small Cap Core AlphaDEX ETF (FYX) is a passively managed exchange traded fund launched on 05/08/2007.
The fund is sponsored by First Trust Advisors. It has amassed assets over $813.40 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.61%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 1.14%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 24.20% of the portfolio. 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).
The top 10 holdings account for about 3.93% of total assets under management.
Performance and Risk
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.
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The ETF has a beta of 1.28 and standard deviation of 32.78% for the trailing three-year period, making it a medium risk choice in the space. With about 526 holdings, it effectively diversifies company-specific risk.
Alternatives
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The iShares Russell 2000 ETF (IWM) and the iShares Core S&P SmallCap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $53.26 billion in assets, iShares Core S&P SmallCap ETF has $67.49 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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First Trust Small Cap Core AlphaDEX ETF (FYX): ETF Research Reports
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iShares Core S&P SmallCap ETF (IJR): ETF Research Reports
MGP Ingredients, Inc. (MGPI): 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. | 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 It has amassed assets over $813.40 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity 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 Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the First Trust Small Cap Core AlphaDEX ETF (FYX) is a passively managed exchange traded fund launched on 05/08/2007. | 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 Alternatives First Trust Small Cap Core 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, 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 Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the First Trust Small Cap Core AlphaDEX ETF (FYX) is a passively managed exchange traded fund launched on 05/08/2007. |
28606.0 | 2022-07-29 00:00:00 UTC | Asbury's (ABG) Record Q2 Earnings and Sales Beat Estimates | ABG | https://www.nasdaq.com/articles/asburys-abg-record-q2-earnings-and-sales-beat-estimates | nan | nan | Asbury Automotive Group ABG reported impressive second-quarter 2022 adjusted earnings of $10.04 per share, which increased 29% year over year from $7.78 and topped the Zacks Consensus Estimate of $8.88. This outperformance can be primarily attributed to higher-than-expected profit from Used Vehicle, Parts & Services and Finance & Insurance units. In the reported quarter, revenues amounted to $3,950.2 million, surging 53% year over year. The top line also outpaced the Zacks Consensus Estimate of $3,824 million.
Segment Details
In the quarter, new-vehicle revenues jumped 36% year over year to $1,864.5 million and beat the Zacks Consensus Estimate of $1,848 million. Gross profit from the segment came in at $220.4 million, soaring 78% from the prior-year quarter but missing the consensus mark of $223 million.
Used-vehicle revenues also rose 67% from the year-ago figure to $1,362.5 million, beating the consensus mark of $1,296 million. Gross profit from the segment came in at $104.2 million, which rose 25% and beat the Zacks Consensus Estimate of $94 million.
Net revenues in the finance and insurance business amounted to $203 million, increasing 90% from the year-ago quarter and outpacing the consensus mark of $183 million. Gross profit was $187.7 million, rising 75% year over year and beating the consensus estimate of $176 million.
Revenues from the parts and service business rose 78% from the prior-year quarter to $520.2 million and topped the consensus mark of $491 million. Gross profit from this segment came in at $290.4 million, rising 59% year over year and crossing the consensus estimate of $288 million.
Other Tidbits
Selling, general & administrative (SG&A) expenses as a percentage of gross profit rose to 55.8%, marking an increase of 160 basis points year over year. Asbury sold nearly 6,600 vehicles, an uptick of 55% over the prior year quarter through the “end-to-end” online sales platform, Clicklane.
As of Jun 30, the company had cash/cash equivalents of $100.1 million, down from $178.9 million as of Dec 31, 2021. It had long-term debt of $3,385.1 million as of Jun 30, falling from $3,582.6 million on Dec 31, 2021.
Zacks Rank & Key Picks
ABG carries a Zacks Rank #3 (Hold), currently.
Better-ranked players in the auto space include Genuine Parts Company GPC, LCI Industries LCII and Standard Motor Products SMP, each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Genuine Parts has an expected earnings growth rate of 15.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 1.5% upward in the past 30 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 11.03%, on average. The stock has risen 17% over the past year.
LCI Industries has an expected earnings growth rate of 65.9% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. LCII pulled off a trailing four-quarter earnings surprise of 21.81%, on average. The stock has declined 10.5% in the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has risen 10.1% over the past 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. | Asbury Automotive Group ABG reported impressive second-quarter 2022 adjusted earnings of $10.04 per share, which increased 29% year over year from $7.78 and topped the Zacks Consensus Estimate of $8.88. Zacks Rank & Key Picks ABG carries a Zacks Rank #3 (Hold), currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group ABG reported impressive second-quarter 2022 adjusted earnings of $10.04 per share, which increased 29% year over year from $7.78 and topped the Zacks Consensus Estimate of $8.88. Zacks Rank & Key Picks ABG carries a Zacks Rank #3 (Hold), currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group ABG reported impressive second-quarter 2022 adjusted earnings of $10.04 per share, which increased 29% year over year from $7.78 and topped the Zacks Consensus Estimate of $8.88. Zacks Rank & Key Picks ABG carries a Zacks Rank #3 (Hold), currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group ABG reported impressive second-quarter 2022 adjusted earnings of $10.04 per share, which increased 29% year over year from $7.78 and topped the Zacks Consensus Estimate of $8.88. Zacks Rank & Key Picks ABG carries a Zacks Rank #3 (Hold), currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28607.0 | 2022-07-28 00:00:00 UTC | Asbury Automotive Group (ABG) Q2 2022 Earnings Call Transcript | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-q2-2022-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Asbury Automotive Group (NYSE: ABG)
Q2 2022 Earnings Call
Jul 28, 2022, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day, and welcome to the Asbury Automotive Group's second quarter 2022earnings call Today's conference is being recorded. At this time, I would like to turn the conference over to Karen Reid. Please go ahead.
Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer
Thanks, operator, and good morning, everyone. As Kevin noted, today's call is being recorded and will be available for replay later this afternoon. Welcome to Asbury Automotive Group's second quarter 2022earnings call The press release detailing Asbury's second quarter results was issued earlier this morning and is posted on our website at asburyauto.com.
Participating with me today are David Hult, our president and chief executive officer; Dan Clara, our senior vice president of operations; and Michael Welch, our senior vice president and chief financial officer. At the conclusion of our remarks, we will open up the call for questions and will be available later for any follow-up questions. Before we begin, we must remind you that the discussion during the call today is likely to contain forward-looking statements. Forward-looking statements are statements other than those which are historical in nature, which may include financial projections, forecasts and current expectations, each of which are subject to significant uncertainties.
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For information regarding certain of the risks that may cause actual results to differ materially from these statements, please see our filings with the SEC from time to time, including our Form 10-K for the year ended December 2021, any subsequently filed quarterly reports on Form 10-Q and our earnings release issued earlier today. We expressly disclaim any responsibility to update forward-looking statements. In addition, certain non-GAAP financial measures as defined under SEC rules may be discussed on this call. As required by applicable SEC rules, we provide reconciliations to any such non-GAAP financial measures to the most directly comparable GAAP measures on our website.
We have also posted an updated investor presentation on our website, asburyauto.com, highlighting our second quarter results. It is now my pleasure to hand the call over to our CEO, David Hult. David?
David Hult -- President and Chief Executive Officer
Thank you, Karen, and good morning, everyone. Welcome to our second quarterearnings call We continue to make strong progress toward our 2025 plan. For the quarter, we grew adjusted EBITDA by $126 million to $352 million and adjusted EPS from $7.78 to $10.04, an increase of 29%, delivered an 8.5% adjusted operating margin increased revenue by $1.4 billion to $4 billion and increased gross profit by $305 million to $803 million, and drove F&I gross profit per vehicle to $2,390, up $563.
During the second quarter, we executed on our plan of continuing to integrate our acquisitions and reducing our net leverage. In addition, the systems integration for the rollout of Clicklane and Total Care Auto was completed. Combining our fully transactional tool with TCA requires significant work to integrate systematically across all platforms. We will start rolling out Clicklane to our acquired dealerships and TCA into the legacy Asbury stores during this quarter.
In the second quarter, we sold almost 6,600 units through Clicklane, growing 17% from the first quarter of 2022 and 55% year over year. Clicklane is currently installed at 88 of our 155 dealerships and is on pace to provide approximately $1 billion of revenue in 2022. Currently, our unit sales are governed by the lack of new vehicle inventory and our advertising campaign has been on hold until inventory levels improve. Once completely rolled out to all 155 stores, we'll be on pace for $2.2 billion in revenue through Clicklane by the end of 2023.
TCA provides us the opportunity to expand our business horizontally into our F&I business. TCA generated $36 million of income year to date on the LHM stores, excluding unrealized losses on investment. Once completely rolled out to all 155 stores and with future acquisitions, we expect EBITDA from this unique asset to hit $185 million by 2025. We continue to experience solid demand across all of our revenue streams, but we do not anticipate a meaningful recovery in new inventory levels in 2022.
Year to date, we have generated $544 million of adjusted operating cash flow. Net leverage decreased from 2.7 times at year-end to 2.1 times at the end of the second quarter. Our strong cash flow and reduced leverage will allow us to shift our focus to strategic acquisitions and share buybacks. With consumers financially healthy, consumer financing readily available, the car park age to record levels and sizable pent-up demand, combined with our technology to improve efficiency and productivity, we are well positioned to weather the current market conditions.
We look forward to continuing to deliver strong results for our shareholders, be outstanding partners with our OEMs to steward their great brands and offer an environment where our team members can thrive, while providing the most guest-centric experience in automotive retail. We have the right brands in the right states with the right people to execute our strategy to grow and improve our business. Finally, I would like to acknowledge the hard work and dedication of all my fellow Asbury teammates. It is through your efforts that we continue to produce strong results for our shareholders and be the most guest-centric automotive retailer to serve our guests.
Thank you. I will now hand the call over to Dan to discuss our operating performance. Dan?
Dan Clara -- Senior Vice President of Operations
Thank you, David, and good morning, everyone. First, thank you to all of our dedicated teammates who worked so hard to fulfill our commitment to being the most guest-centric automotive retailer. Now, I'll turn to our same-store performance compared to the second quarter of 2021, unless stated otherwise. Starting with new vehicles.
In the second quarter, new vehicle inventory continued to remain well below normalized levels and consumer demand continued to outstrip supply. At the end of June, our total new vehicle inventory was $238 million, and our day supply was at 13 days, down four days from the prior-year quarter. Due to supply constraints, our new vehicle volume declined 31% year over year. However, we experienced a significant increase in our new average gross profit per vehicle, which increased $1,913 from the prior-year quarter to $5,793.
We anticipate new inventory levels to remain low through 2022, and we are focused on maximizing profitability while also remaining steadfast in our commitment to our guests and our mission to be the most guest-centric automotive retailer. Turning to used vehicles. We had a 12% increase in used retail revenue even with a 2% decrease in our used retail volume. Used gross profit PVR was $2,213.
Our total used vehicle inventory ended the quarter at $425 million, which represents a 34-day supply, down three days from the prior year. One of the many benefits of the franchise model is the different venues to source vehicles such as lease turning, trades, loaner cars and direct purchase from consumers, including our recently launched Clicklane cellular car tool. 90% of our used inventory comes from the sources I just mentioned. Our used to new ratio for the quarter was 120%, up from 84% in the prior-year quarter, representing 98 used vehicle sales per rooftop.
Shifting to F&I. We delivered a strong quarter in F&I with an F&I PVR of $2,409, an increase of $579 compared to the prior-year quarter. Thank you to all of our F&I team members for these tremendous results. In the second quarter, our total front-end yield per vehicle increased $1,061 per vehicle to a total of $6,250.
Moving to parts and service. Our parts and service revenue increased 10% in the quarter. The warranty revenue, which is outside of our control, were up 19%. Our customer pay revenue continued its strong rebound, posting 15% growth.
Jumping to Clicklane. Clicklane continues to exceed our expectations in conversion rates, transaction times, new used PVR, F&I PVR and most importantly, the guest experience. We sold almost 6,600 vehicles through Clicklane in the second quarter, a 17% increase from the first quarter 2022. In fact, in the second quarter, it was Clicklane's best quarter ever with June posting the most Clicklane sales since its inception.
In addition, our marketing team continues to drive traffic through their relentless efforts in SEO. As a reminder, SEO is all content built internally and does not require paid search. We experienced a 16% increase in unique visitors year over year to our websites who want to take advantage of the only ecosystem that allows them to purchase a new used or CPO vehicle fully online. Though sales of new vehicles continue to be restrained due to a lack of inventory, we achieved a 55% increase in Clicklane sales year over year.
92% of our transactions this quarter were with customers that were incremental to Asbury dealership network. Average transaction time remained roughly in line with prior quarters, eight minutes for cash deals and 14 minutes for finance deals. Total front-end PVR of $3,765 and F&I PVR of $2,162, which equates to $5,927 of total front-end yield. The average Clicklane customer credit score continues to be over 700, which is higher than the average credit score at our stores.
The average down payment for vehicles was $8,871. 80% of consumers seeking financing received instant approval, while an additional 10% requires some off-line assistance. 90% of those that applied were approved for financing. 44% of Clicklane sales had trade-ins, with 62% of such trades reconditioned and retail to consumers.
And 95% of our Clicklane deliveries are within a 50-mile radius of our stores, thus allowing us the opportunity to retain our new customers in our parts and service departments. Clicklane customers are converting at nearly double the rate of traditional Internet leads, but we won't see the full potential until inventory levels normalize. We are excited to announce Clicklane's second iteration of F&I products. Please reference our investor presentation, starting on Page 19 for related details and visuals.
We have revamped the user experience to include a guided and hybrid approach that allows the consumer to purchase in a manner that is convenient for them. In addition, we are fully integrating TCA and e-contracting in the mix. As we roll out Clicklane to our recently acquired stores, we expect sales to increase, generating approximately $2.2 billion in revenue by the end of 2023. I will now hand the call over to Michael to discuss our financial performance.
Michael?
Michael Welch -- Senior Vice President and Chief Financial Officer
Thank you, Dan. To our investors, analysts, team members and other participants on our call, good morning. I would like to provide some financial highlights for our company. For additional details on our financial performance for the quarter, please see our financial supplement in our press release and our investor presentation on our website.
Overall, compared to the second quarter of last year, adjusted net income increased 47% to $223 million, and adjusted EPS increased 29% to $10.04. Net income for the second quarter of 2022 was adjusted for one-time pre-tax losses totaling $29 million or $0.97 per diluted share, primarily related to the sale of dealerships in the quarter. Net income for the second quarter of 2021 was adjusted for real estate net gains of $500,000 or $0.02 per diluted share. Year to date, we generated adjusted operating cash flow of $544 million, which combined with proceeds from divested stores allowed us to pay down $487 million of debt in our used vehicle line, and repurchased $200 million in shares.
Excluding real estate purchases, year to date we spent approximately $40 million on capital expenditures. Our balance sheet remains strong as we ended the quarter with approximately $1 billion of liquidity comprised of cash, excluding cash to Total Care Auto, floor plan offset accounts and availability on both our used line and revolving credit facility. Also at the end of the quarter, our pro forma adjusted net leverage ratio stood at 2.1 times, down from 2.7 times at year-end. For 2022, we are planning for capex of approximately $120 million.
This amount excludes real estate purchases and potential lease buyout opportunities that we consider to be financing transactions. For the quarter, TCA made $9 million of pre-tax income, which included $8 million of unrealized losses on equity investments. Excluding these unrealized losses, TCA would have made $17 million for the quarter. I would like to thank all of our teammates throughout Asbury, who dedicate themself to building a brighter future for ourselves, our communities and our shareholders.
I will now hand the call back over to David to provide some closing remarks. David?
David Hult -- President and Chief Executive Officer
Hank you, Michael. In closing, we are generating robust cash flow. We've reduced our net leverage more than expected, and we are considering strategically aligned opportunities for disciplined growth. We are optimistic about the future of Asbury and achieving our 2025 plan, while delivering for our shareholders.
This concludes our prepared remarks. We will now turn the call over to the operator and take your questions. Operator?
Questions & Answers:
Operator
Thank you. [Operator instructions] The first question today comes from Daniel Imbro of Stephens, Inc.
Dan Imbro -- Stephens Inc. -- Analyst
Hey, good morning, guys. Congrats on the quarter and thanks for taking the questions. I want to start on the parts and service side. I'm not sure Dan or everyone address this, but you've shown continued strong growth, I'd be curious, what are the initiatives that you've implemented that have been driving this double-digit growth, maybe helping you guys gain share? And then curious for any update on the labor backdrop on the technician side? Is there any alleviation on that? Is the labor market loosened, or how is that developing?
Dan Clara -- Senior Vice President of Operations
Hey, Daniel, good morning. This is Dan. So on the growth in our fixed operations. For the last few years, we have been sharing with you our online initiative of making it convenient for the consumers to schedule their appointments online.
We -- last quarter, we saw a 38% increase year over year from consumers taking advantage of that. Now you can have that availability all you want out there. But if you don't have the throughput in your shops to get the work in and out, it's almost irrelevant. So the good news is not only are we being convenient for our consumers to schedule online, but we also have the throughput in our stores, and we saw our technician headcount also increase year over year.
Was there a second part of the question? Oh, I think you asked me about the technicians. Listen, it's -- the technician situation is still the same that it has been. I think that you can still hire and recruit technicians, but we're mainly focused not only in hire and recruiting them, but retaining them; a, most importantly; and b, is developing those from within. The moment that you can get an entry-level technician and move them up to a C-level technician, a B-level technician and ultimately, a master tech, you build a tremendous amount of loyalty, tremendous amount of knowledge.
And again, it helps to get that throughput through the shop.
Dan Imbro -- Stephens Inc. -- Analyst
Thank, Dan. I wanted to ask a second one on Clicklane. Penetration is growing and I know the F&I PVR is a bit light of the company average. There were plenty of slides in the slide deck this morning kind of rolling out new functionality.
But I'm curious, do you think there's an opportunity to drive that F&I PVR higher on the Clicklane platform and maybe even higher than the chain average? Or what your consumer there is opting into that you can help drive that metric higher?
Dan Clara -- Senior Vice President of Operations
Yeah, I think that it all comes back down to what the guest wants and the convenience of being able to acquire or protect their investment the way that they choose. And what I mean by that is, let's face it, nobody likes to be sold something. With this new iteration of the F&I product, you can see if you look through the deck, that you have the ability to build a la carte for a lack of a better term, or you can also build or select from the different bundles. So we do believe that there is an increase in how consumers are going to protect their investments and excited to see what results we have, but we're excited to release in the second iteration of the F&I of Clicklane.
David Hult -- President and Chief Executive Officer
And I'll just add to that. I haven't paid attention if everyone discusses their F&I numbers on their transactional tools online. But from our perspective, over 2,100 car, really self-selecting by the consumer and no engagement whatsoever from an Asbury employee, we think those numbers are pretty strong. That was our first version of the F&I products that we launched.
So technology has gotten better, the visualization to present the products is getting better. So we actually think there is room to improve on it, but we're really quite pleased with the self-selection for the consumer being over 2,000.
Dan Imbro -- Stephens Inc. -- Analyst
Are all of the same products available on a Clicklane as in a dealership?
David Hult -- President and Chief Executive Officer
Yeah, we focus on the core products. Some dealerships have unique circumstances within their markets and their brands where they might sell some additional products. We kind of stay focused on the national mainstay products on the platform.
Dan Imbro -- Stephens Inc. -- Analyst
Great. And last one for me. Michael, just on the balance sheet, about two times net leverage here. Where do you want to get that down to over the intermediate term before maybe looking at more M&A? And on the buyback, it looks like you bought back 1.1 million shares.
I think that exhausts the existing authorization. So where has that been to your capital priorities? Thanks.
Michael Welch -- Senior Vice President and Chief Financial Officer
So on the share buybacks, that was all done in the first quarter. And so that's all just first quarter share buybacks and nothing in the second quarter. From a leverage perspective, we want to get down the kind of two times before we start looking at acquisitions again. And so we're at the level we want to be at in terms of leverage to be able to be acquisitive on the acquisition front.
So first priority is acquisitions. But of course, with the share price being a little volatile, there's some opportunities for some share buybacks as well.
Dan Imbro -- Stephens Inc. -- Analyst
Great. Thanks for all the color. Best of luck going forward guys.
David Hult -- President and Chief Executive Officer
Thank you.
Michael Welch -- Senior Vice President and Chief Financial Officer
Thank you.
Operator
Our next question comes from Rajat Gupta of J.P.Morgan.
Rajat Gupta -- J.P. Morgan -- Analyst
Great. Good morning, and thanks for taking the questions. Ford, on theirearnings call made some interesting comments last night. They continue to see the dealers as key to their electric vehicle strategy, but also noted how the profile of the dealership margin structure might change.
They also made some comments around flow plan assistance, which is not new and talked about 1,600 to 1,700 pricing-related compression GPUs over time. My sense is that putting these things together now and in the low inventory model, it implies that if all of the above were to actually happen, it would still put GPUs comfortably above pre-pandemic levels and also lead to structurally lower SG&A. Just curious if I'm missing anything there? If you could just provide your thoughts since investors should all be concerned about dealer bottom-line EBITDA margins going back to prepandemic level? Thanks, and I have a follow-up.
David Hult -- President and Chief Executive Officer
Rajat, this is David. I'll address it as best I can. Without disclosing too many private conversations with our manufacturer partner, we feel really lucky and proud to represent the Ford brand, and we're very optimistic about the future with them. I think some of it gets a little bit lost in context when I was talking about the margin, it's not as much of it going away as much as it might be being redistributed in other sections through the ownership piece of it and naturally performance on the guest experience.
I think we're in uncharted territories going forward into this EV market growing the way that it is and everyone coming to market with their products and we still need to find out if the average consumer has the propensity to buy electric vehicles right out of the gate. What I would say is we feel like what we've done with our omnichannel approach, what we've done with our digital tools and where we think the future is going, we think we're really well positioned to be a really good partner. We still feel the same going forward as it relates to SG&A. We think over the next few years we have an opportunity to bring it down over time.
But the age old supply and demand retaining margins. I would say this, I've said it in past quarters, so I'm going to stay consistent with it. Even if inventories normalize and we get back to prepandemic inventory levels, you won't see us get back to pre-pandemic margins -- or I shouldn't say margins, gross profits per vehicles. I think we're a different company.
I think it's a different time and space right now. And I think you'll see elevated margins from pre-pandemic levels going forward even as the days supply grows.
Rajat Gupta -- J.P. Morgan -- Analyst
Got it. Got it. That's helpful. And maybe just to follow up on some of your comments in your prepared remarks around consumers still financially healthy.
Maybe like if you could give us some more, like latest updates in terms of what you're seeing on the ground? Any pockets of weakness anywhere in any region with respect to underlying demand in general? Because it seems like you're reiterating your long-term targets, which assume $17 million SAAR environment. Is that still your base case assumption based on how you see the macro unfolding here? Thanks.
David Hult -- President and Chief Executive Officer
Yeah, I'll start and then Dan can jump in. If I miss something, please come back around. We see next year SAAR improving on this year. We certainly don't see it at $17 million.
Maybe it's in the high 14s, low 15s next year. It's really too difficult to predict now. But I think our model implies, by the end of '24, '25, we're back to a $17 million SAAR. Certainly, we can be wrong on that assumption, but that's what we believe as we sit here today.
Did I miss another piece of that? I'm sorry.
Rajat Gupta -- J.P. Morgan -- Analyst
No, that was -- just in general, like on the ground, what you're seeing today is there any pockets of weakness in terms of demand. I think you mentioned in prepared remarks that the financial conditions still remain pretty healthy for the consumer, but just curious if you have some sort of a read on like how the underlying demand is changing given just the recent inflation trends, gas prices, etc.? Thanks.
David Hult -- President and Chief Executive Officer
I would say parts and service remains strong. The traffic is still great. People are still spending the same dollars in greater dollars quarter over quarter in the service department. So I think that's great.
I think the new car business is solid, but it's really hard to understand how strong it is because you have such a low day supply. Generally speaking, we're still preselling half the cars that are coming in. So a lot of these cars aren't getting to hit the ground. It varies a little bit by brand.
But generally, that's where it is overall. I would say the used car market is softening from what it was in the last six months, but greater than it's been in the last few years, it's been bouncing around a little bit the last six to eight weeks as it relates to valuations. And what I would say people were impulsively buying six months ago, they're probably putting a little bit more thought and care into the selection and the pricing right now. So I think we're still trying to find the footing on what the valuations are going to be for the rest of the year.
It's still healthy, it's still strong on the used business. But of all the segments, I would say that's the one where it's trying to find its footing to move forward.
Rajat Gupta -- J.P. Morgan -- Analyst
Understood. Make sense. Thanks a lot.
David Hult -- President and Chief Executive Officer
Thank you.
Operator
[Operator instructions] The next question today comes from Dave Whiston of Morningstar.
David Whiston -- Morningstar -- Analyst
Thanks, good morning. You talked about 90% of Clicklane customers who want a loan can get one. Just curious about that 10% that gets rejected. Is that purely a credit score issue or are there other variables?
Dan Clara -- Senior Vice President of Operations
So it's a combination. You got a -- you have some negative equity concerns or opportunities. So in some cases it might be a credit score. But keep in mind, I stated in the script that the average credit score on Clicklane is 700, which is higher than what our stores is.
So we're traditionally and the vast majority of the credit that we see coming through Clicklane is a very good credit customer, which allows us to offer the 90% approval rating that I mentioned.
David Hult -- President and Chief Executive Officer
And Dave, just to follow up on that. Our previous tool is what we referred to as a super lead generator. It took the sale to a certain point, but you couldn't fully transact online. We saw a lot more so prime in lower credit scores on that tool.
With this fully transactional tool, we've been impressed with the much higher credit scores and the consistency of it. And our belief is because the consumer now understands it's a fully transactional tool, customers with strong credit aren't worried about the financing. They're worried about their time. So that's why we think we're seeing better credit.
But traditionally, digital tools are not, you never get 100% of the people finance. There's always unique circumstances that there are some people you just can't help out. But we have also launched some lenders into our loan marketplace that are considered subprime lenders. So we think 90% is really strong.
We think an average credit score over 700 is great, but there's always room for improvement.
David Whiston -- Morningstar -- Analyst
OK. And on the F&I 2.0 bundle, I looked at the slides, I guess I'm not totally clear. Can you still do a la carte if you want to? Or is that not even an option? And I guess a subset of that is you've got these bundle packages, but can you customize within one package and say, well, of these five things offered I only want three of them?
Dan Imbro -- Stephens Inc. -- Analyst
Yeah, this is Dan again. Absolutely. Keep in mind, from day 1 when we build this -- when we built Clicklane, we did it all based on what is in the best for the consumer. So 100%, you can go in there and you're going to be able to build a la carte.
You can -- when you have a bundle, if you want to delete a product or build it the way that you want it, by all means you can definitely do it. All we're doing is just providing some options. But at the end of the day, the consumer can decide what her she wants from the comfort of their home or their office.
David Whiston -- Morningstar -- Analyst
OK. And just a Q3 event, how bad is the St. Louis flooding for your stores?
David Hult -- President and Chief Executive Officer
Yeah. We -- it's -- we've been lucky. It hasn't caused any physical damage. It's horrible what's going on in the city and certainly people have been harmed.
But our physical locations are fine.
David Whiston -- Morningstar -- Analyst
OK. Thanks, guys.
David Hult -- President and Chief Executive Officer
Thank you.
Operator
Our next question comes from Ryan Sigdahl of Craig-Hallum Capital Group.
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Good morning. I just want to follow up on the F&I interface change. And so it looks like F&I was down quarter over quarter versus Q1. I guess can you talk to that decrease? And then if the interface change had anything to do with that?
Michael Welch -- Senior Vice President and Chief Financial Officer
I think when you say F&I was down, you're specifically talking about Clicklane F&I?
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
That is correct. It was $21.66 versus $22.91.
Michael Welch -- Senior Vice President and Chief Financial Officer
Yes. Yes, just want to make sure. So the second iteration of F&I is being rolled out as we speak. So it's going to start being -- consumers taking advantage of it, I believe, in a couple of weeks, if I'm not mistaken.
So the second iteration did not have any negative impact on that number at all.
David Hult -- President and Chief Executive Officer
The other thing I would mention, with the light inventories, generally speaking our F&I dollars are higher on new vehicles than used vehicles, both in product sales and reserve because the cost of the vehicle is higher. So depending upon the balance and what you're selling, the F&I number moves around a little bit. More domestic trucks are going to have higher PVRs than lower import cars. So I think it's really just about what transacts on that line.
I think it will always move around a little bit depending upon the spread of the brand mix and how much of it is newly used. But again -- and I don't know if our peers are quoting any numbers, but to be over 2,100 a car in F&I with the consumer self-selecting compared to 2,400 with us selling the product face-to-face, we think that's really strong.
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Yes. Then just one on new vehicles. So unit same-store sales down 31%, obviously challenged inventory situation across everyone. But any idea how you're doing relative to competitors in your specific markets, stock and market share?
David Hult -- President and Chief Executive Officer
Yes. So it's frustrating because you have to look at each brand and each market differently. I mean some of our stores at the end of the month have a zero day supplier cars, and they're still losing a little bit of market share because someone might have a few more vehicles than to sell or timing of when cars get reported. We're selling everything we have.
We got hit hardest on the import. It just is what it is in the quarter as far as deliveries and what's going on with the chip shortage. We got really hard to get hit hard with the domestic trucks as well. So it's really spotty by brand.
But based upon our brand mix, I think the reality of it is that really low number is simply a reflection of what we were allocated. We're turning what we're getting. That 13 day supply, I would tell you was high because we had so many cars delivered at the end of the quarter. We just couldnt reportand transact in time to close to account the revenue for the quarter.
So I would say we were several days below that number in actuality.
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Great. Thanks. Good luck.
David Hult -- President and Chief Executive Officer
Thank you.
Operator
Our next question is from Bret Jordan of Jefferies.
Bret Jordan -- Jefferies -- Analyst
Hey, good morning, guys.
David Hult -- President and Chief Executive Officer
Hey, good morning.
Bret Jordan -- Jefferies -- Analyst
If you look at the correlation of F&I to PVR, are customers spending more because the transaction value is higher or if transaction values decline with supply rebound, would they have more available sort of from a monthly spend standpoint.
David Hult -- President and Chief Executive Officer
Yeah, I would say -- and I think Dan touched on it earlier. We love to buy things. We hate to be sold things. And I think when we're buying new vehicles with all the new technology, people want to make sure that their asset is protected as best as possible.
So they're really searching out for products to make sure that they do that. The used car customer varies slightly, depending upon if it's a used car customer buying a $50,000 preowned luxury car or a $15,000 car. Those folks tend to be slightly more conservative, slightly less focused on enhancing the security of the vehicle and buying products. That's been fairly consistent for the last couple of decades regardless of it's an online transaction or an in-store transaction.
I would say, generally speaking, every year the cost of sale keeps going up. I would think based upon that ebb and flow, you'll continue to see F&I numbers grow, not at the staggering rate that we're at now, but I think you'll see it continually grow.
Bret Jordan -- Jefferies -- Analyst
And a question on used. I guess, obviously, it's been a challenging market to be profitable just given the cost of inventory. Are you seeing much change in the market, either contraction of the independent used only dealers or even some of the bigger used only dealers that have entered. Do you see this environment sort of driving any attrition? Or does everybody sort of get through this in one piece?
David Hult -- President and Chief Executive Officer
Yes, I don't know how much awareness I have to the full market to answer that. But my impression is the independent dealers have a much harder road than the franchise dealer as far as securing inventory to sell. I think they're feeling far more squeezed than we are. And we have the benefit of offering CPO programs and Dan talked about all the different sourcing that we have for used vehicles.
Again, I think our numbers were pretty good in the quarter. I think we're -- it wasn't about chasing volume as much as it was making sure that we're getting a good return. We look at a used car. If it's a cost of sale of $20,000, we're making a $20,000 investment, what's a fair return on that.
And during the quarter, we had some movement in valuations from the markets shift and go up and down. So that affected our PVR in the quarter as well. So there's always more opportunity to grow. There's always more opportunity for more volume.
But we see, going forward, the used car business should get better for us over time. And when I say that, I don't necessarily mean in Q3 or Q4. But as you start to get into next year and products become more available and rental car company fleets have to turn cars over, there'll be more access to inventory for us to move.
Bret Jordan -- Jefferies -- Analyst
Great. Thank you.
David Hult -- President and Chief Executive Officer
Thank you. This concludes today's discussion. I'm sorry, go ahead.
Operator
No, please go ahead.
David Hult -- President and Chief Executive Officer
No. Was there another question?
Operator
No, sorry.
David Hult -- President and Chief Executive Officer
OK. This concludes today's discussion. We appreciate your participation and looking forward to speaking with you next quarter. Have a great day.
Duration: 0 minutes
Call participants:
Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer
David Hult -- President and Chief Executive Officer
Dan Clara -- Senior Vice President of Operations
Michael Welch -- Senior Vice President and Chief Financial Officer
Dan Imbro -- Stephens Inc. -- Analyst
Rajat Gupta -- J.P. Morgan -- Analyst
David Whiston -- Morningstar -- Analyst
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Bret Jordan -- Jefferies -- Analyst
More ABG analysis
All earnings call transcripts
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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 (NYSE: ABG) Q2 2022 Earnings Call Jul 28, 2022, 10:00 a.m. Duration: 0 minutes Call participants: Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Dan Imbro -- Stephens Inc. -- Analyst Rajat Gupta -- J.P. Morgan -- Analyst David Whiston -- Morningstar -- Analyst Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst Bret Jordan -- Jefferies -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We look forward to continuing to deliver strong results for our shareholders, be outstanding partners with our OEMs to steward their great brands and offer an environment where our team members can thrive, while providing the most guest-centric experience in automotive retail. | Duration: 0 minutes Call participants: Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Dan Imbro -- Stephens Inc. -- Analyst Rajat Gupta -- J.P. Morgan -- Analyst David Whiston -- Morningstar -- Analyst Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst Bret Jordan -- Jefferies -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Asbury Automotive Group (NYSE: ABG) Q2 2022 Earnings Call Jul 28, 2022, 10:00 a.m. Participating with me today are David Hult, our president and chief executive officer; Dan Clara, our senior vice president of operations; and Michael Welch, our senior vice president and chief financial officer. | Duration: 0 minutes Call participants: Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Dan Imbro -- Stephens Inc. -- Analyst Rajat Gupta -- J.P. Morgan -- Analyst David Whiston -- Morningstar -- Analyst Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst Bret Jordan -- Jefferies -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Asbury Automotive Group (NYSE: ABG) Q2 2022 Earnings Call Jul 28, 2022, 10:00 a.m. Participating with me today are David Hult, our president and chief executive officer; Dan Clara, our senior vice president of operations; and Michael Welch, our senior vice president and chief financial officer. | Duration: 0 minutes Call participants: Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Dan Imbro -- Stephens Inc. -- Analyst Rajat Gupta -- J.P. Morgan -- Analyst David Whiston -- Morningstar -- Analyst Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst Bret Jordan -- Jefferies -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Asbury Automotive Group (NYSE: ABG) Q2 2022 Earnings Call Jul 28, 2022, 10:00 a.m. We sold almost 6,600 vehicles through Clicklane in the second quarter, a 17% increase from the first quarter 2022. |
28608.0 | 2022-07-28 00:00:00 UTC | Asbury Automotive Group (ABG) Beats Q2 Earnings and Revenue Estimates | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-beats-q2-earnings-and-revenue-estimates | nan | nan | Asbury Automotive Group (ABG) came out with quarterly earnings of $10.04 per share, beating the Zacks Consensus Estimate of $8.88 per share. This compares to earnings of $7.78 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 13.06%. A quarter ago, it was expected that this auto dealership chain would post earnings of $8.92 per share when it actually produced earnings of $9.27, delivering a surprise of 3.92%.
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 $3.95 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.31%. This compares to year-ago revenues of $2.58 billion. The company has topped consensus revenue estimates four 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 5.3% since the beginning of the year versus the S&P 500's decline of -15.6%.
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 $8.40 on $3.89 billion in revenues for the coming quarter and $35.12 on $15.48 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 23% 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.
Titan Machinery (TITN), another stock in the same industry, has yet to report results for the quarter ended July 2022.
This agriculture and construction equipment seller is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +24.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Titan Machinery's revenues are expected to be $487.5 million, up 29.1% 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 $10.04 per share, beating the Zacks Consensus Estimate of $8.88 per share. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) came out with quarterly earnings of $10.04 per share, beating the Zacks Consensus Estimate of $8.88 per share. Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.95 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.31%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $10.04 per share, beating the Zacks Consensus Estimate of $8.88 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 $3.95 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.31%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $10.04 per share, beating the Zacks Consensus Estimate of $8.88 per share. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company has topped consensus revenue estimates four times over the last four quarters. |
28609.0 | 2022-07-27 00:00:00 UTC | Here's Why Asbury Automotive Group (NYSE:ABG) Can Manage Its Debt Responsibly | ABG | https://www.nasdaq.com/articles/heres-why-asbury-automotive-group-nyse%3Aabg-can-manage-its-debt-responsibly | nan | nan | The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that Asbury Automotive Group, Inc. (NYSE:ABG) does use debt in its business. But the more important question is: how much risk is that debt creating?
Why Does Debt Bring Risk?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. The first step when considering a company's debt levels is to consider its cash and debt together.
What Is Asbury Automotive Group's Net Debt?
You can click the graphic below for the historical numbers, but it shows that as of March 2022 Asbury Automotive Group had US$3.93b of debt, an increase on US$1.84b, over one year. However, because it has a cash reserve of US$297.5m, its net debt is less, at about US$3.63b.
NYSE:ABG Debt to Equity History July 27th 2022
How Strong Is Asbury Automotive Group's Balance Sheet?
We can see from the most recent balance sheet that Asbury Automotive Group had liabilities of US$1.58b falling due within a year, and liabilities of US$4.09b due beyond that. Offsetting this, it had US$297.5m in cash and US$187.3m in receivables that were due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$5.19b.
Given this deficit is actually higher than the company's market capitalization of US$3.55b, we think shareholders really should watch Asbury Automotive Group's debt levels, like a parent watching their child ride a bike for the first time. In the scenario where the company had to clean up its balance sheet quickly, it seems likely shareholders would suffer extensive dilution.
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
Asbury Automotive Group has net debt to EBITDA of 3.5 suggesting it uses a fair bit of leverage to boost returns. On the plus side, its EBIT was 7.8 times its interest expense, and its net debt to EBITDA, was quite high, at 3.5. Notably, Asbury Automotive Group's EBIT launched higher than Elon Musk, gaining a whopping 105% on last year. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Asbury Automotive Group's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. Over the last three years, Asbury Automotive Group actually produced more free cash flow than EBIT. That sort of strong cash generation warms our hearts like a puppy in a bumblebee suit.
Our View
Both Asbury Automotive Group's ability to to convert EBIT to free cash flow and its EBIT growth rate gave us comfort that it can handle its debt. In contrast, our confidence was undermined by its apparent struggle to handle its total liabilities. When we consider all the factors mentioned above, we do feel a bit cautious about Asbury Automotive Group's use of debt. While we appreciate debt can enhance returns on equity, we'd suggest that shareholders keep close watch on its debt levels, lest they increase. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. Case in point: We've spotted 3 warning signs for Asbury Automotive Group you should be aware of.
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
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. | We can see that Asbury Automotive Group, Inc. (NYSE:ABG) does use debt in its business. NYSE:ABG Debt to Equity History July 27th 2022 How Strong Is Asbury Automotive Group's Balance Sheet? The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' | NYSE:ABG Debt to Equity History July 27th 2022 How Strong Is Asbury Automotive Group's Balance Sheet? We can see that Asbury Automotive Group, Inc. (NYSE:ABG) does use debt in its business. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). | We can see that Asbury Automotive Group, Inc. (NYSE:ABG) does use debt in its business. NYSE:ABG Debt to Equity History July 27th 2022 How Strong Is Asbury Automotive Group's Balance Sheet? The first step when considering a company's debt levels is to consider its cash and debt together. | We can see that Asbury Automotive Group, Inc. (NYSE:ABG) does use debt in its business. NYSE:ABG Debt to Equity History July 27th 2022 How Strong Is Asbury Automotive Group's Balance Sheet? What Is Asbury Automotive Group's Net Debt? |
28610.0 | 2022-07-19 00:00:00 UTC | PREVIEW-For auto retailers, pandemic-era profit boost in rear-view mirror | ABG | https://www.nasdaq.com/articles/preview-for-auto-retailers-pandemic-era-profit-boost-in-rear-view-mirror | nan | nan | By Kannaki Deka
July 19 (Reuters) - Profit growth at U.S. car dealers is likely to lose momentum in the second quarter, as the auto industry struggles to ramp up production due to parts shortage, while inflation-fueled price hikes keep buyers out of the market.
Preference for personal transport from cash-flushed Americans during the pandemic turbo-charged auto sales last year, despite price hikes, helping retailers such as AutoNation Inc AN.N, Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Group Inc ABG.N.
However, with inflation posing a threat to overall consumer spending, auto dealers will find it tough to match their performance in the comparable period as vehicle prices are set to fall from record highs.
"Prices are still hitting record highs but there's concern that there could be a decline in the second half of the year with a recession looking more and more likely," CFRA analyst Garrett Nelson said.
Retailer margins are set to moderate "pretty materially" in the second half, Nelson added.
American's affordability of new vehicles slipped in June from a year earlier, when prices were lower and incentives higher, according to the Cox Automotive/Moody's Analytics Vehicle Affordability Index.
The industry's struggles with chip shortage and supply chain disruptions have also led to a 25% drop in inventory at the start of June, which is a third of the pre-pandemic level, according to analytics firm Wards Intelligence.
Investors will be watching for comments from industry executives for warning signs on consumer behavior in a hyper-inflationary environment. (https://reut.rs/3INok32)
AutoNation Inc AN.N, the largest U.S. retailer, is expected to report its slowest quarterly profit growth since 2020 when it reports results on Thursday.
Other dealers such as Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Inc ABG.N are also expected to report weak earnings over the next few weeks.
THE CONTEXT
Industry executives and analysts say demand for vehicles has been strong so far, despite price hikes, which have also protected profits at retailers and automakers such as General Motors Co GM.N and Ford Motor Co F.N.
However, recent data and industry analysis show that inflation is slowly eating into sales.
"Channel checks suggest demand has softened, particularly in mid- to low-priced vehicles, and we are assuming some step-down in GPUs and unit sales," Stephens analyst Daniel Imbro said.
Retail sales of new vehicles in June fell 18.2%, a report from auto industry consultants J.D. Power and LMC Automotive showed.
However, demand for high-end cars is strong, J.P. Morgan analysts say, and should cushion falling sales of lower- and mid-range cars.
FUNDAMENTALS
AutoNation:
* Analysts estimate Q2 revenue to grow 0.3% to $7 billion when it reports results on July 21
* Earnings per share (EPS) estimated at $6.22
* The stock has gained about 0.3% of its value this year
Lithia & Driveway:
* Analysts estimate Q2 revenue to grow 21.1% to $7.279 billion
* EPS estimated at $12.05
* The stock has lost about 4.4% of its value this year
Group 1 Automotive:
* Q2 revenue is expected to grow 10.8% to $4.1 billion
* EPS estimated at $10.74
* The stock has lost about 13% of its value this year
Asbury Automotive:
* Asbury Automotive Q2 revenue is expected to grow 51% to $3.9 billion
* EPS estimated at $8.82
* The stock has lost about 3.9% of its value this year
WALL STREET SENTIMENT
* For AN, 6 out of 11 analysts rate the stock "buy" or higher, while 5 have a "hold" rating
* The median price target is $147
* For LAD, 11 out of 13 analysts rate the stock "buy" or higher, while one has a "hold" rating and one "sell" rating
* The median price target is $450
* For GPI, 5 out of 8 analysts rate the stock "buy" or higher, while 2 have a "hold" rating and one "sell" rating
* The median price target is $300
* For ABG, 4 out of 8 analysts rate the stock "buy" or higher, while 3 have a "hold" rating and one "sell" rating
* The median price target is $232.5
Slowing profit growthhttps://tmsnrt.rs/3ods9VI
Slowing profit growthhttps://tmsnrt.rs/3ocuuAm
(Reporting by Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Anil D'Silva)
((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. | Preference for personal transport from cash-flushed Americans during the pandemic turbo-charged auto sales last year, despite price hikes, helping retailers such as AutoNation Inc AN.N, Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Group Inc ABG.N. Other dealers such as Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Inc ABG.N are also expected to report weak earnings over the next few weeks. * For AN, 6 out of 11 analysts rate the stock "buy" or higher, while 5 have a "hold" rating * The median price target is $147 * For LAD, 11 out of 13 analysts rate the stock "buy" or higher, while one has a "hold" rating and one "sell" rating * The median price target is $450 * For GPI, 5 out of 8 analysts rate the stock "buy" or higher, while 2 have a "hold" rating and one "sell" rating * The median price target is $300 * For ABG, 4 out of 8 analysts rate the stock "buy" or higher, while 3 have a "hold" rating and one "sell" rating * The median price target is $232.5 Slowing profit growthhttps://tmsnrt.rs/3ods9VI Slowing profit growthhttps://tmsnrt.rs/3ocuuAm (Reporting by Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Anil D'Silva) ((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. | Preference for personal transport from cash-flushed Americans during the pandemic turbo-charged auto sales last year, despite price hikes, helping retailers such as AutoNation Inc AN.N, Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Group Inc ABG.N. * For AN, 6 out of 11 analysts rate the stock "buy" or higher, while 5 have a "hold" rating * The median price target is $147 * For LAD, 11 out of 13 analysts rate the stock "buy" or higher, while one has a "hold" rating and one "sell" rating * The median price target is $450 * For GPI, 5 out of 8 analysts rate the stock "buy" or higher, while 2 have a "hold" rating and one "sell" rating * The median price target is $300 * For ABG, 4 out of 8 analysts rate the stock "buy" or higher, while 3 have a "hold" rating and one "sell" rating * The median price target is $232.5 Slowing profit growthhttps://tmsnrt.rs/3ods9VI Slowing profit growthhttps://tmsnrt.rs/3ocuuAm (Reporting by Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Anil D'Silva) ((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. Other dealers such as Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Inc ABG.N are also expected to report weak earnings over the next few weeks. | Preference for personal transport from cash-flushed Americans during the pandemic turbo-charged auto sales last year, despite price hikes, helping retailers such as AutoNation Inc AN.N, Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Group Inc ABG.N. * For AN, 6 out of 11 analysts rate the stock "buy" or higher, while 5 have a "hold" rating * The median price target is $147 * For LAD, 11 out of 13 analysts rate the stock "buy" or higher, while one has a "hold" rating and one "sell" rating * The median price target is $450 * For GPI, 5 out of 8 analysts rate the stock "buy" or higher, while 2 have a "hold" rating and one "sell" rating * The median price target is $300 * For ABG, 4 out of 8 analysts rate the stock "buy" or higher, while 3 have a "hold" rating and one "sell" rating * The median price target is $232.5 Slowing profit growthhttps://tmsnrt.rs/3ods9VI Slowing profit growthhttps://tmsnrt.rs/3ocuuAm (Reporting by Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Anil D'Silva) ((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. Other dealers such as Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Inc ABG.N are also expected to report weak earnings over the next few weeks. | Other dealers such as Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Inc ABG.N are also expected to report weak earnings over the next few weeks. Preference for personal transport from cash-flushed Americans during the pandemic turbo-charged auto sales last year, despite price hikes, helping retailers such as AutoNation Inc AN.N, Lithia & Driveway LAD.N, Group 1 Automotive Inc GPI.N and Asbury Automotive Group Inc ABG.N. * For AN, 6 out of 11 analysts rate the stock "buy" or higher, while 5 have a "hold" rating * The median price target is $147 * For LAD, 11 out of 13 analysts rate the stock "buy" or higher, while one has a "hold" rating and one "sell" rating * The median price target is $450 * For GPI, 5 out of 8 analysts rate the stock "buy" or higher, while 2 have a "hold" rating and one "sell" rating * The median price target is $300 * For ABG, 4 out of 8 analysts rate the stock "buy" or higher, while 3 have a "hold" rating and one "sell" rating * The median price target is $232.5 Slowing profit growthhttps://tmsnrt.rs/3ods9VI Slowing profit growthhttps://tmsnrt.rs/3ocuuAm (Reporting by Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Anil D'Silva) ((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. |
28611.0 | 2022-07-19 00:00:00 UTC | Can Asbury Automotive (ABG) Keep the Earnings Surprise Streak Alive? | ABG | https://www.nasdaq.com/articles/can-asbury-automotive-abg-keep-the-earnings-surprise-streak-alive-0 | nan | nan | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). This company, which is in the Zacks Automotive - Retail and Whole Sales industry, shows potential for another earnings beat.
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 15.61%.
For the most recent quarter, Asbury Automotive was expected to post earnings of $8.92 per share, but it reported $9.27 per share instead, representing a surprise of 3.92%. For the previous quarter, the consensus estimate was $5.86 per share, while it actually produced $7.46 per share, a surprise of 27.30%.
Price and EPS Surprise
For Asbury Automotive, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially 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 +4.12%, 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 July 28, 2022.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an 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. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). 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 If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Price and EPS Surprise For Asbury Automotive, estimates have been trending higher, thanks in part to this earnings surprise history. |
28612.0 | 2022-07-15 00:00:00 UTC | Friday Sector Leaders: Music & Electronics Stores, Auto Dealerships | ABG | https://www.nasdaq.com/articles/friday-sector-leaders%3A-music-electronics-stores-auto-dealerships | nan | nan | In trading on Friday, music & electronics stores shares were relative leaders, up on the day by about 3.1%. Leading the group were shares of Rent-A-Center, up about 7.7% and shares of Conns up about 2.8% on the day.
Also showing relative strength are auto dealerships shares, up on the day by about 2.8% as a group, led by Asbury Automotive Group, trading higher by about 6.9% and TravelCenters of America, trading up by about 5.2% on Friday.
VIDEO: Friday Sector Leaders: Music & Electronics Stores, Auto Dealerships
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 Friday, music & electronics stores shares were relative leaders, up on the day by about 3.1%. Also showing relative strength are auto dealerships shares, up on the day by about 2.8% as a group, led by Asbury Automotive Group, trading higher by about 6.9% and TravelCenters of America, trading up by about 5.2% on Friday. VIDEO: Friday Sector Leaders: Music & Electronics Stores, Auto Dealerships 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 Friday, music & electronics stores shares were relative leaders, up on the day by about 3.1%. Also showing relative strength are auto dealerships shares, up on the day by about 2.8% as a group, led by Asbury Automotive Group, trading higher by about 6.9% and TravelCenters of America, trading up by about 5.2% on Friday. VIDEO: Friday Sector Leaders: Music & Electronics Stores, Auto Dealerships 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 Friday, music & electronics stores shares were relative leaders, up on the day by about 3.1%. Also showing relative strength are auto dealerships shares, up on the day by about 2.8% as a group, led by Asbury Automotive Group, trading higher by about 6.9% and TravelCenters of America, trading up by about 5.2% on Friday. VIDEO: Friday Sector Leaders: Music & Electronics Stores, Auto Dealerships 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 Friday, music & electronics stores shares were relative leaders, up on the day by about 3.1%. Leading the group were shares of Rent-A-Center, up about 7.7% and shares of Conns up about 2.8% on the day. Also showing relative strength are auto dealerships shares, up on the day by about 2.8% as a group, led by Asbury Automotive Group, trading higher by about 6.9% and TravelCenters of America, trading up by about 5.2% on Friday. |
28613.0 | 2022-07-12 00:00:00 UTC | Validea David Dreman Strategy Daily Upgrade Report - 7/12/2022 | ABG | https://www.nasdaq.com/articles/validea-david-dreman-strategy-daily-upgrade-report-7-12-2022 | nan | nan | The following are today's upgrades for Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on David Dreman changed from 64% to 76% 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.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: FAIL
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: FAIL
Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC.
Full Guru Analysis for ABG
Full Factor Report for ABG
LENNAR CORPORATION (LEN) is a large-cap value stock in the Construction Services industry. The rating according to our strategy based on David Dreman changed from 61% to 76% 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: Lennar Corporation is a homebuilder and an originator of residential and commercial mortgage loans. The Company is also a provider of title insurance and closing services, and a developer of multifamily rental properties. The Company's segments include Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily and Lennar other. Its Homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through its unconsolidated entities. Its Financial Services segment include primarily mortgage financing, title and closing services primarily for buyers of its homes. Its Multifamily segment focuses on developing a diversified portfolio of institutional quality multifamily rental properties in selected United States markets. Its Lennar Other segment primarily includes strategic investments in technology companies.
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.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL
PAYOUT RATIO: FAIL
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of LENNAR CORPORATION
Full Guru Analysis for LEN
Full Factor Report for LEN
More details on Validea's David Dreman strategy
About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
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 LENNAR CORPORATION (LEN) is a large-cap value stock in the Construction Services industry. The following are today's upgrades for Validea's Contrarian Investor model based on the published strategy of David Dreman. | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. Full Guru Analysis for ABG Full Factor Report for ABG LENNAR CORPORATION (LEN) is a large-cap value stock in the Construction 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. Full Guru Analysis for ABG Full Factor Report for ABG LENNAR CORPORATION (LEN) is a large-cap value stock in the Construction 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. Full Guru Analysis for ABG Full Factor Report for ABG LENNAR CORPORATION (LEN) is a large-cap value stock in the Construction Services industry. The following are today's upgrades for Validea's Contrarian Investor model based on the published strategy of David Dreman. |
28614.0 | 2022-07-07 00:00:00 UTC | Alcogroup, Agroetanol charged by EU over ethanol benchmarks cartel | ABG | https://www.nasdaq.com/articles/alcogroup-agroetanol-charged-by-eu-over-ethanol-benchmarks-cartel | nan | nan | By Foo Yun Chee
BRUSSELS, July 7 (Reuters) - Belgium's Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators on Thursday with taking part in a bioethanol benchmarks cartel in previous years which could lead to fines.
The EU competition enforcer fined Spain's Abengoa ABG.MC 20 million euros last year for rigging ethanol benchmarks as part of a crackdown on such practices.
Abengoa admitted wrongdoing in return for a reduced fine but Alcogroup and Agroetanol disagreed with the European Commission which sent a charge sheet called a statement of objections to the companies on Thursday.
Agroetanol is made up of Lantmannen and its subsidiary Lantmannen Agroetanol AB.
"We are concerned that the companies' conduct harmed competition in the market for the supply of biofuels, which contribute to the reduction of greenhouse gas emissions. With artificially inflated biofuel prices, Green Deal objectives are also undermined," Commission Vice-President Margarethe Vestager said in a statement.
The Commission had previously said the cartel took place from September 2011 to May 2014.
Alcogroup and Agroetanol, which risk fines up to 10% of their global turnover if found guilty of wrongdoing, can submit their arguments in writing and also ask for a closed door hearing before the Commission makes a final decision.
(Reporting by Foo Yun Chee; editing by Jason Neely)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The EU competition enforcer fined Spain's Abengoa ABG.MC 20 million euros last year for rigging ethanol benchmarks as part of a crackdown on such practices. By Foo Yun Chee BRUSSELS, July 7 (Reuters) - Belgium's Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators on Thursday with taking part in a bioethanol benchmarks cartel in previous years which could lead to fines. Abengoa admitted wrongdoing in return for a reduced fine but Alcogroup and Agroetanol disagreed with the European Commission which sent a charge sheet called a statement of objections to the companies on Thursday. | The EU competition enforcer fined Spain's Abengoa ABG.MC 20 million euros last year for rigging ethanol benchmarks as part of a crackdown on such practices. By Foo Yun Chee BRUSSELS, July 7 (Reuters) - Belgium's Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators on Thursday with taking part in a bioethanol benchmarks cartel in previous years which could lead to fines. (Reporting by Foo Yun Chee; editing by Jason Neely) ((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The EU competition enforcer fined Spain's Abengoa ABG.MC 20 million euros last year for rigging ethanol benchmarks as part of a crackdown on such practices. By Foo Yun Chee BRUSSELS, July 7 (Reuters) - Belgium's Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators on Thursday with taking part in a bioethanol benchmarks cartel in previous years which could lead to fines. Abengoa admitted wrongdoing in return for a reduced fine but Alcogroup and Agroetanol disagreed with the European Commission which sent a charge sheet called a statement of objections to the companies on Thursday. | The EU competition enforcer fined Spain's Abengoa ABG.MC 20 million euros last year for rigging ethanol benchmarks as part of a crackdown on such practices. By Foo Yun Chee BRUSSELS, July 7 (Reuters) - Belgium's Alcogroup and Sweden's Agroetanol were charged by EU antitrust regulators on Thursday with taking part in a bioethanol benchmarks cartel in previous years which could lead to fines. Abengoa admitted wrongdoing in return for a reduced fine but Alcogroup and Agroetanol disagreed with the European Commission which sent a charge sheet called a statement of objections to the companies on Thursday. |
28615.0 | 2022-06-23 00:00:00 UTC | Asbury Automotive Group (ABG) Outpaces Stock Market Gains: What You Should Know | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-outpaces-stock-market-gains%3A-what-you-should-know | nan | nan | In the latest trading session, Asbury Automotive Group (ABG) closed at $166.36, marking a +1.03% move from the previous day. This move outpaced the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the auto dealership chain had lost 7.47% over the past month, lagging the Retail-Wholesale sector's gain of 2.16% and the S&P 500's loss of 3.49% in that time.
Asbury Automotive Group will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $8.87, up 14.01% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.94 billion, up 52.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $35.18 per share and revenue of $15.9 billion. These totals would mark changes of +28.91% and +61.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Asbury Automotive Group. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.77% lower. Asbury Automotive Group currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Asbury Automotive Group has a Forward P/E ratio of 4.68 right now. Its industry sports an average Forward P/E of 5.67, so we one might conclude that Asbury Automotive Group is trading at a discount comparatively.
Meanwhile, ABG's PEG ratio is currently 0.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.41 based on yesterday's closing prices.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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. | In the latest trading session, Asbury Automotive Group (ABG) closed at $166.36, marking a +1.03% move from the previous day. Meanwhile, ABG's PEG ratio is currently 0.25. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | In the latest trading session, Asbury Automotive Group (ABG) closed at $166.36, marking a +1.03% move from the previous day. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Meanwhile, ABG's PEG ratio is currently 0.25. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report In the latest trading session, Asbury Automotive Group (ABG) closed at $166.36, marking a +1.03% move from the previous day. Meanwhile, ABG's PEG ratio is currently 0.25. | In the latest trading session, Asbury Automotive Group (ABG) closed at $166.36, marking a +1.03% move from the previous day. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Meanwhile, ABG's PEG ratio is currently 0.25. |
28616.0 | 2022-06-23 00:00:00 UTC | IUS's Holdings Could Mean 32% Gain Potential | ABG | https://www.nasdaq.com/articles/iuss-holdings-could-mean-32-gain-potential | 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 $46.34 per unit.
With IUS trading at a recent price near $35.09 per unit, that means that analysts see 32.06% 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 Dropbox Inc (Symbol: DBX), Jones Lang LaSalle Inc (Symbol: JLL), and Asbury Automotive Group Inc (Symbol: ABG). Although DBX has traded at a recent price of $21.25/share, the average analyst target is 60.00% higher at $34.00/share. Similarly, JLL has 58.71% upside from the recent share price of $170.44 if the average analyst target price of $270.50/share is reached, and analysts on average are expecting ABG to reach a target price of $240.28/share, which is 45.92% above the recent price of $164.67. Below is a twelve month price history chart comparing the stock performance of DBX, JLL, 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
Invesco RAFI Strategic US ETF IUS $35.09 $46.34 32.06%
Dropbox Inc DBX $21.25 $34.00 60.00%
Jones Lang LaSalle Inc JLL $170.44 $270.50 58.71%
Asbury Automotive Group Inc ABG $164.67 $240.28 45.92%
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 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco RAFI Strategic US ETF IUS $35.09 $46.34 32.06% Dropbox Inc DBX $21.25 $34.00 60.00% Jones Lang LaSalle Inc JLL $170.44 $270.50 58.71% Asbury Automotive Group Inc ABG $164.67 $240.28 45.92% 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 Dropbox Inc (Symbol: DBX), Jones Lang LaSalle Inc (Symbol: JLL), and Asbury Automotive Group Inc (Symbol: ABG). Similarly, JLL has 58.71% upside from the recent share price of $170.44 if the average analyst target price of $270.50/share is reached, and analysts on average are expecting ABG to reach a target price of $240.28/share, which is 45.92% above the recent price of $164.67. | Three of IUS's underlying holdings with notable upside to their analyst target prices are Dropbox Inc (Symbol: DBX), Jones Lang LaSalle Inc (Symbol: JLL), and Asbury Automotive Group Inc (Symbol: ABG). Similarly, JLL has 58.71% upside from the recent share price of $170.44 if the average analyst target price of $270.50/share is reached, and analysts on average are expecting ABG to reach a target price of $240.28/share, which is 45.92% above the recent price of $164.67. Invesco RAFI Strategic US ETF IUS $35.09 $46.34 32.06% Dropbox Inc DBX $21.25 $34.00 60.00% Jones Lang LaSalle Inc JLL $170.44 $270.50 58.71% Asbury Automotive Group Inc ABG $164.67 $240.28 45.92% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, JLL has 58.71% upside from the recent share price of $170.44 if the average analyst target price of $270.50/share is reached, and analysts on average are expecting ABG to reach a target price of $240.28/share, which is 45.92% above the recent price of $164.67. Three of IUS's underlying holdings with notable upside to their analyst target prices are Dropbox Inc (Symbol: DBX), Jones Lang LaSalle Inc (Symbol: JLL), and Asbury Automotive Group Inc (Symbol: ABG). Below is a twelve month price history chart comparing the stock performance of DBX, JLL, and ABG: Below is a summary table of the current analyst target prices discussed above: | Invesco RAFI Strategic US ETF IUS $35.09 $46.34 32.06% Dropbox Inc DBX $21.25 $34.00 60.00% Jones Lang LaSalle Inc JLL $170.44 $270.50 58.71% Asbury Automotive Group Inc ABG $164.67 $240.28 45.92% 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 Dropbox Inc (Symbol: DBX), Jones Lang LaSalle Inc (Symbol: JLL), and Asbury Automotive Group Inc (Symbol: ABG). Similarly, JLL has 58.71% upside from the recent share price of $170.44 if the average analyst target price of $270.50/share is reached, and analysts on average are expecting ABG to reach a target price of $240.28/share, which is 45.92% above the recent price of $164.67. |
28617.0 | 2022-06-20 00:00:00 UTC | Asbury Automotive (ABG) Soars 4.5%: Is Further Upside Left in the Stock? | ABG | https://www.nasdaq.com/articles/asbury-automotive-abg-soars-4.5%3A-is-further-upside-left-in-the-stock | nan | nan | Asbury Automotive Group (ABG) shares rallied 4.5% in the last trading session to close at $164.11. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.5% loss over the past four weeks.
ABG is riding on its strategic acquisitions, especially the buyout of Larry H. Miller Dealerships, which has bolstered Asbury’s regional footprint and expanded its presence in the high-growth Western markets. Rising new and used vehicle prices is set to drive Asbury’s top-line growth.
This auto dealership chain is expected to post quarterly earnings of $8.87 per share in its upcoming report, which represents a year-over-year change of +14%. Revenues are expected to be $3.94 billion, up 52.4% 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 Asbury Automotive, the consensus EPS estimate for the quarter has been revised 2.5% 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 ABG 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 >>>>
Asbury Automotive is a member of the Zacks Automotive - Retail and Whole Sales industry. One other stock in the same industry, Sonic Automotive (SAH), finished the last trading session 5.5% higher at $36.53. SAH has returned -20.2% over the past month.
For Sonic Automotive, the consensus EPS estimate for the upcoming report has changed -1.6% over the past month to $2.53. This represents a change of -3.8% from what the company reported a year ago. Sonic Automotive currently has a Zacks Rank of #3 (Hold).
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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. | ABG is riding on its strategic acquisitions, especially the buyout of Larry H. Miller Dealerships, which has bolstered Asbury’s regional footprint and expanded its presence in the high-growth Western markets. Asbury Automotive Group (ABG) shares rallied 4.5% in the last trading session to close at $164.11. So, make sure to keep an eye on ABG going forward to see if this recent jump can turn into more strength down the road. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) shares rallied 4.5% in the last trading session to close at $164.11. ABG is riding on its strategic acquisitions, especially the buyout of Larry H. Miller Dealerships, which has bolstered Asbury’s regional footprint and expanded its presence in the high-growth Western markets. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) shares rallied 4.5% in the last trading session to close at $164.11. ABG is riding on its strategic acquisitions, especially the buyout of Larry H. Miller Dealerships, which has bolstered Asbury’s regional footprint and expanded its presence in the high-growth Western markets. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) shares rallied 4.5% in the last trading session to close at $164.11. ABG is riding on its strategic acquisitions, especially the buyout of Larry H. Miller Dealerships, which has bolstered Asbury’s regional footprint and expanded its presence in the high-growth Western markets. |
28618.0 | 2022-06-07 00:00:00 UTC | Asbury Automotive Group (ABG) Stock Sinks As Market Gains: What You Should Know | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-stock-sinks-as-market-gains%3A-what-you-should-know-1 | nan | nan | In the latest trading session, Asbury Automotive Group (ABG) closed at $186.87, marking a -0.55% move from the previous day. This move lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Prior to today's trading, shares of the auto dealership chain had lost 0.57% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 27.01% and lagged the S&P 500's gain of 0.1% in that time.
Wall Street will be looking for positivity from Asbury Automotive Group as it approaches its next earnings report date. The company is expected to report EPS of $8.87, up 14.01% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.1 billion, up 58.63% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $35.45 per share and revenue of $16.43 billion. These totals would mark changes of +29.9% and +66.97%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Asbury Automotive Group. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.92% higher. Asbury Automotive Group currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Asbury Automotive Group is holding a Forward P/E ratio of 5.3. Its industry sports an average Forward P/E of 6.44, so we one might conclude that Asbury Automotive Group is trading at a discount comparatively.
Investors should also note that ABG has a PEG ratio of 0.29 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.44 based on yesterday's closing prices.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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. | In the latest trading session, Asbury Automotive Group (ABG) closed at $186.87, marking a -0.55% move from the previous day. Investors should also note that ABG has a PEG ratio of 0.29 right now. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | In the latest trading session, Asbury Automotive Group (ABG) closed at $186.87, marking a -0.55% move from the previous day. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Investors should also note that ABG has a PEG ratio of 0.29 right now. | In the latest trading session, Asbury Automotive Group (ABG) closed at $186.87, marking a -0.55% move from the previous day. Investors should also note that ABG has a PEG ratio of 0.29 right now. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | In the latest trading session, Asbury Automotive Group (ABG) closed at $186.87, marking a -0.55% move from the previous day. Investors should also note that ABG has a PEG ratio of 0.29 right now. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28619.0 | 2022-06-07 00:00:00 UTC | Is Penske (PAG) the Best Auto Retail Stock of 2022 So Far? | ABG | https://www.nasdaq.com/articles/is-penske-pag-the-best-auto-retail-stock-of-2022-so-far | nan | nan | While the overall auto sector is one of the worst-hit by coronavirus-induced microchip shortage compounded by the Russia-Ukraine war, one sub-industry that’s still in good shape is the auto retail space. Evidently, The Zacks Auto Retail & Whole Sales industry has outperformed the Zacks S&P 500 composite as well as the Auto-Tires-Truck sector over the past year. The industry has inched up 0.3% year to date compared with the S&P 500’s and the sector’s decline of 14.4% and 30.4%, respectively.
Image Source: Zacks Investment Research
What’s Driving the Auto Retail Industry?
For starters, demand for personal mobility has been on the rise. And while the chip crunch has tightened the inventory levels of auto retailers, the supply-demand mismatch has resulted in higher average transaction prices of vehicles. As such, auto retailers are recording high vehicle margins, which are boosting their bottom line. Also, the ramp-up of digitization by auto retailers has been aiding sales. 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’ online sites. Enhanced digital solutions are providing shoppers with a truly comprehensive and personal experience. Most auto retailers are focused on strengthening their foothold through strategic acquisitions, which have been bolstering their scalability, revenue and competitive advantage.
Riding on high demand, strong vehicle margins, digitization ramp-up and strategic buyouts, auto retailers are generating record profits. Free cash flow is soaring, and companies are actively boosting shareholder value via dividends and share buybacks. These investor-friendly moves are instilling confidence among shareholders.
PAG Emerges as Winner, Races Past Auto Retail Peers YTD
While the flourishing auto retail sector has a number of attractive stocks, Penske Automotive PAG is one company that has certainly grabbed the attention of many investors lately. It is having an amazing run on the bourses and has outpaced all its major peers— including Lithia Motors LAD, Asbury Automotive ABG, Sonic Automotive SAH and others— so far this year.
Penske has emerged as the top-performing auto retail stock on a year-to-date basis. Shares of PAG hit an all-time high yesterday and the company looks poised to continue its solid performance. Year to date, Penske has risen around 12%, outperforming its peers.
Image Source: Zacks Investment Research
While Penske currently carries a Zacks Rank #2 (Buy), LAD, ABG and SAH are presently Ranked #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Penske has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 17.7%, on average.The Zacks Consensus Estimate for Penske’s 2022 earnings and sales implies year-over-year growth of 10% and 10.7%, respectively. Over the past 30 days, the Zacks Consensus Estimate for Penske for 2022 has increased around 60 cents a share. The consensus estimate for second-quarter 2022 has also been revised 16 cents upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Don’t Be Tempted to Cash Out the Gains
If you are thinking to sell Penske as it pushes into an all-time high, better to reconsider. We are positive about the company’s prospects and believe that it is poised to carry the momentum ahead. Let’s check out what’s playing out in favor of the stock.
Penske is riding high on its strategic acquisitions. It has become the largest dealership group for Freightliner in North America with Warner Truck Centers buyout. This aided the company to diversify the business, expand its customer base and capitalize on the Retail Commercial Trucks segment. The buyouts of Kansas City Freightliner, McCoy and Team Trucks Centers further boosted Penske’s top line. Notably, over the past 12 months, the company has completed acquisitions or opened new dealerships that would add around $2 billion in annualized revenues.
As part of the firm’s used-vehicle expansion, Penske’s U.S. supercenters have been rebranded as CarShop. In the last reported quarter, CarShop unit sales and revenues increased 71% and 113% to 19,500 units and $516 million, respectively. Penske is on track to step up its CarShop footprint from its current 23 locations to 40 by the end of 2023, thereby retailing at least 150,000 units by 2023 and generating $2.5-$3 billion in total revenues by the same timeframe. The expansion of digital capabilities has been aiding the firm. Digital tools available on www.carshop.com provide a comprehensive and seamless online shopping experience to customers.
The Penske Transportation Solutions (PTS) joint venture has also been enhancing the prospects of Penske Automotive— which holds 28.9% in PTS. In the last reported quarter, PTS generated revenues and profits of $3.1 billion and $410 million, up 22% and 121%, respectively, on a year-over-year basis. The acquisition of Black Horse Carriers is driving PTS revenues. As of Mar 31, 2022, PTS operated a fleet of more than 373,000 vehicles, up 38,000 units from the year-ago level.
We also like PAG’s healthy balance sheet and its commitment to maximizing shareholders' value. Penske’s debt-to-capitalization of 26% compares favorably with the industry’s 42%. In addition to the low leverage and lack of debt maturities anytime soon, Penske has over $1.3 billion in liquidity. Driven by strong cash flow, Penske returned more than $436 million to shareholders in 2021 through share repurchases ($293.5 million) and cash dividends ($142.5 million). In 2021, the company hiked its quarterly dividend four times. So far this year, it raised payout twice. Last month, it boosted its share repurchase authorization to $250 million. Considering all these tailwinds, it’s wise to stay invested in Penske.
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
Sonic Automotive, Inc. (SAH): 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. | It is having an amazing run on the bourses and has outpaced all its major peers— including Lithia Motors LAD, Asbury Automotive ABG, Sonic Automotive SAH and others— so far this year. Image Source: Zacks Investment Research While Penske currently carries a Zacks Rank #2 (Buy), LAD, ABG and SAH are presently Ranked #3 (Hold). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | It is having an amazing run on the bourses and has outpaced all its major peers— including Lithia Motors LAD, Asbury Automotive ABG, Sonic Automotive SAH and others— so far this year. Image Source: Zacks Investment Research While Penske currently carries a Zacks Rank #2 (Buy), LAD, ABG and SAH are presently Ranked #3 (Hold). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Image Source: Zacks Investment Research While Penske currently carries a Zacks Rank #2 (Buy), LAD, ABG and SAH are presently Ranked #3 (Hold). It is having an amazing run on the bourses and has outpaced all its major peers— including Lithia Motors LAD, Asbury Automotive ABG, Sonic Automotive SAH and others— so far this year. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | It is having an amazing run on the bourses and has outpaced all its major peers— including Lithia Motors LAD, Asbury Automotive ABG, Sonic Automotive SAH and others— so far this year. Image Source: Zacks Investment Research While Penske currently carries a Zacks Rank #2 (Buy), LAD, ABG and SAH are presently Ranked #3 (Hold). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28620.0 | 2022-06-02 00:00:00 UTC | 3 Value Stocks That Could 2x in a Recession | ABG | https://www.nasdaq.com/articles/3-value-stocks-that-could-2x-in-a-recession | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This article is excerpted from Tom Yeung’s Profit & Protection newsletter. To make sure you don’t miss any of Tom’s picks, subscribe to his mailing list here.
Oil Prices Whiplash
On Tuesday, I warned investors to avoid oil stocks:
“If history is a guide, oil’s outperformance won’t last forever. Much like the commodity rush of 2013 to 2014, today’s commodity boom can end in the blink of an eye. And when it does, you want to be sure you’re not holding the bag.”
Barely a day later, oil would retreat from $120, putting oil stocks on the back foot.
For energy companies and other “value” stocks, simple valuation metrics such as P/E and EV/EBITDA ratios no longer guarantee results. Even a low price-to-book (P/BV) value — a metric that Fama and French famously used in their 1992 paper — generated no discernable alpha between 2013 and 2022.
So much for an easy win.
But I have good news. And it’s not just for my vocation.
It turns out that investors can still profit from value stocks throughout business cycles:
Rising Demand = Low P/E Companies. Cheaper companies performed remarkably well when consumers were rushing to buy (i.e., 2013, 2018, 2021).
Falling Demand = High P/E Companies. More expensive firms did better during belt-tightening (i.e., 2015, 2020).
The price-to-sales metric also shows solid results. $10,000 invested in the lowest quintile of P/S stocks would have turned into $63,060 over ten years, compared to $43,870 in all other stocks.
In other words, those who pick their value-stock battles can still outperform.
And today, we’re going to consider three cheap stocks that could rise 2x over the coming year.
Source: petovarga / Shutterstock.com
Value Stocks and Cyclical Demand
My quantitative Profit & Protection system helps us avoid “value traps,” the dreaded prospect of buying cheap stocks and seeing them go nowhere (or more commonly, watching them get even cheaper).
Today, there’s no better place to find such traps than in auto stocks.
Since March, rising oil prices and financing costs have dented automotive demand. The Mannheim used vehicle index has fallen from a 236.3 peak in January to 222.7. And used car site Carvana (NYSE:CVNA) has (thankfully) stopped sending me ads to try buying my car.
Such realities have moved low-P/E auto companies from Ford (NYSE:F) to Asbury Automotive (NYSE:ABG) off the Profit & Protection watchlist, despite their tempting sub-6x multiples.
Meanwhile, another group of cheap stocks are gaining fast: healthcare, consumer staples and telecom.
Stocks in these conservative sectors have historically outperformed during recessions, making them the cheapest “no-brainers” to buy today.
Telecom: Millicom International
This week, Millicom International (NASDAQ:TIGO) joins AT&T (NYSE:T) on Profit & Protection’s telecom “buy” list for its low P/S ratio and successful restructuring efforts.
TIGO is admittedly a “slow-burn” company rather than an overnight get-rich-quick stock. Most Latin American telecom markets are oligopolies that resemble slow-moving Amazonian sloths. 5G networks only have around 7% penetration on the continent, and a mere 9.9% of the population has access to high-quality fiber connections at home.
A hypergrowth market, this is not.
But Millicom and other Latin American telecoms are starting to change that.
In Guatemala, Millicom (also known as Tigo) now plans on adding 1 million new homes per year to its cable network. And data services is an area with healthy growth potential. Analysts at Morningstar expect the firm to grow revenues by 4% annually towards the end of the decade.
The competitive landscape is also ideal for value investors. Millicom has a duopoly in its Guatemalan home market, while Colombia is largely a three-way race (Tigo also leads in smaller markets like El Salvador, Honduras and Paraguay). Analysts expect the telecom to earn 7% return on equity (ROE) in 2023, a fair amount in an industry with sky-high capital investments.
Most importantly, TIGO shares are cheap. At a time when most low-volatility stocks are at a premium, Millicom is the rare investment that retains multiple expansion potential. A return to a more “typical” valuation would give the stock a 125% upside from today’s levels.
The Profit & Protection system shows that it’s not enough to buy a company for a low P/E ratio. But once you factor in other cyclical elements, the attractiveness of companies like Millicom quickly becomes clear.
Healthcare / Cons. Staples
Meanwhile, Bausch Health Companies (NYSE:BHC) joins HanesBrands (NYSE:HBI) as a consumer staples and healthcare play.
Bausch is a rebrand of the embattled Valent Pharmaceuticals, a firm that gained notoriety in 2015 after hiking the prices of essential drugs. Under the new guidance of CEO Joseph Papa and activist investor John Paulson, the company now looks more like a stable Johnson & Johnson (NYSE:JNJ) than a pharma version of “barbarians at the gate.”
It’s not the first company to have survived a near-death experience. Savvy marketers renamed WorldCom’s assets to MCI, which Verizon (NYSE:VZ) eventually acquired in 2006. And GE’s insurance arm lives on as Genworth Financial (NYSE:GNW).
Bausch, however, joins the Profit & Protection list because of its highly stable Baush+Lomb eyecare business, which makes up 55% of revenues.
Eye-Spy…
B+L’s consumer business — which includes Biotrue and ReNu lens solutions — is a downturn-resistant industry with high margins. Consumers might forego a new set of glasses in a recession, but contact lens solution is far harder to substitute.
Bausch+Lomb’s surgical business (15% of sales) also has recession-resistant characteristics. Cataracts don’t disappear during downturns and B+L is a leader in the optical surgery business.
These elements (as well as a mix of drugs from its pharma and Salix segments) have given BHC a stable source of revenue during market ups and downs.
Like most low-priced firms, however, BHC does have its issues.
Legal liabilities. Although most analysts project less than $100 million in legal liabilities, BHC still remains in legal limbo over several lawsuits from its 2015 to 2016 crisis period.
Drug pipeline. Several of the company’s drugs, including Xifaxan and Prolensa, will lose patent protection through 2028. BHC has no clear candidates to replace these revenue drivers.
Debt load. The firm’s $23 billion in long-term debt is unsustainable. BHC will need to offload more of its asset portfolio in order to pay down debt.
Nevertheless, BHC’s sub-$10 price makes it a tempting play. A fair value of $25 gives a healthy 150% upside, while its 90% ownership of publicly-traded Bausch + Lomb Corp (NYSE:BLCO) gives it significant downside protection.
In theory, its BLCO stake of $5.3 billion exceeds its current market cap of $3.5 billion, a fact only made possible by the parent company’s large debts.
More on this tomorrow.
Low P/S Moonshots
Meanwhile, former Moonshot Investor readers might also ask, “What about ultra-low P/S stocks that can go 5x or 10x?”
And that’s where a gamble on Bed Bath & Beyond (NASDAQ:BBBY) comes into the mix. Though it doesn’t quite make the core Profit & Protection portfolio, BBBY has many elements that my quantitative system favors: a rock-bottom 0.09x price-to-sales ratio, a sky-high 73% EPS growth rate in 2024 and revenue shrinkage last year that seems to ask, “how much worse can things get?”
In other words, it’s a cheaply-priced turnaround play that could go 3x to 5x overnight.
From a risk-blind standpoint, BBBY is a steal at its current sub-$9 price. My estimated fair value for the company is around $15, a 67% upside, and a hoard of Reddit investors could easily send shares up 200% or more. Activist investor Ryan Cohen has a history of whipping up a frenzy.
But hazards surrounding the potential upside are too great to ignore. A traditional 2-stage discounted cash flow (DCF) model using current estimates pegs BBBY’s value at $0, suggesting that the potential for total loss outweighs any potential gains. This is not an investment for the faint-hearted.
Bond markets also seem to agree. The retailer’s 2024 bonds trade at 71 cents on the dollar, down from par as recently as March 11. Much like other failed retailers from Sears to JC Penney, Bed Bath & Beyond will find that turning its ship around will take a Herculean effort.
I would reconsider BBBY for the Profit & Protection “buy” list if prices dropped below $3. But for the most risk-seeking of investors, a $9 entry price could still yield 2x gains if Reddit investors have it their way.
The First Principles of Investing
When I first started on Wall Street years ago, I wanted to find that one thing that could help me outperform the market every time.
Legendary investors like Ben Graham made it seem so easy — couldn’t you buy companies under their book value and be done with it?
But much like exercising to a Jack LaLanne or Jane Fonda workout, beating the market took as much work as getting in shape.
Not only did I have to put in the hours…
… I also needed to know why certain things worked.
It wasn’t enough to know that low-P/S companies do well (or why Jack LaLanne went with a high-protein, primarily vegetarian diet).
I also needed to know why. That way, I can start or stop doing things based on context.
My quantitative Profit & Protection model goes a long way to solving these issues. By layering multiple rounds of checks and balances, cheap stocks like Bed Bath & Beyond are elevated because of their turnaround potential, but handicapped because of their enormous financial risks. It’s how I found winners like Hertz (NASDAQ:HTZ) back when it was still trading for under $2 in bankruptcy.
But identifying high-quality cheap stocks still involves knowing why an investment should outperform. And tomorrow, I’ll cover two perfectly-positioned stocks with just those characteristics.
P.S. Do you want to hear more about cryptocurrencies? Penny stocks? Options? Leave me a note at feedback@investorplace.com or connect with me on LinkedIn and let me know what you’d like to see.
On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing.
The post 3 Value Stocks That Could 2x in a Recession appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Such realities have moved low-P/E auto companies from Ford (NYSE:F) to Asbury Automotive (NYSE:ABG) off the Profit & Protection watchlist, despite their tempting sub-6x multiples. Though it doesn’t quite make the core Profit & Protection portfolio, BBBY has many elements that my quantitative system favors: a rock-bottom 0.09x price-to-sales ratio, a sky-high 73% EPS growth rate in 2024 and revenue shrinkage last year that seems to ask, “how much worse can things get?” In other words, it’s a cheaply-priced turnaround play that could go 3x to 5x overnight. The First Principles of Investing When I first started on Wall Street years ago, I wanted to find that one thing that could help me outperform the market every time. | Such realities have moved low-P/E auto companies from Ford (NYSE:F) to Asbury Automotive (NYSE:ABG) off the Profit & Protection watchlist, despite their tempting sub-6x multiples. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This article is excerpted from Tom Yeung’s Profit & Protection newsletter. Telecom: Millicom International This week, Millicom International (NASDAQ:TIGO) joins AT&T (NYSE:T) on Profit & Protection’s telecom “buy” list for its low P/S ratio and successful restructuring efforts. | Such realities have moved low-P/E auto companies from Ford (NYSE:F) to Asbury Automotive (NYSE:ABG) off the Profit & Protection watchlist, despite their tempting sub-6x multiples. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This article is excerpted from Tom Yeung’s Profit & Protection newsletter. Source: petovarga / Shutterstock.com Value Stocks and Cyclical Demand My quantitative Profit & Protection system helps us avoid “value traps,” the dreaded prospect of buying cheap stocks and seeing them go nowhere (or more commonly, watching them get even cheaper). | Such realities have moved low-P/E auto companies from Ford (NYSE:F) to Asbury Automotive (NYSE:ABG) off the Profit & Protection watchlist, despite their tempting sub-6x multiples. The Profit & Protection system shows that it’s not enough to buy a company for a low P/E ratio. Bausch, however, joins the Profit & Protection list because of its highly stable Baush+Lomb eyecare business, which makes up 55% of revenues. |
28621.0 | 2022-06-01 00:00:00 UTC | Asbury Automotive Group (ABG) Gains As Market Dips: What You Should Know | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-gains-as-market-dips%3A-what-you-should-know-2 | nan | nan | Asbury Automotive Group (ABG) closed the most recent trading day at $184.71, moving +1.97% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq added 0.15%.
Heading into today, shares of the auto dealership chain had lost 6.96% over the past month, lagging the Retail-Wholesale sector's loss of 4.57% and the S&P 500's gain of 0.32% in that time.
Wall Street will be looking for positivity from Asbury Automotive Group as it approaches its next earnings report date. On that day, Asbury Automotive Group is projected to report earnings of $9.05 per share, which would represent year-over-year growth of 16.32%. Meanwhile, our latest consensus estimate is calling for revenue of $4.1 billion, up 58.63% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $35.58 per share and revenue of $16.43 billion. These totals would mark changes of +30.38% and +66.97%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Asbury Automotive Group. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.23% higher. Asbury Automotive Group currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Asbury Automotive Group is currently trading at a Forward P/E ratio of 5.09. This valuation marks a discount compared to its industry's average Forward P/E of 6.36.
It is also worth noting that ABG currently has a PEG ratio of 0.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.44 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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) closed the most recent trading day at $184.71, moving +1.97% from the previous trading session. It is also worth noting that ABG currently has a PEG ratio of 0.27. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group (ABG) closed the most recent trading day at $184.71, moving +1.97% from the previous trading session. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report It is also worth noting that ABG currently has a PEG ratio of 0.27. | Asbury Automotive Group (ABG) closed the most recent trading day at $184.71, moving +1.97% from the previous trading session. It is also worth noting that ABG currently has a PEG ratio of 0.27. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group (ABG) closed the most recent trading day at $184.71, moving +1.97% from the previous trading session. It is also worth noting that ABG currently has a PEG ratio of 0.27. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28622.0 | 2022-05-16 00:00:00 UTC | Penske (PAG) Hikes Dividend and Boosts Repurchase Program | ABG | https://www.nasdaq.com/articles/penske-pag-hikes-dividend-and-boosts-repurchase-program | nan | nan | Penske Automotive Group, Inc. PAG recently announced that it has increased its dividend to 50 cents per share from 47 cents, marking a 6.4% hike. During the first quarter of 2022, Penske generated $381 million in cash from operations. Driven by the strong cash flow, the company decided to hike the quarterly dividend.
The dividend is payable from Jun 1, 2022, to shareholders of record on May 23, 2022.
Moreover, it increased its share repurchase authorization to $250 million. From Jan 1 through Apr 30 of 2022, Penske repurchased 1.9 million shares worth $184.1 million. As of Apr 30, 2022, around $46.3 million remained available for repurchase under its existing share buyback authorization.
Penske’s investor-friendly moves boost confidence. In 2021, the company hiked its quarterly dividend four times. In January this year, the company increased its dividend by 2.2% to 47 cents. In 2021 PAG returned more than $436 million to shareholders through share repurchases ($293.5 million) and cash dividends ($142.5 million). The company's ROE of 35.3% compares favorably with the auto sector’s ROE of 12.6%, thus signaling management's efficiency in rewarding shareholders. Also, Penske’s debt-to-capitalization of 26% compares favorably with the industry’s 42%. In addition to the low leverage and lack of debt maturities anytime soon, it has more than $1.3 billion in liquidity.
Shares of Penske have gained 25.4% over the past year, outperforming its industry’s 1% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
PAG currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked players in the auto space are AutoNation, Inc. AN, sporting a Zacks Rank #1, and Asbury Automotive Group, Inc. ABG and Group 1 Automotive, Inc. GPI, each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has an expected earnings growth rate of 21.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 10% upward in the past 60 days.
AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 27.4%, on average. The stock has gained 17.4% over the past year.
Asbury Automotive has an expected earnings growth rate of 28.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 2.6% upwards in the past 60 days.
Asbury Automotive earnings beat the Zacks Consensus Estimate in all of the trailing four quarters and missed in one. ABG pulled off a trailing four-quarter earnings surprise of 22.9%, on average. The stock has lost 7% over the past year.
Group 1 has an expected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4% upward in the past 60 days.
Group 1’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPI pulled off a trailing four-quarter earnings surprise of 6.6%, on average. The stock has risen 9.9% over the past year.
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Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis 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.
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. | Some other top-ranked players in the auto space are AutoNation, Inc. AN, sporting a Zacks Rank #1, and Asbury Automotive Group, Inc. ABG and Group 1 Automotive, Inc. GPI, each carrying a Zacks Rank #2 (Buy), currently. ABG pulled off a trailing four-quarter earnings surprise of 22.9%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some other top-ranked players in the auto space are AutoNation, Inc. AN, sporting a Zacks Rank #1, and Asbury Automotive Group, Inc. ABG and Group 1 Automotive, Inc. GPI, each carrying a Zacks Rank #2 (Buy), currently. ABG pulled off a trailing four-quarter earnings surprise of 22.9%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some other top-ranked players in the auto space are AutoNation, Inc. AN, sporting a Zacks Rank #1, and Asbury Automotive Group, Inc. ABG and Group 1 Automotive, Inc. GPI, each carrying a Zacks Rank #2 (Buy), currently. ABG pulled off a trailing four-quarter earnings surprise of 22.9%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some other top-ranked players in the auto space are AutoNation, Inc. AN, sporting a Zacks Rank #1, and Asbury Automotive Group, Inc. ABG and Group 1 Automotive, Inc. GPI, each carrying a Zacks Rank #2 (Buy), currently. ABG pulled off a trailing four-quarter earnings surprise of 22.9%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28623.0 | 2022-05-09 00:00:00 UTC | Can Asbury Automotive (ABG) Climb 30% to Reach the Level Wall Street Analysts Expect? | ABG | https://www.nasdaq.com/articles/can-asbury-automotive-abg-climb-30-to-reach-the-level-wall-street-analysts-expect | nan | nan | Asbury Automotive Group (ABG) closed the last trading session at $191.63, gaining 22.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $249.25 indicates a 30.1% upside potential.
The average comprises eight short-term price targets ranging from a low of $180 to a high of $354, with a standard deviation of $53.33. While the lowest estimate indicates a decline of 6.1% from the current price level, the most optimistic estimate points to an 84.7% upside. More than the range, one should 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.
But, for ABG, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not 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.
Here's Why There Could be Plenty of Upside Left in ABG
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 2% over the past month, as one estimate has 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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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) closed the last trading session at $191.63, gaining 22.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. But, for ABG, an impressive average price target is not the only indicator of a potential upside. Here's Why There Could be Plenty of Upside Left in ABG 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 (ABG) closed the last trading session at $191.63, gaining 22.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. But, for ABG, an impressive average price target is not the only indicator of a potential upside. Here's Why There Could be Plenty of Upside Left in ABG 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. | 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. Asbury Automotive Group (ABG) closed the last trading session at $191.63, gaining 22.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. But, for ABG, an impressive average price target is not the only indicator of a potential upside. | 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. Asbury Automotive Group (ABG) closed the last trading session at $191.63, gaining 22.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. But, for ABG, an impressive average price target is not the only indicator of a potential upside. |
28624.0 | 2022-05-09 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 | 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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) and an A for Value. The stock holds a P/E ratio of 5.68, while its industry has an average P/E of 5.97. Over the last 12 months, ABG's Forward P/E has been as high as 174.50 and as low as 4.57, with a median of 7.82.
We also note that ABG holds a PEG ratio of 0.31. 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 0.49 right now. Over the past 52 weeks, ABG's PEG has been as high as 9.42 and as low as 0.25, with a median of 0.42.
Another valuation metric that we should highlight is ABG's P/B ratio of 2.08. The P/B ratio is used to compare a stock's market value with 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 2.25. Over the past year, ABG's P/B has been as high as 4.07 and as low as 1.66, with a median of 2.75.
Finally, investors should note that ABG has a P/CF ratio of 5.88. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ABG's P/CF compares to its industry's average P/CF of 5.98. Over the past 52 weeks, ABG's P/CF has been as high as 10.46 and as low as 4.75, with a median of 6.91.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at AutoNation (AN). AN is a # 2 (Buy) stock with a Value score of A.
Shares of AutoNation are currently trading at a forward earnings multiple of 5.81 and a PEG ratio of 0.25 compared to its industry's P/E and PEG ratios of 5.97 and 0.49, respectively.
Over the last 12 months, AN's P/E has been as high as 29.04, as low as 4.99, with a median of 7.91, and its PEG ratio has been as high as 1.23, as low as 0.21, with a median of 0.40.
Furthermore, AutoNation holds a P/B ratio of 3.21 and its industry's price-to-book ratio is 2.25. AN's P/B has been as high as 3.64, as low as 2.24, with a median of 2.99 over the past 12 months.
These are just a handful of the figures considered in Asbury Automotive Group and AutoNation's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ABG and AN is an impressive value stock right now.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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
AutoNation, Inc. (AN): 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. Over the last 12 months, ABG's Forward P/E has been as high as 174.50 and as low as 4.57, with a median of 7.82. | 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) and an A for Value. | 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) and an A for Value. | 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. Over the last 12 months, ABG's Forward P/E has been as high as 174.50 and as low as 4.57, with a median of 7.82. |
28625.0 | 2022-05-09 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-3 | nan | nan | Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. 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 the Retail-Wholesale sector. This group includes 230 individual stocks and currently holds a Zacks Sector Rank of #12. 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 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).
Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 17.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ABG has moved about 10.9% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of -22%. This shows that Asbury Automotive Group is outperforming its peers so far this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Arcos Dorados (ARCO). The stock has returned 18.7% year-to-date.
Over the past three months, Arcos Dorados' consensus EPS estimate for the current year has increased 25.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Asbury Automotive Group is a member of the Automotive - Retail and Whole Sales industry, which includes 10 individual companies and currently sits at #22 in the Zacks Industry Rank. On average, stocks in this group have lost 0.2% this year, meaning that ABG is performing better in terms of year-to-date returns.
In contrast, Arcos Dorados falls under the Retail - Restaurants industry. Currently, this industry has 43 stocks and is ranked #214. Since the beginning of the year, the industry has moved -18.6%.
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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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 0.2% 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 17.4% 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 17.4% 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 17.4% higher. According to our latest data, ABG has moved about 10.9% on a year-to-date basis. | On average, stocks in this group have lost 0.2% 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 17.4% higher. |
28626.0 | 2022-05-06 00:00:00 UTC | Validea David Dreman Strategy Daily Upgrade Report - 5/6/2022 | ABG | https://www.nasdaq.com/articles/validea-david-dreman-strategy-daily-upgrade-report-5-6-2022 | nan | nan | The following are today's upgrades for Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
PETROLEO BRASILEIRO SA PETROBRAS (ADR) (PBR) is a large-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on David Dreman changed from 84% to 91% 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: Petroleo Brasileiro S.A.-Petrobras specializes in the oil, natural gas and energy industry. The Company is engaged in prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks. Its segments include Exploration and Production, which covers the activities of exploration, development and production of crude oil, natural gas liquid and natural gas; Refining, Transportation and Marketing, which covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, and extraction and processing of shale; Gas and Power, which is engaged in transportation and trading of natural gas produced in Brazil and imported natural gas; Biofuels, which covers the activities of production of biodiesel and its co-products, and ethanol-related activities; Distribution, which includes the activities of its subsidiary Petrobras Distribuidora S.A., and Corporate.
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.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: PASS
CURRENT RATIO: PASS
PAYOUT RATIO: FAIL
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: FAIL
Detailed Analysis of PETROLEO BRASILEIRO SA PETROBRAS (ADR)
Full Guru Analysis for PBR
Full Factor Report for PBR
ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on David Dreman changed from 64% to 76% 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.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: FAIL
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC.
Full Guru Analysis for ABG
Full Factor Report for ABG
AT&T INC. (T) is a large-cap value stock in the Communications Services industry. The rating according to our strategy based on David Dreman changed from 70% to 77% 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: AT&T Inc. is a holding company. The Company is a provider of telecommunications, media and technology services globally. The Company operates through three segments: Communication segment, WarnerMedia segment, and Latin America segment. The Communications segment provides wireless and wireline telecom, video and broadband services to consumers. The business units of the Communication segment includes Mobility, Business Wireline and Consumer Wireline. Business Wireline provides advanced IP-based services, traditional voice and data services. The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content over various physical and digital formats. WarnerMedia segment also includes Xandr that provides advertising services. Latin America segment provides entertainment and wireless services outside of the United States. Mexico is the business unit of the Latin America segment that provides wireless service and equipment to customers in Mexico.
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.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: PASS
PRICE/DIVIDEND (P/D) RATIO: PASS
CURRENT RATIO: PASS
PAYOUT RATIO: FAIL
RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of AT&T INC.
Full Guru Analysis for T
Full Factor Report for T
More details on Validea's David Dreman strategy
About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
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 PETROLEO BRASILEIRO SA PETROBRAS (ADR) Full Guru Analysis for PBR Full Factor Report for PBR 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 AT&T INC. (T) is a large-cap value stock in the Communications Services industry. PETROLEO BRASILEIRO SA PETROBRAS (ADR) (PBR) is a large-cap value stock in the Oil & Gas Operations industry. | Detailed Analysis of PETROLEO BRASILEIRO SA PETROBRAS (ADR) Full Guru Analysis for PBR Full Factor Report for PBR 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 AT&T INC. (T) is a large-cap value stock in the Communications Services industry. Its segments include Exploration and Production, which covers the activities of exploration, development and production of crude oil, natural gas liquid and natural gas; Refining, Transportation and Marketing, which covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, and extraction and processing of shale; Gas and Power, which is engaged in transportation and trading of natural gas produced in Brazil and imported natural gas; Biofuels, which covers the activities of production of biodiesel and its co-products, and ethanol-related activities; Distribution, which includes the activities of its subsidiary Petrobras Distribuidora S.A., and Corporate. | Detailed Analysis of PETROLEO BRASILEIRO SA PETROBRAS (ADR) Full Guru Analysis for PBR Full Factor Report for PBR 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 AT&T INC. (T) is a large-cap value stock in the Communications Services industry. Its segments include Exploration and Production, which covers the activities of exploration, development and production of crude oil, natural gas liquid and natural gas; Refining, Transportation and Marketing, which covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, and extraction and processing of shale; Gas and Power, which is engaged in transportation and trading of natural gas produced in Brazil and imported natural gas; Biofuels, which covers the activities of production of biodiesel and its co-products, and ethanol-related activities; Distribution, which includes the activities of its subsidiary Petrobras Distribuidora S.A., and Corporate. | Detailed Analysis of PETROLEO BRASILEIRO SA PETROBRAS (ADR) Full Guru Analysis for PBR Full Factor Report for PBR 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 AT&T INC. (T) is a large-cap value stock in the Communications Services industry. The following are today's upgrades for Validea's Contrarian Investor model based on the published strategy of David Dreman. |
28627.0 | 2022-05-03 00:00:00 UTC | Asbury (ABG) Beats Q1 Earnings Mark, Lifts Long-Term Targets | ABG | https://www.nasdaq.com/articles/asbury-abg-beats-q1-earnings-mark-lifts-long-term-targets | nan | nan | Asbury Automotive ABG reported first-quarter 2022 adjusted earnings of $9.27 per share, which skyrocketed 98% year over year and topped the Zacks Consensus Estimate of $8.92. This outperformance can be primarily attributed to higher-than-expected sales from Used Vehicle, Parts & Services, and Finance & Insurance units. For the reported quarter, revenues amounted to $3,912 million, surging 78% year over year. The top line also outpaced the Zacks Consensus Estimate of $3,837 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
For the quarter, new-vehicle revenues jumped 61% year over year to $1,855.6 million but missed the Zacks Consensus Estimate of $1,883 million. Gross profit from the segment came in at $224 million, soaring 197% from the prior-year quarter but missing the consensus mark of $240 million.
Used-vehicle revenues also rose 96% from the year-ago figure to $1,350.9 million, beating the consensus mark of $1,306 million. Gross profit from the segment came in at $99.3 million, which surged 78% but missed the consensus mark of $106 million.
Net revenues in the finance and insurance business amounted to $203.4 million, increasing 130% from the year-ago quarter and outpacing the consensus mark of $171 million. Gross profit was $192.2 million, rising 107% year over year and beating the consensus mark of $162 million.
Revenues from the parts and service business rose 92% from the prior-year quarter to $502 million and topped the consensus mark of $460 million. Gross profit from this segment came in at $276.5 million, rising 70% year over year but falling short of the consensus mark of $279 million.
Other Tidbits
Selling, general & administrative (SG&A) expenses as a percentage of gross profit came in at 57.5% for the quarter under discussion, decreasing 520 basis points year over year. Asbury sold 5,600 vehicles (of which 38% were new and 62% were used) through the “end-to-end” online sales platform, Clicklane.
Year to date, ABG completed seven divestitures, including four that were closed in the quarter under review, and garnered proceeds of $327 million. As of Mar 31, the company had cash/cash equivalents of $284.3 million and long-term debt of $3,403.3 million.
During the quarter under discussion, Asbury repurchased 1.1 million shares for $200 million. To investors’ delight, it authorized a new share repurchase program of up to $200 million.
The company also provided an update to the 2025 strategic growth plan. When ABG originally launched this plan in 2020, it targeted revenue growth from $8 billion to $20 billion in 2025. But thanks to the significant progress made last year, the firm has raised the revenue target to $32 billion by 2025. The incremental $12 billion will likely comprise $2 billion of same-store sales growth, $3 billion from Clicklane and $7 billion from acquisitions. The company aims to generate EPS of more than $55 a share by 2025.
Asbury currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Lithia Motors LAD reported first-quarter 2022 adjusted earnings of $11.96 per share, marking a whopping 103% increase from the prior-year period’s $5.89. The bottom line also beat the Zacks Consensus Estimate of $9.63 per share. Higher-than-expected revenues from new vehicle, used vehicle (retail and wholesale) and fleet and others segments led to the upside. Total revenues jumped 54% year over year to $6,705.3 million. The top line also exceeded the Zacks Consensus Estimate of $6,031.8 million.
The company approved a dividend of 42 cents per share for first-quarter 2022, which marks an increase from the previous payout of 35 cents. Year to date, LAD has repurchased 515,130 shares at a weighted average price of $292.80. Nearly $572 million is remaining under its authorization. Lithia had cash and cash equivalents of $161.4 million as of Mar 31, 2022, down from $174.8 million on Dec 31, 2021. Long-term debt was $3,395.2 million, marking an increase from $3,185.7 million as of Dec 31, 2021.
AutoNation AN reported first-quarter 2022 adjusted earnings of $5.78 per share, which skyrocketed 103% year over year and topped the Zacks Consensus Estimate of $5.39. This outperformance can be primarily attributed to higher-than-expected used vehicle sales. For the reported quarter, revenues amounted to $6,752.8 million, up 14.4% year over year. The top line also outpaced the Zacks Consensus Estimate of $6,628.1 million.
AutoNation’s cash and cash equivalents were $608.1 million as of Mar 31, 2022, reflecting a sharp rise from $350 million in the year-ago period. The company’s liquidity was $2.4 billion, including $608 million in cash and nearly $1.8 billion availability under the revolving credit facility. The firm’s inventory was valued at $1,698.3 million. At first quarter-end, non-vehicle debt was $3,548.3 million. Capital expenditure for the quarter amounted to $50.8 million. During the reported quarter, AutoNation repurchased 3.5 million shares of common stock for an aggregate purchase price of $381 million. On Apr 19, it had around $376 million remaining for share buyback under the current authorization.
Penske Automotive PAG reported impressive first-quarter 2022 adjusted earnings of $4.76 per share, increasing a whopping 110.6% year over year and surpassing the Zacks Consensus Estimate of $3.94. Higher-than-expected gross profit in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance. The auto retailer registered net sales of $6,975.4 million, outpacing the Zacks Consensus Estimate of $6,257.2 million. The top line also rose 20.8% from the year-ago quarter.
For the quarter under review, Penske incurred SG&A costs of $797.8 million, up 20.1% year over year. The company had cash and cash equivalents of $170.3 million as of Mar 31, 2022, up from $100.7 million at 2021-end. Long-term debt amounted to $1,383.9 million, slightly down from $1,392 million as of Dec 31, 2021. PAG repurchased 1.2 million shares of common stock for nearly $119.2 million during the quarter under review. As of Apr 26, 2022, around $46.3 million remained available for repurchase under its existing share repurchase authorization.
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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. | Year to date, ABG completed seven divestitures, including four that were closed in the quarter under review, and garnered proceeds of $327 million. Asbury Automotive ABG reported first-quarter 2022 adjusted earnings of $9.27 per share, which skyrocketed 98% year over year and topped the Zacks Consensus Estimate of $8.92. When ABG originally launched this plan in 2020, it targeted revenue growth from $8 billion to $20 billion in 2025. | Asbury Automotive ABG reported first-quarter 2022 adjusted earnings of $9.27 per share, which skyrocketed 98% year over year and topped the Zacks Consensus Estimate of $8.92. Year to date, ABG completed seven divestitures, including four that were closed in the quarter under review, and garnered proceeds of $327 million. When ABG originally launched this plan in 2020, it targeted revenue growth from $8 billion to $20 billion in 2025. | Asbury Automotive ABG reported first-quarter 2022 adjusted earnings of $9.27 per share, which skyrocketed 98% year over year and topped the Zacks Consensus Estimate of $8.92. Year to date, ABG completed seven divestitures, including four that were closed in the quarter under review, and garnered proceeds of $327 million. When ABG originally launched this plan in 2020, it targeted revenue growth from $8 billion to $20 billion in 2025. | Asbury Automotive ABG reported first-quarter 2022 adjusted earnings of $9.27 per share, which skyrocketed 98% year over year and topped the Zacks Consensus Estimate of $8.92. Year to date, ABG completed seven divestitures, including four that were closed in the quarter under review, and garnered proceeds of $327 million. When ABG originally launched this plan in 2020, it targeted revenue growth from $8 billion to $20 billion in 2025. |
28628.0 | 2022-04-28 00:00:00 UTC | Asbury Automotive Group (ABG) Q1 2022 Earnings Call Transcript | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-q1-2022-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Asbury Automotive Group (NYSE: ABG)
Q1 2022 Earnings Call
Apr 28, 2022, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day, and welcome to the Asbury Automotive Group Q1 2022earnings call Today's conference is being recorded. At this time, I would like to turn the conference over to Karen Reid. Please go ahead.
Karen Reid -- Vice President, Corporate Financial Planning and Analysis, and Treasurer
Thanks, Mary, and good morning, everyone. As noted, today's call is being recorded and will be available for replay later this afternoon. Welcome to Asbury Automotive Group's first quarter 2022earnings call The press release detailing Asbury's first quarter results was issued earlier this morning and is posted on our website at asburyauto.com.
Participating with me today are David Hult, our president and chief executive officer; Dan Clara, our senior VP of operations; and Michael Welch, our senior VP and chief financial officer. At the conclusion of our remarks, we will open the call up for questions, and I will be available later for any follow-up questions that you may have. Before we begin, we must remind you that the discussion during the call today is likely to contain forward-looking statements. Forward-looking statements are statements other than those which are historical in nature, which may include financial projections, forecasts and current expectations, each of which are subject to certain uncertainties.
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For information regarding certain of the risks that may cause actual results to differ materially from these statements, please see our filings with the SEC from time to time, including our Form 10-K for the year ended December 2021 and any subsequently filed quarterly reports on Form 10-Q and our earnings release issued earlier today. We expressly disclaim any responsibility to update forward-looking statements. In addition, certain non-GAAP financial measures as defined under SEC rules may be discussed on this call. As required by applicable SEC rules, we provide reconciliations of any such non-GAAP financial measures to the most directly comparable GAAP measures on our website.
We've also posted an updated investor presentation on our website, asburyauto.com, highlighting our first quarter results. It is now my pleasure to hand the call over to our CEO, David Hult. David?
David Hult -- President and Chief Executive Officer
Thank you, Karen, and good morning, everyone. Welcome to our first quarterearnings call Our first quarter results were an all-time record for any quarter in Asbury's history. We continue to experience strong consumer demand, although our ability to meet this demand was constrained by very low new vehicle inventory.
For the quarter, we grew adjusted EBITDA by $195 million to $336 million, and adjusted EPS from $4.68 to $9.27, an increase of 98%. We delivered 8.2% adjusted operating margin, up 210 basis points. We increased revenue by $1.7 billion to $3.9 billion and increased gross profit by $409 million to $792 million. We drove F&I gross profit per vehicle to a record 2,481, up $742.
We continues to have a disciplined approach around SG&A, resulting in a decline of 520 basis points from the prior-year's first quarter. This was the first full quarter reflecting all of our 2021 acquisitions under the Asbury umbrella and the strategic fit is clear. We are excited about our team and our ability to execute on our '25 plan. We see tremendous opportunity ahead of us as we roll out Clicklane to all acquired dealerships and integrate TCA into the legacy Asbury stores.
Due to our record performance and strong cash flow, our balance sheet remains strong. Our adjusted operating cash flow for the first quarter was $406 million, an increase of $290 million over the first quarter of 2021. Our net leverage ended this quarter at 2.2x. During the quarter, we repurchased $200 million of our stock, which completed our share reauthorization.
As we announced in our earnings release this morning, our board of directors has approved a new $200 million share repurchase authorization. As we announced in our earnings release this morning, our board of directors have approved a new $200 million repurchase authorization. Our near-term priority is to continue to integrate our recent acquisitions and use our strong free cash flow to lower our net debt level and return cash to shareholders through opportunistic share repurchases. At the same time, we'll continue to monitor the M&A market as we believe there are potential opportunities that would enhance our already strong dealership portfolio.
Due to the strong pace of acquisitions last year, we exceeded our five-year acquisition target in the first year of the plan. Today, we'll be providing an update to our strategic growth plan that I will briefly discuss later in the call. We continue to operate in an unusual macro environment, and experienced strong demand across all of our revenue streams. We do not anticipate a meaningful recovery in inventory levels in 2022 and believe these levels are unlikely to fully normalize until 2023.
In these unusual times, our industry has benefited, which is reflected in our first quarter results and demonstrates the value and the resilience of the franchise model. We look forward to continuing to deliver strong results for our shareholders, be outstanding partners with our OEMs to steward their great brands and offer an environment where our team members can thrive while providing the most guest-centric experience in automotive retail. Dan?
Dan Clara -- Senior Vice President of Operations
Thank you, David, and good morning, everyone. First, thank you to all of our dedicated teammates who work so hard to fulfill our commitment to being the most guest-centric automotive retailer. This quarter was a busy one for Asbury, as we continued to integrate acquisitions made in the fourth quarter of 2021, worked to close on our divestitures and developed a plan to expand Clicklane to acquire stores and TCA to legacy Asbury stores. Now, I'll turn to our same-store performance compared to the first quarter of 2021, unless stated otherwise.
Starting with new vehicles. In the first quarter, new vehicle inventory remained well below normalized levels and consumer demand continued to outstrip supply. At the end of March, our total new vehicle inventory was $207 million, and our days' supply was at 10 days, down 24 days from the prior-year quarter. Given this dynamic, our new vehicle volume declined 20% year over year.
However, we experienced a significant increase in our new average gross profit per vehicle, which increased $2,995 from the first quarter 2021 to a total of $5,750. We anticipate new inventory levels to remain low through 2022, and we are focused on maximizing profitability while also remaining steadfast in our commitment to our guests and our mission to be the most guest-centric automotive retailer. Turning to used vehicles. Our used vehicle retail volume increased 6%, which contributed to a 32% increase in used vehicle retail revenue.
Used gross profit PVR increased by $209 to $2,228 compared to the first quarter of 2021, resulting in a 17% increase in used retail gross profit. Our total used vehicle inventory ended the quarter at $378 million, which represents a 28-day supply, up one day from the prior year. Our used to new ratio for the quarter was 114%. Shifting to F&I.
Our strong, consistent and sustainable growth in F&I delivered an increase of $634 to $2,376 per vehicle retailed from the prior-year quarter. I'd like to thank our F&I team for this tremendous result. In addition, in the first quarter, our total front-end yield per vehicle increased $2,096 per vehicle to a record of $6,253. Moving to parts and service.
Our parts and service revenue increased 14% in the quarter The warranty revenue, which is outside of our control, dropped 12%, our customer pay revenue continued its strong rebound, posting 17% growth, which is triple our normal growth. We achieved over 176,000 online service appointments, a 29% increase over the prior-year quarter. Benefits of increasing online service appointments include enhancement to the customer experience, higher customer retention, higher conversion rates and higher dollars generated per repair order, which ultimately provides higher returns to our shareholders. We now have four full quarters with Clicklane at all legacy stores, and we couldn't be more pleased at the results we're seeing.
We sold over 5,600 vehicles through Clicklane in the first quarter, of which 38% of them were new vehicles and 62% were used. In fact, March was Clicklane's best month ever. We believe sales of new vehicles were depressed due to a lack of inventory. 92% of our transactions this quarter were with customers that were incremental to Asbury's dealership network.
Average transaction time remained roughly in line with prior quarters, as we saw a half minute increase to 8.5 minutes for cash d and about a half minute decrease to 13.6 minutes for finance deals. In Q1, Clicklane deals had a front-end yield of $3,804 and an F&I per vehicle retail of $2,291, which equates to a $6,095 of total front-end yield. The average Clicklane customer credit score continues to be over 700, which is higher than the average credit score at our stores. The average down payment for new vehicles was $8,921 and for used, was $6,869.
81% of consumers seeking financing received instant approval, while an additional 9% require some off-line assistance. 90% of those that applied were approved for financing. 43% of Clicklane sales had trade-ins, with 62% of such trades reconditioned and retailed to consumers. And 95% of our Clicklane deliveries are within a 50-mile radius of our stores, thus allowing us the opportunity to retain our new customers in our parts and service department.
Clicklane customers are converting at nearly double the rate of traditional Internet leads, but we won't see the full potential until inventory levels normalize. We are excited about the continued growth of Clicklane and the opportunity to accelerate that growth as we roll it out to our newly acquired stores. I will now hand the call over to Michael to discuss our financial performance. Michael?
Michael Welch -- Senior Vice President and Chief Financial Officer
Thank you, Dan. To our investors, analysts, team members and other participants on our call, good morning. I would like to provide some financial highlights, which marked another record quarter for our company. For additional details on our financial performance for the quarter, please see our financial supplement, our press release today and our investor presentation on our website.
As Dan mentioned, the first quarter was a busy one, with a number of internal initiatives going on. Overall, compared to the first quarter last year, we generated significant adjusted operating cash flow of $406 million, a year-over-year increase of $290 million, which combined with the proceeds from divested stores, allowed us to pay down $374 million of debt and our used vehicle floor plan line, and repurchased $200 million of our shares. Adjusted net income increase 134% to $212 million, and adjusted EPS increased 98% to $9.27. The net income for the first quarter of 2022 was adjusted for onetime pre-tax gains totaling $34 million or $1.11 per diluted share, primarily related to the sale of four dealerships in the quarter.
Net income for the first quarter of 2021 was adjusted for onetime pre-tax gains of $4.6 million or $0.17 per diluted share, primarily related to gain on legal settlements, and pre-tax real estate-related charges of $1.8 million or $0.07 per diluted share. Excluding real estate purchases, we spent approximately $21 million on capital expenditures in the first quarter. Our balance sheet remains strong as we ended the quarter with approximately $805 million of liquidity, comprised of cash, excluding cash at Total Care Auto, floor plan offset accounts, and availability on both our used line and revolving credit facility. Also at the end of the quarter, our pro forma adjusted net leverage ratio stood at 2.2 times, down from 2.7 times at year-end.
As David stated, today we announced that our board has approved a new $200 million share repurchase authorization. For 2022, we are planning on capex of approximately $175 million. This amount excludes real estate related purchases and potential lease buyout opportunities that we consider to be financing transactions. One item that has a bit of a change is how we account for TCA revenue and expenses, and we've included a breakdown of TCA versus dealership operations in our earnings release.
This quarter was our first full quarter of TCA. For the quarter, TCA made $16 million of pre-tax income, which included $2.7 million of unrealized losses on equity investments. Excluding the unrealized losses, TCA would have made $19 million for the quarter. We are currently working on the system integration and state licensing requirements for the Asbury rollout of TCA and plan to start our pilots for rollout in 2Q.
In closing, I would also like to thank all of our teammates throughout Asbury, who dedicate themselves to building a brighter future for ourselves, our communities, our shareholders and all of our stakeholders. I will now hand the call back over to David to discuss the update to our strategic plan. David?
David Hult -- President and Chief Executive Officer
Thank you, Michael. As we mentioned on our lastearnings call today we are providing an update to our strategic plan which can be referenced on Slides 12 through 25 of our investor presentation. The acquisitions we made in 2021 almost doubled our annual revenue. Today, Asbury Automotive is a much larger, more productive and financially sound company with more opportunities to drive top-line growth.
One example, with TCA, we are able to stay involved in the entire customer life cycle as well as now benefit from the claims side, which was never available to us before. Regarding Clicklane, given the metrics we spoke about earlier, we see a significant opportunity to leverage the high conversion rate as we roll out to the stores we acquired and provide a common digital platform. Our original plan for revenue growth or revenues was to grow from $8 billion to $20 billion by 2025. Because of the significant progress we made in 2021, on a pro forma basis, we are now just over $15 billion in revenue.
I will now simply refer to Slide 24 and of the presentation deck. Our new revenue goal is $32 billion by '25, representing an incremental $12 billion. The $12 billion is comprised of an additional Same Store growth of $2 billion, an additional $3 billion in Clicklane revenue and $7 billion from acquisitions. In terms of earnings per share, we are targeting EPS to be greater than $55 per share.
This assumes a one time leverage. If we were to increase our leverage to two times and use those proceeds to purchase additional stores or buy back our stock, our EPS could exceed $72 per share. Now, referring to Slide #25. Our free cash flow generated from our business of $3 billion and a modest increase to two times leverage for an incremental $3 billion, we would have over $6 billion in cash to deploy between 2022 to 2025.
So in closing, we believe that we have the right brands in the right states with the right people to execute our strategy to grow and improve our business. We are generating strong cash flow that will continue to lower our net leverage while allowing us the flexibility to balance acquiring additional assets and returning cash to shareholders through share repurchases. Finally, I would like to acknowledge the hard work and dedication of my fellow Asbury teammates. It is through your efforts that Asbury continues to produce strong results for our shareholders while bringing us closer to our goal of being the most guest-centric automotive retailer.
Thank you all very much. This concludes our prepared remarks. We will now turn the call over to the operator and take your questions. Operator?
Questions & Answers:
Operator
Thank you. [Operator instructions] And we can now take our first question from Daniel Imbro of Stephen Inc. Please go ahead.
Daniel Imbro -- Stephens Inc. -- Analyst
Yeah. Hey, good morning, guys and congratulations ona great quarter.
David Hult -- President and Chief Executive Officer
Thank you.
Daniel Imbro -- Stephens Inc. -- Analyst
David, I want to start on the used side of the business. I mean, the organic used growth uptick was near the best of the peer group and GPU really hung in there. So could you talk about maybe what you're seeing in terms of used demand, and how are you guys successfully capturing that used sale while maintaining GPUs?
Dan Clara -- Senior Vice President of Operations
Yeah. Good morning. This is Dan. I'll be glad to take that question.
So we're pretty satisfied with the results even though we continue to focus on the acquisition of the inventory. We all know that is in used cars, where the return is generated. Close to 85%, 86% of our acquisition is coming through the consumer, whether it is in the form of our leased earnings, trades or buying cars through -- directly from the consumers. And we know and we believe that, that is what is allowing us to continue to report the margins and the PVRs that you are seeing today.
In addition to that, the benefits, the Clicklane brings to be able to provide a digital retail environment online, we see the benefit of that as well from a used car perspective. So overall, we will continue to focus on that strategy and continue to execute as we move forward.
David Hult -- President and Chief Executive Officer
The one thing I'll add to that, we decoupled our trade tool inside of Clicklane to allow consumers to sell their vehicles direct to us. We'll talk about it in detail at the end of the second quarter because we're fully launched in the month of April, and we had it going at pilot stores or half our company, if you will, in the prior quarter or the current quarter we're talking about, the first quarter. We're seeing tremendous results in acquiring cars direct from consumers which is helping stabilize our inventory. But most importantly, our ability to create margin or gross profit per vehicle on used vehicles is really all about the acquisition of the car.
The market dictates a price. If you cannot acquire the car at the proper price, you will dramatically be impacted in the margin is our belief. So we're really trying to be opportunistic and really make it easy for consumers to sell their vehicles to us, which we believe is helping support our gross profit per vehicle.
Daniel Imbro -- Stephens Inc. -- Analyst
Great. That's really helpful. And then my follow-up, I wanted to ask on the rollout of TCA. You have some really bullish commentary in the slides about the opportunity.
But should we expect this rollout to be linear or is there a training of store employees or some kind of infrastructure that needs to be stood up first at the Asbury stores before we can really accelerate the rollout of the product?
Dan Clara -- Senior Vice President of Operations
I'll start and then Michael can jump in and clean up anything I screw up. I'll tell you the easiest piece of it will be the rollout of the stores because the folks in the stores are used to selling the product. So that will be very quick and efficient. We've really been working on the backside of the plumbing.
I mean it's a stand-alone insurance company, to get it right in all the stores before we start to implement it. Michael discussed in the script that in Q2, we will start to roll out the legacy Asbury stores. Our goal isn't the quarter-to-quarter race. It's the long-term vision of where we're going as an organization.
We plan to roll out the whole company within 12 to 18 months, so somewhere in that time frame, 100% of the Asbury stores will be on TCA.
Michael Welch -- Senior Vice President and Chief Financial Officer
And just a reminder from a -- as David said, 12 to 18 months for the rollout to the stores, from the impact on the financial statement because we have to defer the revenue, there will be a lag in terms of when you'll see those results kind of come through the financials because we now have to defer that revenue over the life of the contract. And so from a P&L perspective, it's probably two to three years away before you start seeing the positive results through the P&L.
Daniel Imbro -- Stephens Inc. -- Analyst
Got it. That's helpful. Thanks so much, guys.
David Hult -- President and Chief Executive Officer
Thank you.
Operator
And we can now take our next question from John Murphy, Bank of America. Please go ahead.
John Murphy -- Bank of America Merrill Lynch -- Analyst
Hi. Good morning, guys. Maybe just to follow up on the TCA to stay on the same topic. I mean, the funding and the balance sheet, I mean that's going to be in tax advantage state or offshore.
I'm just curious how in addition to sort of the benefits of just the ongoing earnings, the potential tax implications or the lack thereof might be even more beneficial than what we just see in the earnings.
Dan Clara -- Senior Vice President of Operations
So currently, TCA is set up in as a Utah entity. And so that's the current setup. We're looking into the kind of tax advantage pieces to kind of handle with the bigger scale now. And so currently, we do not have any of those baked into the forecast, but something we are looking at from a perspective of -- currently it's Utah and doesn't make sense to have any of it elsewhere.
John Murphy -- Bank of America Merrill Lynch -- Analyst
I've got to imagine it makes sense to have it elsewhere, right? I mean it can be meaningfully positive to right the ongoing earnings distribution as far as cash versus what you would rather otherwise, the tax.
David Hult -- President and Chief Executive Officer
Yes. There was tax benefit.
John Murphy -- Bank of America Merrill Lynch -- Analyst
Yeah, that's huge, right? I mean on just the structure of that, forget about the rollout, isn't it?
Dan Clara -- Senior Vice President of Operations
So there's two pieces of TCA. There's a true regulated insurance company and then it's an F&I product piece. And so yes, there's some tax benefits, which got away the cost of the setup and the different pieces and then what that read is worth on a tax basis. So I agree with you that there's some benefits there.
We just got to go through and kind of figure out the pieces of that and give it -- get it set up for a bigger company.
John Murphy -- Bank of America Merrill Lynch -- Analyst
Got it. OK. That seems like there might be more upside. And I get to the sort of second question on Slide 25.
When you're looking at this range, I understand the benefit of leverage and being maybe more aggressive in expansion. But David, as you look at this, how do you think about leverage? I mean, going from one to two turns, going from $55 to $70 plus, it seems like two turns is not too aggressive or really risky. I mean, how are you thinking about leverage in general as you're redeploying capital for growth here?
David Hult -- President and Chief Executive Officer
Yeah. And just to clarify, the leverage is 2025 so back to kind of a more normalized margin environment. So that two times leverage is on a normalized basis. I agree with you that two times is not an overly aggressive target.
I think that two to three times leverage is still kind of where we want to be in a normalized environment, but being below two times just allows you the flexibility to go after larger acquisitions. Where if you're kind of up near that three times, you don't have that same flexibility. So I think a one to two times leverage is the right place to be -- to have the opportunity to go after those larger deals.
Dan Clara -- Senior Vice President of Operations
And I would just add, I mean, our history is we're a conservative company and any targets we put out there, we certainly hit or exceed and usually exceed them. It's difficult to know what the environment is going to be at that moment in time. This was a conservative approach to us. And certainly, in this '25 year plan, we've normalized margins as well.
this whole plan is not baked on current margins. We certainly brought them back down to a normalization in the future years coming up to '25.
John Murphy -- Bank of America Merrill Lynch -- Analyst
OK. And I mean, I guess, the big of the question is, what does normal mean going forward? Is it 2019 and prior margins is what you're thinking there? Or is there some potential benefit from automakers now being much more disciplined on supply versus demand and maybe getting a little bit better growth on the new side? And then the mix of the business obviously shifting to used in part, more parts and service. That means that there could be just from a mixed basis upside in margins. Is that how you're thinking about it? Is it you just kept the 2019 levels to just get the benefit from the mix of what you're driving in the business or there is some potential slight upside from the 2019 levels?
Dan Clara -- Senior Vice President of Operations
Yeah. No, and everyone keeps referring to 2019, and I brought this up a few times. I'll bring it up again. We will never see 2019 margins again in our company.
We're a different company, not because of our size, but because of the accretive acquisitions that we've done. We sold off all of Mississippi, which was our lowest margin platform. And we've increased through Park Place, LHM and Stevinson, all of them are accretive in margins to where we were in '19. We're also, from a productivity standpoint, under the legacy Asbury stores alone, it hasn't been integrated in any of the acquisitions yet.
But from a productivity standpoint, from 2019, we've had a 50% increase on the variable side for production per employee for sales advisors. So that's significant, and we see more upside where technology is going and where Clicklane is going. So I would tell you, John, and I'll just speak specifically to Asbury. We're in that high 4%, 5% margin business.
My belief is we'll be somewhere in the 6% or higher range on new car margins when things normalize. Now, as it relates to margins on used cars, I would simply tell you the cost of sales are reflection of margin. Our gross profit now is in the $2,200 range. We don't see that materially changing much when we get back to a normalized environment.
John Murphy -- Bank of America Merrill Lynch -- Analyst
Got it. And that just gets to my last question on the SG&A front. I mean how do you -- I mean, we always like to think about it as a percent of gross margin. I mean, it's a reasonable way to think about it, but then there's an absolute dollar level, and then there's all this technological efficiency that you just kind of highlighted.
How should we think about SG&A going forward? I mean the dumb guy simple way is, hey, it's mid-50% to 60%, maybe it's higher than that, maybe it's slower than that. But how do you think about that because it's much more complicated than just, hey, it's a percent of gross, a good starting place to talk about it. But I mean how do you think about it?
Dan Clara -- Senior Vice President of Operations
Sure. I'll start and Michael can finish it. The way we've modeled this and looked at it, and we're tracking exactly where we expect it to be at this point. So it gives us confidence that we're on the right track to execute the 25-year plan.
We believe that there is an opportunity to improve SG&A significantly over where we were in 2019, but somewhere around where we are today. So I don't see it, what's going on in the macro sense, what's going on in the economy, what interest rate, different things look like at that moment in time. But as we sit here today and we forecast it out, and you see our soft plan that we forecasted, that doesn't assume a recession. So assuming as we sit here today, we model this out, we have the opportunity both through efficiency of our software production per employee to have a tailwind with SG&A.
John Murphy -- Bank of America Merrill Lynch -- Analyst
So baseline, we should think about high 50s and with an opportunity to maybe grind better as grosses improve and you get efficiency in the system. Is that a fair way to say, but you're not even really assuming that just yet?
Dan Clara -- Senior Vice President of Operations
Yeah. So look, we have it. What we did these five-year plans, we don't aggregate the numbers. We do it literally by store, by market.
I would tell you, if things play out the way we anticipate, we should be in the mid-50s to upper 50s somewhere in that bracket.
John Murphy -- Bank of America Merrill Lynch -- Analyst
OK, that's very helpful. Thank you so much.
David Hult -- President and Chief Executive Officer
Thank you.
Operator
And we can now take our next question from Ryan Sigdahl of Craig-Hallum Capital Group. Please go ahead.
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Good morning, guys. Congrats on the results, progress.
David Hult -- President and Chief Executive Officer
Thank you.
Dan Clara -- Senior Vice President of Operations
Thank you.
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Curious on two kind of, I guess, financial questions. One, divesting seven stores, what's the annual revenue you're going to lose from those? And then secondly, on parts and service, same-store sales strong at 14%, even excluding TCA, but the gross margin was a bit weaker kind of year over year. Anything to call out there?
Michael Welch -- Senior Vice President and Chief Financial Officer
So on the divestitures, just -- I'll give you just a quarter. For the quarter, those stores represented $162 million of revenue on the quarter. So that just kind of gives you a run rate for the quarter to back that number on.
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
And similar for the other three, I guess, are they all similar sized?
Michael Welch -- Senior Vice President and Chief Financial Officer
That includes all. That includes the four stores sold in the quarter plus the three stores that we sold on April 1. So that's all seven stores, what they represented in the quarter.
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Got it. And then on parts and service?
Michael Welch -- Senior Vice President and Chief Financial Officer
We have $3.75 billion.
Dan Clara -- Senior Vice President of Operations
Ryan, this is Dan. I'll take the other parts and service. So the parts and service margin is a direct reflection of just the mix that we're seeing. As you see on our tables, our wholesale parts grew up 25%, which carries your lowest margin.
And then in addition to that, when you see some of the warranty pullback that we have experienced out there with some of the OEMs, the mix of that warranty pullback in the margin that we carried in there is what is bringing us down.
David Hult -- President and Chief Executive Officer
And I'll say with the Miller organization, we're happy to sacrifice that margin. They're impressive as it relates to wholesale parts and many other areas, but that's just one that sticks out. And there's certainly a lot of learnings there for us for our legacy Asbury stores as well.
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Great. One more for me. So on Clicklane, a lot of good incremental progress there. Curious on the traffic sources to get break out, kind of what percent of that is organic versus paid SEM or other paid channels?
Dan Clara -- Senior Vice President of Operations
So Ryan, this is Dan again. I'll start and then David can clean it up. Since we launched Clicklane, we have not gone out there and spent millions of dollars advertising Clicklane. And the vast majority of our advertising dollars go -- from a store standpoint, go for the digital transaction and the digital traffic that we've pushed to our websites.
So I will tell you that the vast majority of the traffic is coming from organic growth and the traffic that we pushed to the website.
David Hult -- President and Chief Executive Officer
And just to put a harder number on it, I'd tell you about 25% is for paid search. There just hasn't been a logical reason for us to really promote it without any inventory. And I can't stress it enough that the 5,600 sales are simply the 90 legacy Asbury stores. We haven't rolled it out to any of the acquisitions yet.
Again, because of TCA, the forming Clicklane being a fully transactional tool, not a lead generator, it takes time to do that. We'll start to roll out our first store toward the end of this quarter. But none of the additional 70 stores that we purchased are on Clicklane at all. So that growth, that number is solely the legacy stores.
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Great. Thanks guys. Good luck.
David Hult -- President and Chief Executive Officer
Thank you.
Dan Clara -- Senior Vice President of Operations
Thank you.
Operator
We can now take our next question from Glenn Chin of Seaport Research Partners. Please go ahead.
Glenn Chin -- Seaport Global Securities -- Analyst
Hi. Thank you. Good morning, folks and congratulations on the upsize plan. Nice to see such an ambitious plan, very encouraging.
And thank you for all the detail around it. David, I just want to probe your comments a little about normalized margins, what those might be going forward. I mean, I understood that you will benefit from these terrific acquisitions you've made. But maybe just from a broader industry perspective, I mean, is it safe even to use or look at 2019 as a baseline only because prior to that, I mean new margins, at least if not as much on the used side, but new margins were in secular decline for a very long period.
Is that to say that you think 2019 may have been the bottom?
David Hult -- President and Chief Executive Officer
I would say a bottom and kind of the end of an era. You've had a tremendous amount of acquisitions and growth and consolidation since '19. You've had really disruption of electric EVs coming in, consumers preordering at more acceptable margins, for lack of a better term. The question is if you believe normalized margins are end of '23, '24, what does that mean? How many electric cars are going to be on the road? What's the incentives going to be for the government? The stronger the incentives, the more it supports margins.
I just don't think as an industry, you'll see '19 again for a long time. I think a lot has changed since then. And you see the profit from our partners with the manufacturers, they found ways to be more efficient in what they do. So I think between technology finally catching up to an archaic space, meaning automotive retail, the introduction of EVs, the consumer perception, demand and their comfort level acquiring online.
And oddly enough, when you go online and won't price it, for lack of a better term, you end up at a better margin place than letting someone negotiate. So I just think our industry has been hampered the last year or two with what happens with EV, does the franchise model go away? As I sit here today and I worry about the franchise model, I feel better every day about the franchise model and know the meaningful role that we play and the strong partner that we can be. And just looking at some of these start-up electric companies and how they're struggling and what they're going through and the quality of the products that our manufacturers make and our ability to present those products and sell them, I just think we're in a different space. And now you add technology to it and you add efficiency to it and you change how you compensate people, I just see this as a much better value proposition and I use this term around here, so I'll use it again.
Right now, we're a plane taking off and we're in the clouds. It's a little bumpy and everyone can't see above the clouds yet. But when we get above the cloud in the next 18 to 24 months, I think things are going to look really good for our industry as a whole. That's my belief.
Glenn Chin -- Seaport Global Securities -- Analyst
OK. Yeah, understood. And I appreciate the thoughts. And then next, I apologize if I missed it, but did you guys talk about how the upsize plan will be funded? Do you think it can be funded internally or organically or do you anticipate having to access the capital markets?
David Hult -- President and Chief Executive Officer
No. If you look at the onetime leverage number, that is all, the acquisitions are paid for out of free cash flow. So no additional debt needs. Our equity needs to be raised.
Glenn Chin -- Seaport Global Securities -- Analyst
OK, very good. Also good to hear. And then lastly, just on acquisitions and dispositions, any thoughts, gentlemen, on where those acquisitions will be or the types of stores that you're going to be looking at or looking to build out the network or really just bulking up in markets where you already exist?
David Hult -- President and Chief Executive Officer
I'm doing this for 36 years on the retail side, you created a lot of relationships and a lot of friends and a lot of dealers see value in partnering with us. we have the ability through relationships today to go out and purchase another $5 billion if we wanted to today. Our goal is not to grow quickly. Our goal is to grow thoughtfully and be great capital allocators for our shareholders.
So I think that the timing, cadence and pace is important. I think the states where you've seen us grow in our thought process of balancing the brands with the right states, you won't see us differ from that and acquisitions going forward will be accretive for us. The one thing I don't think our space gets a lot of look at is portfolio management. What do they buy? What do they sell? What did that do from an accretion standpoint? Not from a top-line revenue, but what did that really do to them as a whole? And so I think you'll see us really manage the portfolio well.
You'll see more divestitures over time, probably at some point in the future. And you'll certainly see more acquisitions as well. But that's just really maximizing the portfolio to generate the highest returns and create the most stable company for our employees and our shareholders.
Glenn Chin -- Seaport Global Securities -- Analyst
OK. Very good. And then lastly, still on acquisition and disposition. Can you confirm this bunch of seven stores that you disposed of, is that portfolio management or fine-tuning, David or is it you need to comply with OEM framework agreements?
David Hult -- President and Chief Executive Officer
Yeah. And in this particular case, without getting too much into the weeds, it had nothing to do with framework. Every manufacturer and we're thankful to represent the Toyota and Lexus brand, and we love them and the relationship and the senior management teams. But when we went into this, it's a timing situation.
We were competing to buy LHM with a group of people. We didn't know who we're competing against and didn't know we were getting the deal. The Stevinson deal was in my 20 group in the '90s when I was the GM of a Turner store, there was a relationship there that came together quick. We didn't want to pass on that opportunity not knowing if we're going to get the Miller organization.
Then fast forward, we signed Stevinson and then we got the Miller one. So we knew we had an issue because the manufacturer has a limit to how many stores you can own and reach in. So we knew that we would have to sell some stores. Did we want to sell any of them? Of course, not.
But we had to comply and respect the relationship that we do with the manufacturer and we fully aligned quickly with what we needed to do. They were tremendous partners in working with us to divest of those stores. So we think it all happened quickly and timely because of the strong relationship, and we're happy with where we are today with our portfolio.
Glenn Chin -- Seaport Global Securities -- Analyst
OK, terrific. Thank you for all the feedback.
David Hult -- President and Chief Executive Officer
Thank you.
Operator
We can now take our next question from Rajat Gupta of JPMorgan. Please go ahead.
Rajat Gupta -- JPMorgan Chase and Company -- Analyst
Hi. Good morning. Thanks for taking the question. The first question was on just the used car, used vehicle unit growth trajectory.
You're currently run rating roughly close to 150,000 annual units. With the acquisition targets in the four-year plan, you probably, that run rate becomes like 200,000, 220,000. And by 2025, we're expecting that to move from that 220,000 to like 340,000, which is roughly like a 15% CAGR. How should we get conviction around that, particularly when supply is a bit tight here in the near term? It just seems like a bit of a hockey stick around to be out here.
So maybe if you could help bridge that. And I also like to put that in the context of Clicklane, how much conviction you already have that incremental contribution is going to come through? Thanks. Then I have a followup.
Dan Clara -- Senior Vice President of Operations
Yeah. Good morning, Rajat. This is Dan. I'll take the first part of the question and then David can clean it up.
Let's look at the big picture from a market level. We talk about 40 million used cars that are sold on an annual basis. 45% to 50% of those transactions happened between private parties. We believe that as the digitization of our industry continues to evolve, and with us having been one of the very few that have a fully transactional tool, as that consumer continues to adopt and accept the digital transaction online, those private party customers are not going to want to transact between private parties because that is not going to be available for them.
So that is going to give us a competitive advantage that we will certainly take and go after. So we see being able to pull from that market share for a lack of a better term that is out there.
David Hult -- President and Chief Executive Officer
And I'll add to it. And if you look at Slide 19, I don't know how well it's showing up, but there's a hockey stick arrow in there. So I like your terminology with that. I would tell you the reduced cars that are out there now, clearly won't be a problem in the future.
When you normalize SAR and you get the fleets back up to normal levels and you get those cars coming back to market, that aren't coming back to market now make it much easier. When you go from 91 stores to 225-ish stores, while I understand the CAGR comment in there, you got $40 million typically on an average year plus of used sales. So when you talk about incremental growth or market share gain, on the franchise side, you're somewhat restricted because of your PMA, but you're unrestricted as it relates to pre-owned. So we looked at our growth from 2019, 2020 average per store where we're at, where we're going.
And again, I'll say it again, I know it's repetitive, but the 5,600 was with 90 legacy stores, none of the acquisitions going forward and with no new car inventory to have on there. And when we originally launched the tool, we're selling more new than used on Clicklane. So we've done this exercise by store. We're looking at SAR and making our assumptions.
We understand and we'll talk about it next quarter, the number of cars we're acquiring directly from consumers. This isn't an overly aggressive number for us. We feel like this is logical to be it. And I made a comment earlier, the Miller organization is phenomenal and a lot of things in wholesale parts is one of them, employee retention, taking care of the guests or others, but a huge opportunity for them is the used to new ratio.
Even in the quarter, and it shows between our total and our same store, they are a pretty good distance behind us in used to new ratio. So we'll work with that very talented team over time to dramatically improve that used to new ratio. When you take their size of an organization, they get them up to our used to new ratio. There's a meaningful tailwind there as well.
Rajat Gupta -- JPMorgan Chase and Company -- Analyst
Got it. Got it. That's helpful color. And then maybe just last one on parts and services.
You have mid-single-digit growth down in there for the next few years. It seems a bit conservative, like pre-COVID, the average franchise dealer averaged 5%, 6%. And with inflation and with customer pay and with the wage continue to ramp back and just the opportunity to gain share from smaller independent, just curious as to what's governing that mid-single-digit target? Is that conservative? Or just what's factored into that, that would be helpful to know. Thanks.
David Hult -- President and Chief Executive Officer
It's an excellent question. And quite honestly, one we debated for a while. There's a lot of factors. I'll start with the answer and then dabble for a minute.
The answer is it's extremely conservative. We had a 30% growth rate in the last four years for consumers as far as what they're spending with us per transaction. We see a lot of where it's coming from and why and we see how it's going forward. And as we sit here today and I said this before, every quarter, we track the dollars per repair order on combustible engine, hybrid and fully electric vehicles.
And we didn't talk about it, but this quarter was no different. The dollar values are significantly higher on the fully electric vehicles. The question will be, as cars become -- the average age of the car, we all know how old it is right now. Does that start to change in '24 and '25 with the availability of all the cars that are going to be out there in the heavy, what we believe to be federal incentives to buy these cars.
And if there's a lot of car transactions in those years, will that materially change the dollars spent in the service department because maybe the average miles coming to the shop are lower. Now there's 270 million-plus cars on the road. Again, the average age is much older. Approximately the average age of a car that comes to our service department is 70,000 miles.
So we've made a lot of again, this five-year plan is almost like a balance sheet statement. It's a moment in time. As we sit here today, and we plan out through '25, we put together what we believe is a conservative plan, and we've literally looked at it by store, by market and what our potential is to grow. So it's a very fair comment.
It is extremely conservative. There potentially is upside in it. There's just so many factors that come into play. We just didn't feel confident enough to raise it without being able to back it up.
Rajat Gupta -- JPMorgan Chase and Company -- Analyst
Got it. Got it, make sense. It looks like you win either way, either more units or more service. So it shows the resiliency of the model.
Great.
Operator
And we can now take our next question from Stephanie Moore of Truist. Please go ahead.
Stephanie Moore -- Truist Securities -- Analyst
Hi. Good morning. I think continuing on the same kind of question toward here on EVs. Maybe you could talk a little bit about the conversations you're having with the OEMs right now about the introduction of EVs over the next several years.
I think you have a nice perspective just given your breadth of OEM brand coverage. So maybe what our expectations from the OEMs in terms of capital investments on your end, everything from just the stores to charging stations, thoughts about agency models, direct-to-consumer or preorders. I would love to get just general color on EV introduction.
David Hult -- President and Chief Executive Officer
Sure. I think we do a good job in running the business day to day, and the manufacturers do a great job at looking ahead and planning for the future, getting us ready for the future and building quality products. We've been installing charging stations for four years at our dealerships and very mature with that at this standpoint. I would tell you, Tesla has done extremely well.
They've been a great disruptor, but they haven't had anyone to compete against. No one has really been in that space offering a lot of products and going at them. Over the next couple of years, you're going to see that change materially as far as what comes to market. Sitting in my seat, I get the opportunity to drive a lot of cars that have either just come out or are coming out for a year or so.
And I would just say from a fit and finish and a quality standpoint, I'm extremely excited with the electric products that are coming out from the manufacturers. And I believe that they're better than the fit and finish and quality of the Tesla product. Everyone has their own opinion. It's just one person's opinion.
I'm not knocking them. But that again excites me more about the future and what's happening. And like anything else, like our software, and like the battery technology, everything is going to improve over time. The government wants to go down this road, so we believe the incentives are going to be there for a while.
So we think we're really well positioned with this, what I would call a mature supply chain, meaning the brick-and-mortar is out there. You see Carvana, you see Tesla, you see all these start-up electric companies or direct-to-consumer companies realizing the need for brick-and-mortar. That's already mature. That's already out there.
The investments have already been made. Where we're at, and we've been at the last couple of years, just making significant investments in our team, training our folks to sell electric vehicles and training them on the technology, most importantly, training our technicians to work on these very complicated and quite honestly, dangerous cars to work on. So again, extremely optimistic about the space. Haven't seen from almost every manufacturer from a quality standpoint, what they're coming out with for electric cars.
I think it's going to be a fun time to see how these legacy OEMs really stay at all against the disruptors.
Stephanie Moore -- Truist Securities -- Analyst
Great. No, that's really helpful. And then I think switching gears, a topic that's been coming up, I think, more as of late has just been the affordability of vehicles in this environment. Obviously, new prices are quite high.
Used have also increased pretty meaningfully. Now we have rising interest rates. What are you -- what do you view kind of where it stands on just overall affordability and just on the new and used side? And do you think that changed at all during the quarter or in April?
Dan Clara -- Senior Vice President of Operations
Sure. The reason we quoted that the average down payments, $9,000, I'm rounding numbers. So $9,000 down payment on a new car is significant. We didn't see that pre-pandemic, almost $7,000 on a used car.
What that tells me is the consumer has a lot of cash to spend. And even though inflation is running high, their incomes have gone up dramatically, and they've been sitting on cash and the age of the car is there. So we've had 0 interruption with raising rates as it relates to the consumer side of things or the desired demand to buy vehicles. I can't predict the future.
I don't know what's going to happen in Ukraine. It's certainly affecting us on the supply chain issue with some brands. So there's a lot of variables still out there, but we're optimistic where we sit today, how strong and resilient the consumer is, how much cash that they have and their propensity and willingness to want to buy. 90% of our business, a little bit over 90%, is prime business.
So we're a very small player in the subprime business. I'm sure it affects subprime more in folks living paycheck to paycheck, which where the inflation would affect them more. But we're not seeing any issue at this point.
Stephanie Moore -- Truist Securities -- Analyst
Great. Appreciate all the color today. Thank you.
David Hult -- President and Chief Executive Officer
Thank you.
Operator
And we can now take our next question from Bret Jordan of Jefferies. Please go ahead.
Bret Jordan -- Jefferies -- Analyst
Hey. Good morning, guys.
David Hult -- President and Chief Executive Officer
Good morning.
Bret Jordan -- Jefferies -- Analyst
On the 17% customer pay growth, could you tell us what was price versus traffic?
Dan Clara -- Senior Vice President of Operations
Yeah. I would say it was 60% price, meaning the consumers were spending more and probably almost 40% traffic as far as...
Bret Jordan -- Jefferies -- Analyst
Do you feel like for like same skew price, like an inflation number in there? Or is it just that obviously, the 60% would include mix shift as well. But is there a feeling for like what pricing on the same job would be?
Dan Clara -- Senior Vice President of Operations
Yeah. There's no inflation in there at all. We haven't adjusted our prices as it relates to that to align with inflation.
Bret Jordan -- Jefferies -- Analyst
OK. And then I think investor perception is that battery electric vehicles don't need any service, and you're saying that they have a higher repair bill. Is that something you see going forward? Or do you think this is just because these are new vehicles with bugs that will be worked out over time? I mean, as you look at the BEV population, are they additive to your service business long term or negative?
Dan Clara -- Senior Vice President of Operations
Yeah. I -- again, one person's opinion, my belief is the propensity or the frequency of them coming to the shop will be less. But the time in dollars will be greater, not just what they spend, but what we end up charging because of sophistication to work at it. And putting electric aside and not talking about autonomous, there are some technology features in cars today, breaking where your car can break with someone in front of you, lane changing, the shifting and learning you.
That's all technology that could have bugs in them. So while the cars really get heavy content with technology, not just the battery piece, it allows for more opportunity for things to go wrong. And when you talk about driving a 5,000-pound vehicle at 60 miles an hour down the road, there's a lot of liability in touching those cars. So you've really got to be thoughtful and think about what you're going to do over the airwaves that are nice to have and what you're going to do that may have a real liability issue in driving the vehicle.
So we see that we're really positioned well. We're not surprised by the additional dollars, to your point, technology will get better over time. It's going to take a while. And then you factor in the roads and the potholes and the weather, they all play a role with the software and technology in these vehicles as far as their performance.
Bret Jordan -- Jefferies -- Analyst
Right. Thank you.
David Hult -- President and Chief Executive Officer
Thank you.
Operator
We can now take our final question from David Whiston of Morningstar Equity Research. Please go ahead.
David Whiston -- Morningstar -- Analyst
Thanks. Good morning. On Clicklane, is the conversion rate so much higher versus traditional digital because of the tool itself being so good, which I think it is. Or is it because your customers are already more committed to buying than other customers would be just because they do enter the Clicklane portal?
Dan Clara -- Senior Vice President of Operations
David, Good morning. This is Dan. I'll start and then turn it over to David. So if you look at our data from Clicklane with the average credit score being over 700, you think about that consumer, that consumer is in the very, they know that we have a fully transactional tool, which gives us a competitive advantage from that perspective.
So that consumer does not want to go through the traditional process and go spend three or four hours in a store and are taking full advantage of the technology that we have out there that makes it a lot more efficient to buy and acquire that inventory where they want to, how they want to, and at the time of the day that best benefits the guest. So we believe that it is -- that the tool is attracting a very good credit score customer. But in addition to that, just the fact that it is one of the very, very few fully transactional tool is giving us the better results as well.
David Hult -- President and Chief Executive Officer
And I would just say, just to add on top of that, we had prior tools and then what I would call more lead generators to what a lot of the tools are out there now. We saw a lower credit score customer. We saw lower down payments. I think the consumer appreciates their time and to be able to do a transaction in 14 minutes instead of sitting in a show room for two hours is meaningful.
If you have a fully autonomous transactional digital platform, you don't have a need for a call center. If you have a call center, that only frustrates the consumer more. Think about if you're trying to buy any kind of product online, you can't finish it, you need to get on with a call center to figure things out, that's not a fun experience. It's frustrating.
So we don't have a call center. We believe that the tool speaks for itself, and it's only going to continue to grow. And that old stupid adage we're all consumers, we'd love to buy things. We don't love to be sold things.
So the ability in your own safe environment to go through a tool, select which one that you want to use, decide what F&I products, if any, you want, be able to sign in your home and pay for it is meaningful. We have this software called Invite to Pay, which people pay via text and email. In 2018, we did $12 million annually on this Invite to Pay tool online or via text. We did over $100 million last year because it's convenient.
So we're constantly focused on that North Star. It's not about what's best for us to generate the most money, what's best for the manufacturer for them, it's what's best for the consumer. And our logic is if we give them the best tool and be most transparent, logically they want to transact with us more. And again, going back to that concept, people like to buy.
We believe that's why the F&I number is so high. We're not repitching. We're not selling. There's no interruption on that F&I process.
That almost $2,300 per in F&I is the customer self-selecting themselves. So we think that's the power. And no different than the first smartphone or any technology, this is year one. As people become more comfortable with the software, the software improves, later in this quarter, we'll roll out our second iteration of our F&I platform on Clicklane.
It's a significant improvement to our card version. So we're constantly working on it, and we will continue to improve the tool as well. But it's just logic-based. Convenience, time, transparency is going to win out every time for the consumer.
David Whiston -- Morningstar -- Analyst
Yeah. I totally agree with you that I see what you mean by the efficiency and the convenience and it's attracting perhaps a more wealthier or higher credit quality customer. But at the same time, doesn't the digital aspect also attract -- make it easier for some people who have lower credit quality who are afraid to go to the store? It doesn't sound like that's happening with Clicklane. I'm just curious, is Clicklane quickly maybe crowding out that lower credit quality customer?
Dan Clara -- Senior Vice President of Operations
No, that's a great comment, and it's one that we really never talk about. I'm going to -- we all journey through life. We have our ups and downs, and we never judge any one situation in why they might be affected by a low credit score. So this isn't to disparage anyone.
But I would -- and I entered the car business in the mid-'80s. From the mid-80s until today, anyone that is in a position of need as it relates to being assisted with financing, they're the first people to reach out for help, that was pre-websites and them showing up at the store and disclosing their situation. After websites, them reaching out via lead, saying help me. That business has been there for decades.
It will always be there and it doesn't stop with Clicklane. We didn't get everyone financed. We got 90% of the people financed, 90% of the people needed assistance, 10% of the people we could not get financed. What I would tell you is most people that have a situation, they want to personally talk about it.
And so that's when more human intervention and understanding and empathy gets involved to understand their situation to best assist them. The software isn't a machine learning tool at this point to where I can identify that and work through subprime customer's issues.
David Whiston -- Morningstar -- Analyst
OK, thanks. That's helpful.
Operator
We have no further questions at this time. I would like to now hand the call back to David Hult for any additional or closing remarks.
David Hult -- President and Chief Executive Officer
Thank you very much, operator. This concludes today's discussion. We appreciate your participation today and look forward to talking to you at the end of the next quarter. Have a great day.
Operator
[Operator signoff]
Duration: 70 minutes
Call participants:
Karen Reid -- Vice President, Corporate Financial Planning and Analysis, and Treasurer
David Hult -- President and Chief Executive Officer
Dan Clara -- Senior Vice President of Operations
Michael Welch -- Senior Vice President and Chief Financial Officer
Daniel Imbro -- Stephens Inc. -- Analyst
John Murphy -- Bank of America Merrill Lynch -- Analyst
Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst
Glenn Chin -- Seaport Global Securities -- Analyst
Rajat Gupta -- JPMorgan Chase and Company -- Analyst
Stephanie Moore -- Truist Securities -- Analyst
Bret Jordan -- Jefferies -- Analyst
David Whiston -- Morningstar -- Analyst
More ABG analysis
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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 (NYSE: ABG) Q1 2022 Earnings Call Apr 28, 2022, 10:00 a.m. Operator [Operator signoff] Duration: 70 minutes Call participants: Karen Reid -- Vice President, Corporate Financial Planning and Analysis, and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Daniel Imbro -- Stephens Inc. -- Analyst John Murphy -- Bank of America Merrill Lynch -- Analyst Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst Glenn Chin -- Seaport Global Securities -- Analyst Rajat Gupta -- JPMorgan Chase and Company -- Analyst Stephanie Moore -- Truist Securities -- Analyst Bret Jordan -- Jefferies -- Analyst David Whiston -- Morningstar -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We look forward to continuing to deliver strong results for our shareholders, be outstanding partners with our OEMs to steward their great brands and offer an environment where our team members can thrive while providing the most guest-centric experience in automotive retail. | Operator [Operator signoff] Duration: 70 minutes Call participants: Karen Reid -- Vice President, Corporate Financial Planning and Analysis, and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Daniel Imbro -- Stephens Inc. -- Analyst John Murphy -- Bank of America Merrill Lynch -- Analyst Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst Glenn Chin -- Seaport Global Securities -- Analyst Rajat Gupta -- JPMorgan Chase and Company -- Analyst Stephanie Moore -- Truist Securities -- Analyst Bret Jordan -- Jefferies -- Analyst David Whiston -- Morningstar -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Asbury Automotive Group (NYSE: ABG) Q1 2022 Earnings Call Apr 28, 2022, 10:00 a.m. Participating with me today are David Hult, our president and chief executive officer; Dan Clara, our senior VP of operations; and Michael Welch, our senior VP and chief financial officer. | Operator [Operator signoff] Duration: 70 minutes Call participants: Karen Reid -- Vice President, Corporate Financial Planning and Analysis, and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Daniel Imbro -- Stephens Inc. -- Analyst John Murphy -- Bank of America Merrill Lynch -- Analyst Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst Glenn Chin -- Seaport Global Securities -- Analyst Rajat Gupta -- JPMorgan Chase and Company -- Analyst Stephanie Moore -- Truist Securities -- Analyst Bret Jordan -- Jefferies -- Analyst David Whiston -- Morningstar -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Asbury Automotive Group (NYSE: ABG) Q1 2022 Earnings Call Apr 28, 2022, 10:00 a.m. This quarter was a busy one for Asbury, as we continued to integrate acquisitions made in the fourth quarter of 2021, worked to close on our divestitures and developed a plan to expand Clicklane to acquire stores and TCA to legacy Asbury stores. | Operator [Operator signoff] Duration: 70 minutes Call participants: Karen Reid -- Vice President, Corporate Financial Planning and Analysis, and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Daniel Imbro -- Stephens Inc. -- Analyst John Murphy -- Bank of America Merrill Lynch -- Analyst Ryan Sigdahl -- Craig-Hallum Capital Group -- Analyst Glenn Chin -- Seaport Global Securities -- Analyst Rajat Gupta -- JPMorgan Chase and Company -- Analyst Stephanie Moore -- Truist Securities -- Analyst Bret Jordan -- Jefferies -- Analyst David Whiston -- Morningstar -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Asbury Automotive Group (NYSE: ABG) Q1 2022 Earnings Call Apr 28, 2022, 10:00 a.m. And we didn't talk about it, but this quarter was no different. |
28629.0 | 2022-04-28 00:00:00 UTC | Asbury Automotive Group (ABG) Q1 Earnings and Revenues Beat Estimates | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-q1-earnings-and-revenues-beat-estimates | nan | nan | Asbury Automotive Group (ABG) came out with quarterly earnings of $9.27 per share, beating the Zacks Consensus Estimate of $8.92 per share. This compares to earnings of $4.68 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 3.92%. A quarter ago, it was expected that this auto dealership chain would post earnings of $5.86 per share when it actually produced earnings of $7.46, delivering a surprise of 27.30%.
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 $3.91 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 1.94%. This compares to year-ago revenues of $2.19 billion. The company has topped consensus revenue estimates four 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 8.4% since the beginning of the year versus the S&P 500's decline of -12.2%.
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 $8.75 on $4.05 billion in revenues for the coming quarter and $34.31 on $16.06 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 16% 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.
One other stock from the same industry, Titan Machinery (TITN), is yet to report results for the quarter ended April 2022.
This agriculture and construction equipment seller is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +10.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Titan Machinery's revenues are expected to be $406 million, up 8.9% 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 $9.27 per share, beating the Zacks Consensus Estimate of $8.92 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 $9.27 per share, beating the Zacks Consensus Estimate of $8.92 per share. Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.91 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 1.94%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $9.27 per share, beating the Zacks Consensus Estimate of $8.92 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 $3.91 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 1.94%. | Asbury Automotive Group (ABG) came out with quarterly earnings of $9.27 per share, beating the Zacks Consensus Estimate of $8.92 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? |
28630.0 | 2022-04-27 00:00:00 UTC | Asbury (ASB) Expected to Put Up Stellar Q1 Earnings Show | ABG | https://www.nasdaq.com/articles/asbury-asb-expected-to-put-up-stellar-q1-earnings-show | nan | nan | Asbury Automotive Group, Inc. ABG is set to release first-quarter 2022 results on Apr 28, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $8.92 and $3.84 billion, respectively.
The Zacks Consensus Estimate for Asbury’s first-quarter earnings per share has been revised upward by 3 cents in the past 30 days. The bottom-line projection implies year-over-year growth of 91%. Also, the Zacks Consensus Estimate for revenues suggests a year-over-year uptick of 75%.
This automotive retailer posted better-than-expected earnings in the last reported quarter, primarily on higher-than-anticipated gross profit from the new-vehicle unit. Precisely, gross profit from new vehicle sales came in at $143 million, outpacing the Zacks Consensus Estimate of $123 million.
Over the last trailing quarters, Asbury surpassed earnings estimates on all occasions, with the average being 30%. Investors expect Asbury to maintain its earnings beat streak for the fourth quarter of 2021 as well. Encouragingly, our model predicts the same.
Asbury Automotive Group, Inc. Price and EPS Surprise
Asbury Automotive Group, Inc. price-eps-surprise | Asbury Automotive Group, Inc. Quote
Earnings Whispers
Our proven model predicts an earnings beat for Asbury for the to-be-reported quarter, as it has the right combination of the two key ingredients. A 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.
Earnings ESP: Asbury has an Earnings ESP of +3.98%. This is because the Most Accurate Estimate is pegged 36 cents above the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Asbury currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Things to Consider
Courtesy of economic recovery from the pandemic lows and preference for personal mobility, demand for vehicles has been on the rise, which is likely to have aided sales of Asbury. Even though tight inventory may have played a spoilsport to some extent, the rising average selling price for new and used cars amid supply-demand mismatch is likely to have fueled first-quarter revenues. Also, we expect Asbury’s Clicklane omni-channel platform to have significantly buoyed the firm’s first-quarter revenues.
Asbury’s first-quarter 2022 results will reflect buyout synergies. The acquisition of Larry H. Miller Dealerships — completed in December 2021 — bolstered Asbury’s regional footprint and expanded its presence in the high-growth Western markets. During the fourth quarter of 2021, Asbury also acquired Stevinson Automotive. The buyout strengthened Asbury’s foothold in Denver, which is one of the most economically vibrant regions in the United States and an ideal market for strong automotive brands. The Larry H. Miller and Stevinson buyouts are expected to add $5.7 billion and $715 million, respectively, to Asbury’s annualized revenues. The following developments are likely to have aided Asbury’s Q1 top-line growth.
Key Predictions
Take a look at the Zacks Consensus Estimate for the firm’s first-quarter 2022 revenues and gross profits from major units.
The Zacks Consensus Estimate for Asbury’s New Vehicle segment revenues is pegged at $1,883 million for the period in discussion, suggesting an uptick from the $1,152 million reported in the prior-year quarter. The consensus mark for the segment’s gross profit is $240 million, calling for a rise from the $76 million in first-quarter 2021.
The consensus mark for quarterly sales from the Used Vehicle segment is $1,306 million, calling for a jump from the $691 million registered in the corresponding quarter of 2021. The same for the segmental gross profit is $106 million, indicating a surge from the prior-year quarter’s $56 million.
The consensus mark for quarterly sales from the Parts and Service segment is pegged at $460 million, suggesting a rise from the $262 million registered in the year-earlier quarter. The same for the segmental gross profit is $279 million, indicating a surge from the prior-year quarter’s $163 million.
The Zacks Consensus Estimate for revenues from the Finance and Insurance segment is pegged at $171 million for the period in discussion, calling for growth from the $88 million reported in the prior-year quarter. The consensus mark for the segment’s gross profit is $162 million, calling for a rise from the $88 million in first-quarter 2021.
Peer Releases
Lithia Motors LAD reported first-quarter 2022 results on Apr 20. It posted adjusted earnings of $11.96 per share, marking a whopping 103% increase from the prior-year quarter’s $5.89 and beating the Zacks Consensus Estimate of $9.63. Total revenues jumped 54% year over year to $6,705.3 million. The top line also exceeded the Zacks Consensus Estimate of $6,031.8 million.
Lithia approved a dividend of 42 cents per share for first-quarter 2022, which marks an increase from the previous payout of 35 cents. Year to date, LAD has repurchased 515,130 shares at a weighted average price of $292.80. Nearly $572 million is remaining under its authorization. Lithia had cash and cash equivalents of $161.4 million as of Mar 31, 2022, down from $174.8 million on Dec 31, 2021. Long-term debt was $3,395.2 million, marking an increase from $3,185.7 million as of Dec 31, 2021.
AutoNation AN reported first-quarter 2022 results on Apr 21. The company reported first-quarter 2022 adjusted earnings of $5.78 per share, which skyrocketed 103% year over year and topped the Zacks Consensus Estimate of $5.39. This outperformance can be primarily attributed to higher-than-expected used vehicle sales. Revenues totaled $6,752.8 million, which increased 14.4% year over year and outpaced the Zacks Consensus Estimate of $6,628.1 million.
AutoNation’s cash and cash equivalents were $608.1 million as of Mar 31, 2022, reflecting a sharp rise from $350 million in the year-ago period. The company’s liquidity was $2.4 billion, including $608 million in cash and nearly $1.8 billion availability under the revolving credit facility. The firm’s inventory was valued at $1,698.3 million. At first quarter-end, non-vehicle debt was $3,548.3 million. Capital expenditure for the quarter amounted to $50.8 million. During the reported quarter, AutoNation repurchased 3.5 million shares of common stock for an aggregate purchase price of $381 million. On Apr 19, it had around $376 million remaining for share buyback under the current authorization.
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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AutoNation, Inc. (AN): 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. | Asbury Automotive Group, Inc. ABG is set to release first-quarter 2022 results on Apr 28, before the opening bell. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Even though tight inventory may have played a spoilsport to some extent, the rising average selling price for new and used cars amid supply-demand mismatch is likely to have fueled first-quarter revenues. | Asbury Automotive Group, Inc. ABG is set to release first-quarter 2022 results on Apr 28, before the opening bell. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and EPS Surprise Asbury Automotive Group, Inc. price-eps-surprise | Asbury Automotive Group, Inc. Quote Earnings Whispers Our proven model predicts an earnings beat for Asbury for the to-be-reported quarter, as it has the right combination of the two key ingredients. | Asbury Automotive Group, Inc. ABG is set to release first-quarter 2022 results on Apr 28, before the opening bell. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and EPS Surprise Asbury Automotive Group, Inc. price-eps-surprise | Asbury Automotive Group, Inc. Quote Earnings Whispers Our proven model predicts an earnings beat for Asbury for the to-be-reported quarter, as it has the right combination of the two key ingredients. | Asbury Automotive Group, Inc. ABG is set to release first-quarter 2022 results on Apr 28, before the opening bell. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $8.92 and $3.84 billion, respectively. |
28631.0 | 2022-04-21 00:00:00 UTC | Asbury Automotive Group (ABG) Dips More Than Broader Markets: What You Should Know | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-dips-more-than-broader-markets%3A-what-you-should-know-2 | nan | nan | Asbury Automotive Group (ABG) closed at $158.52 in the latest trading session, marking a -1.97% move from the prior day. This move lagged the S&P 500's daily loss of 1.48%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the auto dealership chain had lost 10.01% over the past month, lagging the Retail-Wholesale sector's loss of 2.46% and the S&P 500's gain of 0.08% in that time.
Wall Street will be looking for positivity from Asbury Automotive Group as it approaches its next earnings report date. This is expected to be April 28, 2022. The company is expected to report EPS of $8.92, up 90.6% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.84 billion, up 74.99% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.31 per share and revenue of $16.06 billion. These totals would mark changes of +25.72% and +63.23%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Asbury Automotive Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% higher. Asbury Automotive Group currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Asbury Automotive Group is currently trading at a Forward P/E ratio of 4.71. Its industry sports an average Forward P/E of 6.69, so we one might conclude that Asbury Automotive Group is trading at a discount comparatively.
Meanwhile, ABG's PEG ratio is currently 0.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.43 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
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.
Today, See These 5 Potential Home Runs >>
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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. | Asbury Automotive Group (ABG) closed at $158.52 in the latest trading session, marking a -1.97% move from the prior day. Meanwhile, ABG's PEG ratio is currently 0.25. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group (ABG) closed at $158.52 in the latest trading session, marking a -1.97% move from the prior day. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Meanwhile, ABG's PEG ratio is currently 0.25. | Asbury Automotive Group (ABG) closed at $158.52 in the latest trading session, marking a -1.97% move from the prior day. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Meanwhile, ABG's PEG ratio is currently 0.25. | Asbury Automotive Group (ABG) closed at $158.52 in the latest trading session, marking a -1.97% move from the prior day. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Meanwhile, ABG's PEG ratio is currently 0.25. |
28632.0 | 2022-04-21 00:00:00 UTC | Asbury Automotive Group (ABG) Earnings Expected to Grow: Should You Buy? | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-earnings-expected-to-grow%3A-should-you-buy-0 | nan | nan | The market expects Asbury Automotive Group (ABG) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2022. 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 April 28. 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 $8.92 per share in its upcoming report, which represents a year-over-year change of +90.6%.
Revenues are expected to be $3.84 billion, up 75% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.39% 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.
Price, Consensus and EPS Surprise
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 +3.98%.
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?
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 $5.86 per share when it actually produced earnings of $7.46, delivering a surprise of +27.30%.
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.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
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.
Today, See These 5 Potential Home Runs >>
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. | The market expects Asbury Automotive Group (ABG) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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 increase in earnings on higher revenues when it reports results for the quarter ended March 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Price, Consensus and EPS Surprise 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. | The market expects Asbury Automotive Group (ABG) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Price, Consensus and EPS Surprise 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. | The market expects Asbury Automotive Group (ABG) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2022. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 28. |
28633.0 | 2022-04-14 00:00:00 UTC | 5 Top Stocks to Buy on Earnings Beat Potential | ABG | https://www.nasdaq.com/articles/5-top-stocks-to-buy-on-earnings-beat-potential | nan | nan | It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high quality in nature.
Why Is a Positive Earnings Surprise So Important?
Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend.
Also, seasonal fluctuations come into play sometimes. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.
Meanwhile, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project earnings of companies. They in fact club their insights and a company’s guidance when deriving an earnings estimate.
Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.
How to Find Stocks That Can Beat?
Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream but not an easy job. One way to do this is to look at the earnings surprise history of the company.
An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earning beat in its next release.
The Winning Strategy
In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters.
Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again.
Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slight higher by setting the average earnings surprise for the last four quarters at 20%.
Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger.
In addition, we place a few other criteria that raise the chance of a positive surprise.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through.
Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat, per our proven model.
In order to zero in on those that have long-term growth potential and high trading liquidity we have added the following parameters too:
Next 3–5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects.
Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity.
A handful of criteria has narrowed down the universe from over 7,700 stocks to 20.
Here are seven out of 20 stocks:
Asbury Automotive Group ABG:The Zacks Rank #2 company is one of the largest automotive retailers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings surprise of ABG for the past four quarters is 29.60%.
Tesla TSLA: EV maker Tesla has evolved into a dynamic technology innovator. It has a Zacks Rank #1.
The earnings surprise of TSLA for the past four quarters is 33.26%.
Marathon Oil MRO: The Zacks Rank #1 Texas-based Marathon Oil Corporation is a leading oil and natural gas exploration and production company with operations in the United States and Africa.
The earnings surprise of MRO for the past four quarters is 37.39%.
The Hanover Insurance Group THG: The Zacks Rank #2 non-insurance holding company offers financial products and services in two major areas: Risk Management and Asset Accumulation.
The earnings surprise of THG for the past four quarters is 55.78%.
H&E Equipment Services HEES: This Zacks Rank #2 company is one of the largest integrated equipment services companies in the United States, with full-service facilities throughout the Intermountain, Southwest, Gulf Coast & Southeast regions of the United States.
The earnings surprise of HEES for the past four quarters is 21.1%.
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: http://www.zacks.com/performance.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
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Marathon Oil Corporation (MRO): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
The Hanover Insurance Group, Inc. (THG): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): 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. | Here are seven out of 20 stocks: Asbury Automotive Group ABG:The Zacks Rank #2 company is one of the largest automotive retailers. The earnings surprise of ABG for the past four quarters is 29.60%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Here are seven out of 20 stocks: Asbury Automotive Group ABG:The Zacks Rank #2 company is one of the largest automotive retailers. The earnings surprise of ABG for the past four quarters is 29.60%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Here are seven out of 20 stocks: Asbury Automotive Group ABG:The Zacks Rank #2 company is one of the largest automotive retailers. The earnings surprise of ABG for the past four quarters is 29.60%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Here are seven out of 20 stocks: Asbury Automotive Group ABG:The Zacks Rank #2 company is one of the largest automotive retailers. The earnings surprise of ABG for the past four quarters is 29.60%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28634.0 | 2022-04-13 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 | nan | nan | The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.81, which compares to its industry's average of 5.60. ABG's Forward P/E has been as high as 174.50 and as low as 4.59, with a median of 8.39, all within the past year.
Investors should also note that ABG holds a PEG ratio of 0.26. 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 0.46 right now. Over the last 12 months, ABG's PEG has been as high as 9.42 and as low as 0.25, with a median of 0.45.
Investors should also recognize that ABG has a P/B ratio of 1.77. Investors use the P/B ratio to look at a stock's market value versus 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 2.04. Within the past 52 weeks, ABG's P/B has been as high as 4.17 and as low as 1.66, with a median of 2.97.
Finally, investors should note that ABG has a P/CF ratio of 5.92. 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 6.03. Over the past 52 weeks, ABG's P/CF has been as high as 10.73 and as low as 5.55, with a median of 7.10.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at AutoNation (AN). AN is a # 1 (Strong Buy) stock with a Value score of A.
AutoNation is currently trading with a Forward P/E ratio of 5.31 while its PEG ratio sits at 0.23. Both of the company's metrics compare favorably to its industry's average P/E of 5.60 and average PEG ratio of 0.46.
AN's Forward P/E has been as high as 29.04 and as low as 4.99, with a median of 8.23. During the same time period, its PEG ratio has been as high as 1.23, as low as 0.21, with a median of 0.42.
Furthermore, AutoNation holds a P/B ratio of 2.70 and its industry's price-to-book ratio is 2.04. AN's P/B has been as high as 3.64, as low as 2.24, with a median of 2.95 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Asbury Automotive Group and AutoNation are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABG and AN feels like a great 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.
Free: See Our Top Stock and 4 Runners Up >>
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
AutoNation, Inc. (AN): 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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. ABG's Forward P/E has been as high as 174.50 and as low as 4.59, with a median of 8.39, all within the past year. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. | One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. ABG's Forward P/E has been as high as 174.50 and as low as 4.59, with a median of 8.39, all within the past year. |
28635.0 | 2022-04-13 00:00:00 UTC | Is Asbury Automotive (ABG) a Solid Growth Stock? 3 Reasons to Think " Yes " | ABG | https://www.nasdaq.com/articles/is-asbury-automotive-abg-a-solid-growth-stock-3-reasons-to-think-yes-1 | 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 growth stock that can live up to its true potential can be a tough task.
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.
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.
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 32.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 25.7% this year, crushing the industry average, which calls for EPS growth of 10.6%.
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 78.7%.
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 0.5% 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. | 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. 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. | Our proprietary system currently recommends Asbury Automotive Group (ABG) as one such stock. 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. | 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%. |
28636.0 | 2022-04-08 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 | nan | nan | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). This company, which is in the Zacks Automotive - Retail and Whole Sales industry, shows potential for another earnings beat.
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 20.44%, on average, in the last two quarters.
For the most recent quarter, Asbury Automotive was expected to post earnings of $5.86 per share, but it reported $7.46 per share instead, representing a surprise of 27.30%. For the previous quarter, the consensus estimate was $6.48 per share, while it actually produced $7.36 per share, a surprise of 13.58%.
For Asbury Automotive, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially 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 has an Earnings ESP of +3.98% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an 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
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. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). 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. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. | If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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. |
28637.0 | 2022-04-05 00:00:00 UTC | Asbury Automotive Group is Now Oversold (ABG) | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-is-now-oversold-abg | 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 Tuesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $149.735 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 57.8. A bullish investor could look at ABG's 28.3 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 $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $150.31.
Find out what 9 other oversold stocks you need to know about »
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 Tuesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $149.735 per share. A bullish investor could look at ABG's 28.3 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 $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $150.31. | A bullish investor could look at ABG's 28.3 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 $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $150.31. In trading on Tuesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $149.735 per share. | In trading on Tuesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $149.735 per share. A bullish investor could look at ABG's 28.3 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 $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $150.31. | In trading on Tuesday, shares of Asbury Automotive Group Inc (Symbol: ABG) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $149.735 per share. A bullish investor could look at ABG's 28.3 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 $146.43 per share, with $230.965 as the 52 week high point — that compares with a last trade of $150.31. |
28638.0 | 2022-04-01 00:00:00 UTC | Asbury Automotive Group (ABG) Stock Sinks As Market Gains: What You Should Know | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-stock-sinks-as-market-gains%3A-what-you-should-know-0 | nan | nan | Asbury Automotive Group (ABG) closed the most recent trading day at $157.86, moving -1.46% from the previous trading session. This move lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Coming into today, shares of the auto dealership chain had lost 17.9% in the past month. In that same time, the Retail-Wholesale sector gained 1.91%, while the S&P 500 gained 3.75%.
Investors will be hoping for strength from Asbury Automotive Group as it approaches its next earnings release. On that day, Asbury Automotive Group is projected to report earnings of $5.96 per share, which would represent year-over-year growth of 27.35%. Our most recent consensus estimate is calling for quarterly revenue of $3.86 billion, up 76.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.13 per share and revenue of $16.21 billion. These totals would mark changes of +25.06% and +64.77%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Asbury Automotive Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.84% lower within the past month. Asbury Automotive Group is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Asbury Automotive Group is currently trading at a Forward P/E ratio of 4.69. This valuation marks a discount compared to its industry's average Forward P/E of 6.24.
Investors should also note that ABG has a PEG ratio of 0.25 right now. 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. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.37 based on yesterday's closing prices.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
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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. | Asbury Automotive Group (ABG) closed the most recent trading day at $157.86, moving -1.46% from the previous trading session. Investors should also note that ABG has a PEG ratio of 0.25 right now. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group (ABG) closed the most recent trading day at $157.86, moving -1.46% from the previous trading session. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Investors should also note that ABG has a PEG ratio of 0.25 right now. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) closed the most recent trading day at $157.86, moving -1.46% from the previous trading session. Investors should also note that ABG has a PEG ratio of 0.25 right now. | Asbury Automotive Group (ABG) closed the most recent trading day at $157.86, moving -1.46% from the previous trading session. Investors should also note that ABG has a PEG ratio of 0.25 right now. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28639.0 | 2022-03-29 00:00:00 UTC | Best Growth Stocks to Buy for March 29th | ABG | https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-march-29th | nan | nan | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 29th:
Signet Jewelers SIG: This company is a retailer of diamond jewelry, watches as well as other products, it carries a Zacks Rank #1(Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.8% over the last 60 days.
Signet Jewelers Limited Price and Consensus
Signet Jewelers Limited price-consensus-chart | Signet Jewelers Limited Quote
Signet Jewelers has a PEG ratio of 0.85 compared with 2.15 for the industry. The company possesses a Growth Score of A.
Signet Jewelers Limited PEG Ratio (TTM)
Signet Jewelers Limited peg-ratio-ttm | Signet Jewelers Limited Quote
Asbury Automotive Group ABG: This automotive retailer which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.4% over the last 60 days.
Asbury Automotive Group, Inc. Price and Consensus
Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote
Asbury Automotive Group has a PEG ratio of 0.26 compared with 0.37 for the industry. The company possesses a Growth Score of A.
Asbury Automotive Group, Inc. PEG Ratio (TTM)
Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote
Westlake Corp. WLK: This global company that produces and supplies higher value-added chemicals and building products and innovative products, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.5% over the last 60 days.
Westlake Corp. Price and Consensus
Westlake Corp. price-consensus-chart | Westlake Corp. Quote
Westlake Corp. has a PEG ratio of 0.23 compared with 0.32 for the industry. The company possesses a Growth Score of B.
Westlake Corp. PEG Ratio (TTM)
Westlake Corp. peg-ratio-ttm | Westlake Corp. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free.Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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
Westlake Corp. (WLK): Free Stock Analysis Report
Signet Jewelers Limited (SIG): Free Stock Analysis Report
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. | The company possesses a Growth Score of A. Signet Jewelers Limited PEG Ratio (TTM) Signet Jewelers Limited peg-ratio-ttm | Signet Jewelers Limited Quote Asbury Automotive Group ABG: This automotive retailer which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.4% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 29th: Signet Jewelers SIG: This company is a retailer of diamond jewelry, watches as well as other products, it carries a Zacks Rank #1(Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.8% over the last 60 days. | The company possesses a Growth Score of A. Signet Jewelers Limited PEG Ratio (TTM) Signet Jewelers Limited peg-ratio-ttm | Signet Jewelers Limited Quote Asbury Automotive Group ABG: This automotive retailer which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.4% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and Consensus Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote Asbury Automotive Group has a PEG ratio of 0.26 compared with 0.37 for the industry. | The company possesses a Growth Score of A. Signet Jewelers Limited PEG Ratio (TTM) Signet Jewelers Limited peg-ratio-ttm | Signet Jewelers Limited Quote Asbury Automotive Group ABG: This automotive retailer which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.4% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and Consensus Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote Asbury Automotive Group has a PEG ratio of 0.26 compared with 0.37 for the industry. | The company possesses a Growth Score of A. Signet Jewelers Limited PEG Ratio (TTM) Signet Jewelers Limited peg-ratio-ttm | Signet Jewelers Limited Quote Asbury Automotive Group ABG: This automotive retailer which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.4% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of B. Westlake Corp. PEG Ratio (TTM) Westlake Corp. peg-ratio-ttm | Westlake Corp. Quote See the full list of top ranked stocks here. |
28640.0 | 2022-03-25 00:00:00 UTC | Asbury Automotive Group (ABG) Stock Sinks As Market Gains: What You Should Know | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-stock-sinks-as-market-gains%3A-what-you-should-know | nan | nan | In the latest trading session, Asbury Automotive Group (ABG) closed at $172.69, marking a -0.74% move from the previous day. This move lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.19%.
Coming into today, shares of the auto dealership chain had lost 6.62% in the past month. In that same time, the Retail-Wholesale sector gained 4.62%, while the S&P 500 gained 5.51%.
Wall Street will be looking for positivity from Asbury Automotive Group as it approaches its next earnings report date. On that day, Asbury Automotive Group is projected to report earnings of $8.88 per share, which would represent year-over-year growth of 89.74%. Meanwhile, our latest consensus estimate is calling for revenue of $3.99 billion, up 81.87% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.13 per share and revenue of $16.53 billion. These totals would mark changes of +25.06% and +68.03%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Asbury Automotive Group. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.79% higher. Asbury Automotive Group is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Asbury Automotive Group is holding a Forward P/E ratio of 5.1. For comparison, its industry has an average Forward P/E of 6.69, which means Asbury Automotive Group is trading at a discount to the group.
Investors should also note that ABG has a PEG ratio of 0.28 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.41 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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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. | In the latest trading session, Asbury Automotive Group (ABG) closed at $172.69, marking a -0.74% move from the previous day. Investors should also note that ABG has a PEG ratio of 0.28 right now. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | In the latest trading session, Asbury Automotive Group (ABG) closed at $172.69, marking a -0.74% move from the previous day. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Investors should also note that ABG has a PEG ratio of 0.28 right now. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report In the latest trading session, Asbury Automotive Group (ABG) closed at $172.69, marking a -0.74% move from the previous day. Investors should also note that ABG has a PEG ratio of 0.28 right now. | In the latest trading session, Asbury Automotive Group (ABG) closed at $172.69, marking a -0.74% move from the previous day. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Investors should also note that ABG has a PEG ratio of 0.28 right now. |
28641.0 | 2022-03-25 00:00:00 UTC | Best Growth Stocks to Buy for March 25th | ABG | https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-march-25th | nan | nan | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 25th:
Asbury Automotive Group ABG: This automotive retail company which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days.
Asbury Automotive Group, Inc. Price and Consensus
Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote
Asbury Automotive Group has a PEG ratio of 0.28 compared with 0.39 for the industry. The company possesses a Growth Score of A.
Asbury Automotive Group, Inc. PEG Ratio (TTM)
Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote
BBQ Holdings BBQ: This company which operates and franchises barbeque restaurants and blues clubs in various locations, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 25.5% over the last 60 days.
BBQ Holdings, Inc. Price and Consensus
BBQ Holdings, Inc. price-consensus-chart | BBQ Holdings, Inc. Quote
BBQ Holdings has a PEG ratio of 0.91 compared with 1.02 for the industry. The company possesses a Growth Score of A.
BBQ Holdings, Inc. PEG Ratio (TTM)
BBQ Holdings, Inc. peg-ratio-ttm | BBQ Holdings, Inc. Quote
CBRE Group CBRE: This commercial real estate services and investment company which offers a wide range of services to tenants, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estate in all major metropolitan areas across the globe, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days.
CBRE Group, Inc. Price and Consensus
CBRE Group, Inc. price-consensus-chart | CBRE Group, Inc. Quote
CBRE Group has a PEG ratio of 1.33 compared with 3.78 for the industry. The company possesses a Growth Score of A.
CBRE Group, Inc. PEG Ratio (TTM)
CBRE Group, Inc. peg-ratio-ttm | CBRE Group, Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
CBRE Group, Inc. (CBRE): Free Stock Analysis Report
BBQ Holdings, Inc. (BBQ): 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. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 25th: Asbury Automotive Group ABG: This automotive retail company which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. BBQ Holdings, Inc. PEG Ratio (TTM) BBQ Holdings, Inc. peg-ratio-ttm | BBQ Holdings, Inc. Quote CBRE Group CBRE: This commercial real estate services and investment company which offers a wide range of services to tenants, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estate in all major metropolitan areas across the globe, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 25th: Asbury Automotive Group ABG: This automotive retail company which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and Consensus Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote Asbury Automotive Group has a PEG ratio of 0.28 compared with 0.39 for the industry. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 25th: Asbury Automotive Group ABG: This automotive retail company which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and Consensus Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote Asbury Automotive Group has a PEG ratio of 0.28 compared with 0.39 for the industry. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 25th: Asbury Automotive Group ABG: This automotive retail company which offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. CBRE Group, Inc. PEG Ratio (TTM) CBRE Group, Inc. peg-ratio-ttm | CBRE Group, Inc. Quote See the full list of top ranked stocks here. |
28642.0 | 2022-03-22 00:00:00 UTC | Are These Retail-Wholesale Stocks Undervalued Right Now? | ABG | https://www.nasdaq.com/articles/are-these-retail-wholesale-stocks-undervalued-right-now-23 | 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 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 a Value grade of A. The stock holds a P/E ratio of 5.66, while its industry has an average P/E of 6.26. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 5.12, with a median of 8.79.
Investors should also note that ABG holds a PEG ratio of 0.31. 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 PEG compares to its industry's average PEG of 0.35. Over the last 12 months, ABG's PEG has been as high as 9.42 and as low as 0.28, with a median of 0.47.
Another valuation metric that we should highlight is ABG's P/B ratio of 2.08. The P/B ratio pits a stock's market value against 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 2.28. Within the past 52 weeks, ABG's P/B has been as high as 4.28 and as low as 1.66, with a median of 3.07.
Finally, investors will want to recognize that ABG has a P/CF ratio of 6.97. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7. Within the past 12 months, ABG's P/CF has been as high as 12.40 and as low as 5.55, with a median of 7.31.
Lithia Motors (LAD) may be another strong Automotive - Retail and Whole Sales stock to add to your shortlist. LAD is a # 2 (Buy) stock with a Value grade of A.
Shares of Lithia Motors currently holds a Forward P/E ratio of 8.48, and its PEG ratio is 1.84. In comparison, its industry sports average P/E and PEG ratios of 6.26 and 0.35.
LAD's Forward P/E has been as high as 19.87 and as low as 7.57, with a median of 9.80. During the same time period, its PEG ratio has been as high as 1.88, as low as 0.35, with a median of 0.47.
Additionally, Lithia Motors has a P/B ratio of 2.17 while its industry's price-to-book ratio sits at 2.28. For LAD, this valuation metric has been as high as 4.12, as low as 1.78, with a median of 2.34 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 Lithia Motors are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABG and LAD feels like a great value stock at the moment.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Lithia Motors, Inc. (LAD): 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 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 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 5.12, with a median of 8.79. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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 a Value grade of A. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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 a Value grade of A. | ABG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. One stock to keep an eye on is Asbury Automotive Group (ABG). Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 5.12, with a median of 8.79. |
28643.0 | 2022-03-21 00:00:00 UTC | How Much Upside is Left in Asbury Automotive (ABG)? Wall Street Analysts Think 31% | ABG | https://www.nasdaq.com/articles/how-much-upside-is-left-in-asbury-automotive-abg-wall-street-analysts-think-31 | nan | nan | Asbury Automotive Group (ABG) closed the last trading session at $190.31, gaining 2.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $249.25 indicates a 31% upside potential.
The mean estimate comprises eight short-term price targets with a standard deviation of $53.33. While the lowest estimate of $180 indicates a 5.4% decline from the current price level, the most optimistic analyst expects the stock to surge 86% to reach $354. 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.
Price, Consensus and EPS Surprise
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
There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, two estimates have moved higher over the last 30 days while one has gone lower. As a result, the Zacks Consensus Estimate has increased 2.8%.
Moreover, ABG currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% 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. | Asbury Automotive Group (ABG) closed the last trading session at $190.31, gaining 2.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. 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 There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) closed the last trading session at $190.31, gaining 2.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. 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. Asbury Automotive Group (ABG) closed the last trading session at $190.31, gaining 2.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. 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. Asbury Automotive Group (ABG) closed the last trading session at $190.31, gaining 2.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. However, an impressive consensus price target is not the only factor that indicates a potential upside in ABG. |
28644.0 | 2022-03-21 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-2 | 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. Asbury Automotive Group (ABG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Asbury Automotive Group is one of 231 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Asbury Automotive Group is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ABG's full-year earnings has moved 43.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ABG has moved about 10.2% on a year-to-date basis. Meanwhile, stocks in the Retail-Wholesale group have lost about 5.5% on average. This means that Asbury Automotive Group is performing better than its sector in terms of year-to-date returns.
Ethan Allen (ETD) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 1.8%.
The consensus estimate for Ethan Allen's current year EPS has increased 5.7% 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, a group that includes 10 individual stocks and currently sits at #18 in the Zacks Industry Rank. Stocks in this group have gained about 2.7% so far this year, so ABG is performing better this group in terms of year-to-date returns.
In contrast, Ethan Allen falls under the Retail - Home Furnishings industry. Currently, this industry has 8 stocks and is ranked #36. Since the beginning of the year, the industry has moved -14%.
Investors with an interest in Retail-Wholesale stocks should continue to track Asbury Automotive Group and Ethan Allen. These stocks will be looking to continue their solid performance.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.
See these 7 breakthrough stocks now >>
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
Ethan Allen Interiors Inc. (ETD): 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) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? The Zacks Consensus Estimate for ABG's full-year earnings has moved 43.2% higher within the past quarter. According to our latest data, ABG has moved about 10.2% on a year-to-date basis. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? The Zacks Consensus Estimate for ABG's full-year earnings has moved 43.2% higher within the past quarter. | Stocks in this group have gained about 2.7% so far this year, so ABG is performing better this group in terms of year-to-date returns. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? | Asbury Automotive Group (ABG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? The Zacks Consensus Estimate for ABG's full-year earnings has moved 43.2% higher within the past quarter. According to our latest data, ABG has moved about 10.2% on a year-to-date basis. |
28645.0 | 2022-03-18 00:00:00 UTC | The Zacks Analyst Blog Highlights Asbury Automotive Group, Arcos Dorados Holdings, Fluor, and Cushman & Wakefield | ABG | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-asbury-automotive-group-arcos-dorados-holdings-fluor-and | nan | nan | For Immediate Release
Chicago, IL – March 18, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Asbury Automotive Group Inc. ABG, Arcos Dorados Holdings Inc. ARCO, Fluor Corp. FLR, and Cushman & Wakefield CWK.
Here are highlights from Thursday’s Analyst Blog:
These 4 Growth Stocks Are Ripe for the Picking
Growth stocks are riskier. You have to pay up today on the chance that it will pay off later. Okay, all investing is a bit like that, but it's more like that for growth stocks.
And why is this so?
It's because the same increase from a smaller base is a bigger percentage increase. For example, 2/10 is 20% while 2/100 is 2%. Conversely, the larger the revenue or earnings base you're using, the harder it is to generate substantial growth rates. This is the law of large numbers.
So in general, it is the smaller companies that generate higher growth rates. Which means that it pays to get in as early as possible. And this could be when the company is still playing with an idea rather than making real money. It could still be young; it could lack experience; and it could be fighting to survive.
So balancing the risk with reward potential is what we need to do.
Over the past couple of decades, tech companies have demonstrated that not all growth comes from new companies. They've also shown that growth can come off growth -- in some pretty unbelievable ways. But because of the unprecedented rollout of digital infrastructure over the past couple of years, we should be looking at less heat this year.
That doesn't, of course, mean that all tech is bad, or not worth investing in. Tech, by and large, is what we must be invested in. But in this market, where negative news flow has become the norm and uncertainties and fears are looming large (including the fear of a possible recession), there may be an opportunity to invest in sectors other than tech. And still ride the growth wave.
The Zacks Style Score system provides grades for value, growth and momentum potential of each stock. So if we're looking for growth stocks, we could benefit immensely from checking out the Growth Score of a stock. Combining this with the Zacks Rank, which also captures recent estimate revisions (among other things), gives us a fairly good idea of the kind of areas we should be investing in.
If we refine our search further to consider only those stocks that have positive revenue growth rates, we will further increase our chances of picking winners. This is because it is normal for a company in the growth phase to invest heavily in its future growth.
This can have a negative impact on its earnings. But the result of all this investment is seen from its ability to grow revenue. So a stock that is growing revenue is what we want to bet on.
And finally, don't forget to check the valuation. Even though we've had a terrible start to the year and some stocks have lost 30%, 50% or even 70% of their value, we can't take it for granted that the one we set our hearts on has had a similar fate. So this too needs to be checked out.
Following is a list of companies that are displaying strong growth characteristics while retaining a reasonable or low valuation-
Asbury Automotive Group Inc.
As one of the largest automotive retailers in the U.S., Asbury Automotive offers customers new and used vehicles and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts. Used vehicles are also auctioned to other dealers.
Asbury shares carry a Zacks Rank #1 (Strong Buy), a Growth Score A and a VGM Score A, which means that on the face of things, it is a good investment. Its estimated revenue growth of 68% in 2022 remains in positive territory. The company is also expected to grow earnings by 25.1% this year.
The estimate revisions trend is impressive. Zacks Consensus Estimate for 2022 has increased $4.30, or 14.4% in the last 30 days while the estimate for 2023 increased by $3.88, or 14%.
A price-to-sales ratio that is under 1 indicates that the shares are trading at a discount to its sales potential while a price-to-earnings growth ratio of less than 1 is indicative of undervaluation of a company's earnings. In Asbury's case, the P/S ratio is 0.44 while the PEG ratio is 0.29.
So the shares are clearly worth buying.
Arcos DoradosHoldings Inc.
Arcos Dorados is a McDonald's franchisee with the exclusive right to own, operate and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean.
Arcos carries a Zacks Rank #2 (Buy), a Growth Score A and a VGM Score A.
Analysts currently expect its revenue to grow 35.0% in 2022 and 9.2% in 2023. Its earnings are expected to grow 120.8% in 2022 and 148.9% in 2023.
And this follows a 6 cent (66.7%) increase in its 2022 earnings estimate for 2022 and a 5 cent (15.6%) increase in its earnings estimate for 2023 in the last 30 days.
All of this is available at an attractive valuation (P/S of 0.62 and PEG of 0.80).
FluorCorp.
Fluor provides engineering, procurement, construction and maintenance services (EPCM) through a number of subsidiaries. It also provides operations and maintenance services to major industrial clients. Starting from first-quarter 2021, Fluor operates through four business segments: Energy Solutions, Urban Solutions, Mission Solutions and Other with customers across a broad range of industries including chemicals, energy, construction, mining, life sciences, staffing services and government.
With a Zacks Rank #1, Growth Score A and VGM Score A, Fluor is an attractive stock.
Analysts expect Fluor to generate revenue and earnings growth of 10% and 42.6% this year and another 7% and 33.6% in 2023.
So they've taken their 2022 earnings estimate up 22 cents (19.6%) in last 30 days and the 2023 earnings estimate up 3 cents (1.7%) during the same time period.
What's more, the valuation looks cheap at 0.32X sales and PEG of 0.62.
Cushman & Wakefield
Cushman & Wakefield plc is a real estate services firm. It acquires and develops commercial properties and property leasing, facilities management, tenant representation and valuation services.
Cushman & Wakefield is another solid growth stock, going by its Zacks #1 rank, Growth Score of A and VGM Score of A.
Analysts are betting that the company will generate revenue growth of 8.2% in 2022 and 5.8% in 2023 and earnings growth 18.6% in 2022 and 6.6% in 2023. They've raised their 2022 earnings estimates by 35 cents (16.9%) in the last 30 days and their 2023 earnings estimate by 28 cents (12.2%).
The P/S ratio of 0.48 and PEG ratio of 0.83 are other inducements to 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. | Stocks recently featured in the blog include Asbury Automotive Group Inc. ABG, Arcos Dorados Holdings Inc. ARCO, Fluor Corp. FLR, and Cushman & Wakefield CWK. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Combining this with the Zacks Rank, which also captures recent estimate revisions (among other things), gives us a fairly good idea of the kind of areas we should be investing in. | Stocks recently featured in the blog include Asbury Automotive Group Inc. ABG, Arcos Dorados Holdings Inc. ARCO, Fluor Corp. FLR, and Cushman & Wakefield CWK. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report | Stocks recently featured in the blog include Asbury Automotive Group Inc. ABG, Arcos Dorados Holdings Inc. ARCO, Fluor Corp. FLR, and Cushman & Wakefield CWK. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Here are highlights from Thursday’s Analyst Blog: These 4 Growth Stocks Are Ripe for the Picking Growth stocks are riskier. | Stocks recently featured in the blog include Asbury Automotive Group Inc. ABG, Arcos Dorados Holdings Inc. ARCO, Fluor Corp. FLR, and Cushman & Wakefield CWK. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Analysts expect Fluor to generate revenue and earnings growth of 10% and 42.6% this year and another 7% and 33.6% in 2023. |
28646.0 | 2022-03-17 00:00:00 UTC | Asbury Automotive Group (ABG) Gains But Lags Market: What You Should Know | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-gains-but-lags-market%3A-what-you-should-know-2 | nan | nan | Asbury Automotive Group (ABG) closed at $194.52 in the latest trading session, marking a +0.93% move from the prior day. This move lagged the S&P 500's daily gain of 1.24%. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.15%.
Coming into today, shares of the auto dealership chain had gained 4.33% in the past month. In that same time, the Retail-Wholesale sector lost 1.42%, while the S&P 500 lost 2.45%.
Wall Street will be looking for positivity from Asbury Automotive Group as it approaches its next earnings report date. In that report, analysts expect Asbury Automotive Group to post earnings of $8.88 per share. This would mark year-over-year growth of 89.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.99 billion, up 81.87% from the year-ago period.
ABG's full-year Zacks Consensus Estimates are calling for earnings of $34.13 per share and revenue of $16.53 billion. These results would represent year-over-year changes of +25.06% and +68.03%, respectively.
Any recent changes to analyst estimates for Asbury Automotive Group should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 14.4% higher. Asbury Automotive Group is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Asbury Automotive Group is holding a Forward P/E ratio of 5.65. This valuation marks a discount compared to its industry's average Forward P/E of 7.01.
Investors should also note that ABG has a PEG ratio of 0.3 right now. 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. The Automotive - Retail and Whole Sales was holding an average PEG ratio of 0.43 at yesterday's closing price.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 10, putting it in the top 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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. | Asbury Automotive Group (ABG) closed at $194.52 in the latest trading session, marking a +0.93% move from the prior day. ABG's full-year Zacks Consensus Estimates are calling for earnings of $34.13 per share and revenue of $16.53 billion. Investors should also note that ABG has a PEG ratio of 0.3 right now. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) closed at $194.52 in the latest trading session, marking a +0.93% move from the prior day. ABG's full-year Zacks Consensus Estimates are calling for earnings of $34.13 per share and revenue of $16.53 billion. | Asbury Automotive Group (ABG) closed at $194.52 in the latest trading session, marking a +0.93% move from the prior day. ABG's full-year Zacks Consensus Estimates are calling for earnings of $34.13 per share and revenue of $16.53 billion. Investors should also note that ABG has a PEG ratio of 0.3 right now. | Asbury Automotive Group (ABG) closed at $194.52 in the latest trading session, marking a +0.93% move from the prior day. ABG's full-year Zacks Consensus Estimates are calling for earnings of $34.13 per share and revenue of $16.53 billion. Investors should also note that ABG has a PEG ratio of 0.3 right now. |
28647.0 | 2022-03-17 00:00:00 UTC | Looking for a Growth Stock? Why It is Time to Focus on Asbury Automotive (ABG) | ABG | https://www.nasdaq.com/articles/looking-for-a-growth-stock-why-it-is-time-to-focus-on-asbury-automotive-abg | nan | nan | Growth stocks can be some of the most exciting picks in the market, as these high-flyers can captivate investors’ attention, and produce big gains as well. However, they can also lead on the downside when the growth story is over, so it is important to find companies which are still seeing strong growth prospects in their businesses.
One such company that might be well-positioned for future earnings growth is Asbury Automotive Group ABG. This firm, which is in the Automotive - Retail and Whole Sales industry, saw EPS growth of 111.55% last year, and is looking great for this year too.
In fact, the current growth estimate for this year calls for earnings-per-share growth of 25.05%. Furthermore, the long-term growth rate is currently an impressive 18.52%, suggesting pretty good prospects for the long haul.
Asbury Automotive Group, Inc. Price and Consensus
Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote
And if this wasn’t enough, the stock has actually seen estimates rise over the past month for the current fiscal year by about 14.4%. Thanks to this rise in earnings estimates, ABG has a Zacks Rank #1 (Strong Buy) which further underscores the potential for outperformance in this company. You can see the complete list of today’s Zacks #1 Rank stocks here.
So if you are looking for a fast growing stock that is still seeing plenty of opportunities on the horizon, make sure to consider ABG. Not only does it have double-digit earnings growth prospects, but its impressive Zacks Rank suggests that analysts believe better days are ahead for ABG as well.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
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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. | Thanks to this rise in earnings estimates, ABG has a Zacks Rank #1 (Strong Buy) which further underscores the potential for outperformance in this company. Not only does it have double-digit earnings growth prospects, but its impressive Zacks Rank suggests that analysts believe better days are ahead for ABG as well. One such company that might be well-positioned for future earnings growth is Asbury Automotive Group ABG. | Thanks to this rise in earnings estimates, ABG has a Zacks Rank #1 (Strong Buy) which further underscores the potential for outperformance in this company. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report One such company that might be well-positioned for future earnings growth is Asbury Automotive Group ABG. | Not only does it have double-digit earnings growth prospects, but its impressive Zacks Rank suggests that analysts believe better days are ahead for ABG as well. One such company that might be well-positioned for future earnings growth is Asbury Automotive Group ABG. Thanks to this rise in earnings estimates, ABG has a Zacks Rank #1 (Strong Buy) which further underscores the potential for outperformance in this company. | Not only does it have double-digit earnings growth prospects, but its impressive Zacks Rank suggests that analysts believe better days are ahead for ABG as well. One such company that might be well-positioned for future earnings growth is Asbury Automotive Group ABG. Thanks to this rise in earnings estimates, ABG has a Zacks Rank #1 (Strong Buy) which further underscores the potential for outperformance in this company. |
28648.0 | 2022-03-17 00:00:00 UTC | These 4 Growth Stocks Are Ripe for the Picking | ABG | https://www.nasdaq.com/articles/these-4-growth-stocks-are-ripe-for-the-picking | nan | nan | Growth stocks are riskier. You have to pay up today on the chance that it will pay off later. Okay, all investing is a bit like that, but it’s more like that for growths stocks.
And why is this so?
It’s because the same increase from a smaller base is a bigger percentage increase. For example, 2/10 is 20% while 2/100 is 2%. Conversely, the larger the revenue or earnings base you’re using, the harder it is to generate substantial growth rates. This is the law of large numbers.
So in general, it is the smaller companies that generate higher growth rates. Which means that it pays to get in as early as possible. And this could be when the company is still playing with an idea rather than making real money. It could still be young; it could lack experience; and it could be fighting to survive.
So balancing the risk with reward potential is what we need to do.
Over the past couple of decades, tech companies have demonstrated that not all growth comes from new companies. They’ve also shown that growth can come off growth -- in some pretty unbelievable ways. But because of the unprecedented rollout of digital infrastructure over the past couple of years, we should be looking at less heat this year.
That doesn’t, of course, mean that all tech is bad, or not worth investing in. Tech, by and large, is what we must be invested in. But in this market, where negative news flow has become the norm and uncertainties and fears are looming large (including the fear of a possible recession), there may be an opportunity to invest in sectors other than tech. And still ride the growth wave.
The Zacks Style Score system provides grades for value, growth and momentum potential of each stock. So if we’re looking for growth stocks, we could benefit immensely from checking out the Growth Score of a stock. Combining this with the Zacks Rank, which also captures recent estimate revisions (among other things), gives us a fairly good idea of the kind of areas we should be investing in.
If we refine our search further to consider only those stocks that have positive revenue growth rates, we will further increase our chances of picking winners. This is because it is normal for a company in the growth phase to invest heavily in its future growth.
This can have a negative impact on its earnings. But the result of all this investment is seen from its ability to grow revenue. So a stock that is growing revenue is what we want to bet on.
And finally, don’t forget to check the valuation. Even though we’ve had a terrible start to the year and some stocks have lost 30%, 50% or even 70% of their value, we can’t take it for granted that the one we set our hearts on has had a similar fate. So this too needs to be checked out.
Following is a list of companies that are displaying strong growth characteristics while retaining a reasonable or low valuation-
Asbury Automotive Group Inc. ABG
As one of the largest automotive retailers in the U.S., Asbury Automotive offers customers new and used vehicles and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts. Used vehicles are also auctioned to other dealers.
Asbury shares carry a Zacks Rank #1 (Strong Buy), a Growth Score A and a VGM Score A, which means that on the face of things, it is a good investment. Its estimated revenue growth of 68% in 2022 remains in positive territory. The company is also expected to grow earnings by 25.1% this year.
The estimate revisions trend is impressive. Zacks Consensus Estimate for 2022 has increased $4.30, or 14.4% in the last 30 days while the estimate for 2023 increased by $3.88, or 14%.
A price-to-sales ratio that is under 1 indicates that the shares are trading at a discount to its sales potential while a price-to-earnings growth ratio of less than 1 is indicative of undervaluation of a company’s earnings. In Asbury’s case, the P/S ratio is 0.44 while the PEG ratio is 0.29.
So the shares are clearly worth buying.
Arcos Dorados Holdings Inc. ARCO
Arcos Dorados is a McDonald's franchisee with the exclusive right to own, operate and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean.
Arcos carries a Zacks Rank #2 (Buy), a Growth Score A and a VGM Score A.
Analysts currently expect its revenue to grow 35.0% in 2022 and 9.2% in 2023. Its earnings are expected to grow 120.8% in 2022 and 148.9% in 2023.
And this follows a 6 cent (66.7%) increase in its 2022 earnings estimate for 2022 and a 5 cent (15.6%) increase in its earnings estimate for 2023 in the last 30 days.
All of this is available at an attractive valuation (P/S of 0.62 and PEG of 0.80).
Fluor Corporation FLR
Fluor provides engineering, procurement, construction and maintenance services (EPCM) through a number of subsidiaries. It also provides operations and maintenance services to major industrial clients. Starting from first-quarter 2021, Fluor operates through four business segments: Energy Solutions, Urban Solutions, Mission Solutions and Other with customers across a broad range of industries including chemicals, energy, construction, mining, life sciences, staffing services and government.
With a Zacks Rank #1, Growth Score A and VGM Score A, Fluor is an attractive stock.
Analysts expect Fluor to generate revenue and earnings growth of 10% and 42.6% this year and another 7% and 33.6% in 2023.
So they’ve taken their 2022 earnings estimate up 22 cents (19.6%) in last 30 days and the 2023 earnings estimate up 3 cents (1.7%) during the same time period.
What’s more, the valuation looks cheap at 0.32X sales and PEG of 0.62.
Cushman & Wakefield CWK
Cushman & Wakefield plc is a real estate services firm. It acquires and develops commercial properties and property leasing, facilities management, tenant representation and valuation services.
Cushman & Wakefield is another solid growth stock, going by its Zacks #1 rank, Growth Score of A and VGM Score of A.
Analysts are betting that the company will generate revenue growth of 8.2% in 2022 and 5.8% in 2023 and earnings growth 18.6% in 2022 and 6.6% in 2023. They’ve raised their 2022 earnings estimates by 35 cents (16.9%) in the last 30 days and their 2023 earnings estimate by 28 cents (12.2%).
The P/S ratio of 0.48 and PEG ratio of 0.83 are other inducements to buy.
3-Month Price Performance
Image Source: Zacks Investment Research
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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Fluor Corporation (FLR): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report
Cushman & Wakefield PLC (CWK): 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. | Following is a list of companies that are displaying strong growth characteristics while retaining a reasonable or low valuation- Asbury Automotive Group Inc. ABG As one of the largest automotive retailers in the U.S., Asbury Automotive offers customers new and used vehicles and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Combining this with the Zacks Rank, which also captures recent estimate revisions (among other things), gives us a fairly good idea of the kind of areas we should be investing in. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Following is a list of companies that are displaying strong growth characteristics while retaining a reasonable or low valuation- Asbury Automotive Group Inc. ABG As one of the largest automotive retailers in the U.S., Asbury Automotive offers customers new and used vehicles and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts. Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report | Following is a list of companies that are displaying strong growth characteristics while retaining a reasonable or low valuation- Asbury Automotive Group Inc. ABG As one of the largest automotive retailers in the U.S., Asbury Automotive offers customers new and used vehicles and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report So if we’re looking for growth stocks, we could benefit immensely from checking out the Growth Score of a stock. | Following is a list of companies that are displaying strong growth characteristics while retaining a reasonable or low valuation- Asbury Automotive Group Inc. ABG As one of the largest automotive retailers in the U.S., Asbury Automotive offers customers new and used vehicles and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report So if we’re looking for growth stocks, we could benefit immensely from checking out the Growth Score of a stock. |
28649.0 | 2022-03-16 00:00:00 UTC | Best Growth Stocks to Buy for March 16th | ABG | https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-march-16th | nan | nan | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 16th:
Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days.
Asbury Automotive Group, Inc. Price and Consensus
Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote
Asbury has a PEG ratio of 0.29 compared with 0.39 for the industry. The company possesses a Growth Score of A.
Asbury Automotive Group, Inc. PEG Ratio (TTM)
Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote
ConocoPhillips COP: This crude oil, bitumen and natural gas exploration and production company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 23.6% over the last 60 days.
ConocoPhillips Price and Consensus
ConocoPhillips price-consensus-chart | ConocoPhillips Quote
ConocoPhillips has a PEG ratio of 0.46 compared with 0.55 for the industry. The company possesses a Growth Score of A.
ConocoPhillips PEG Ratio (TTM)
ConocoPhillips peg-ratio-ttm | ConocoPhillips Quote
Celestica Inc. CLS: This hardware platform and supply chain solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 days.
Celestica, Inc. Price and Consensus
Celestica, Inc. price-consensus-chart | Celestica, Inc. Quote
Celestica has a PEG ratio of 0.50 compared with 0.86 for the industry. The company possesses a Growth Score of B.
Celestica, Inc. PEG Ratio (TTM)
Celestica, Inc. peg-ratio-ttm | Celestica, Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
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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ConocoPhillips (COP): Free Stock Analysis Report
Celestica, Inc. (CLS): Free Stock Analysis Report
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. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 16th: Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Asbury Automotive Group, Inc. PEG Ratio (TTM) Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote ConocoPhillips COP: This crude oil, bitumen and natural gas exploration and production company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 23.6% over the last 60 days. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 16th: Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and Consensus Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote Asbury has a PEG ratio of 0.29 compared with 0.39 for the industry. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 16th: Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Asbury Automotive Group, Inc. PEG Ratio (TTM) Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote ConocoPhillips COP: This crude oil, bitumen and natural gas exploration and production company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 23.6% over the last 60 days. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 16th: Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Asbury Automotive Group, Inc. PEG Ratio (TTM) Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote ConocoPhillips COP: This crude oil, bitumen and natural gas exploration and production company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 23.6% over the last 60 days. |
28650.0 | 2022-03-11 00:00:00 UTC | Best Growth Stocks to Buy for March 11th | ABG | https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-march-11th | nan | nan | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 11th:
Asbury Automotive Group, Inc. ABG: This automotive retailer from the United States carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.3% over the last 60 days.
Asbury Automotive Group, Inc. Price and Consensus
Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote
Asbury Automotive has a PEG ratio of 0.29 compared with 0.39 for the industry. The company possesses a Growth Score of A.
Asbury Automotive Group, Inc. PEG Ratio (TTM)
Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote
ArcBest Corporation ARCB: This freight transportation and integrated logistics company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.5% over the last 60 days.
ArcBest Corporation Price and Consensus
ArcBest Corporation price-consensus-chart | ArcBest Corporation Quote
ArcBest has a PEG ratio of 0.21 compared with 0.79 for the industry. The company possesses a Growth Score of A.
ArcBest Corporation PEG Ratio (TTM)
ArcBest Corporation peg-ratio-ttm | ArcBest Corporation Quote
Braskem S.A. BAK: This producer and seller of thermoplastic resins carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5% over the last 60 days.
Braskem S.A. Price and Consensus
Braskem S.A. price-consensus-chart | Braskem S.A. Quote
Braskem has a PEG ratio of 0.38 compared with 0.47 for the industry. The company possesses a Growth Score of A.
Braskem S.A. PEG Ratio (TTM)
Braskem S.A. peg-ratio-ttm | Braskem S.A. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
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Braskem S.A. (BAK): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
ArcBest Corporation (ARCB): 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. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 11th: Asbury Automotive Group, Inc. ABG: This automotive retailer from the United States carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Asbury Automotive Group, Inc. PEG Ratio (TTM) Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote ArcBest Corporation ARCB: This freight transportation and integrated logistics company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.5% over the last 60 days. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 11th: Asbury Automotive Group, Inc. ABG: This automotive retailer from the United States carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and Consensus Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote Asbury Automotive has a PEG ratio of 0.29 compared with 0.39 for the industry. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 11th: Asbury Automotive Group, Inc. ABG: This automotive retailer from the United States carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Asbury Automotive Group, Inc. PEG Ratio (TTM) Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote ArcBest Corporation ARCB: This freight transportation and integrated logistics company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.5% over the last 60 days. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 11th: Asbury Automotive Group, Inc. ABG: This automotive retailer from the United States carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.3% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Braskem S.A. PEG Ratio (TTM) Braskem S.A. peg-ratio-ttm | Braskem S.A. Quote See the full list of top ranked stocks here. |
28651.0 | 2022-03-09 00:00:00 UTC | Best Growth Stocks to Buy for March 9th | ABG | https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-march-9th | nan | nan | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 9th:
Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.9% over the last 60 days.
Asbury Automotive Group, Inc. Price and Consensus
Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote
Asbury Automotive has a PEG ratio of 0.29 compared with 0.39 for the industry. The company possesses a Growth Score of A.
Asbury Automotive Group, Inc. PEG Ratio (TTM)
Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote
CBRE Group, Inc. CBRE: This commercial real estate services and investment company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days.
CBRE Group, Inc. Price and Consensus
CBRE Group, Inc. price-consensus-chart | CBRE Group, Inc. Quote
CBRE Group has a PEG ratio of 1.30 compared with 2.13 for the industry. The company possesses a Growth Score of A.
CBRE Group, Inc. PEG Ratio (TTM)
CBRE Group, Inc. peg-ratio-ttm | CBRE Group, Inc. Quote
Cushman & Wakefield plc CWK: This commercial real estate services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.5% over the last 60 days.
Cushman & Wakefield PLC Price and Consensus
Cushman & Wakefield PLC price-consensus-chart | Cushman & Wakefield PLC Quote
Cushman & Wakefield has a PEG ratio of 0.88 compared with 2.13 for the industry. The company possesses a Growth Score of A.
Cushman & Wakefield PLC PEG Ratio (TTM)
Cushman & Wakefield PLC peg-ratio-ttm | Cushman & Wakefield PLC Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
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.
Today, See These 5 Potential Home Runs >>
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
CBRE Group, Inc. (CBRE): Free Stock Analysis Report
Cushman & Wakefield PLC (CWK): 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. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 9th: Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.9% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. CBRE Group, Inc. PEG Ratio (TTM) CBRE Group, Inc. peg-ratio-ttm | CBRE Group, Inc. Quote Cushman & Wakefield plc CWK: This commercial real estate services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.5% over the last 60 days. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 9th: Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.9% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Asbury Automotive Group, Inc. PEG Ratio (TTM) Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote CBRE Group, Inc. CBRE: This commercial real estate services and investment company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 9th: Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.9% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and Consensus Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote Asbury Automotive has a PEG ratio of 0.29 compared with 0.39 for the industry. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 9th: Asbury Automotive Group, Inc. ABG: This automotive retailer carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.9% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Asbury Automotive Group, Inc. PEG Ratio (TTM) Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote CBRE Group, Inc. CBRE: This commercial real estate services and investment company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days. |
28652.0 | 2022-03-08 00:00:00 UTC | Group 1's (GPI) Texas Toyota Buyout to Generate $435M Annually | ABG | https://www.nasdaq.com/articles/group-1s-gpi-texas-toyota-buyout-to-generate-%24435m-annually | nan | nan | Group 1 Automotive GPI announced that it has acquired Charles Maund Toyota in Austin, TX. The dealership, which will be renamed Toyota of North Austin, features in the top 20 nationally in Toyota TM new vehicle volume. It will strengthen Group 1’s existing portfolio of 13 franchises in the fast-growing Central Texas market area consisting of Austin and San Antonio. The dealership promises to generate $435 million in annual revenues and represents the 16th Toyota store in GPI’s U.S. portfolio.
The Austin metro market, with growth of more than 30% and an addition of over 500,000 residents, has become the nation's fastest-growing large metro area from 2010 to 2020 and stands a chance to break more ground. The strength of the Austin market, combined with that of Toyota’s, promises a lucrative growth pool for Group 1.
Group 1’s acquisitions of dealerships and franchises to expand and optimize its portfolio make it poised for robust prospects. In 2021, the company acquired Prime Automotive in the Northeastern United States and the Robinsons Group in the UK, which have diversified Group 1’s footprint and are set to buoy its top-line growth. In 2021, Group 1 completed transactions representing $2.5 billion of acquired revenues.
Shares of GPI have risen 15.3% over the past year, outperforming its industry’s 5.8% rise.
Currently, GPI has a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Stocks to Consider
Better-ranked players in the auto retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, both sporting a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has an expected earnings growth rate of 6.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 39.34%, on average. The stock has also rallied 27.7% over a year.
Asbury has an expected earnings growth rate of 27.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 18.8% upward in the past 60 days.
Asbury’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. The stock has gained 6.4% over a year.
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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Toyota Motor Corporation (TM): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis 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.
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. | Image Source: Zacks Investment Research Stocks to Consider Better-ranked players in the auto retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, both sporting a Zacks Rank #1 (Strong Buy) currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Image Source: Zacks Investment Research Stocks to Consider Better-ranked players in the auto retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, both sporting a Zacks Rank #1 (Strong Buy) currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. | Image Source: Zacks Investment Research Stocks to Consider Better-ranked players in the auto retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, both sporting a Zacks Rank #1 (Strong Buy) currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Image Source: Zacks Investment Research Stocks to Consider Better-ranked players in the auto retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, both sporting a Zacks Rank #1 (Strong Buy) currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. |
28653.0 | 2022-03-08 00:00:00 UTC | Validea Warren Buffett Strategy Daily Upgrade Report - 3/8/2022 | ABG | https://www.nasdaq.com/articles/validea-warren-buffett-strategy-daily-upgrade-report-3-8-2022 | 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.
SPARK NEW ZEALAND LTD (ADR) (SPKKY) is a mid-cap growth stock in the Communications Services industry. The rating according to our strategy based on Warren Buffett changed from 54% 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: Spark New Zealand Limited is a supplier of telecommunications and digital services in New Zealand. The Company provides a range of telecommunications, information technology, media and other digital products and services, including: mobile services; voice services; broadband services; Internet television (TV); cloud, security and service management services; procurement and partner services and managed data and networks services. The Company's segments include mobile; voice; broadband; cloud, security, and service management; procurement and partners; managed data and networks, and other. The Company's subsidiaries include Computer Concepts Limited, Digital Island Limited, Gen-i Australia Pty Limited, Lightbox New Zealand, Qrious Limited, Revera Limited, Spark Finance Limited, Spark New Zealand Trading Limited and Spark Retail Holdings Limited.
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: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of SPARK NEW ZEALAND LTD (ADR)
Full Guru Analysis for SPKKY
Full Factor Report for SPKKY
DIAMOND HILL INVESTMENT GROUP, INC. (DHIL) is a small-cap value stock in the Investment Services industry. The rating according to our strategy based on Warren Buffett changed from 51% to 86% 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: Diamond Hill Investment Group, Inc. is a provider of investment advisory and fund administration services. The Company operates through its two subsidiaries, Diamond Hill Capital Management, Inc. and Ohio corporation (DHCM). DHCM is an investment adviser. DHCM sponsors, distributes and provides investment advisory and related services to clients through the Diamond Hill Funds (the Funds) a series of open-end mutual funds, and separately managed accounts. DHCM also provides investment advisory services to a private investment fund, separately managed accounts, and other mutual funds.
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
RETURN ON EQUITY: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: FAIL
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of DIAMOND HILL INVESTMENT GROUP, INC.
Full Guru Analysis for DHIL
Full Factor Report for DHIL
TARGET CORPORATION (TGT) is a large-cap value stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Warren Buffett changed from 61% to 89% 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: Target Corporation (Target) is a general merchandise retailer selling products through its stores and digital channels. Its general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items. Its digital channels include a range of merchandise assortment, including many items found in our stores, along with a complementary assortment. The Company sells assortment of general merchandise and food. Its format stores offer curated general merchandise and food assortments. The Company manages its inventory in a range of merchandise categories, including apparel, accessories, home decor, electronics, toys, seasonal offerings, food, and others. It operates stores, including format stores in urban markets and on college campuses. The Company's product category includes apparel and accessories, beauty and household essentials, food and beverage, hardlines, and home furnishings and decor.
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: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of TARGET CORPORATION
Full Guru Analysis for TGT
Full Factor Report for TGT
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 77% to 79% 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 in the United States. Its stores offer a range of automotive products and services, including new and used vehicles; parts and service, including vehicle repair and maintenance services, replacement parts, and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) insurance, prepaid maintenance, and credit life and disability insurance. It owns and operates approximately 112 new vehicle franchises, representing 31 brands of automobiles at 91 dealership locations. It also operates approximately 25 collision centers and one auto auction in approximately 16 metropolitan markets within nine states. Its new vehicle revenue brand mix consists of approximately 45% luxury, 39% imports, and 16% domestic brands.
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: FAIL
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.
Full Guru Analysis for ABG
Full Factor Report for ABG
TECHTRONIC INDUSTRIES CO. LTD. (ADR) (TTNDY) is a large-cap growth stock in the Appliance & Tool industry. The rating according to our strategy based on Warren Buffett changed from 86% to 93% 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: Techtronic Industries Co. Ltd. is an investment holding company principally engaged in power equipment products businesses. The Company mainly operates through two segments. The Power Equipment segment is engaged in the sales of power tools, power tool accessories, outdoor products and outdoor products accessories. Its power equipment products are sold under MILWAUKEE, EMPIRE, AEG, RYOBI, HOMELITE, Imperial Blades, STILETTO and Hart brands, or through original equipment manufacturer (OEM) customers. The Floor Care and Appliances segment is engaged in the sales of floor care products and floor care accessories. Its floor products are sold under HOOVER, DIRT DEVIL, VAX and ORECK brands, or through OEM customers.
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: PASS
FREE CASH FLOW: FAIL
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of TECHTRONIC INDUSTRIES CO. LTD. (ADR)
Full Guru Analysis for TTNDY
Full Factor Report for TTNDY
More details on Validea's Warren Buffett strategy
Warren Buffett Stock Ideas
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. | Detailed Analysis of TARGET CORPORATION Full Guru Analysis for TGT Full Factor Report for TGT 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 TECHTRONIC INDUSTRIES CO. LTD. (ADR) (TTNDY) is a large-cap growth stock in the Appliance & Tool industry. The Company manages its inventory in a range of merchandise categories, including apparel, accessories, home decor, electronics, toys, seasonal offerings, food, and others. | Detailed Analysis of ASBURY AUTOMOTIVE GROUP, INC. Full Guru Analysis for ABG Full Factor Report for ABG TECHTRONIC INDUSTRIES CO. LTD. (ADR) (TTNDY) is a large-cap growth stock in the Appliance & Tool industry. Detailed Analysis of TARGET CORPORATION Full Guru Analysis for TGT Full Factor Report for TGT ASBURY AUTOMOTIVE GROUP, INC. (ABG) is a mid-cap value stock in the Retail (Specialty) industry. Its stores offer a range of automotive products and services, including new and used vehicles; parts and service, including vehicle repair and maintenance services, replacement parts, and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) insurance, prepaid maintenance, and credit life and disability insurance. | Detailed Analysis of TARGET CORPORATION Full Guru Analysis for TGT Full Factor Report for TGT 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 TECHTRONIC INDUSTRIES CO. LTD. (ADR) (TTNDY) is a large-cap growth stock in the Appliance & Tool industry. The Company provides a range of telecommunications, information technology, media and other digital products and services, including: mobile services; voice services; broadband services; Internet television (TV); cloud, security and service management services; procurement and partner services and managed data and networks services. | Detailed Analysis of TARGET CORPORATION Full Guru Analysis for TGT Full Factor Report for TGT 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 TECHTRONIC INDUSTRIES CO. LTD. (ADR) (TTNDY) is a large-cap growth stock in the Appliance & Tool industry. Detailed Analysis of SPARK NEW ZEALAND LTD (ADR) Full Guru Analysis for SPKKY Full Factor Report for SPKKY DIAMOND HILL INVESTMENT GROUP, INC. (DHIL) is a small-cap value stock in the Investment Services industry. |
28654.0 | 2022-03-08 00:00:00 UTC | How Asbury (ABG) Stock Stands Out in a Strong Industry | ABG | https://www.nasdaq.com/articles/how-asbury-abg-stock-stands-out-in-a-strong-industry | nan | nan | One stock that might be an intriguing choice for investors right now is Asbury Automotive Group, Inc. ABG. This is because this security in the Automotive – Retail and Whole Sales space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Automotive – Retail and Whole Sales space as it currently has a Zacks Industry Rank of 5 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, Asbury is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.
Asbury Automotive Group, Inc. Price and Consensus
Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote
In fact, over the past month, current quarter estimates have risen from $7.53 per share to $9.07 per share, while current year estimates have risen from $29.83 per share to $33.65 per share. This has helped ABG to earn a Zacks Rank #1 (Strong Buy), further underscoring the company’s solid position. You can see the complete list of today’s Zacks #1 Rank stocks here.
So, if you are looking for a decent pick in a strong industry, consider Asbury. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
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. | One stock that might be an intriguing choice for investors right now is Asbury Automotive Group, Inc. ABG. This has helped ABG to earn a Zacks Rank #1 (Strong Buy), further underscoring the company’s solid position. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | One stock that might be an intriguing choice for investors right now is Asbury Automotive Group, Inc. ABG. This has helped ABG to earn a Zacks Rank #1 (Strong Buy), further underscoring the company’s solid position. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | One stock that might be an intriguing choice for investors right now is Asbury Automotive Group, Inc. ABG. This has helped ABG to earn a Zacks Rank #1 (Strong Buy), further underscoring the company’s solid position. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | One stock that might be an intriguing choice for investors right now is Asbury Automotive Group, Inc. ABG. This has helped ABG to earn a Zacks Rank #1 (Strong Buy), further underscoring the company’s solid position. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28655.0 | 2022-03-07 00:00:00 UTC | 5 Broker-Friendly Stocks to Buy Despite the Current Jitters | ABG | https://www.nasdaq.com/articles/5-broker-friendly-stocks-to-buy-despite-the-current-jitters | nan | nan | The ongoing tensions between Russia and Ukraine have intensified the volatility of the U.S. market, which is already suffering inflation and supply-chain constraints. The sanctions on Russia following its invasion of Ukraine evoked uncertainty as it is hard or rather impossible to gauge how shunning Russia and its commodities will impact inflation levels. With the possibility of the central bank raising the interest rate in the ongoing month, the market is likely to witness more instability in the near term.
However, irrespective of the market conditions, investors strive to design a winning portfolio of stocks. They, after all, are putting their hard-earned money into stocks. Amid the prevalent confusion, it is almost impossible for individual investors to come up with a lucrative basket of stocks without proper guidance. Therefore, it is in the best interest of investors to seek advice from “experts in the field".
Who Are These Experts and Why?
The “experts” in the area of investing are brokers equipped with thorough knowledge on the space. Brokers, irrespective of their types (sell-side, buy-side or independent), 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 meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Naturally, their estimate revisions serve as an important pointer regarding the price of a stock.
In view of the above, it is basically a no-brainer that such wealth of information should be utilized by investors for designing their portfolio. To take care of the earnings performance, we designed a screen based on improving broker recommendations and upward estimate revisions over the last four weeks.
Do Not Ignore the Top Line
However, designing a strategy based solely on the bottom line is unlikely to lead to a promising approach. Actually, according to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance. To address the top-line concerns, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
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).
We have also added the following screening parameters to ensure that the strategy is a winning one:
Price-to-Sales = Bot%10 (The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio).
Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ 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 made it through the screen:
Asbury Automotive Group ABG is one of the largest automotive retailers in the United States. The auto dealer currently sports a Zacks Rank #1 (Strong Buy). With the sustained recovery of the economy from the pandemic blues, auto sales are rebounding, underlined by strong new vehicle sales. Evidently, demand for automotive products and services is solid, aiding Asbury in turn.
Asbury Automotive has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 29.6%. Shares of ABG have increased 6% in a year’s time. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare CCRN is currently benefiting from the pandemic-induced increase in demand for healthcare staffing, investments in headcount and technology, and higher operational effectiveness. Digital transformation and operational efficiency are enabling CCRN to cater to continuously rising demand in specialties, such as emergency room, operating room, labor, pediatrics, and delivery and medical-surgical services.
The Zacks Consensus Estimate for Cross Country Healthcare’s 2022 earnings has been revised 115% upward in the past 60 days. Shares of CCRN have increased 68% in a year’s time. CCRN currently sports a Zacks Rank of 1.
Arrow Electronics ARW is one of the world’s largest distributors of electronic components and enterprise computing products. ARW provides one of the broadest product ranges in the space as well as a wide range of value-added services.
The Zacks Consensus Estimate for Arrow Electronics’ 2022 earnings has been revised 18.8% upward in the past 60 days. Shares of ARW have increased 16.6% in a year’s time. CCRN currently sports a Zacks Rank of 1.
Builders FirstSource BLDR focusses on faster-growth categories, disciplined pricing and strategic buyouts. Acquisitions are integral to BLDR’s growth strategy. BLDR recently concluded the buyout of National Lumber, the largest independent building materials supplier in New England. Also, strong demand for single-family housing is steadily supporting top-line growth. Builders FirstSource has a trailing four-quarter earnings surprise of 74%, on average. It flaunts a Zacks Rank #1. The Zacks Consensus Estimate for BLDR’s 2022 earnings has been revised 21.1% upward in the past 60 days. Shares of BLDR have increased 67.1% in a year’s time.
The Andersons ANDE is a regional grain merchandiser with diversified businesses in agriculture, plant nutrient formulation and distribution, railcar marketing and general merchandise retailing. ANDE maintains grain and production facilities throughout the Midwest and six retail locations in northern and central Ohio.
The Zacks Consensus Estimate for The Andersons’ 2022 earnings has been revised 4.8% upward in the past 60 days. Shares of ANDE have increased 63.6% in a year’s time. ANDE is currently Zacks #1 Ranked.
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.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
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
The Andersons, Inc. (ANDE): Free Stock Analysis Report
Arrow Electronics, Inc. (ARW): Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN): 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. | Here are five of the 10 stocks that made it through the screen: Asbury Automotive Group ABG is one of the largest automotive retailers in the United States. Shares of ABG have increased 6% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Here are five of the 10 stocks that made it through the screen: Asbury Automotive Group ABG is one of the largest automotive retailers in the United States. Shares of ABG have increased 6% in a year’s time. | Here are five of the 10 stocks that made it through the screen: Asbury Automotive Group ABG is one of the largest automotive retailers in the United States. Shares of ABG have increased 6% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Here are five of the 10 stocks that made it through the screen: Asbury Automotive Group ABG is one of the largest automotive retailers in the United States. Shares of ABG have increased 6% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28656.0 | 2022-03-07 00:00:00 UTC | Asbury Automotive Group (ABG) Stock Moves -1.46%: What You Should Know | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-stock-moves-1.46%3A-what-you-should-know | nan | nan | Asbury Automotive Group (ABG) closed the most recent trading day at $188.07, moving -1.46% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.95%. Meanwhile, the Dow lost 2.37%, and the Nasdaq, a tech-heavy index, lost 0.35%.
Heading into today, shares of the auto dealership chain had gained 24.97% over the past month, outpacing the Retail-Wholesale sector's loss of 6.17% and the S&P 500's loss of 3.75% in that time.
Investors will be hoping for strength from Asbury Automotive Group as it approaches its next earnings release. On that day, Asbury Automotive Group is projected to report earnings of $9.07 per share, which would represent year-over-year growth of 93.8%. Our most recent consensus estimate is calling for quarterly revenue of $3.99 billion, up 81.87% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.65 per share and revenue of $16.53 billion, which would represent changes of +23.31% and +68.03%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Asbury Automotive Group. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 12.81% higher. Asbury Automotive Group is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Asbury Automotive Group currently has a Forward P/E ratio of 5.67. This valuation marks a discount compared to its industry's average Forward P/E of 6.87.
We can also see that ABG currently has a PEG ratio of 0.31. 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. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.43 based on yesterday's closing prices.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
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.
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) closed the most recent trading day at $188.07, moving -1.46% from the previous trading session. We can also see that ABG currently has a PEG ratio of 0.31. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group (ABG) closed the most recent trading day at $188.07, moving -1.46% from the previous trading session. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report We can also see that ABG currently has a PEG ratio of 0.31. | Asbury Automotive Group (ABG) closed the most recent trading day at $188.07, moving -1.46% from the previous trading session. We can also see that ABG currently has a PEG ratio of 0.31. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group (ABG) closed the most recent trading day at $188.07, moving -1.46% from the previous trading session. We can also see that ABG currently has a PEG ratio of 0.31. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28657.0 | 2022-03-07 00:00:00 UTC | Zacks.com featured highlights include AutoNation, Asbury Automotive Group, AMN Healthcare Services, Teck Resources and AGCO | ABG | https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-autonation-asbury-automotive-group-amn-healthcare | nan | nan | For Immediate Release
Chicago, IL – March 7, 2022 – Stocks in this week’s article are AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corp. AGCO.
5 Lucrative Value Stocks Based on Discounted PEG to Buy Now
In a market dealing with external shocks, value investing is fast gaining popularity. The success of value investors like Warren Buffett underscores this. Buffett and his business partner, Charlie Munger, managed to register a 20.1% CAGR for Berkshire Hathaway from 1965 through 2021. This favorably compares with a 10.5% rise of the S&P 500 index during the same period.
Several other stocks, which have surged significantly in the recent past, have shown the overwhelming success of this pure-play investment strategy. Here we discuss five such stocks -- AutoNation, Inc., Asbury Automotive Group, Inc., AMN Healthcare Services, Teck Resources Ltd and AGCO Corp.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1877399/5-lucrative-value-stocks-based-on-discounted-peg-to-buy-now
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.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
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
AGCO Corporation (AGCO): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Teck Resources Ltd (TECK): 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 – March 7, 2022 – Stocks in this week’s article are AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corp. AGCO. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 5 Lucrative Value Stocks Based on Discounted PEG to Buy Now In a market dealing with external shocks, value investing is fast gaining popularity. | For Immediate Release Chicago, IL – March 7, 2022 – Stocks in this week’s article are AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corp. AGCO. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Here we discuss five such stocks -- AutoNation, Inc., Asbury Automotive Group, Inc., AMN Healthcare Services, Teck Resources Ltd and AGCO Corp. For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1877399/5-lucrative-value-stocks-based-on-discounted-peg-to-buy-now 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. | For Immediate Release Chicago, IL – March 7, 2022 – Stocks in this week’s article are AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corp. AGCO. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Here we discuss five such stocks -- AutoNation, Inc., Asbury Automotive Group, Inc., AMN Healthcare Services, Teck Resources Ltd and AGCO Corp. For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1877399/5-lucrative-value-stocks-based-on-discounted-peg-to-buy-now 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. | For Immediate Release Chicago, IL – March 7, 2022 – Stocks in this week’s article are AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corp. AGCO. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. |
28658.0 | 2022-03-04 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-1 | 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. Asbury Automotive Group (ABG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Asbury Automotive Group is one of 232 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Asbury Automotive Group is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 41.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ABG has gained about 13% so far this year. Meanwhile, stocks in the Retail-Wholesale group have lost about 11.9% on average. As we can see, Asbury Automotive Group is performing better than its sector in the calendar year.
Another stock in the Retail-Wholesale sector, Ethan Allen (ETD), has outperformed the sector so far this year. The stock's year-to-date return is 0.8%.
The consensus estimate for Ethan Allen's current year EPS has increased 5.7% 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, which includes 10 individual stocks and currently sits at #7 in the Zacks Industry Rank. Stocks in this group have gained about 1.2% so far this year, so ABG is performing better this group in terms of year-to-date returns.
In contrast, Ethan Allen falls under the Retail - Home Furnishings industry. Currently, this industry has 8 stocks and is ranked #56. Since the beginning of the year, the industry has moved -15.5%.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Asbury Automotive Group and Ethan Allen as they could maintain their solid performance.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
Ethan Allen Interiors Inc. (ETD): 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) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 41.2% higher. Based on the latest available data, ABG has gained about 13% so far this year. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 41.2% higher. | Stocks in this group have gained about 1.2% so far this year, so ABG is performing better this group in terms of year-to-date returns. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? | Asbury Automotive Group (ABG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Within the past quarter, the Zacks Consensus Estimate for ABG's full-year earnings has moved 41.2% higher. Based on the latest available data, ABG has gained about 13% so far this year. |
28659.0 | 2022-03-04 00:00:00 UTC | 5 Lucrative Value Stocks Based on Discounted PEG to Buy Now | ABG | https://www.nasdaq.com/articles/5-lucrative-value-stocks-based-on-discounted-peg-to-buy-now | nan | nan | In a market dealing with external shocks, value investing is fast gaining popularity. The success of value investors like Warren Buffett underscores this. Buffett and his business partner, Charlie Munger, managed to register a 20.1% CAGR for Berkshire Hathaway from 1965 through 2021. This favorably compares with a 10.5% rise of the S&P 500 index during the same period.
Several other stocks, which have surged significantly in the recent past, have shown the overwhelming success of this pure-play investment strategy. Here we discuss five such stocks -- AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corporation AGCO.
More on Value Investing
While searching for a suitable investment option, value investors with a varied risk appetite are unlikely to consider price/earnings to growth (PEG) ratio among several other popular metrics like price/earnings (P/E), price/sales (P/S) or price/book value (P/B).
This is because they often find this ratio complicated, considering the limitations in calculating a stock's future earnings growth potential. Yardsticks, such as dividend yield, P/E or P/B, are commonly used to single out stocks trading at a discount.
However, while not taking into account the growth potential of a stock, these ratios might end up convincing us to invest in stocks that are at a discount just because of their poor show. This might often lead to “value traps” — a situation when these value picks start to underperform over the long run as the temporary problems, which once pulled down the share price, turn out to be persistent.
In such a case, even if you buy a stock at less than its fair value, you might still end up paying more. And here comes the importance of this not-so-popular but crucial value investing metric, the PEG ratio.
The PEG ratio is defined as: (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn’t consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are some of the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (for more accurate valuation purpose)
Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or 2 have a proven history of success.)
Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)
Average 20 Day Volume greater than 50,000 (A substantial trading volume ensures that the stock is easily tradable.)
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5% (Upward estimate revisions add to the optimism, suggesting further bullishness.)
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, 2 or 3 (Hold) offer the best upside potential.
Here are five out of the 25 stocks that qualified the screening:
AutoNation: AutoNation is the largest automotive retailer in the United States. AutoNation offers vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products. In addition, AN arranges financing for vehicle purchases through third-party sources.
AutoNation has a long-term historical growth rate of 34.8%. AN currently carries a Zacks Rank of 1 and has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Asbury: Headquartered in Duluth, GA, Asbury is one of the leading automotive retailers in the United States. Asbury’s latest five-year plan focuses on the increase in revenues and profitability strategically through organic and acquisitive growth as well as their Clicklane digital vehicle purchasing platform.
Asbury currently holds a Zacks Rank #1 and has a Value Score of A. ABG also has an impressive five-year historical growth rate of 34.5%.
AMN Healthcare Services: Headquartered in San Diego, CA, AMN Healthcare Services is a travel healthcare staffing company. It recruits and places nurses, physicians, and other healthcare professionals in travel or permanent assignments in acute-care facilities, physician practice groups, and other healthcare facilities.
Apart from a discounted PEG and P/E, AMN currently sports a Zacks Rank #1 and has a Value Score of B. AMN Healthcare has a long-term historical growth rate of 28.8%.
Teck Resources: Vancouver, Canada-based Teck Resources is a diversified resource company committed to mining and mineral development with business units focused on steelmaking coal, copper, zinc and energy. Teck Resources' principal products include steelmaking coal; copper concentrates and refined copper cathodes; refined zinc and zinc concentrates; energy products, such as bitumen; and lead concentrates.
Teck Resources has an impressive long-term expected growth rate of 38.7%. TECK stock currently has a Value Score of B and carries a Zacks Rank of 1.
AGCO Corporation: Headquartered in Duluth, GA, AGCO is a leading manufacturer and distributor of agricultural equipment and related replacement parts. AGCO offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries.
AGCO currently holds a Zacks Rank #2 and has a Value Score of A. It also has an impressive five-year historical growth rate of 28.4%.
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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.
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Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
AGCO Corporation (AGCO): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Teck Resources Ltd (TECK): 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. | Here we discuss five such stocks -- AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corporation AGCO. Asbury currently holds a Zacks Rank #1 and has a Value Score of A. ABG also has an impressive five-year historical growth rate of 34.5%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Here we discuss five such stocks -- AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corporation AGCO. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury currently holds a Zacks Rank #1 and has a Value Score of A. ABG also has an impressive five-year historical growth rate of 34.5%. | Here we discuss five such stocks -- AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corporation AGCO. Asbury currently holds a Zacks Rank #1 and has a Value Score of A. ABG also has an impressive five-year historical growth rate of 34.5%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Here we discuss five such stocks -- AutoNation, Inc. AN, Asbury Automotive Group, Inc. ABG, AMN Healthcare Services AMN, Teck Resources Ltd TECK and AGCO Corporation AGCO. Asbury currently holds a Zacks Rank #1 and has a Value Score of A. ABG also has an impressive five-year historical growth rate of 34.5%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28660.0 | 2022-03-04 00:00:00 UTC | Wall Street Analysts Think Asbury Automotive (ABG) Could Surge 28%: Read This Before Placing a Bet | ABG | https://www.nasdaq.com/articles/wall-street-analysts-think-asbury-automotive-abg-could-surge-28%3A-read-this-before-placing | nan | nan | Asbury Automotive Group (ABG) closed the last trading session at $195.13, gaining 19% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $249.25 indicates a 27.7% upside potential.
The mean estimate comprises eight short-term price targets with a standard deviation of $53.33. While the lowest estimate of $180 indicates a 7.8% decline from the current price level, the most optimistic analyst expects the stock to surge 81.4% to reach $354. 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 a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
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
There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, 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 12.8% over the past month, as five estimates have gone higher compared to no negative revision.
Moreover, ABG currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% 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.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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. | Asbury Automotive Group (ABG) closed the last trading session at $195.13, gaining 19% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. 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 There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group (ABG) closed the last trading session at $195.13, gaining 19% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. 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. Asbury Automotive Group (ABG) closed the last trading session at $195.13, gaining 19% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. However, an impressive consensus price target is not the only factor that indicates a potential upside in ABG. | Asbury Automotive Group (ABG) closed the last trading session at $195.13, gaining 19% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. 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 There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. |
28661.0 | 2022-03-04 00:00:00 UTC | Are Investors Undervaluing These Retail-Wholesale Stocks Right Now? | ABG | https://www.nasdaq.com/articles/are-investors-undervaluing-these-retail-wholesale-stocks-right-now-16 | 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.11, while its industry has an average P/E of 6.47. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 5.12, with a median of 9.03.
Investors could also keep in mind Group 1 Automotive (GPI), an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Group 1 Automotive is trading at a forward earnings multiple of 5.62 at the moment, with a PEG ratio of 0.46. This compares to its industry's average P/E of 6.47 and average PEG ratio of 0.33.
Over the past year, GPI's P/E has been as high as 9.62, as low as 4.73, with a median of 6.41; its PEG ratio has been as high as 4.58, as low as 0.39, with a median of 0.49 during the same time period.
Group 1 Automotive sports a P/B ratio of 1.93 as well; this compares to its industry's price-to-book ratio of 2.15. In the past 52 weeks, GPI's P/B has been as high as 2.19, as low as 1.54, with a median of 1.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Asbury Automotive Group and Group 1 Automotive are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABG and GPI feels like a great value stock at the moment.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
Group 1 Automotive, Inc. (GPI): 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. | One company to watch right now is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #1 (Strong Buy) and 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 5.12, with a median of 9.03. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report One company to watch right now is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report One company to watch right now is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report One company to watch right now is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. |
28662.0 | 2022-03-03 00:00:00 UTC | 3 Reasons Why Growth Investors Shouldn't Overlook Asbury Automotive (ABG) | ABG | https://www.nasdaq.com/articles/3-reasons-why-growth-investors-shouldnt-overlook-asbury-automotive-abg | 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. However, it isn't easy to find a great growth stock.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, 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, makes it pretty easy to find cutting-edge growth stocks.
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. 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 32.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 21.7% this year, crushing the industry average, which calls for EPS growth of 5.3%.
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 78.7%.
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 25.5% over the past 3-5 years versus the industry average of 21.9%.
Promising Earnings Estimate Revisions
Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable 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 11.3% over the past month.
Bottom Line
While the overall earnings estimate revisions have made Asbury Automotive a Zacks Rank #1 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 positions Asbury Automotive well for outperformance, so growth investors may want to bet on it.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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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) 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. Bottom Line While the overall earnings estimate revisions have made Asbury Automotive a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above. | 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 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, makes it pretty easy to find cutting-edge growth stocks. | 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 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. |
28663.0 | 2022-03-03 00:00:00 UTC | Zacks Market Edge Highlights: Trex, Zoom Video, Home Depot, Asbury Automotive and Boise Cascade | ABG | https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-trex-zoom-video-home-depot-asbury-automotive-and-boise | nan | nan | For Immediate Release
Chicago, IL – March 3, 2022 – Zacks Market Edge 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/1876268/how-to-trade-earnings-surprises
How to Trade Earnings Surprises
Welcome to Episode #305 of the Zacks Market Edge Podcast.
(1:00) - The Secrets To Earnings Season Trading
(11:10) - Earnings Beat Selloff: Should You Be Buying The Earnings Beats?
(19:50) - Is The Guidance Key To Earnings?
(22:20) - Should You Be Buying Near All Time Highs?
(27:45) - The Risk and Rewards of Trading IPOs
(35:15) - Episode Roundup: TREX, ZM, BCC, MU, ABG, COIN, HD, YNDX
Podcast@Zacks.com
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, David Bartosiak, Zacks Stock Strategist and the editor of Zacks Surprise Trader portfolio, joins the podcast to talk about how to trade the earnings surprises.
No one knows better than Dave, that trading the earnings reports can be fraught with danger, but also can be quite lucrative. Dave has been buying stocks ahead of the earnings reports in the Surprise Trader portfolio for years.
But in 2022, it is more challenging than ever. Even a beat and a raise is no guarantee that a stock will see a big boost after an earnings report.
What should traders do to enhance their chances while trading the earnings surprises?
Strategies for Trading the Earnings Surprises
1. Use Zacks Earnings ESP. It's a proprietary formula that determines the likelihood of an earnings beat and is found on Zacks.com.
2. Check the earnings history. Zacks.com has 5-year earnings surprise charts.
3. Watch guidance.
4. Prepare for "The Lurker."
They Beat, But Then What?
1. Trex (TREX)
Trex is a decking manufacturer. With Americans still nesting at home, Trex recently reported a record year.
Trex recently beat on earnings and said that 2022 would see another year of double digit revenue growth.
But even with all the good news, Trex shares fell 10% the day after earnings. And Trex isn't even a tech company.
2. Zoom Video (ZM)
Zoom Video hasn't missed since it went public in 2019. But all those earnings beats haven't boosted the stock.
Shares of Zoom Video are down 58% over the last 6 months. And shares were down even after the latest earnings surprise.
But Zoom Video is still not cheap. It's trading with a forward P/E of 30.
Does Zoom Video have further to fall?
3. Home Depot (HD)
Home Depot recently beat on the Zacks Consensus Estimate by one cent. But a beat is a beat.
Unfortunately, the Street didn't think it was enough, and the shares sold off double digits on the report.
Home Depot shares are now down 20% in the last 3 months. It's cheaper after the sell-off, with a forward P/E at 19.7, but it's not dirt cheap.
Should traders be trying to trade a big-cap company like Home Depot?
4. Asbury Automotive (ABG)
Asbury Automotive has beat 9 quarters in a row. It has a great earnings surprise track record during the pandemic.
Should traders be looking at a company's track record when jumping in during earnings season?
Asbury Automotive is one of Dave's big winners this earnings season in the Surprise Trader portfolio. It has also been a big winner for the last 2 years, gaining 114%.
Asbury is also dirt cheap, with a forward P/E of just 5.9.
5. Boise Cascade (BCC)
Boise Cascade recently surprised again in the fourth quarter of 2021. It beat $4.26 versus the Zacks Consensus of $2.48.
It gave solid guidance but the shares sold off on the news.
Is Boise Cascade an example of "The Lurker" in the shares after an earnings report?
The shares have recovered and are now up 12.1% year-to-date.
Boise Cascade is also dirt cheap, with a forward P/E of just 5.7.
What Else Do You Need to Know about Trading the Earnings Surprises?
Tune into this week's podcast to find out.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the "Internet of Money" and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we're still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks' has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
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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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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
The Home Depot, Inc. (HD): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Trex Company, Inc. (TREX): Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC): Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM): 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. | (27:45) - The Risk and Rewards of Trading IPOs (35:15) - Episode Roundup: TREX, ZM, BCC, MU, ABG, COIN, HD, YNDX Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. Asbury Automotive (ABG) Asbury Automotive has beat 9 quarters in a row. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | (27:45) - The Risk and Rewards of Trading IPOs (35:15) - Episode Roundup: TREX, ZM, BCC, MU, ABG, COIN, HD, YNDX Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. Asbury Automotive (ABG) Asbury Automotive has beat 9 quarters in a row. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | (27:45) - The Risk and Rewards of Trading IPOs (35:15) - Episode Roundup: TREX, ZM, BCC, MU, ABG, COIN, HD, YNDX Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. Asbury Automotive (ABG) Asbury Automotive has beat 9 quarters in a row. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | (27:45) - The Risk and Rewards of Trading IPOs (35:15) - Episode Roundup: TREX, ZM, BCC, MU, ABG, COIN, HD, YNDX Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. Asbury Automotive (ABG) Asbury Automotive has beat 9 quarters in a row. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28664.0 | 2022-03-02 00:00:00 UTC | FOCUS-Big U.S. auto dealers bet billions against the death of the dealership | ABG | https://www.nasdaq.com/articles/focus-big-u.s.-auto-dealers-bet-billions-against-the-death-of-the-dealership | nan | nan | By Joseph White
DETROIT, March 2 (Reuters) - U.S. auto dealers, flush with cash, are buying each other at a record pace, but they are not closing stores in the process.
Defying predictions that the internet and Tesla Inc's TSLA.O direct-to-consumer sales strategy would kill traditional auto dealerships, acquisitions in the sector hit a record $8 billion in value last year, according to data from Kerrigan Advisors, a company that tracks transactions among largely private auto dealer groups. That is more than triple the $2.5 billion for 2020.
Most of the buyers were large public or private auto retail chains, such as Asbury Automotive Group Inc ABG.N and Lithia Motors Inc LAD.N. Many of the sellers were smaller, family-controlled operations, said Erin Kerrigan, founder of Kerrigan Advisors.
"We had 338 unique transactions in the industry," Kerrigan said. "The prior peak was 288 in 2020." Publicly traded dealer groups bought over 250 dealerships last year, she said.
Despite the deal activity, the number of stores that car buyers could visit has remained stable for the past decade, according to a survey by Urban Science, a consultancy.
As of July 1, 2021, Urban Science counted 18,157 dealerships, or "rooftops," in the United States, up 46 stores from six months earlier. In 98% of local markets in the United States, Urban Science found no net change in the number of auto dealerships.
In short, ownership has consolidated, but the U.S. auto retail infrastructure has not.
"As far as the public goes, it looks like the same number of dealers are out there," said Urban Science Global Director of Data Mitch Phillips.
For consumers, the consolidation of auto dealer ownership could be largely invisible in the short term. But longer term, industry executives say larger dealer groups will be better equipped to deploy technology to enable faster online shopping and financing, allow customers to select from a wider array of vehicles at multiple stores and get repairs done more conveniently.
Car dealers from across the United States will gather in Las Vegas starting on March 10 for the annual convention of the National Auto Dealers Association. Those who hit the Strip will do so after one of the most profitable years ever for the auto retailing sector.
Auto dealers have thrived during the pandemic, despite
challenges from technology-driven disruptors such as online used car retailer Carvana Co CVNA.N. Unlike department stores battered by Amazon.com Inc AMZN.O, new-vehicle dealers enjoy unusually strong protection from state franchise laws that block auto manufacturers from selling around them, directly to consumers.
However, more customers are doing at least some shopping online, and dealers stand to lose revenue generated by recall and warranty repairs as more fixes are done with software updates.
DIFFERENT BETS
Buyers and sellers are making different bets about the future for brick-and-mortar dealerships.
Sellers tend to be family-run businesses faced with making substantial investments in new equipment and technology to sell and service electric vehicles. They are concerned that automakers want to squeeze dealer profit margins to recover the enormous investments they have made in electrification, said George Karolis, president of the Presidio Group LLC, a dealership transaction adviser.
"They face large investments to keep up with the digitization of the business," Karolis said. With profits high and valuations for dealerships strong, smaller owners are deciding now is the right time to exit, he said.
Buyers - especially public chains such as AutoNation Inc AN.N or Sonic Automotive Inc SAH.N - are using cheap capital and cash generated during the pandemic to get bigger, banking on economies of scale to overcome the challenges that drove sellers to the table.
With its size, Lithia can borrow money at lower interest cost and get products and services from vendors at 20% to 30% lower cost than smaller dealers, Chief Executive Bryan DeBoer said.
Lithia also can as much as double an acquired store's used car business by reconditioning and selling vehicles more than five years old, and use its own brand of replacement parts to keep customers from going elsewhere for service, he said.
Whether the franchise model survives depends on how dealers adapt, said Asbury Automotive Chief Executive David Hult. Asbury launched two of the biggest deals in the current M&A boom, acquiring Park Place Dealerships for $735 million and spending $3.2 billion last year for the Larry H. Miller Group, then the eighth-largest U.S. auto retail group.
Asbury needs larger scale as it invests in online sales technology, develops systems that will allow service customers to track their vehicle through the repair process and considers revamping sales and service facilities, Hult said.
"If you know the world is going to be electric ... you don’t need stores to be as big as they are. Maybe a small showroom ... and smaller service centers" in more locations, he said. "You’ll have fewer owners, owning more stores."
Lithia's DeBoer said he would welcome a move to an "agency model" where dealers are paid set amounts for handling a vehicle sale, haggling over price is eliminated and dealers are not expected to stock large numbers of vehicles.
"A lot of our SG&A costs are negotiation costs," he said. "We could be a lot more productive."
Auto retail executives say consumers shopping online still want places to see vehicles and get them repaired.
"If you have a footprint in a market, you don’t have a plan of closing" stores, said AutoNation Executive Vice President Marc Cannon. "Our plan is to develop them out and maximize them."
AutoNation on Feb. 23 said it had raised $700 million through a debt sale that could be used for acquisitions, among other purposes.
"We have an active interest in M&A," said AutoNation Chief Executive Mike Manley.
(Reporting by Joe White in Detroit and Tina Bellon in Austin, Texas Editing by Matthew Lewis)
((Joe.White@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. | Most of the buyers were large public or private auto retail chains, such as Asbury Automotive Group Inc ABG.N and Lithia Motors Inc LAD.N. But longer term, industry executives say larger dealer groups will be better equipped to deploy technology to enable faster online shopping and financing, allow customers to select from a wider array of vehicles at multiple stores and get repairs done more conveniently. They are concerned that automakers want to squeeze dealer profit margins to recover the enormous investments they have made in electrification, said George Karolis, president of the Presidio Group LLC, a dealership transaction adviser. | Most of the buyers were large public or private auto retail chains, such as Asbury Automotive Group Inc ABG.N and Lithia Motors Inc LAD.N. Defying predictions that the internet and Tesla Inc's TSLA.O direct-to-consumer sales strategy would kill traditional auto dealerships, acquisitions in the sector hit a record $8 billion in value last year, according to data from Kerrigan Advisors, a company that tracks transactions among largely private auto dealer groups. Sellers tend to be family-run businesses faced with making substantial investments in new equipment and technology to sell and service electric vehicles. | Most of the buyers were large public or private auto retail chains, such as Asbury Automotive Group Inc ABG.N and Lithia Motors Inc LAD.N. Defying predictions that the internet and Tesla Inc's TSLA.O direct-to-consumer sales strategy would kill traditional auto dealerships, acquisitions in the sector hit a record $8 billion in value last year, according to data from Kerrigan Advisors, a company that tracks transactions among largely private auto dealer groups. But longer term, industry executives say larger dealer groups will be better equipped to deploy technology to enable faster online shopping and financing, allow customers to select from a wider array of vehicles at multiple stores and get repairs done more conveniently. | Most of the buyers were large public or private auto retail chains, such as Asbury Automotive Group Inc ABG.N and Lithia Motors Inc LAD.N. Defying predictions that the internet and Tesla Inc's TSLA.O direct-to-consumer sales strategy would kill traditional auto dealerships, acquisitions in the sector hit a record $8 billion in value last year, according to data from Kerrigan Advisors, a company that tracks transactions among largely private auto dealer groups. Sellers tend to be family-run businesses faced with making substantial investments in new equipment and technology to sell and service electric vehicles. |
28665.0 | 2022-03-01 00:00:00 UTC | AutoZone's (AZO) Q2 Earnings Top Estimates, Sales Increase Y/Y | ABG | https://www.nasdaq.com/articles/autozones-azo-q2-earnings-top-estimates-sales-increase-y-y | nan | nan | AutoZone Inc. AZO reported earnings of $22.3 per share in second-quarter fiscal 2022, surging 49.4% from the prior-year figure of $14.93. The bottom line also surpassed the Zacks Consensus Estimate of $17.80. Robust comparable sales growth and domestic commercial sales growth led to this outperformance.
Net income increased 36.4% year over year to $471.8 million. Net sales also grew 15.8% to $3,369.8 million. The top line beat the Zacks Consensus Estimate of $3,157.1 million.
In the reported quarter, domestic commercial sales totaled $843.8 million, up from $638.9 million recorded in the year-ago period. The metric also crossed the consensus mark of $719 million. In addition, domestic same-store sales (sales at stores open at least for a year) rose 13.8%, handily beating the Zacks Consensus Estimate of 7.62%.
Gross profit increased to $1,785.2 million from the prior-year quarter’s $1,559.4 million. Operating profit jumped to $626.8 million from $481.8 million.
AutoZone, Inc. Price, Consensus and EPS Surprise
AutoZone, Inc. price-consensus-eps-surprise-chart | AutoZone, Inc. Quote
Store Opening & Inventory
During the fiscal first quarter, AutoZone opened 26 new stores and closed one in the United States, three in Mexico and two in Brazil. It exited the quarter with 6,091 stores in the United States, 669 in Mexico and 55 in Brazil. The total store count was 6,815 as of Feb 12, 2022.
AutoZone’s inventory improved 6.2% year over year in the reported quarter on store openings. At quarter-end, inventory per location was $738,000, up from $715,000.
Financials and Share Repurchases
AutoZone had cash and cash equivalents of $239.4 million as of Feb 12, 2022, down from $1,026.2 million on Feb 13, 2021. Total debt amounted to $5,840.9 million as of Feb 12, 2022, marking an increase from $5,516.4 million on Feb 13, 2021.
Under its share repurchase program, AutoZone repurchased 783 thousand shares of its common stock for $1.6 billion during the fiscal second quarter, at an average price of $1,992 per share. At the end of the quarter, it had $958 million remaining under its current share repurchase authorization.
Zacks Rank & Key Picks
Currently, AZO has a Zacks Rank #3 (Hold).
Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5.2% upward in the past 60 days.
AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 39.34%, on average. The stock has also rallied 50.5% over a year.
Asbury has an expected earnings growth rate of 21.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 12.4% upward in the past 60 days.
Asbury’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. The stock has grown 15.7% over a year.
Group 1 has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.8% upward in the past 60 days.
Group 1’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPI pulled off a trailing four-quarter earnings surprise of 9.75%, on average. The stock has also rallied 16% over a year.
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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AutoNation, Inc. (AN): Free Stock Analysis Report
AutoZone, Inc. (AZO): Free Stock Analysis 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.
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. | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28666.0 | 2022-03-01 00:00:00 UTC | Penske (PAG) TEAM Truck Buyout to Add $150M to Annual Revenues | ABG | https://www.nasdaq.com/articles/penske-pag-team-truck-buyout-to-add-%24150m-to-annual-revenues | nan | nan | Penske Automotive Group, Inc. PAG recently announced that it has acquired TEAM Truck Centres, a retailer of medium and heavy-duty Freightliner and Western Star commercial trucks. The buyout is expected to generate around $150 million in Penske’s annualized revenues and enhance production scale within the company’s wholly-owned Premier Truck Group (“PTG”) subsidiary.
Ontario-based TEAM, with a long-standing repute, is one of the largest and most-well-respected commercial truck dealerships in Canada. It contributes four full-service dealerships to Premier Truck Group's existing operations in Ontario (Cambridge, London, Sarnia, Windsor), bringing the commercial truck dealership location count to 11 in the country. PAG is confident that the new sites will better equip them to remotely serve trucks through the TEAM Truck Centres mobile product support vehicles.
PTG currently operates 41 North American commercial truck locations in Texas, Oklahoma, Oregon, Tennessee, Georgia, Kansas, Missouri, Utah, Idaho and Ontario, Canada, which contribute to nearly $3 billion in aggregate annual revenues.
Penske is riding high on its strategic acquisitions. The McCoy acquisition, completed in November, is expected to aid the top line of PTG. The Warner Truck Centers buyout has made it the largest dealership group for Freightliner in North America, diversifying business, expanding customer base and capitalizing on the Retail Commercial Trucks segment. The takeover of Kansas City Freightliner, completed during the second quarter of 2021, seeks to add $450 million to Penske’s annualized revenues. In October 2021, Penske acquired the remaining 51% of its Japan-based joint venture of premium luxury automotive brands, which is likely to add $250 million to consolidated annual revenues.
PAG’s shares have gained 41.3% over the past year, outperforming the industry’s 14.8% rise.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Currently, PAG has a Zacks Rank #2 (Buy).
Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5.2% upward in the past 60 days.
AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 39.34%, on average. The stock has also rallied 50.5% over a year.
Asbury has an expected earnings growth rate of 21.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 12.4% upward in the past 60 days.
Asbury’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. The stock has grown 15.7% over a year.
Group 1 has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.8% upward in the past 60 days.
Group 1’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPI pulled off a trailing four-quarter earnings surprise of 9.75%, on average. The stock has also rallied 16% over a year.
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
AutoNation, Inc. (AN): Free Stock Analysis 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.
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. | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28667.0 | 2022-03-01 00:00:00 UTC | Groupon (GRPN) Q4 Earnings Beat Estimates, Revenues Miss | ABG | https://www.nasdaq.com/articles/groupon-grpn-q4-earnings-beat-estimates-revenues-miss | nan | nan | Groupon GRPN reported fourth-quarter 2021 non-GAAP earnings of 18 cents per share, which beat the Zacks Consensus Estimate of 8 cents. The company had reported non-GAAP earnings per share of 51 cents in the prior-year quarter.
Revenues of $223.2 million missed the Zacks Consensus Estimate by 2.1%. The figure declined 35% on a year-over-year basis (down 34% excluding foreign exchange effect).
Region-wise, North America revenues plunged 8.2% from the year-ago quarter’s level to $155.9 million. International revenues fell 61.2% (down 60% excluding foreign exchange effect) year over year to $67.25 million.
The company surpassed its 2021 goal to remove repeat restrictions on 80% of its North America Deal inventory. In the quarter under review, the company made substantial improvements to its self-service tools, making it easier for merchants to partner with Groupon. As a result, more than 50% of Deals launched in North America during 2021 were via self-service.
Groupon, Inc. Price, Consensus and EPS Surprise
Groupon, Inc. price-consensus-eps-surprise-chart | Groupon, Inc. Quote
Quarterly Details
Service revenues (97.3% of revenues) were up 28.3% year over year to $217 million. Product revenues (2.7% of revenues) deteriorated to $6.1 million from $17.39 million.
Consolidated local revenues of $182.4 million surged 26.4% from the year-ago quarter’s levels. North America Local revenues increased 24.6% and International Local revenues increased 35.4%, excluding the foreign exchange effect.
Consolidated Travel revenues increased 103% year over year to $10.3 million. North America Travel revenues inched up 38.7%. International Travel revenues reached $4.8 million in the reported quarter.
On a consolidated basis, Goods revenues declined 84.3% year over year to $30.5 million. North America Goods revenues declined 74.7%. International Goods revenues declined 87.8%, excluding the foreign exchange effect.
In the fourth quarter, consolidated gross billings were $620.6 million, down 1%, excluding foreign exchange effect.
North America gross billings were $412.8 million, up 7.3% year over year. International billings were $207.8 million, down 13.8%, excluding foreign exchange effect.
North America Local and Travel gross billings increased 31.9% and 35.1%, respectively. Goods gross billings declined 48.4% on a year-over-year basis.
International Local and Travel gross billings rose 45.3% and 144.8%, respectively. Goods gross billings declined 59.9% on a year-over-year basis, excluding foreign exchange effect.
Owing to the coronavirus crisis-induced negative impact on demand, consolidated units sold during the reported quarter fell 24.8% year over year to 18.8 million.
Region wise, North America units were down 20.3%, while International units were down 31% year over year
Customer Metrics
As of Dec 31, 2021, Groupon had approximately 23.3 million active customers compared with 24 million at the end of the previous quarter.
As of Dec 31, 2021, the company had approximately 14.8 million active customers based in North America and 8.5 million active international customers.
Operating Details
In the fourth quarter, gross profit came in at $194.8 million, up 8.9% (up 9.9%, excluding foreign exchange effect) year over year.
International gross profit increased 0.2% year over year and 3.2%, excluding foreign exchange effect to $58.5 million. Under the International segment, excluding foreign exchange effect, Local category reported a gross profit increase of 35.5%. Goods category gross profit plunged 55.2% year over year.
Coming to North America region, gross profit increased 13.1% to $136.3 million. Local and Travel categories reported a gross profit increase of 24.8% and 36.7%, respectively. Goods category’s gross profit fell 43.1%.
Non-GAAP adjusted EBITDA came in at $37.3 million compared with adjusted EBITDA of $40.1 million reported in the prior-year quarter.
Selling, general and administrative (SG&A) expenses fell 1.3% year over year to $126.5 million in the reported quarter. Marketing expenses surged 54.2% year over year to $58.2 million.
The company reported an operating income of $2.28 million compared with an operating income of $9.1 million in the prior-year quarter.
Balance Sheet & Cash Flow
Groupon exited the quarter ending Dec 31, 2021, with cash and cash equivalents of $498.7 million, down from $476.8 million, as of Sep 30, 2021.
In the fourth quarter, the company generated $31 million of operating cash flow compared with $74.2 million used in the prior quarter.
Free cash inflow came was $19.2 million compared with $87.6 million of free cash outflow reported in the previous quarter.
Guidance
For first-quarter 2022, Groupon expects to deliver breakeven adjusted EBITDA and $160 million to $170 million of revenue.
For full-year 2022, Groupon expects Local billings recovery to accelerate throughout the year in both North America and International. Adjusted EBITDA is expected to be more than $112 million.
Zacks Rank & Stocks to Consider
Groupon currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Retail and Wholesale sector are AutoNation AN, Asbury Automotive Group ABGand Capri Holdings CPRI, each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation shares are up50.6% in the past year against the Zacks Automotive - Retail and Whole Sales industry’s rise of 17.6% and the Retail and Wholesale sector’s fall of 20.1% in the past year.
ABG shares are up 15.8% in the past year against the Automotive - Retail and Whole Sales industry’s rise of 17.6% and the Retail and Wholesale sector’s fall of 20.1%.
CPRI shares are up 41.4% in the past year against the Zacks Retail - Apparel and Shoes industry’s decline of 38.4% and the Retail and Wholesale sector’s fall of 20.1%.
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
AutoNation, Inc. (AN): Free Stock Analysis Report
Groupon, Inc. (GRPN): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Capri Holdings Limited (CPRI): 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. | Some better-ranked stocks from the Zacks Retail and Wholesale sector are AutoNation AN, Asbury Automotive Group ABGand Capri Holdings CPRI, each carrying a Zacks Rank #1 (Strong Buy). ABG shares are up 15.8% in the past year against the Automotive - Retail and Whole Sales industry’s rise of 17.6% and the Retail and Wholesale sector’s fall of 20.1%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked stocks from the Zacks Retail and Wholesale sector are AutoNation AN, Asbury Automotive Group ABGand Capri Holdings CPRI, each carrying a Zacks Rank #1 (Strong Buy). ABG shares are up 15.8% in the past year against the Automotive - Retail and Whole Sales industry’s rise of 17.6% and the Retail and Wholesale sector’s fall of 20.1%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked stocks from the Zacks Retail and Wholesale sector are AutoNation AN, Asbury Automotive Group ABGand Capri Holdings CPRI, each carrying a Zacks Rank #1 (Strong Buy). ABG shares are up 15.8% in the past year against the Automotive - Retail and Whole Sales industry’s rise of 17.6% and the Retail and Wholesale sector’s fall of 20.1%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked stocks from the Zacks Retail and Wholesale sector are AutoNation AN, Asbury Automotive Group ABGand Capri Holdings CPRI, each carrying a Zacks Rank #1 (Strong Buy). ABG shares are up 15.8% in the past year against the Automotive - Retail and Whole Sales industry’s rise of 17.6% and the Retail and Wholesale sector’s fall of 20.1%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28668.0 | 2022-02-28 00:00:00 UTC | Best Growth Stocks to Buy for February 28th | ABG | https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-february-28th | nan | nan | Just Released: Zacks Top 10 Stocks for 2022
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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): Free Stock Analysis Report Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Don’t miss your chance to get in on these long-term buys Access Zacks Top 10 Stocks for 2022 today >> | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Celestica, Inc. (CLS): Free Stock Analysis Report | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022? Don’t miss your chance to get in on these long-term buys Access Zacks Top 10 Stocks for 2022 today >> | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Don’t miss your chance to get in on these long-term buys Access Zacks Top 10 Stocks for 2022 today >> |
28669.0 | 2022-02-25 00:00:00 UTC | The Zacks Analyst Blog Highlights Asbury Automotive Group, ON Semiconductor, WESCO International, SM Energy Company and Denbury | ABG | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-asbury-automotive-group-on-semiconductor-wesco | nan | nan | For Immediate Release
Chicago, IL – February 25, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Asbury Automotive Group ABG, ON Semiconductor Corp. ON, WESCO International Inc. WCC, SM Energy Company SM and Denbury Inc. DEN.
Here are highlights from Thursday’s Analyst Blog:
5 Top-Ranked Growth Stocks at Attractive Valuations
There’s a sale going on right now.
Some of us may not be aware of it. Some of us may be scared of it. Can this really be true? Can so many great stocks be trading at a fraction of their intrinsic values? Isn’t it a fact that interest rate hikes are around the corner? And isn’t that supposed to be bad for the stock market? And what about the geopolitical tensions? Oil? What about inflation?
Don’t be afraid. There has never been a market that hasn’t bounced back. Really!
And again, some of us may be waiting for the right moment. This may not be the bottom after all.
Well guess what? If you wait too long, you could miss the boat.
So don’t waste time worrying about whether you timed it right. There’s still a lot of money to be made. Even at these levels. All you need to do is a bit of homework and go with a tried and tested method. And you’re all set.
Since a ton of stuff seems to be oversold right now, this looks like the right time to go long on growth. In good times you’d have to really pay up for this group. But when there’s this fear of hanging on gripping the market, it’s time to dare.
I decided to take a look at growth stocks today. And see what I found-
The first one is an auto retailer, one of those guys that have had a really great pandemic, making the most of short supplies and dwindling inventories to ratchet up prices and fleece the consumer. Turns out that with pandemic fears receding and things getting closer to normal, people want their cars more than ever. So its good fortunes are all set to continue-
Asbury Automotive Group
One of the nation’s largest auto retailers, Asbury Automotive sells both new and used vehicles and related maintenance, repair (including collision repair) and replacement services through a large network of dealership locations and collision centers across the U.S.
Asbury belongs to the Automotive - Retail and Wholesale industry (top 3% of 250+ Zacks-classified industries). Since historically, the top 50% have outperformed the bottom by a factor of 2 to 1, this position indicates strong prospects for the industry. And in addition, the shares have been allotted a Zacks Growth Score of A. Taken together, that means a strong company in a strong industry. Add the stock’s Zacks #1 (Strong Buy) Rank and you have a sure winner.
Asbury’s revenue and earnings growth are respectively 68.0% and 21.7%. What’s more, the last 30 days have seen analysts raising their estimates for the current year by an average $4.10 (14.0%).
Despite all this excitement, the shares remain ridiculously cheap. At 5.57X earnings, they’re way below the 19.18X for the S&P 500 and 16X for our universe.
Next up are the usual suspects, a semiconductor stock and a tech retailer. Who doesn’t know that the pandemic has opened up new avenues for tech companies, and semis in particular?
For a while, we were talking about how tech stocks (growth stocks) were taking it on the chin, with rate hikes around the corner and a correction that gets deeper by the day. But most people realize that these growth stocks aren’t really that risky. They sell the things that make the whole world more efficient. And it’s hard to think of innovation without them-
ON Semiconductor Corp.
ON Semiconductor makes a broad range of power management, intelligent sensing and signal processing chips. Auto (including EV) and industrial (including military, aerospace and medical) are its two largest segments, accounting for nearly two-thirds of its revenue. Since both these markets are currently on fire,
On Semiconductor has been reporting solid results and providing strong outlooks quarter upon quarter (which accounts for its #1 rank). This situation is not expected to change any time soon. Understandably, the Semiconductor - Analog and Mixed industry, to which it belongs is in the top 8% of Zacks-classified industries. Its huge growth potential is captured in the Zacks Growth Score of A. These factors taken together make a strong case for share price appreciation.
Especially when the numbers support as they’re doing now. On Semiconductor’s earnings are expected to increase 41.0% this year on top of revenue growth of 13.6%. And analysts are betting on further growth next year. They’ve certainly taken their estimates up by a mile: 2022 is up 88 cents (26.8%) and 2023 up $1.20 (37.0%).
ON Semiconductor shares trade at 14.05X earnings, which being below the S&P 500 and the average for our coverage universe, looks low.
WESCO International Inc.
WESCO provides business-to-business distribution, logistics and supply chain solutions in the U.S., Canada and other places. It belongs to the Electronics - Parts Distribution industry (top 1% of Zacks-classified industries). Like On Semiconductor, it also has a Growth Score of A, so like On Semiconductor, it is also headed up.
Supporting this thesis are strong numbers and an attractive valuation.
As far as the numbers go, it appears that WESCO’s revenue and earnings are set to rise 6.8% and 13.6%, respectively in 2022 and further increase in 2023. Analysts appear highly optimistic: the 2022 consensus is up 71 cents (nearly 7%) and the 2023 consensus is up 76 cents (6.4%).
What’s more, valuation is cheap (10.85X P/E versus 16X for our universe and 19.18X for the S&P 500).
And finally, we have a couple of energy stocks. With both the WTI and Brent benchmarks hovering around $100, oil is the hottest commodity today. The energy crunch coming into 2022 fueled strength in oil, coal (the dirty fuel is a great support in times like this), and natural gas and wind (the saviors in this piece). Putin is only adding to the heat.
So while the pandemic was a big blow for the sector, they’re getting a windfall now. And we have historically high growth rates and the always on (kind-of) reopening in addition to that. Both SM Energy and Denbury look great as of now. But since they are set to report today, we’ll know more about the situation thereafter.
High prices are particularly beneficial for upstream players and these companies belong to the Oil and Gas - Exploration and Production - United States industry (top 25%). This along with their #1 ranks and Growth Score A are good indications of near-term potential. But the numbers also tell a positive story.
SM Energy Company
SM Energy acquires, explores, develops, and produces oil, natural gas and natural gas liquids in Texas. Its operations are mainly in the attractive Permian Basin and South Texas & Gulf Coast regions. It has substantial future development opportunities in multiple oil-rich locations in the area.
Analysts expect SM Energy to grow revenue and earnings by 32.9% and 338.5%, respectively in 2022. They’ve taken their estimates for the year up 53 cents (9.0%) in the last 30 days.
Valuation is also attractive. At 5.29X earnings, the shares are trading below the 16X average for our universe and the 19.18X for the S&P 500.
Denbury Inc.
Denbury produces oil from mature oil and natural gas properties in the Gulf Coast (located in Mississippi, Texas and Louisiana) and Rocky Mountain (Montana, North Dakota and Wyoming) regions.
nbury’s revenue and earnings are expected to grow a respective 24.7% and 162.9% this year. Estimates for the year have been raised by 62 cents (10.2%) in the last 30 days.
At 9.98X earnings, Denbury stock looks cheap.
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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Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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WESCO International, Inc. (WCC): Free Stock Analysis Report
SM Energy Company (SM): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
ON Semiconductor Corporation (ON): Free Stock Analysis Report
Denbury Inc. (DEN): 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. | Stocks recently featured in the blog include: Asbury Automotive Group ABG, ON Semiconductor Corp. ON, WESCO International Inc. WCC, SM Energy Company SM and Denbury Inc. DEN. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report And see what I found- The first one is an auto retailer, one of those guys that have had a really great pandemic, making the most of short supplies and dwindling inventories to ratchet up prices and fleece the consumer. | Stocks recently featured in the blog include: Asbury Automotive Group ABG, ON Semiconductor Corp. ON, WESCO International Inc. WCC, SM Energy Company SM and Denbury Inc. DEN. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report SM Energy Company SM Energy acquires, explores, develops, and produces oil, natural gas and natural gas liquids in Texas. | Stocks recently featured in the blog include: Asbury Automotive Group ABG, ON Semiconductor Corp. ON, WESCO International Inc. WCC, SM Energy Company SM and Denbury Inc. DEN. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report So its good fortunes are all set to continue- Asbury Automotive Group One of the nation’s largest auto retailers, Asbury Automotive sells both new and used vehicles and related maintenance, repair (including collision repair) and replacement services through a large network of dealership locations and collision centers across the U.S. Asbury belongs to the Automotive - Retail and Wholesale industry (top 3% of 250+ Zacks-classified industries). | Stocks recently featured in the blog include: Asbury Automotive Group ABG, ON Semiconductor Corp. ON, WESCO International Inc. WCC, SM Energy Company SM and Denbury Inc. DEN. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Supporting this thesis are strong numbers and an attractive valuation. |
28670.0 | 2022-02-25 00:00:00 UTC | Alibaba (BABA) Q3 Earnings Beat Estimates, Revenues Rise Y/Y | ABG | https://www.nasdaq.com/articles/alibaba-baba-q3-earnings-beat-estimates-revenues-rise-y-y | nan | nan | Alibaba Group Holding Limited BABA reported third-quarter fiscal 2022 non-GAAP earnings of $2.65 per ADS (RMB 16.87), which surpassed the Zacks Consensus Estimate by 9.9%. Notably, the figure decreased 23% year over year in RMB terms.
Revenues of RMB 242.6 billion ($38.1 billion) improved 10% from the prior-year quarter. Further, the top-line figure beat the Zacks Consensus Estimate of $37.9 billion.
Top-line growth was driven by the solid momentum across Alibaba’s China commerce and International commerce businesses.
Additionally, strength across the cloud computing business and Cainiao logistics services contributed well to top-line growth.
Alibaba Group Holding Limited Price, Consensus and EPS Surprise
Alibaba Group Holding Limited price-consensus-eps-surprise-chart | Alibaba Group Holding Limited Quote
Revenues by Segments
China Commerce (71% of total revenues): The segment comprises marketplaces operating in the retail and wholesale commerce markets of China. The company generated RMB 172.23 billion ($27.03 billion) of revenues from the segment, which rose 7% year over year.
China commerce retail (69% of total revenues): The business vertical’s revenues for the reported quarter were RMB 167.99 billion ($26.4 billion), reflecting a year-over-year increase of 7%. Positive contributions from Sun Art, Tmall Supermarket and Freshippo benefited the business.
However, sluggish growth in online physical goods GMV on Taobao and Tmall marketplaces, which led to a decline in customer management revenues was a concern.
China commerce wholesale (2% of total revenues): The business generated revenues of RMB 4.2 billion ($664 million), up 10% from the year-ago quarter. The increase in spending revenues by paying members on 1688.com aided revenue growth.
International Commerce (7% of total revenues): The segment comprises marketplaces operating in the international retail and wholesale commerce markets. The company generated RMB 16.45 billion ($2.6 billion) of revenues from the segment, which grew 18% year over year.
International commerce retail (5% of total revenues): Revenues for the reported quarter were RMB 11.61 billion ($1.8 billion), increasing 14% year over year. The increase was driven by well-performing Lazada.
However, the company witnessed sluggish growth in Trendyol, which was concerning. Also, it faced decreasing AliExpress orders in Europe.
International commerce wholesale (2% of total revenues): The business generated revenues of RMB 4.8 billion ($760 million), which increased 29% from the prior-year quarter’s level. Growth was attributed to a surge in the number of paying members on the Alibaba.com platform and revenues generated by cross-border-related value-added services.
Local consumer services (5% of total revenues): Revenues grossed RMB 12.1 billion ($1.91 billion), up 27% year over year. This was driven by solid growth in order volume.
Cainiao logistics services (5% of total revenues): The business generated revenues of RMB 13.1 billion ($2.05 billion), up 15% year over year. The upside was led by strong momentum across cross-border and international commerce retail businesses. Also, growing value-added services’ revenues contributed well.
Cloud Computing (8% of total revenues): The segment generated revenues of RMB 19.54 billion ($3.1 billion), up 20% from the year-ago figure, aided by solid momentum across finance and telecommunication industries.
However, the company witnessed weakness in the Internet industry as there was slowing demand from customers in the online entertainment and education fields.
Digital Media and Entertainment (3% of total revenues): The segment yielded revenues of RMB 8.1 billion ($1.3 billion), inching up 0.4% on a year-over-year basis.
Innovation Initiatives and Others (1% of total revenues): Revenues from the segment were RMB 1.03 billion ($163 million), up 63% year over year.
Operating Details
In the fiscal third quarter, sales and marketing expenses were RMB 36.7 billion ($5.8 billion), up 4% year over year. As a percentage of total revenues, the figure expanded 400 basis points (bps) year over year to 15%.
General and administrative expenses were RMB 8.5 billion ($1.3 billion), down 2.6% from the year-ago quarter’s level. The figure contracted 40 bps year over year to 3.5% as a percentage of revenues.
Operating income was RMB 7.1 billion ($1.1 billion), down 86% from the year-ago quarter’s level. Further, the operating margin contracted significantly from 22% in the prior-year quarter to 3% in the reported quarter.
Adjusted EBITDA decreased 25% year over year to RMB 51.4 billion ($8.1 billion).
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash and cash equivalents were $45.99 billion (RMB 293.1 billion), up from $42.2 billion (RMB 272.2 billion) as of Sep 30, 2021.
Short-term investments totaled $29.1 billion (RMB 185.4 billion) at the end of the fiscal third quarter, up from $26.6 billion (RMB 171.2 billion) at the end of the fiscal second quarter.
Alibaba generated $12.6 billion (RMB 80.4 billion) of cash from operations in the reported quarter, up from $5.6 billion (RMB 35.8 billion) in the previous quarter.
Baba’s free cash flow was $11.1 billion (RMB 71.02 billion).
The company repurchased 10.1 million of its ADSs (equivalent to 80.7 million of its ordinary shares) worth $1.4 billion.
Zacks Rank & Stocks to Consider
Currently, Alibaba carries a Zacks Rank #5 (Strong Sell).
Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. While AutoNation and Asbury Automotive currently sport a Zacks Rank #1 (Strong Buy), Dollar Tree carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has gained 37.8% over a year. The long-term earnings growth rate for AN is currently projected at 23.55%.
Asbury Automotive has gained 9.3% over a year. The long-term earnings growth rate for ABG is currently projected at 18.52%.
Dollar Tree has gained 37.7% over a year. The long-term earnings growth rate for DLTR is currently projected at 12.18%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
Dollar Tree, Inc. (DLTR): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): 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. | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28671.0 | 2022-02-25 00:00:00 UTC | Carvana (CVNA) Q4 Earnings Miss Estimates, Sales Rise Y/Y | ABG | https://www.nasdaq.com/articles/carvana-cvna-q4-earnings-miss-estimates-sales-rise-y-y | nan | nan | Carvana Co. CVNA incurred a wider-than-expected fourth-quarter 2021 loss of $1.02 per share. In the year-ago quarter, it had incurred a loss of 41 cents a share. The Zacks Consensus Estimate was pegged at a loss of 79 cents. The underperformance stemmed from lower-than-expected gross profit per unit from ‘used vehicle’ sales.
Fourth-quarter revenues of $3,753 million outpaced the Zacks Consensus Estimate of $3,562.4 million and surged 105.5% year over year.
During the reported quarter, the number of used vehicles sold to retail customers grew 56.6% to 113,016 from the prior-year period’s 72,172. Total gross profit amounted to $516 million, up a whopping 111% year over year. SG&A expenses were $620 million, flaring up 81.3%.
Segmental Performance
Used vehicle sales totaled $2,897 million in the fourth quarter, rocketing 93.6% year over year. The sales figure also beat the Zacks Consensus Estimate of $2,749 million. Gross profit per unit for used vehicles amounted to $1,495, rising 18.2% year over year. The metric lagged the Zacks Consensus Estimate of $1,632.
In the reported quarter, wholesale vehicle sales summed $571 million, soaring a whopping 207% year over year. The figure also topped the consensus mark of $549 million. Gross profit per unit for wholesale vehicles came in at $549, shooting up 408.3% year over year. The metric beat the consensus mark of $416 million.
In the period in consideration, other sales and revenues shot up 96.6% year over year to $285 million. The figure also trumped the Zacks Consensus Estimate of $265 million. Gross profit per unit came in at $2,522, surging 25.7%. The metric outpaced the Zacks Consensus Estimate of $2,443.
Financial Position
Carvana had cash and cash equivalents of $403 million as of Dec 31, 2021, compared with $301 million on Dec 31, 2020. Long-term debt amounted to $3,208 million as of Dec 31, 2021, up from $1,167 million recorded on Dec 31, 2020.
2022 Guidance
For 2022, retail unit sales are expected to grow more than 550,000. Following the first quarter, in the second through the fourth quarter taken in aggregate, total GPU of more than $4,000 and an almost breakeven EBITDA margin is expected. Carvana anticipates supply chain disruption brought by the Omicron variant, severe winter storms and the recent rapid increase in short-term interest rates to weigh on first quarter 2022 total GPU and SG&A per retail unit sold, leading to an expected EBITDA margin loss in the mid-single-digit range.
Zacks Rank & Key Picks
Currently, CVNA has a Zacks Rank #3 (Hold).
Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.8% upward in the past 60 days.
AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 39.34%, on average. The stock has also rallied 41.9% over a year.
Asbury has an expected earnings growth rate of 21.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 14.2% upward in the past 60 days.
Asbury’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. The stock has grown 9.9% over a year.
Group 1 has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.8% upward in the past 60 days.
Group 1’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPI pulled off a trailing four-quarter earnings surprise of 9.75%, on average. The stock has also rallied 16% over a year.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
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AutoNation, Inc. (AN): Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Carvana Co. (CVNA): 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. | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Better-ranked players in the retail-wholesale space include AutoNation AN and Asbury Automotive Group ABG, each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive GPI, carrying a Zacks Rank #2 (Buy) currently. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28672.0 | 2022-02-24 00:00:00 UTC | Booking Holdings (BKNG) Q4 Earnings Beat, Revenues Rise Y/Y | ABG | https://www.nasdaq.com/articles/booking-holdings-bkng-q4-earnings-beat-revenues-rise-y-y | nan | nan | Booking Holdings Inc. BKNG reported non-GAAP earnings of $15.83 per share in fourth-quarter 2021, beating the Zacks Consensus Estimate by 24.3%. Further, the figure compares favorably with the loss of 57 cents per share reported in the year-ago quarter.
However, the bottom line declined 58% from the previous quarter.
Revenues of $2.98 billion surpassed the Zacks Consensus Estimate of $2.9 billion. The top line improved 140.7% year over year on a reported basis and 146% on a constant-currency (cc) basis.
However, the top-line figure fell 36.2% sequentially.
Improving travel demand and booking trends from the year-ago quarter were tailwinds.
Booking Holdings witnessed growth of 35.8% in rental car on a year-over-year basis. The company also experienced 108% year-over-year growth in the airline tickets unit in the reported quarter.
Booked room night number, which was 151 million in the fourth quarter, surged 99.9% from the prior-year quarter.
The company witnessed strong growth across its agency, merchant, and advertising and other businesses in the reported quarter.
However, the rapidly spreading Omicron variant of coronavirus, which affected global travel demand at the end of the reported quarter, was a headwind.
Nevertheless, the ongoing vaccination drive and strengthening confidence for travel among people amid the pandemic remains a major positive.
Booking Holdings Inc. Price, Consensus and EPS Surprise
Booking Holdings Inc. price-consensus-eps-surprise-chart | Booking Holdings Inc. Quote
Top Line in Detail
The company generates the bulk of revenues from international markets, wherein the agency model is more popular. This is reflected in the merchant/agency split of revenues, which was 34.9/58.7% in the fourth quarter (the previous quarter’s split was 34.7/61.3%)
Agency revenues were $1.75 billion, up 116.2% year over year. Merchant revenues were $1.04 billion, up 176.6% on a year-over-year basis.
Advertising & Other revenues were $190 million (6.4% of total revenues), increasing significantly from $52 million in the year-ago quarter.
Bookings
Booking Holdings’ overall gross bookings totaled $19.01 billion, which increased 160% on a reported and 164% on a cc basis from the year-ago quarter.
Total gross bookings lagged the Zacks Consensus Estimate of $19.9 billion.
Merchant bookings were $7.14 billion, up 222.2% from the prior-year quarter.
Agency bookings were $11.9 billion, rising 132.9% from the prior-year quarter.
Operating Results
Adjusted EBITDA in the reported quarter was $940 million against a loss of $38 million in the prior-year quarter.
Per management, operating expenses were $2.1 billion, up 53.3% on a year-over-year basis. As a percentage of revenues, the figure contracted significantly to 71.6% from 112.4% in the year-ago quarter.
Notably, the company generated an operating income of $848 million against a loss of $153 million in the year-ago quarter.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents were $11.13 billion, down from $11.6 billion as of Sep 30, 2021.
Short-term investments amounted to $25 million in the reported quarter compared with $522 million in the previous quarter.
At the end of the fourth quarter, Booking Holdings had $8.94 billion of long-term debt compared with $9.89 billion at the end of the third quarter.
Zacks Rank & Stocks to Consider
Currently, Booking Holdings carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. While AutoNation and Asbury Automotive currently sport a Zacks Rank #1 (Strong Buy), Dollar Tree carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has gained 37.8% over a year. The long-term earnings growth rate for AN is currently projected at 23.55%.
Asbury Automotive has gained 9.3% over a year. The long-term earnings growth rate for ABG is currently projected at 18.52%.
Dollar Tree has gained 37.7% over a year. The long-term earnings growth rate for DLTR is currently projected at 12.18%.
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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Dollar Tree, Inc. (DLTR): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Booking Holdings Inc. (BKNG): 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. | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28673.0 | 2022-02-24 00:00:00 UTC | eBay (EBAY) Q4 Earnings & Revenues Beat Estimates, Rise Y/Y | ABG | https://www.nasdaq.com/articles/ebay-ebay-q4-earnings-revenues-beat-estimates-rise-y-y | nan | nan | eBay Inc. EBAY reported fourth-quarter 2021 non-GAAP earnings of $1.05 per share, which beat the Zacks Consensus Estimate by 6.1%. The bottom line grew 24% year over year and 16.7% sequentially.
Net revenues of $2.613 billion surpassed the Zacks Consensus Estimate of $2.611 billion. Further, the figure increased 5% from the year-ago quarter on a reported basis as well as on a FX-neutral basis. The top line rose 4.5% sequentially.
Year-over-year top-line growth was driven by accelerating transaction revenues. eBay’s Promoted Listings contributed well by generating revenues of $227 million, which grew 5% on a reported and 4% on a FX-neutral basis from the prior-year quarter.
However, the company witnessed a year-over-year decline of 9% in the active buyer base, which stood at 147 million at the end of the fourth quarter. The active seller number fell 8% to 17 million in the reported quarter.
eBay also witnessed declining gross merchandise volume (“GMV”) in the fourth quarter, which remained an overhang.
Notably, the company remains optimistic about its growth initiatives, based on enhancing the seller experience by offering innovative seller tools and delivering a better buyer experience by utilizing structured data. Its deepening focus toward strengthening the advertising business also remains noteworthy.
eBay Inc. Price, Consensus and EPS Surprise
eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. Quote
GMV Details
The company’s total GMV of $20.7 billion in the reported quarter exhibited a year-over-year decline of 10% and 11% on a reported and an FX-neutral basis, respectively. This was primarily due to a year-over-year decline of 8% and 19% in the company’s B2C and C2C GMVs, respectively.
Nevertheless, reported GMV surpassed the Zacks Consensus Estimate of $19.9 billion.
Notably, total GMV is categorized into two parts.
U.S. GMV totaled $9.7 billion, which accounted for 46.9% of the total GMV, down 2% from the year-ago quarter.
International GMV was $11 billion, which accounted for 53.1% of the total GMV. It fell 16% on a year-over-year basis.
Revenues in Detail
eBay’s revenues are classified into two types.
Net Transaction: The company reported net transaction revenues of $2.45 billion in the quarter under review, accounting for 93.8% of the total revenues. The figure was up 6% from the year-ago quarter.
Marketing Services and Other: eBay generated $163 million of total marketing services and other revenues (6.2% of total revenues), down 4% from the year-ago quarter.
Operating Details
In the fourth quarter, eBay’s gross margin was 73.4%, contracting 450 basis points (bps) year over year.
Operating expenses of $1.2 billion fell 3% year over year. As a percentage of net revenues, the figure contracted 410 bps to 47.1% from the year-ago quarter.
The non-GAAP operating margin was 31.6% in the fourth quarter, contracting 10 bps year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash equivalents and short-term investments were $7.3 billion, up from $5.3 billion as of Sep 30, 2021.
Long-term debt has been unchanged at $7.7 billion at the end of the reported quarter compared with the last reported quarter.
The company generated $475 million of cash from operating activities in the fourth quarter, down from $661 million in the third quarter.
Its free cash flow stood at $372 million in the reported quarter.
The company repurchased $3 billion worth of shares and paid out dividends of $107 million in the reported quarter.
Guidance
For first-quarter 2022, eBay expects revenues of $2.43-$2.48 billion. On a FX-neutral basis, the year-over-year decline in revenues is anticipated to be 5-7%. The Zacks Consensus Estimate for revenues is pegged at $2.63 billion.
Non-GAAP earnings per share are anticipated to be between $1.01 and $1.05. The Zacks Consensus Estimate for the same is pegged at 99 cents per share.
For 2022, the company expects revenues of $10.3-$10.5 billion, suggesting growth of 0-3% on a FX-neutral basis from 2021. The Zacks Consensus Estimate for revenues is pegged at $11.04 billion.
Non-GAAP earnings per share are anticipated to be between $4.20 and $4.40. Notably, the Zacks Consensus Estimate for the same is pegged at $3.96 per share.
Zacks Rank & Stocks to Consider
Currently, eBay carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. While AutoNation and Asbury Automotive currently sport a Zacks Rank #1 (Strong Buy), Dollar Tree carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has gained 37.8% over a year. The long-term earnings growth rate for AN is currently projected at 23.55%.
Asbury Automotive has gained 9.3% over a year. The long-term earnings growth rate for ABG is currently projected at 18.52%.
Dollar Tree has gained 37.7% over a year. The long-term earnings growth rate for DLTR is currently projected at 12.18%.
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
Dollar Tree, Inc. (DLTR): Free Stock Analysis Report
eBay Inc. (EBAY): 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.
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. | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Some better-ranked companies in the retail-wholesale sector are AutoNation AN, Asbury Automotive Group ABG and Dollar Tree DLTR. The long-term earnings growth rate for ABG is currently projected at 18.52%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28674.0 | 2022-02-24 00:00:00 UTC | Best Growth Stocks to Buy for February 24th | ABG | https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-february-24th | nan | nan | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 24th:
Asbury Automotive Group ABG: This automotive retailers carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing almost 14.2% over the last 60 days.
Asbury Automotive Group, Inc. Price and Consensus
Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote
Asbury Automotive Group has a PEG ratio of 0.30 compared with 0.35 for the industry. The company possesses a Growth Score of A.
Asbury Automotive Group, Inc. PEG Ratio (TTM)
Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote
ArcBest ARCB: This freight transportation services and solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.4% over the last 60 days.
ArcBest Corporation Price and Consensus
ArcBest Corporation price-consensus-chart | ArcBest Corporation Quote
ArcBest has a PEG ratio of 0.21 compared with 0.66 for the industry. The company possesses a Growth Score of A.
ArcBest Corporation PEG Ratio (TTM)
ArcBest Corporation peg-ratio-ttm | ArcBest Corporation Quote
BraskemBAK: This petrochemical operation company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5% over the last 60 days.
Braskem S.A. Price and Consensus
Braskem S.A. price-consensus-chart | Braskem S.A. Quote
Braskem has a PEG ratio of 0.39 compared with 0.53 for the industry. The company possesses a Growth Score of A.
Braskem S.A. PEG Ratio (TTM)
Braskem S.A. peg-ratio-ttm | Braskem S.A. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated 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.
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
Braskem S.A. (BAK): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
ArcBest Corporation (ARCB): 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. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 24th: Asbury Automotive Group ABG: This automotive retailers carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing almost 14.2% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Asbury Automotive Group, Inc. PEG Ratio (TTM) Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote ArcBest ARCB: This freight transportation services and solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.4% over the last 60 days. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 24th: Asbury Automotive Group ABG: This automotive retailers carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing almost 14.2% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. Price and Consensus Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote Asbury Automotive Group has a PEG ratio of 0.30 compared with 0.35 for the industry. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 24th: Asbury Automotive Group ABG: This automotive retailers carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing almost 14.2% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Asbury Automotive Group, Inc. PEG Ratio (TTM) Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote ArcBest ARCB: This freight transportation services and solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.4% over the last 60 days. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 24th: Asbury Automotive Group ABG: This automotive retailers carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing almost 14.2% over the last 60 days. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The company possesses a Growth Score of A. Braskem S.A. PEG Ratio (TTM) Braskem S.A. peg-ratio-ttm | Braskem S.A. Quote See the full list of top ranked stocks here. |
28675.0 | 2022-02-24 00:00:00 UTC | 5 Top-Ranked Growth Stocks at Attractive Valuations | ABG | https://www.nasdaq.com/articles/5-top-ranked-growth-stocks-at-attractive-valuations | nan | nan | There’s a sale going on right now.
Some of us may not be aware of it. Some of us may be scared of it. Can this really be true? Can so many great stocks be trading at a fraction of their intrinsic values? Isn’t it a fact that interest rate hikes are around the corner? And isn’t that supposed to be bad for the stock market? And what about the geopolitical tensions? Oil? What about inflation?
Don’t be afraid. There has never been a market that hasn’t bounced back. Really!
And again, some of us may be waiting for the right moment. This may not be the bottom after all.
Well guess what? If you wait too long, you could miss the boat.
So don’t waste time worrying about whether you timed it right. There’s still a lot of money to be made. Even at these levels. All you need to do is a bit of homework and go with a tried and tested method. And you’re all set.
Since a ton of stuff seems to be oversold right now, this looks like the right time to go long on growth. In good times you’d have to really pay up for this group. But when there’s this fear of hanging on gripping the market, it’s time to dare.
I decided to take a look at growth stocks today. And see what I found-
The first one is an auto retailer, one of those guys that have had a really great pandemic, making the most of short supplies and dwindling inventories to ratchet up prices and fleece the consumer. Turns out that with pandemic fears receding and things getting closer to normal, people want their cars more than ever. So its good fortunes are all set to continue-
Asbury Automotive Group ABG
One of the nation’s largest auto retailers, Asbury Automotive sells both new and used vehicles and related maintenance, repair (including collision repair) and replacement services through a large network of dealership locations and collision centers across the U.S.
Asbury belongs to the Automotive - Retail and Whole Sales industry (top 3% of 250+ Zacks-classified industries). Since historically, the top 50% have outperformed the bottom by a factor of 2 to 1, this position indicates strong prospects for the industry. And in addition, the shares have been allotted a Zacks Growth Score of A. Taken together, that means a strong company in a strong industry. Add the stock’s Zacks #1 (Strong Buy) Rank and you have a sure winner.
Asbury’s revenue and earnings growth are a respective 68.0% and 21.7%. What’s more, the last 30 days have seen analysts raising their estimates for the current year by an average $4.10 (14.0%).
Despite all this excitement, the shares remain ridiculously cheap. At 5.57X earnings, they’re way below the 19.18X for the S&P 500 and 16X for our universe.
Next up are the usual suspects, a semiconductor stock and a tech retailer. Who doesn’t know that the pandemic has opened up new avenues for tech companies, and semis in particular? For a while, we were talking about how tech stocks (growth stocks) were taking it on the chin, with rate hikes around the corner and a correction that gets deeper by the day. But most people realize that these growth stocks aren’t really that risky. They sell the things that make the whole world more efficient. And it’s hard to think of innovation without them-
ON Semiconductor Corporation ON
ON Semiconductor makes a broad range of power management, intelligent sensing and signal processing chips. Auto (including EV) and industrial (including military, aerospace and medical) are its two largest segments, accounting for nearly two-thirds of its revenue. Since both these markets are currently on fire,
On Semiconductor has been reporting solid results and providing strong outlooks quarter upon quarter (which accounts for its #1 rank). This situation is not expected to change any time soon. Understandably, the Semiconductor - Analog and Mixed industry, to which it belongs is in the top 8% of Zacks-classified industries. Its huge growth potential is captured in the Zacks Growth Score of A. These factors taken together make a strong case for share price appreciation.
Especially when the numbers support as they’re doing now. On Semiconductor’s earnings are expected to increase 41.0% this year on top of revenue growth of 13.6%. And analysts are betting on further growth next year. They’ve certainly taken their estimates up by a mile: 2022 is up 88 cents (26.8%) and 2023 up $1.20 (37.0%).
ON Semiconductor shares trade at 14.05X earnings, which being below the S&P 500 and the average for our coverage universe, looks low.
WESCO International Inc. WCC
WESCO provides business-to-business distribution, logistics and supply chain solutions in the U.S., Canada and other places. It belongs to the Electronics - Parts Distribution industry (top 1% of Zacks-classified industries). Like On Semiconductor, it also has a Growth Score of A, so like On Semiconductor, it is also headed up.
Supporting this thesis are strong numbers and an attractive valuation.
As far as the numbers go, it appears that WESCO’s revenue and earnings are set to rise 6.8% and 13.6%, respectively in 2022 and further increase in 2023. Analysts appear highly optimistic: the 2022 consensus is up 71 cents (nearly 7%) and the 2023 consensus is up 76 cents (6.4%).
What’s more, valuation is cheap (10.85X P/E versus 16X for our universe and 19.18X for the S&P 500).
And finally, we have a couple of energy stocks. With both the WTI and Brent benchmarks hovering around $100, oil is the hottest commodity today. The energy crunch coming into 2022 fueled strength in oil, coal (the dirty fuel is a great support in times like this), and natural gas and wind (the saviors in this piece). Putin is only adding to the heat.
So while the pandemic was a big blow for the sector, they’re getting a windfall now. And we have historically high growth rates and the always on (kind-of) reopening in addition to that. Both SM Energy and Denbury look great as of now. But since they are set to report today, we’ll know more about the situation thereafter.
High prices are particularly beneficial for upstream players and these companies belong to the Oil and Gas - Exploration and Production - United States industry (top 25%). This along with their #1 ranks and Growth Score A are good indications of near-term potential. But the numbers also tell a positive story.
SM Energy Company SM
SM Energy acquires, explores, develops, and produces oil, natural gas and natural gas liquids in Texas. Its operations are mainly in the attractive Permian Basin and South Texas & Gulf Coast regions. It has substantial future development opportunities in multiple oil-rich locations in the area.
Analysts expect SM Energy to grow revenue and earnings by 32.9% and 338.5%, respectively in 2022. They’ve taken their estimates for the year up 53 cents (9.0%) in the last 30 days.
Valuation is also attractive. At 5.29X earnings, the shares are trading below the 16X average for our universe and the 19.18X for the S&P 500.
Denbury Inc DEN
Denbury produces oil from mature oil and natural gas properties in the Gulf Coast (located in Mississippi, Texas and Louisiana) and Rocky Mountain (Montana, North Dakota and Wyoming) regions.
nbury’s revenue and earnings are expected to grow a respective 24.7% and 162.9% this year. Estimates for the year have been raised by 62 cents (10.2%) in the last 30 days.
At 9.98X earnings, Denbury stock looks cheap.
3-Month Price Performance
Image Source: Zacks Investment Research
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
WESCO International, Inc. (WCC): Free Stock Analysis Report
SM Energy Company (SM): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
ON Semiconductor Corporation (ON): Free Stock Analysis Report
Denbury Inc. (DEN): 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. | So its good fortunes are all set to continue- Asbury Automotive Group ABG One of the nation’s largest auto retailers, Asbury Automotive sells both new and used vehicles and related maintenance, repair (including collision repair) and replacement services through a large network of dealership locations and collision centers across the U.S. Asbury belongs to the Automotive - Retail and Whole Sales industry (top 3% of 250+ Zacks-classified industries). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report And see what I found- The first one is an auto retailer, one of those guys that have had a really great pandemic, making the most of short supplies and dwindling inventories to ratchet up prices and fleece the consumer. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report So its good fortunes are all set to continue- Asbury Automotive Group ABG One of the nation’s largest auto retailers, Asbury Automotive sells both new and used vehicles and related maintenance, repair (including collision repair) and replacement services through a large network of dealership locations and collision centers across the U.S. Asbury belongs to the Automotive - Retail and Whole Sales industry (top 3% of 250+ Zacks-classified industries). SM Energy Company SM SM Energy acquires, explores, develops, and produces oil, natural gas and natural gas liquids in Texas. | So its good fortunes are all set to continue- Asbury Automotive Group ABG One of the nation’s largest auto retailers, Asbury Automotive sells both new and used vehicles and related maintenance, repair (including collision repair) and replacement services through a large network of dealership locations and collision centers across the U.S. Asbury belongs to the Automotive - Retail and Whole Sales industry (top 3% of 250+ Zacks-classified industries). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report For a while, we were talking about how tech stocks (growth stocks) were taking it on the chin, with rate hikes around the corner and a correction that gets deeper by the day. | So its good fortunes are all set to continue- Asbury Automotive Group ABG One of the nation’s largest auto retailers, Asbury Automotive sells both new and used vehicles and related maintenance, repair (including collision repair) and replacement services through a large network of dealership locations and collision centers across the U.S. Asbury belongs to the Automotive - Retail and Whole Sales industry (top 3% of 250+ Zacks-classified industries). Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report On Semiconductor’s earnings are expected to increase 41.0% this year on top of revenue growth of 13.6%. |
28676.0 | 2022-02-23 00:00:00 UTC | The Fed Has One Major Source of Concern | ABG | https://www.nasdaq.com/articles/the-fed-has-one-major-source-of-concern | nan | nan | Corporate profits have never been fatter — or accounted for a bigger portion of the overall U.S. economy. We dig a little deeper into this now with our Chief Equity Strategist and Economist, John Blank.
1. Without getting too technical, what are the main reasons for this?
2. According to published Bureau of Economic Analysis figures, U.S. Corporate After-tax Profits recently made up about 11.7% of GDP. This at a time of rising inflation with consumers paying more for goods. What does this imply for the U.S. economy?
3. What about wages?
4. Then there’s the projection of 5 rate hikes this year, up from an earlier projected 4. So, does all of this have a negative impact on U.S. GDP going forward?
5. Is the bar for growth being set lower?
6. Do you think we could see more changes to Fed monetary policy if inflation continues upward?
7. What do you see currently as the main economic risks both here and globally?
8. Do you see the Russia-Ukraine situation as more of an impact to the markets vs the economy?
9. Strong Buy Stocks to be aware of now include STMicroelectronics STM, BP BP and Asbury Automotive Group ABG
Our Chief Equity Strategist & Economist, John Blank, sizing up corporate profits and the economy. With John, I’m Terry Ruffolo.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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
STMicroelectronics N.V. (STM): Free Stock Analysis Report
BP p.l.c. (BP): 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. | Strong Buy Stocks to be aware of now include STMicroelectronics STM, BP BP and Asbury Automotive Group ABG Our Chief Equity Strategist & Economist, John Blank, sizing up corporate profits and the economy. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report We dig a little deeper into this now with our Chief Equity Strategist and Economist, John Blank. | Strong Buy Stocks to be aware of now include STMicroelectronics STM, BP BP and Asbury Automotive Group ABG Our Chief Equity Strategist & Economist, John Blank, sizing up corporate profits and the economy. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report STMicroelectronics N.V. (STM): Free Stock Analysis Report | Strong Buy Stocks to be aware of now include STMicroelectronics STM, BP BP and Asbury Automotive Group ABG Our Chief Equity Strategist & Economist, John Blank, sizing up corporate profits and the economy. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Just Released: Zacks' 7 Best Stocks for Today Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year. | Strong Buy Stocks to be aware of now include STMicroelectronics STM, BP BP and Asbury Automotive Group ABG Our Chief Equity Strategist & Economist, John Blank, sizing up corporate profits and the economy. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report According to published Bureau of Economic Analysis figures, U.S. Corporate After-tax Profits recently made up about 11.7% of GDP. |
28677.0 | 2022-02-23 00:00:00 UTC | Can Asbury Automotive (ABG) Run Higher on Rising Earnings Estimates? | ABG | https://www.nasdaq.com/articles/can-asbury-automotive-abg-run-higher-on-rising-earnings-estimates | nan | nan | Investors might want to bet on Asbury Automotive Group (ABG), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The upward trend in estimate revisions for this auto dealership chain reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Asbury Automotive, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
The company is expected to earn $9.08 per share for the current quarter, which represents a year-over-year change of +94.02%.
Over the last 30 days, the Zacks Consensus Estimate for Asbury Automotive has increased 45.47% because two estimates have moved higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $33.20 per share for the full year, which represents a change of +21.66% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Asbury Automotive. Over the past month, four estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 39.27%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Asbury Automotive currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Asbury Automotive shares have added 10.8% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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 might want to bet on Asbury Automotive Group (ABG), as earnings estimates for this company have been showing solid improvement lately. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. | Investors might want to bet on Asbury Automotive Group (ABG), as earnings estimates for this company have been showing solid improvement lately. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: 12 Month EPS Current-Quarter Estimate Revisions The company is expected to earn $9.08 per share for the current quarter, which represents a year-over-year change of +94.02%. | Investors might want to bet on Asbury Automotive Group (ABG), as earnings estimates for this company have been showing solid improvement lately. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. | Investors might want to bet on Asbury Automotive Group (ABG), as earnings estimates for this company have been showing solid improvement lately. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Over the last 30 days, the Zacks Consensus Estimate for Asbury Automotive has increased 45.47% because two estimates have moved higher compared to no negative revisions. |
28678.0 | 2022-02-22 00:00:00 UTC | Zacks.com featured highlights include ArcBest, Atlas Air Worldwide Holdings, Cross Country Healthcare, Asbury Automotive Group and Avnet | ABG | https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-arcbest-atlas-air-worldwide-holdings-cross-country | nan | nan | For Immediate Release
Chicago, IL – February 22, 2022 – Stocks in this week’s article are ArcBest Corp. ARCB, Atlas Air Worldwide Holdings AAWW, Cross Country Healthcare CCRN, Asbury Automotive Group ABG and Avnet AVT.
5 Stocks to Add to Your Portfolio Post-Broker Upgrade
It is no secret that complexities associated with equity markets are not easy to master as a plethora of stocks floods the space at any point of time. An in-depth knowledge of the investment world is a prime requisite as one tries to build a winning portfolio of stocks, irrespective of the surrounding market conditions, to garner attractive returns from his portfolio.
This know-how is immensely tough for individual investors. At the same time, it is very much true that investors shell out their hard earned money in investing and would not want the same to go down the drain by choosing inappropriate stocks for their portfolios. To avoid such an unfortunate scenario, investors should pay heed to the advice of experts in this field, i.e. brokers.
Brokers irrespective of their types (sell-side, buy-side and independent), revise their earnings estimates after carefully examining the pros and cons of an event for the concerned stock. As part of their thorough research, these investment specialists attend conference calls, company presentations and also interact with the management. Since brokers meticulously follow the stocks in their coverage, their estimate revisions serve as an important yardstick for a stock price.
Keeping this in mind, we designed a screen to shortlist stocks based on improving broker recommendations and upward revisions of earnings estimates over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is also included. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1869662/5-stocks-to-add-to-your-portfolio-post-broker-upgrade
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.
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In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
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Avnet, Inc. (AVT): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report
ArcBest Corporation (ARCB): 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 – February 22, 2022 – Stocks in this week’s article are ArcBest Corp. ARCB, Atlas Air Worldwide Holdings AAWW, Cross Country Healthcare CCRN, Asbury Automotive Group ABG and Avnet AVT. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Brokers irrespective of their types (sell-side, buy-side and independent), revise their earnings estimates after carefully examining the pros and cons of an event for the concerned stock. | For Immediate Release Chicago, IL – February 22, 2022 – Stocks in this week’s article are ArcBest Corp. ARCB, Atlas Air Worldwide Holdings AAWW, Cross Country Healthcare CCRN, Asbury Automotive Group ABG and Avnet AVT. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report | For Immediate Release Chicago, IL – February 22, 2022 – Stocks in this week’s article are ArcBest Corp. ARCB, Atlas Air Worldwide Holdings AAWW, Cross Country Healthcare CCRN, Asbury Automotive Group ABG and Avnet AVT. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1869662/5-stocks-to-add-to-your-portfolio-post-broker-upgrade 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. | For Immediate Release Chicago, IL – February 22, 2022 – Stocks in this week’s article are ArcBest Corp. ARCB, Atlas Air Worldwide Holdings AAWW, Cross Country Healthcare CCRN, Asbury Automotive Group ABG and Avnet AVT. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report No recommendation or advice is being given as to whether any investment is suitable for a particular investor. |
28679.0 | 2022-02-18 00:00:00 UTC | Here's Why Momentum Investors Will Love Asbury Automotive Group (ABG) | ABG | https://www.nasdaq.com/articles/heres-why-momentum-investors-will-love-asbury-automotive-group-abg | nan | nan | Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Asbury Automotive Group (ABG), a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Asbury Automotive Group currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for ABG that show why this auto dealership chain shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For ABG, shares are up 5.79% over the past week while the Zacks Automotive - Retail and Whole Sales industry is up 2.43% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 17.78% compares favorably with the industry's 4.92% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Asbury Automotive Group have increased 13.02% over the past quarter, and have gained 18.04% in the last year. On the other hand, the S&P 500 has only moved -6.26% and 12.92%, respectively.
Investors should also pay attention to ABG's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. ABG is currently averaging 351,424 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ABG.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ABG's consensus estimate, increasing from $29.04 to $33.20 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that ABG is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Asbury Automotive Group on your short list.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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. | Below, we take a look at Asbury Automotive Group (ABG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for ABG that show why this auto dealership chain shows promise as a solid momentum pick. For ABG, shares are up 5.79% over the past week while the Zacks Automotive - Retail and Whole Sales industry is up 2.43% over the same time period. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Below, we take a look at Asbury Automotive Group (ABG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for ABG that show why this auto dealership chain shows promise as a solid momentum pick. | Below, we take a look at Asbury Automotive Group (ABG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for ABG that show why this auto dealership chain shows promise as a solid momentum pick. For ABG, shares are up 5.79% over the past week while the Zacks Automotive - Retail and Whole Sales industry is up 2.43% over the same time period. | Below, we take a look at Asbury Automotive Group (ABG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for ABG that show why this auto dealership chain shows promise as a solid momentum pick. For ABG, shares are up 5.79% over the past week while the Zacks Automotive - Retail and Whole Sales industry is up 2.43% over the same time period. |
28680.0 | 2022-02-18 00:00:00 UTC | 5 Stocks to Add to Your Portfolio Post Broker Upgrade | ABG | https://www.nasdaq.com/articles/5-stocks-to-add-to-your-portfolio-post-broker-upgrade | nan | nan | It is no secret that complexities associated with equity markets are not easy to master as a plethora of stocks floods the space at any point of time. An in-depth knowledge of the investment world is a prime requisite as one tries to build a winning portfolio of stocks, irrespective of the surrounding market conditions, to garner attractive returns from his portfolio.
This know-how is immensely tough for individual investors. At the same time, it is very much true that investors shell out their hard earned money in investing and would not want the same to go down the drain by choosing inappropriate stocks for their portfolios. To avoid such an unfortunate scenario, investors should pay heed to the advice of experts in this field, i.e. brokers.
Brokers irrespective of their types (sell-side, buy-side and independent), revise their earnings estimates after carefully examining the pros and cons of an event for the concerned stock. As part of their thorough research, these investment specialists attend conference calls, company presentations and also interact with the management. Since brokers meticulously follow the stocks in their coverage, their estimate revisions serve as an important yardstick for a stock price.
Keeping this in mind, we designed a screen to shortlist stocks based on improving broker recommendations and upward revisions of earnings estimates over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is also included. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
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).
We have also added the following screening parameters to ensure that the strategy is a winning one:
Price-to-Sales = Bot%10(The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio).
Price greater than 5(as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days(Volume has to be significant to ensure that these are easily traded).
Market value ($ 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:
ArcBest Corporation ARCB sports a Zacks Rank #1 (Strong Buy), currently. ARCB has a stellar surprise history, earnings of which outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 31.4%.
Shares of ArcBest have rallied 61.3% in a year’s time. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting growth at ARCB. You can see the complete list of today’s Zacks #1 Rank stocks here.
Atlas Air Worldwide Holdings AAWW is the parent company of Atlas Air and Polar Air Cargo, which together operate a fleet of freighter aircraft. AAWW is primarily involved in the airport-to-airport air transportation of heavy freight. Strong demand for air freight amid the coronavirus pandemic supports AAWW. The boom in e-commerce trends amid the current scenario is a catalyst.
Over the past 60 days, this presently Zacks #1 Ranked player has seen the Zacks Consensus Estimate for 2022 earnings being revised 8.1% upward. The AAWW stock has appreciated 35.8% in a year’s time.
Cross Country Healthcare CCRN is currently benefiting from the pandemic-induced increase in demand for healthcare staffing, investments in headcount and technology, and higher operational effectiveness. Digital transformation and operational efficiency are enabling CCRN to cater to the continuously increasing demand in specialties, such as emergency room, operating room, labor, pediatrics, and delivery and medical-surgical services.
The Zacks Consensus Estimate for Cross Country Healthcare’s 2022 earnings has been revised 27.9% upward in the past 60 days. Shares of CCRN have increased more than 100% in a year’s time. CCRN currently sports a Zacks Rank of 1.
Asbury Automotive Group ABG is one of the largest automotive retailers in the United States. The auto dealer is currently a #1 Ranked player. With the sustained recovery of the economy from the pandemic blues, auto sales are rebounding, underlined by strong new vehicle sales. Evidently, demand for automotive products and services is solid, aiding Asbury in turn. Asbury Automotive has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 24.3%. Shares of ABG have increased 18% in a year’s time.
Avnet AVT is benefiting from robust demand for its products across Asia, Europe, the Middle East, and Africa (EMEA) regions. Improvement in Americas also served as a tailwind. Its continued focus on boosting the IoT capabilities is helping it expand in newer markets and gain customers. Moreover, cost-saving efforts are aiding profitability.
Avnet, currently sporting a Zacks Rank #1, has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 18.7%. The AVT stock has appreciated 9.6% in a year’s time.
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.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
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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 one of the largest automotive retailers in the United States. Shares of ABG have increased 18% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group ABG is one of the largest automotive retailers in the United States. Shares of ABG have increased 18% in a year’s time. | Asbury Automotive Group ABG is one of the largest automotive retailers in the United States. Shares of ABG have increased 18% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive Group ABG is one of the largest automotive retailers in the United States. Shares of ABG have increased 18% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28681.0 | 2022-02-17 00:00:00 UTC | Despite Fast-paced Momentum, Asbury Automotive (ABG) Is Still a Bargain Stock | ABG | https://www.nasdaq.com/articles/despite-fast-paced-momentum-asbury-automotive-abg-is-still-a-bargain-stock | nan | nan | Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Asbury Automotive Group (ABG) is one of them. Here are the key reasons why this stock is a great candidate.
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 13.2%, the stock of this auto dealership chain is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. ABG meets this criterion too, as the stock gained 12.7% over the past 12 weeks.
Moreover, the momentum for ABG is fast paced, as the stock currently has a beta of 1.52. This indicates that the stock moves 52% higher than the market in either direction.
Given this price performance, it is no surprise that ABG has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ABG earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, ABG is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. ABG is currently trading at 0.43 times its sales. In other words, investors need to pay only 43 cents for each dollar of sales.
So, ABG appears to have plenty of room to run, and that too at a fast pace.
In addition to ABG, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
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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. | You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, ABG is trading at a reasonable valuation. There are several stocks that currently pass through the screen and Asbury Automotive Group (ABG) is one of them. ABG meets this criterion too, as the stock gained 12.7% over the past 12 weeks. | In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ABG earn a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, ABG is trading at a reasonable valuation. There are several stocks that currently pass through the screen and Asbury Automotive Group (ABG) is one of them. | Given this price performance, it is no surprise that ABG has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, ABG is trading at a reasonable valuation. There are several stocks that currently pass through the screen and Asbury Automotive Group (ABG) is one of them. | In addition to ABG, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. There are several stocks that currently pass through the screen and Asbury Automotive Group (ABG) is one of them. ABG meets this criterion too, as the stock gained 12.7% over the past 12 weeks. |
28682.0 | 2022-02-16 00:00:00 UTC | Wall Street Analysts Believe Asbury Automotive (ABG) Could Rally 42%: Here's is How to Trade | ABG | https://www.nasdaq.com/articles/wall-street-analysts-believe-asbury-automotive-abg-could-rally-42%3A-heres-is-how-to-trade | nan | nan | Shares of Asbury Automotive Group (ABG) have gained 4.3% over the past four weeks to close the last trading session at $175.44, 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 $249.25 indicates a potential upside of 42.1%.
The average comprises eight short-term price targets ranging from a low of $180 to a high of $354, with a standard deviation of $53.33. While the lowest estimate indicates an increase of 2.6% from the current price level, the most optimistic estimate points to a 101.8% upside. More than the range, one should 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.
But, for ABG, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful 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 25.1% over the past month, as one estimate has gone higher compared to no negative revision.
Moreover, ABG currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% 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
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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. | Shares of Asbury Automotive Group (ABG) have gained 4.3% over the past four weeks to close the last trading session at $175.44, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for ABG, an impressive average price target is not the only indicator of a potential upside. 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 4.3% over the past four weeks to close the last trading session at $175.44, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for ABG, an impressive average price target is not the only indicator of a potential upside. | 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 4.3% over the past four weeks to close the last trading session at $175.44, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for ABG, an impressive average price target is not the only indicator of a potential upside. | 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 4.3% over the past four weeks to close the last trading session at $175.44, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for ABG, an impressive average price target is not the only indicator of a potential upside. |
28683.0 | 2022-02-16 00:00:00 UTC | Has Asbury Automotive Group (ABG) Outpaced Other Retail-Wholesale Stocks This Year? | ABG | https://www.nasdaq.com/articles/has-asbury-automotive-group-abg-outpaced-other-retail-wholesale-stocks-this-year-0 | 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. Has Asbury Automotive Group (ABG) been one of those stocks this year? 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 the Retail-Wholesale sector. This group includes 232 individual stocks and currently holds a Zacks Sector Rank of #13. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Asbury Automotive Group is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ABG's full-year earnings has moved 25.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, ABG has returned 1.6% so far this year. Meanwhile, stocks in the Retail-Wholesale group have lost about 7.1% on average. This shows that Asbury Automotive Group is outperforming its peers so far this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Tapestry (TPR). The stock has returned 0.3% year-to-date.
The consensus estimate for Tapestry's current year EPS has increased 4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Asbury Automotive Group is a member of the Automotive - Retail and Whole Sales industry, which includes 10 individual companies and currently sits at #7 in the Zacks Industry Rank. On average, stocks in this group have lost 2.8% this year, meaning that ABG is performing better in terms of year-to-date returns.
On the other hand, Tapestry belongs to the Retail - Apparel and Shoes industry. This 43-stock industry is currently ranked #168. The industry has moved -11.2% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Asbury Automotive Group and Tapestry as they could maintain their solid performance.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
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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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. | On average, stocks in this group have lost 2.8% this year, meaning that ABG is performing better in terms of year-to-date returns. Has Asbury Automotive Group (ABG) been one of those stocks this year? Over the past 90 days, the Zacks Consensus Estimate for ABG's full-year earnings has moved 25.1% higher. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Has Asbury Automotive Group (ABG) been one of those stocks this year? Over the past 90 days, the Zacks Consensus Estimate for ABG's full-year earnings has moved 25.1% higher. | Has Asbury Automotive Group (ABG) been one of those stocks this year? Over the past 90 days, the Zacks Consensus Estimate for ABG's full-year earnings has moved 25.1% higher. Based on the most recent data, ABG has returned 1.6% so far this year. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Has Asbury Automotive Group (ABG) been one of those stocks this year? Over the past 90 days, the Zacks Consensus Estimate for ABG's full-year earnings has moved 25.1% higher. |
28684.0 | 2022-02-15 00:00:00 UTC | Asbury Automotive Group (ABG) Q4 2021 Earnings Call Transcript | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-q4-2021-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Asbury Automotive Group (NYSE: ABG)
Q4 2021 Earnings Call
Feb 15, 2022, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day, and welcome to the Asbury Automotive Group Q4 2021earnings call Today's conference is being recorded. At this time, I'd like to turn the conference over to Ms. Karen Reid.
Please go ahead, ma'am.
Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer
Thanks, operator, and good morning, everyone. As noted, today's call is being recorded and will be available for replay later this afternoon. Welcome to Asbury Automotive Group's fourth quarter 2021earnings call The press release detailing Asbury's fourth quarter and full year results was issued earlier this morning and is posted on our website at asburyauto.com.
Participating with me today are David Hult, our president and chief executive officer; Dan Clara, our senior vice president of operations; and Michael Welch, our senior vice president and chief financial officer. At the conclusion of our remarks, we will open up the call for questions and I will be available later for any follow-up questions that you may have. Before we begin, we must remind you that the discussion during the call today is likely to contain forward-looking statements. Forward-looking statements are statements other than those which are historical in nature, which may include financial projections, forecasts and current expectations, each of which are subject to significant uncertainties.
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For information regarding certain of the risks that may cause actual results to differ materially from these statements, please see our filings with the SEC from time to time, including our Form 10-K for the year ended December 2020, any subsequently filed quarterly reports on Form 10-Q and our earnings release issued earlier today. We expressly disclaim any responsibility to update forward-looking statements. In addition, certain non-GAAP financial measures as defined under SEC rules may be discussed on this call. As required by applicable SEC rules, we provide reconciliations of any such non-GAAP financial measures to the most directly comparable GAAP measures on our website.
We have also posted an updated investor presentation on our website, asburyauto.com highlighting our fourth quarter and full year results. It is my pleasure to now hand the call over to our CEO, David Hult. David?
David Hult -- President and Chief Executive Officer
Thank you, Karen, and good morning, everyone. Welcome to our fourth quarterearnings call In the fourth quarter, we closed on the transformative acquisitions of Larry H. Miller and Total Care Auto, powered by Landcar, Kahlo Chrysler Jeep Dodge, Arapahoe Hyundai-Genesis and the Stevinson Automotive Group, representing approximately $6.6 billion in annualized revenue.
These acquisitions represent the right brands in high-growth markets and are aligned with Asbury's culture. We look forward to deploying our joint capabilities and growing together, and I'm excited to have our new team members as part of the Asbury family. 2021 was an all-time record year for Asbury. For the full year, we grew adjusted EBITDA by 94% and adjusted EPS by 112%.
We delivered an operating margin adjusted at 8.1%. We succeeded in adding great stores in targeted high-growth markets and we completed the rollout of our online transactional tool, Clicklane to all the legacy Asbury stores. In a challenging new vehicle environment, we delivered record profitability by improving our new vehicle margin, increasing our used vehicle sales and growing our parts and service business, all while maintaining our improved employee productivity levels and using our strong cash flow for acquisitions. Our multiple business lines allow us to adapt and continue to deliver strong earnings in any business environment.
We will also deploy Total Care Auto into our legacy stores and roll out Clicklane into our recent acquisitions, allowing us to further grow our earnings. Due to our record performance and strong cash flow, our balance sheet remains solid. Our adjusted operating cash flow for 2021 was $632 million, an increase of $189 million over 2020. Our net leverage ended this quarter at 2.7 times.
We will continue to use our free cash flow to manage our leverage and maximize shareholder return through share buybacks and acquisitions. In our earnings release this morning, we also announced that our board of directors has approved an increase in our share repurchase authorization by $100 million to $200 million. Now, I'd like to give you a quick update on our five-year plan. Our same-store adjusted revenue grew almost 12% last year, exceeding expectations.
Clicklane continues to deliver impressive metrics, generating over $570 million in additional revenue for three quarters in 2021. Despite lower new vehicle levels, inventory levels, Clicklane contributed an incremental 7% to our same-store growth. As previously noted, we had a very successful year regarding acquisitions. With these results, we maintain full confidence in the execution of our growth strategy.
Based upon our results in 2021, we will update our five-year plan during our Q1 2022earnings call I will now hand the call over to Dan to discuss our operating performance. Dan?
Dan Clara -- Senior Vice President of Operations
Thank you, David, and good morning, everyone. Before I share our operating performance, I would like to thank all our teammates in the field for their hard work, dedication and commitment to delivering an exceptional guest experience. In our earnings release this morning, we reported adjusted EPS of $7.46, a fourth quarter record, up 68% over the prior year. We delivered strong results, enabling us to deliver an impressive gross margin of 20.4%, an all-time record and an expansion of 370 basis points versus the fourth quarter last year.
Our teams continue to maximize productivity per employee, resulting in adjusted SG&A as a percentage of gross profit of 54.3%, a 710 basis point improvement versus prior year. Our total revenue for the quarter was up 19% year over year and total gross profit was up 46%. We improved our adjusted operating margins for the quarter from 6% in 2020 to 8.9% in 2021, and we'll continue to optimize our portfolio in the future. Now, I will turn to our same-store performance compared to the fourth quarter of 2020, unless stated otherwise.
Starting with new vehicles. Based on current market conditions, we continue to be focused on being opportunistic with our inventory and improving grosses to maximize profit. Our new average gross profit per vehicle was $6,335, up $3,441 or 119% from the prior-year period. All segment margins were up significantly from the prior-year period.
At the end of December, our total new vehicle inventory was $207 million and our day supply was at eight days, down 32 days from the prior year. We expect the days supply to remain low as we progress into 2022, trending up moderately toward the end of the year. Turning to used vehicles. Our used retail volume increased 15%, while gross margin was 8.2%, representing an average gross profit per vehicle of $2,623.
As a result of our performance, our retail gross profit was up 64%. Our total used vehicle inventory ended the quarter at $402 million, which represents a 34-day supply, up three days from the prior year. Our used to new ratio for the quarter was 109%. Shifting to F&I.
Our strong, consistent and sustainable growth in F&I delivered an increase of $213 to $1,961 per vehicle retailed from the prior-year quarter. In the fourth quarter, our front-end yield per vehicle increased $2,169 per vehicle to an all-time record of $6,362. And now to parts and service. Our parts and service revenue increased 13% in the quarter.
The warranty revenue dropped 19%. Our customer pay revenue continues its healthy recovery, posting a 17% growth. We achieved over 149,000 online service appointments, an all-time record and a 16% increase over the prior-year quarter. Some of the benefits of increasing online service appointments include enhancement to the customer experience, higher customer retention, higher conversion rates, higher margins and higher returns to our shareholders.
With three full quarters of Clicklane at all legacy stores under our belt, we would like to share some performance metrics. We sold over 5,000 vehicles through Clicklane in Q4, of which 47% of them were new vehicles and 53% used. 91% of our transactions this quarter were with customers that were new to Asbury's dealership network. Average transaction time continues to be consistent with previous quarter, eight minutes for cash deals and 14 minutes for finance deals.
Total variable front-end yield of $4,298 and F&I front-end yield of $1,846. Average credit score is higher than the average credit score at our stores. 80% of consumers seeking financing received instant approval, while an additional 10% require some off-line assistance. 90% of those that applied were approved for financing.
43% of Clicklane sales had trade-ins with 78% of such trades reconditioned in retail to consumers with a total front-end yield of $4,490. And 92% of our Clicklane deliveries are within a 50-mile radius of our stores, thus allowing us the opportunity to retain our new customers in our parts and service departments. As expected, Clicklane customers are converting at greater rates than traditional Internet leads. During our first few months after launching Clicklane, approximately 60% of our sales were new vehicles.
Until inventory levels somewhat normalized, we will not be able to fully assess the full potential of Clicklane. We remain quite excited about the continued growth of Clicklane. Lastly, I would like to extend a warm welcome to our new team members. All of you have built tremendous organizations that properly align with our North Star of being the most guest-centric automotive retailer.
Our future is bright, and I look forward to meeting all of you. I will now hand the call over to Michael to discuss our financial performance. Michael?
Michael Welch -- Senior Vice President and Chief Financial Officer
Thank you, Dan. To our investors, analysts and other participants on our call, good morning. I would like to provide some financial highlights, which marked yet another record quarter for our company. For additional details on our financial performance for the quarter, please see our financial supplement in our press release today and our investor presentation on our website.
Overall, compared to the fourth quarter of last year, our actions to manage gross profit and control expenses resulted in a fourth quarter adjusted operating margin of 8.9%, an increase of 290 basis points above the same period last year and an all-time record. Adjusted net income increased 89% to $163 million, and adjusted EPS increased 68% to $7.46. Net income for the fourth quarter of 2021 was adjusted for acquisition expenses and acquisition-related financing expenses of $289 million or $1.02 per diluted share. Net income for the fourth quarter of 2020 was adjusted for a gain on dealership divestiture of $3.9 million or $0.15 per diluted share.
In addition to the net income adjustments mentioned above, our fourth quarter 2021 EPS was negatively impacted by the interest and additional shares issued as part of the acquisition financing that was completed prior to the acquisition closing. If the financing had closed simultaneously with the Larry H. Miller acquisition, our adjusted EPS for the fourth quarter would have been positively impacted by $0.87 as a result of lower interest expense and fewer outstanding shares. Now for the full year 2021 results compared to 2020.
Adjusted operating margin was 8.1%, an increase of 240 basis points at an all-time record. Adjusted net income increased 120% to $549 million and adjusted EPS increased 112% to $27.29. Our effective tax rate was 23.7% for 2021 compared to 24.8% in 2020. This quarter, we acquired $6.6 billion in annualized revenue.
In order to finance the acquisitions, we completed debt and equity offerings totaling approximately $2.1 billion, a syndicated mortgage facility of approximately $700 million and borrowed under our upsized syndicated credit facility. In addition, we spent approximately $34 million of capital expenditures in the quarter. We generated $632 million of adjusted operating cash flow for the year. Our balance sheet remains healthy as we ended the quarter with approximately $437 million of liquidity, comprised of cash, excluding cash to Total Care Auto, floorplan offset accounts and availability on both our used line and revolving credit facility.
Also at the end of the quarter, our net leverage ratio stood at 2.7 times, below our targeted net leverage of three times. As David stated earlier, today, we announced that our board has approved an increase to our share repurchase authorization by $100 million to $200 million. For 2022, we are planning for a tax rate of approximately 25% to 26% and capex of approximately $150 million. This amount excludes real estate purchases and potential lease buyout opportunities that we consider to be financing transactions.
In closing, I would like to thank our teams across the business who continue to work hard to ensure our current and long-term success. I would also like to welcome our new team members. Now, I'll turn the call back over to David to discuss our 2022 objectives and expectations. David?
David Hult -- President and Chief Executive Officer
Thanks, Michael. Turning to 2022. Our key objectives are: Continue our smooth transition with all of our new value team members; execute superior allocation of capital to maximize shareholder return; continue the innovation and growth of Clicklane, rolling out this fully transactional tool coast to coast into our recent acquisitions; integrate our insurance and F&I product provider, Total Care Auto, across the entire Asbury platform of dealerships, which will allow us to expand our F&I PVR; execute our companywide training initiative to continue the development and growth of our teammates; and maintain our best-in-class operating margins and SG&A. I would also like to make a few comments regarding our expectations for this year.
We are excited about 2022. We see good opportunities for automotive retail, and we expect that demand will continue to exceed supply for most of the year. We do anticipate a gradual recovery in inventory levels in the second half of '22 as OEM production improves. As a result, we are planning our business for a SAAR of 15.5 million to 16 million units and vehicle margins consistent with 2021.
We will remain nimble and vigilant to adapt as conditions evolve. SG&A as a percentage of gross profit should continue to benefit from active expense management and improved employee productivity. We look forward to continuing to deliver strong results for our shareholders, be outstanding partners with our OEMs to steward their great brands and offer an environment where our team members can thrive while providing the most guest-centric experience in automotive retail. Finally, I'd like to address all of my teammates at Asbury.
Our ability to add quality stores, who, like us, care about serving our guests and being highly engaged in our communities could not have happened without you. You all have given us the ability to thoughtfully grow our core business because you align behind our vision. I appreciate all of you and I am thankful to be a part of this team. People make the difference in any organization and you are making us a better place to work, and you are creating an environment where people want to do business.
Thank you for everything. This concludes our prepared remarks. We will now turn the call over to the operator and take your questions. Operator?
Questions & Answers:
Operator
Thank you. [Operator instructions] We'll take our first question from the line of Rick Nelson with Stephens. Please go ahead. Your line is open.
Rick Nelson -- Stephens Inc. -- Analyst
Thanks a lot. Good morning, and another great quarter. I like to ask about the acquired stores, pay operate at a higher front-end yield and lower SG&A than the core Asbury. As I looked at that consolidated SG&A, for example, was slightly lower than the same store.
David Hult -- President and Chief Executive Officer
Rick, this is David. I'll start and Michael can certainly jump in. As when we announced the deals, the comment was made there accretive to Asbury. It's early on in the fourth quarter, I think we had maybe 12 or 13 days in the quarter with Larry H.
Miller numbers and then you add in the holidays, it was probably 10 or 11 days. So those acquisitions, as stated before, are accretive to Asbury in what you acknowledge and recognized as accurate.
Rick Nelson -- Stephens Inc. -- Analyst
And are there opportunities to improve performance of the acquired stores or is there a bigger opportunity rolling to CA, for example, across the Asbury chain?
David Hult -- President and Chief Executive Officer
Yeah, it's a great question. A couple of things. The best operation in the world has plenty of room for improvement and we certainly do at our core stores and our new acquisitions. We certainly have an opportunity to continue to grow our used car performance.
And with the rollout of Total Care into the Asbury stores, that will certainly boost our F&I numbers as well, while parts and service continues to grow at a steady rate.
Michael Welch -- Senior Vice President and Chief Financial Officer
One other thing to add, Rick, is another opportunity for us is putting Clicklane in those acquisitions. And that will just give us some technology that they didn't have before. So that is an opportunity for us to just help them from a technology perspective.
Rick Nelson -- Stephens Inc. -- Analyst
OK, thanks for that. Also, like to gauge your appetite to do more acquisitions. Do you slow things here temporarily to integrate what you've got or is there an appetite to do something over the near term?
David Hult -- President and Chief Executive Officer
Yeah. Rick, this is David. I'll start and Michael might jump in. Our goal was never to grow to be the largest or grow the fastest.
It is really about being opportunistic in finding groups that are really aligned with us. We allow them to continue to operate as they have been. So it's a much longer integration period to get to know each other and integrate everything over. We feel like our stock price is extremely cheap right now and we're trading at an extremely low multiple and we want to be great capital allocators.
So there could be a potential for some acquisitions or buying back our stock. But it's tough to say how the year will play out. If something comes up that's accretive to our company and for our shareholders, we'll certainly act upon it. And if it makes sense, if we feel like our stock price is being devalued, we will certainly acquire some of our stock back.
Rick Nelson -- Stephens Inc. -- Analyst
Great. And the expectation for stable GPUs in 2022. What -- talk there about things would advance maybe in the front end of the year and then we'd see some pressure in the back end and given your expectations for inventories to normalize?
David Hult -- President and Chief Executive Officer
Sure. The good news is in the last year, everyone has been wrong all the time about inventory trying to figure it out. But the way we see '22 as we sit here today, when you look at '21, the first two quarters, inventory levels were higher and margins were a little bit lower. And then that reversed itself in the second half of '21.
Inventory really came down and margins went up. We see the reverse of that in '22. I don't know that we'll be right, but we think the first half of '22 will certainly have elevated margins like we saw in the fourth quarter. And then the second half of the year might look a little bit like the first half of '21.
Really difficult to gauge what's going to happen between the pandemic and the chip shortage and everything else. But as we sit here today, that's the way we see it.
Rick Nelson -- Stephens Inc. -- Analyst
Great. Thanks for all the color and good luck.
David Hult -- President and Chief Executive Officer
Thank you.
Operator
We'll take our next question from the line of John Murphy with Bank of America. Please go ahead. Your line is open.
John Murphy -- Bank of America Merrill Lynch -- Analyst
Good morning, everybody.
David Hult -- President and Chief Executive Officer
Good morning, John.
John Murphy -- Bank of America Merrill Lynch -- Analyst
Maybe a follow-up on -- Good morning. Maybe just a follow-up on Rick's just last question there. I mean where do you think inventory is going to normalize? I know, I mean, obviously, calling the second half this year is tough, right, because it's a very tough thing to call the timing. But when things -- the logjam is broken here, what do you think the level is that the automakers are going to go back to and what do you think it means for -- your approach is? Is it somewhere between here and where it used to be or is it all the way back to where it used to be?
David Hult -- President and Chief Executive Officer
Very tough to predict. It's a competitive world and you never know what someone is going to do to try and gain market share and grow their business. I think everyone's learned from the concept that we can be effective with a lower days supply and everyone can benefit from that. Does that mean we'll stabilize at a 35, 40 days supply compared to a 65 or 70? I think it's too early to tell.
But to me, the demand seems so high right now even when they're able to start catching up on the inventory between the rental car companies and fleet businesses and everything else, I just don't see the demand settling until sometime into '23.
John Murphy -- Bank of America Merrill Lynch -- Analyst
Yeah, I generally agree with you there. It's going to be a while before the things normalize. On the SG&A front, the absolute dollars as well as the percent of gross is pretty impressive. Is there a way to think about that going forward? Is it tied more toward units than the grosses? Or is there a way to -- for you to maybe link it a little bit more to grosses so we don't have this kind of variability in the numerator denominator stays a little bit more static and yet you keep more of the gross consistently over time.
David Hult -- President and Chief Executive Officer
Yeah, I would -- it's a tough one, John. I would tell you, prior to pandemic, we were focused on our productivity per employee and that generally keeps your cost down. However, if margins certainly start to go backwards a lot, there will be some leakage into SG&A. I also think as technology continues to evolve over the next few years, that gives you an opportunity to hit new ceiling levels with production per employee.
So we see it as a pretty stable environment. And as margins start to come back and say, call it, '23 at this point, again, who knows. But if it's '23, we also think we're going to be that much more productive per employee in '23. So we think we run lean and mean and the stores do a tremendous job of keeping their expenses down and operating extremely efficiently, whether it's our marketing dollars that we spend or how we staff the stores.
We just think it's a discipline and a core behavior of ours.
John Murphy -- Bank of America Merrill Lynch -- Analyst
OK. And then just lastly, could you just kind of remind us exactly what's going on in Total Care Auto and Larry Miller? And really, is there an or is this kind of shedding light on not just as Rick mentioned, spreading it across stores, but maybe even doing more on F&I and becoming your own underwriter in some cases because that's -- some of your peers are looking at this stuff and it seems like it might be an incremental opportunity, but also a little bit touchy because you don't want to compete with the captives.
David Hult -- President and Chief Executive Officer
Yeah. I mean, Total Care Auto is a full F&I product suppliers. They take the place of some of the third parties out there. And so we basically retain all the profitability that used to go to the third parties.
The other benefit is because we control both sides of the equation, we have the F&I side and we have the sale and the parts and service side. It allows us to kind of hold the customer throughout the whole process and really provide a better customer experience. So there is some tremendous upside for us as we roll this out to our stores. One thing we'll have to do just in next quarter just for transparency is we're going to have to be able to show you guys dealership operations, TCA operations and then the consolidated operations and make sure we kind of present that to you guys in a way that you can really see the impact.
And so you'll see that coming next quarter when we have a full quarter of operations with TCA. So we'll hopefully be able to give you guys the transparency to kind of see the benefits of that operations.
Michael Welch -- Senior Vice President and Chief Financial Officer
And then one quick comment on top of that. TCA is an extremely insurance company that's been in business over 30 years and is A.M. Best rated. It's woven into the fabric and DNA of the Miller organization and their stores.
For that benefit, they have increased penetrations in product sales compared to the legacy Asbury stores. So we feel confident as that gets rolled into Asbury, we will see the benefit as well in future improved product sales.
John Murphy -- Bank of America Merrill Lynch -- Analyst
So that function is offshore self-insurance. Is that essentially kind of what's going on there at TCA?
David Hult -- President and Chief Executive Officer
It's onshore. It's just a -- again, it's just the underwriter behind the F&I products like vehicle service contracts, maintenance contracts, things like that on the F&I side.
John Murphy -- Bank of America Merrill Lynch -- Analyst
OK. All right. Thank you very much.
David Hult -- President and Chief Executive Officer
Thank you, John.
Operator
We'll take our next question from the line of Rajat Gupta with J.P. Morgan. Please go ahead. Your line is open.
Rajat Gupta -- J.P. Morgan -- Analyst
Hi. Thanks for taking the question. I was just hoping maybe you could provide us a quick preview of what to expect during the first quarter print with regard to the long-term plan, Clearly, acquisitions are ahead of -- well ahead of plan. Overall, cumulative cash generation is going to be much higher than what you had in mind when you put out those targets.
Look, you have talked about a number of horizons or vertical adjacencies. You already have TCA and Salty, is captive finance mix on the cards? Maybe any color on what could be that extra use of that cash. You obviously have the buyback. And could that be a more consistent and bigger portion of the capital allocation mix going forward? And I have a follow-up.
Thanks.
Michael Welch -- Senior Vice President and Chief Financial Officer
So I'll just hit on the capital allocation portion. I think with the share price, we always look at share buybacks and acquisitions in terms of the best return for the shareholder. And of course, at these share prices, share buybacks look pretty attractive. We'll -- we have that kind of built into the five-year model, too, but it's hard to say where the share price is going to trade and where the acquisitions are going to price at three, four years into the future.
So it's the same capital deployment we've always looked at in terms of what's the share price versus what's acquisitions at. So no changes there, just more -- like you said, more cash flow to put into both those buckets. On the five-year plan on the update, the key there is we did more acquisitions than we originally anticipated upfront. And so that will, of course, give us a larger base do same-store off of and Clicklane.
So I don't see a bunch of changes in terms of the path we're looking to go down. It's just the numbers will get updated with the larger base.
David Hult -- President and Chief Executive Officer
And your comment regarding the finance company, I would say we're in the really early stages of investigating and looking at it and see if that's something that makes sense for us or not. It's too early to tell at this point. We're clearly going to generate a lot more cash this year. We will pay down mortgages and some debt that we have available.
And whether it's through acquisitions or buybacks, really depending upon what the market gives us and what acquisitions are out there. We've seen a lot of opportunities for acquisitions already this year and we've passed on them just because it doesn't fit our threshold and our disciplined look at finding stores that are accretive to our company.
Operator
We'll take our next question from the line of Stephanie Moore with Truist. Please go ahead. Your line is open.
Stephanie Moore -- Truist Securities -- Analyst
Hi. Good morning.
David Hult -- President and Chief Executive Officer
Good morning.
Yes. This is David, Stephanie. I would tell you, we started off '21 thinking we're going to spend a chunk of money marketing Clicklane, and we quickly canceled all of that because it didn't make sense with the lack of inventory that we have. We constantly look at the tools that are out there.
We still believe we have the best tool in the market, and it's a fully transactional tool. The benefit of that is the consumer experience. The downside to that is integrating that into new stores. It takes a little bit longer than if it was simply a lead generator and overlaying it into a website.
So it's going to take us a little time to integrate the rest. I would tell you the marketing dollars won't pick up until the inventory levels are there. The software right now because we don't want to ruin the experience for the consumer, you could go on a website in one of our stores and see some stores had the Clicklane on the vehicle display page and some don't. And the reason that is, is really the availability of the product.
We don't want to ruin the experience and have someone purchase a car that isn't available. And while you have seasoned professional salespeople in the stores, that can see inventory come in a month ahead of time, they're preselling into the pipeline, which is really shrinking the inventory availability for Clicklane. So it's just not prudent to spend the money right now to market it. We'll wait for inventory to catch up.
Stephanie Moore -- Truist Securities -- Analyst
Understood. And then shifting gears, I think we're all pretty aware that the majority of the OEMs are exploring pretty aggressive EV expansion goals as well as a lot of kind of new exciting models. Maybe you could talk a little bit about the conversations you're having with the OEMs about new models, particularly around EVs, new selling methods, direct to consumer. And just kind of in general, how you're preparing yourself those dealers to meet this -- a lot of these new models and kind of the years ahead? Thanks.
David Hult -- President and Chief Executive Officer
Sure. We started about almost four years ago now starting to install charging stations at our facilities and so on and getting up to speed on training as new product has come out. A few years ago, there was some concern about the consumer adoption to EV. You can really feel the wave now coming where the consumers are being far more accepting of EVs, and we're excited about the opportunity to sell some of these products.
We believe some of the electric cars that are coming out from some of the legacy OEMs. The quality and fit and finish to us is superior than some of the start-ups that we've seen touched and as far as their products. So we're adapting, and we're healthy and we're ready to go. We're still of the belief that as far as the supply chain goes, from the legacy OEMs and the franchise dealer is the best model for the consumer.
These cars are complex, and they need people locally that they can count on to help them when issues arise. On a quarterly basis, we track in our service departments, combustible engine dollars spent per repair order, hybrid and then fully electric. And it's still consistently the same. Right now, the highest dollar spent per repair order on the fully electric cars.
And you'd expect that with the new technology that's coming out. So that will improve over time as well. We think by having a tool like Clicklane, that is a complete transactional tool, not a lead generator that's going to get back to you. That really negates the need to sell direct to consumer from some of these electric car companies.
And as inventory becomes available and car companies have to compete with one another, the differentiator they have is the people on the ground selling the product. So we like our position. We believe as long as we take care of our consumers and we offer them a high level of service that the franchise model makes a lot of sense.
Stephanie Moore -- Truist Securities -- Analyst
Great. No, that's all very helpful. Thank you so much.
David Hult -- President and Chief Executive Officer
Absolutely.
Operator
We'll take our next question from the line of Bret Jordan with Jefferies. Please go ahead. Your line is now open.
Bret Jordan -- Jefferies -- Analyst
Hey. Good morning, guys.
David Hult -- President and Chief Executive Officer
Good morning.
Bret Jordan -- Jefferies -- Analyst
How should we think about used vehicle valuations as the year progresses? Is it just sort of an inverse as new supply comes up, used comes down? Or do you think used can soften before that? And then the follow-through on that is sort of in the Clicklane mix, as you're selling 53% used, is it a different profile car than what you would be selling on average? You say the FICO score is higher. Is this a younger, higher value used car?
Dan Clara -- Senior Vice President of Operations
Bret, good morning. This is Dan. So I'll address the first one, the first question regarding the values. It's hard to tell, but we see the values starting in November, December have adjusted, meaning that they're not growing exponentially as they were before.
And until the inventory levels, our belief is until the inventory levels for new cars somewhat stabilize, the used car valuation is going to remain where it is right now. And I don't -- we don't believe that when there is a correction that it will be an immediate correction. It's going to be a gradual correction. So -- but we do believe that is going to be dependent on the new DSI, new car DSI.
On the second question as far as Clicklane sales, we're selling a low cost of sale call under, call it, $10,000, $8,000, and we're selling the high cost of sales, certified preowned luxury vehicle in our Clicklane tool. So no different than what we're selling in our stores, just a much better experience and a much faster transaction.
David Hult -- President and Chief Executive Officer
I would add that down payments are higher on Clicklane, when the credit scores are higher for this simple reason, Bret. It's consumers that have the ability and aren't worried about financing, but they value their time. And they realize that it's a full transactional tool that they can get the purchase done in a 15-minute span and they move on. We certainly have a seven-day buyback, no questions asked, which probably gives them some level of comfort.
But I think at the end of the day, it's clearly about convenience, which is what's driving the higher credit scores.
Bret Jordan -- Jefferies -- Analyst
OK. And then you called out a $4,400 plus GPU on the Clicklane used. Was that just the used cars you were selling that you've taken on trade via Clicklane as well so you've built really some well-sourced inventory?
David Hult -- President and Chief Executive Officer
Yeah. So those -- so that was the consumer who purchased a new vehicle on Clicklane traded a car. And we took that trade reconditioned it and sold it.
OK, great. Thank you.
Operator
We'll take our next question from the line of David Whiston with Morningstar. Please go ahead. Your line is open.
David Whiston -- Morningstar -- Analyst
Thanks. Good morning. On the M&A front, have you noticed so far this year any difference in seller asking prices compared to 2021?
David Hult -- President and Chief Executive Officer
It's a great question, David. I would say it's really depending upon the brand and the location of where it's at in what I would call some markets that are not growing at some rate as others and weaker brands. They're bringing lower multiples for sure. But in those highly desirable markets and big stores, they're still bringing a premium at this point in time.
David Whiston -- Morningstar -- Analyst
Do you see a lot of selling -- sellers being unreasonable though, thinking well, look at the margins now, I should be able to assume that into perpetuity and you're having to push back?
David Hult -- President and Chief Executive Officer
I think when anyone is selling anything and then you have a buyer, everyone's going to take their position and the seller certainly wants to assume that. I think you also have some people maybe that aren't fully sellers. They're just testing the waters in the markets to see what valuations are and what they could possibly get. We don't spend a lot of time looking at a lot of deals.
We say no pretty fast, and we really only spend time on the deals that we think make sense for us. So it's hard to really say. I can tell you the activity we've seen in the last 60 days has been every bit as great as it has been for the last 12 months.
David Whiston -- Morningstar -- Analyst
OK. And on the TCA restricted cash, I was just curious, if there ever is a really bad crisis, like when the pandemic or say the Lehman collapsing, is there any way you could access that cash for general liquidity if you needed to?
Michael Welch -- Senior Vice President and Chief Financial Officer
On TCA cash?
David Hult -- President and Chief Executive Officer
Yeah.
Michael Welch -- Senior Vice President and Chief Financial Officer
The TCA cash, most of that cash is for investments that have to be there for insurance purposes to cover future claims. We do pull the cash from the excess cash gets pulled from TCA and pulled over to Asbury used for general corporate purposes as it earns out. So every month, we're pulling kind of the excess cash out of the business. So what's left there is just investments that are needed for future claims.
David Whiston -- Morningstar -- Analyst
OK. And finally, the special item in the quarter on the bridge commitment fee. Was that for GAAP booked in interest expense?
Michael Welch -- Senior Vice President and Chief Financial Officer
Yeah. So that was -- I think I may have misspoke when I read it. I think I said $289 million. It's $28.9 million if I misspoke that one.
So yes, that is an interest expense for GAAP.
David Whiston -- Morningstar -- Analyst
OK, thank you.
Michael Welch -- Senior Vice President and Chief Financial Officer
Thank you, David.
Operator
[Operator instructions] We'll take our next question from the line of Rajat Gupta with J.P. Morgan. Please go ahead. Your line is open.
Rajat Gupta -- J.P. Morgan -- Analyst
Great. Thanks for getting me back in the queue. I was accidentally on mute before my follow-up on the previous question. I just had a question on the used vehicle business.
clearly, nice execution there. Things have started to improve in terms of the overall same-store performance after some mixed quarters in the past. What would you attribute to anything company specific that is driving that turnaround? And just how do you view the sustainability of that going forward? Thanks. Is Clicklane also like a major part of it or not? Thanks.
David Hult -- President and Chief Executive Officer
I'll start and then Dan can finish for that. Your point was obvious. We had lower comp numbers. So that certainly helped.
There has been again focus at our stores. But I'll tell you, we're more of a conservative than an aggressive group and what I mean by that, 36 years in automotive for me, the pricing valuation right now is hard to get my head around because I haven't seen numbers like this before. So we try and stay disciplined at a 30 days supply or 30 to 35 days supply. Could we have a 45, 50, 60 days supply of used cars? Sure.
But if the market swings that would put us in a tougher position. So we really like that discipline of having a lower day supply. I think it will continue in the acquisitions that we have or that are coming on. I made the comment earlier, they're more accretive to our company.
One of the big areas of opportunity that they have, they're used to new ratios are lower than the core legacy Asbury stores. So there's an opportunity to grow used car sales there. But behavior doesn't change overnight. It's going to take some time to work on that with them and get the potential out of those stores with preowned.
Dan Clara -- Senior Vice President of Operations
Raj, I would add to the -- it's been a main focus of us with an entire team, but more importantly, the operators at the store level, getting behind our vision and executing. And what I mean by that is anything from a used car perspective is really about having the right car at the right store where it turns the fastest and for the highest margin. And we have the tools to -- and the historical that shows that. And we maximize it on a month-to-month basis to put the cars where they belong and turn them at a faster pace.
So very pleased with what the operators have done. I cannot thank them enough, but we've got plenty of room to continue improving.
Rajat Gupta -- J.P. Morgan -- Analyst
Got it. Great. Thanks for that color and good luck.
Dan Clara -- Senior Vice President of Operations
Thank you.
David Hult -- President and Chief Executive Officer
This concludes our discussion today. We appreciate your participation and look forward to discussing our first quarter results in April. Have a great day.
Duration: 51 minutes
Call participants:
Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer
David Hult -- President and Chief Executive Officer
Dan Clara -- Senior Vice President of Operations
Michael Welch -- Senior Vice President and Chief Financial Officer
Rick Nelson -- Stephens Inc. -- Analyst
John Murphy -- Bank of America Merrill Lynch -- Analyst
Rajat Gupta -- J.P. Morgan -- Analyst
Stephanie Moore -- Truist Securities -- Analyst
Bret Jordan -- Jefferies -- Analyst
David Whiston -- Morningstar -- Analyst
More ABG analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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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 (NYSE: ABG) Q4 2021 Earnings Call Feb 15, 2022, 10:00 a.m. Duration: 51 minutes Call participants: Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Rick Nelson -- Stephens Inc. -- Analyst John Murphy -- Bank of America Merrill Lynch -- Analyst Rajat Gupta -- J.P. Morgan -- Analyst Stephanie Moore -- Truist Securities -- Analyst Bret Jordan -- Jefferies -- Analyst David Whiston -- Morningstar -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. If the financing had closed simultaneously with the Larry H. Miller acquisition, our adjusted EPS for the fourth quarter would have been positively impacted by $0.87 as a result of lower interest expense and fewer outstanding shares. | Duration: 51 minutes Call participants: Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Rick Nelson -- Stephens Inc. -- Analyst John Murphy -- Bank of America Merrill Lynch -- Analyst Rajat Gupta -- J.P. Morgan -- Analyst Stephanie Moore -- Truist Securities -- Analyst Bret Jordan -- Jefferies -- Analyst David Whiston -- Morningstar -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Asbury Automotive Group (NYSE: ABG) Q4 2021 Earnings Call Feb 15, 2022, 10:00 a.m. Participating with me today are David Hult, our president and chief executive officer; Dan Clara, our senior vice president of operations; and Michael Welch, our senior vice president and chief financial officer. | Duration: 51 minutes Call participants: Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Rick Nelson -- Stephens Inc. -- Analyst John Murphy -- Bank of America Merrill Lynch -- Analyst Rajat Gupta -- J.P. Morgan -- Analyst Stephanie Moore -- Truist Securities -- Analyst Bret Jordan -- Jefferies -- Analyst David Whiston -- Morningstar -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Asbury Automotive Group (NYSE: ABG) Q4 2021 Earnings Call Feb 15, 2022, 10:00 a.m. Participating with me today are David Hult, our president and chief executive officer; Dan Clara, our senior vice president of operations; and Michael Welch, our senior vice president and chief financial officer. | Duration: 51 minutes Call participants: Karen Reid -- Vice President of Corporate Financial Planning & Analysis and Treasurer David Hult -- President and Chief Executive Officer Dan Clara -- Senior Vice President of Operations Michael Welch -- Senior Vice President and Chief Financial Officer Rick Nelson -- Stephens Inc. -- Analyst John Murphy -- Bank of America Merrill Lynch -- Analyst Rajat Gupta -- J.P. Morgan -- Analyst Stephanie Moore -- Truist Securities -- Analyst Bret Jordan -- Jefferies -- Analyst David Whiston -- Morningstar -- Analyst More ABG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Asbury Automotive Group (NYSE: ABG) Q4 2021 Earnings Call Feb 15, 2022, 10:00 a.m. In a challenging new vehicle environment, we delivered record profitability by improving our new vehicle margin, increasing our used vehicle sales and growing our parts and service business, all while maintaining our improved employee productivity levels and using our strong cash flow for acquisitions. |
28685.0 | 2022-02-14 00:00:00 UTC | Are These Retail-Wholesale Stocks Undervalued Right Now? | ABG | https://www.nasdaq.com/articles/are-these-retail-wholesale-stocks-undervalued-right-now-13 | nan | nan | Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 5.50, which compares to its industry's average of 6.13. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 5.12, with a median of 9.28.
ABG is also sporting a PEG ratio of 0.30. 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 PEG compares to its industry's average PEG of 0.31. Within the past year, ABG's PEG has been as high as 9.42 and as low as 0.28, with a median of 0.50.
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 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 0.4. This compares to its industry's average P/S of 0.42.
Finally, we should also recognize that ABG has a P/CF ratio of 5.82. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ABG's current P/CF looks attractive when compared to its industry's average P/CF of 9.54. Over the past year, ABG's P/CF has been as high as 12.40 and as low as 5.42, with a median of 7.59.
Another great Automotive - Retail and Whole Sales stock you could consider is Penske Automotive Group (PAG), which is a # 2 (Buy) stock with a Value Score of A.
Penske Automotive Group is trading at a forward earnings multiple of 7.27 at the moment, with a PEG ratio of 0.35. This compares to its industry's average P/E of 6.13 and average PEG ratio of 0.31.
PAG's Forward P/E has been as high as 11.62 and as low as 7.12, with a median of 8.65. During the same time period, its PEG ratio has been as high as 2.09, as low as 0.35, with a median of 0.88.
Penske Automotive Group sports a P/B ratio of 1.98 as well; this compares to its industry's price-to-book ratio of 2.28. In the past 52 weeks, PAG's P/B has been as high as 2.31, as low as 1.54, with a median of 1.99.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group and Penske Automotive Group are likely undervalued currently. And when considering the strength of its earnings outlook, ABG and PAG sticks out as one of the market's strongest value stocks.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Penske Automotive Group, Inc. (PAG): 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 #1 (Strong Buy) and an A for Value. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 5.12, with a median of 9.28. | 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 #1 (Strong Buy) and an A for Value. | 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 #1 (Strong Buy) and an A for Value. | ABG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. ABG has a P/S ratio of 0.4. One company value investors might notice is Asbury Automotive Group (ABG). |
28686.0 | 2022-02-11 00:00:00 UTC | Zacks.com featured highlights include Asbury Automotive Group, Allscripts Healthcare Solutions, HarleyDavidson, AGCO and CBRE Group | ABG | https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-asbury-automotive-group-allscripts-healthcare | nan | nan | For Immediate Release
Chicago, IL – February 11, 2022 – Stocks in this week’s article are Asbury Automotive Group ABG, Allscripts Healthcare Solutions MDRX , HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE.
5 Top Stocks Likely to Beat Earnings Estimates
It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature.
Thus, taking a step beyond the basic earnings growth metric and analysing the quarterly results from the earnings beat point of view seems to be an intriguing idea. Asbury Automotive Group, Allscripts Healthcare Solutions, HarleyDavidson, AGCO and CBRE Group are some stocks that fit this investment strategy.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1865451/5-top-stocks-likely-to-beat-earnings-estimates
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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Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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HarleyDavidson, Inc. (HOG): Free Stock Analysis Report
Allscripts Healthcare Solutions, Inc. (MDRX): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
CBRE Group, Inc. (CBRE): 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 – February 11, 2022 – Stocks in this week’s article are Asbury Automotive Group ABG, Allscripts Healthcare Solutions MDRX , HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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. | For Immediate Release Chicago, IL – February 11, 2022 – Stocks in this week’s article are Asbury Automotive Group ABG, Allscripts Healthcare Solutions MDRX , HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Allscripts Healthcare Solutions, HarleyDavidson, AGCO and CBRE Group are some stocks that fit this investment strategy. | For Immediate Release Chicago, IL – February 11, 2022 – Stocks in this week’s article are Asbury Automotive Group ABG, Allscripts Healthcare Solutions MDRX , HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1865451/5-top-stocks-likely-to-beat-earnings-estimates 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. | For Immediate Release Chicago, IL – February 11, 2022 – Stocks in this week’s article are Asbury Automotive Group ABG, Allscripts Healthcare Solutions MDRX , HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. |
28687.0 | 2022-02-11 00:00:00 UTC | Advance Auto Parts (AAP) to Report Q4 Earnings: A Sneak Peek | ABG | https://www.nasdaq.com/articles/advance-auto-parts-aap-to-report-q4-earnings%3A-a-sneak-peek | nan | nan | Advance Auto Parts, Inc. AAP is slated to announce fourth-quarter 2021 results on Feb 14, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.95 per share and $2,356 million, respectively.
The Zacks Consensus Estimate for Advance Auto Parts’ fourth-quarter earnings per share has been revised upward by 1 cent in the past seven days. The year-ago earnings were recorded at $1.87 per share. The Zacks Consensus Estimate for quarterly revenues, however, suggests a marginal decline from $2,365 million generated in fourth-quarter 2020.
This aftermarket auto parts distributor delivered better-than-anticipated earnings in the last reported quarter on higher-than-expected comparable store sales growth. Over the trailing four quarters, Advance Auto Parts surpassed estimates on three occasions and missed on the other, with the average surprise being 9.01%.
Earnings Whispers
Our proven model predicts an earnings beat for Advance Auto Parts 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. This has been elaborated below.
Earnings ESP: Advance Auto Parts has an Earnings ESP of +1.84%. This is because the Most Accurate Estimate is pegged 3 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Advance Auto Parts currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Consider
Courtesy of economic recovery from the pandemic lows and preference for personal mobility, demand for vehicles has been on the rise. This, in turn, is anticipated to have fueled the demand for automotive replacement parts, accessories, batteries and maintenance items. Advance Auto Parts’ upcoming results are likely to get a boost from the same. Encouragingly, the Zacks Consensus Estimate for comparable same-store sales growth for the to-be-reported quarter is 4.76%, indicating an increase from the year-ago quarter and the prior quarter’s 4.70% and 3.1%, respectively.
Advance Auto Parts is likely to have gained from the digital ramp-up and rising e-commerce initiatives. Significant advancement of its DIY omni-channel digital platform and enhancements to the online portal ‘MyAdvance’ are expected to have increased traffic and resulted in higher conversion rates, which is likely to have boosted revenues during the quarter in discussion.
Completion of the rollout of cross-banner replenishment is likely to have delivered savings. The firm’s Warehouse Management Systems and Labor Management System initiatives remained on track and are expected to have driven productivity.
AAP’s fourth-quarter results would reflect the benefits from its strengthening foothold through the opening of new stores. In the first nine months of 2021, the company opened six Worldpac branches, 19 Advance and Carquest stores, and 44 independent Carquest stores. The Zacks Consensus Estimate for the total number of retail stores at fourth quarter-end is pegged at 5,007, indicating growth from the third quarter’s store count of 4,727.
In the lastearnings call Advance Auto Parts raised projections for full-year 2021 sales, comps and FCF, which boosts confidence for the upcoming results.
Other Stocks With Favorable Combinations
Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Asbury Automotive ABG has an Earnings ESP of +3.62% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for Asbury’s to-be-reported quarter’s earnings and revenues is pegged at $5.86 per share and $2.43 billion, respectively. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%.
Sonic Automotive SAH has an Earnings ESP of +4.87% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.83 per share and $3.17 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
AutoNation AN has an Earnings ESP of +1.97% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 17.
The Zacks Consensus Estimate for AutoNation’s to-be-reported quarter’s earnings and revenues is pegged at $5 per share and $6.37 billion, respectively. AN surpassed earnings estimates in the last four quarters, with an average of 40.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
AutoNation, Inc. (AN): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Sonic Automotive, Inc. (SAH): 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. | Other Stocks With Favorable Combinations Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported: Asbury Automotive ABG has an Earnings ESP of +3.62% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Other Stocks With Favorable Combinations Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported: Asbury Automotive ABG has an Earnings ESP of +3.62% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Other Stocks With Favorable Combinations Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported: Asbury Automotive ABG has an Earnings ESP of +3.62% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Other Stocks With Favorable Combinations Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported: Asbury Automotive ABG has an Earnings ESP of +3.62% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28688.0 | 2022-02-11 00:00:00 UTC | Why Asbury (ABG) is Well Positioned for Q4 Earnings Beat | ABG | https://www.nasdaq.com/articles/why-asbury-abg-is-well-positioned-for-q4-earnings-beat | nan | nan | Asbury Automotive Group, Inc. ABG is set to release fourth-quarter 2021 results on Feb 15, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $5.86 and $2.43 billion, respectively.
The Zacks Consensus Estimate for Asbury’s fourth-quarter earnings per share has been revised downward by a penny in the past seven days. The bottom-line projection, however, implies year-over-year growth of 32%. Also, the Zacks Consensus Estimate for revenues suggests a year-over-year uptick of 8.7%.
This automotive retailer posted better-than-expected earnings in the last reported quarter, primarily on higher-than-anticipated revenues and earnings from the used-vehicle unit. Precisely, revenues and gross profit from used vehicle sales came in at $879 million and $72.2 million, outpacing the Zacks Consensus Estimate of $731 million and 66 million, respectively.
Over the last trailing quarters, Asbury surpassed earnings estimates on all occasions, with the average being 24.3%. Investors expect Asbury to maintain its earnings beat streak for the fourth quarter of 2021 as well. Encouragingly, our model predicts the same.
Earnings Whispers
Our proven model predicts an earnings beat for Asbury for the to-be-reported quarter, as it has the right combination of the two key ingredients. A 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.
Earnings ESP: Asbury has an Earnings ESP of +3.72%. This is because the Most Accurate Estimate is pegged 22 cents above the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Asbury currently carries a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Highlights
During the quarter to be reported, Asbury completed the acquisition of the eighth largest dealership in the United States, Larry H. Miller Dealerships, in a $3.2-billion deal. The buyout bolstered Asbury’s regional footprint and expanded its presence in the high-growth Western markets. The acquired assets include 54 new and seven used-vehicle dealerships along with 11 collision centers. The deal also enhanced the scope of Asbury’s Clicklane omni-channel platform.
During the quarter under discussion, Asbury also acquired Stevinson Automotive. The buyout strengthened Asbury’s foothold in Denver, which is one of the most economically vibrant regions in the United States and an ideal market for strong automotive brands.
The Larry H. Miller and Stevinson buyouts are also likely to somewhat contribute to Asbury’s upcoming results, with full synergies likely to reflect next year. The Larry H. Miller and Stevinson buyouts would add $5.7 billion and $715 million, respectively, to Asbury’s annualized revenues. These deals provide Asbury an edge to execute its five-year plan to generate $20 billion in annual revenues by 2025.
Things to Note
Courtesy of economic recovery from the pandemic lows and preference for personal mobility, demand for vehicles has been on the rise, which is likely to have aided Asbury’s sales. The automotive retailer’s fourth-quarter results will reflect the rising average prices of both new and used vehicles. Higher year-over-year projected gross profits from all segments are likely to buoy Asbury’s upcoming results.
Take a look into the Zacks Consensus Estimate for the firm’s fourth-quarter 2021 revenues and gross profits from major units.
The consensus mark for quarterly sales from the Used Vehicle segment is $820 million, calling for a jump from the $659 million registered in the corresponding quarter of 2020. The same for the segmental gross profit is $71 million, indicating a surge from the prior-year quarter’s $39.6 million.
The consensus mark for quarterly sales from the Parts and Service segment is pegged at $307 million, suggesting a rise from the $262 million registered in the year-earlier quarter. The same for the segmental gross profit is $185 million, indicating a surge from the prior-year quarter’s $163 million.
The Zacks Consensus Estimate for revenues from the Finance and Insurance segment is pegged at $97 million for the period in discussion, calling for growth from the $87 million reported in the prior-year quarter. The consensus mark for the segment’s gross profit is $103 million, calling for a rise from the $87 million in fourth-quarter 2020.
The Zacks Consensus Estimate for Asbury’s New Vehicle segment revenues is pegged at $1,173 million for the period in discussion, suggesting a decline from the $1,226 million reported in the prior-year quarter. Nonetheless, the consensus mark for the segment’s gross profit is $123 million, calling for a rise from the $83 million in fourth-quarter 2020.
Other Auto Retailers Poised to Top Earnings Estimates
Sonic Automotive SAH has an Earnings ESP of +4.87% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.83 per share and $3.17 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
AutoNation AN has an Earnings ESP of +1.97% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 17.
The Zacks Consensus Estimate for AutoNation’s to-be-reported quarter’s earnings and revenues is pegged at $5 per share and $6.37 billion, respectively. AN surpassed earnings estimates in the last four quarters, with an average of 40.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
AutoNation, Inc. (AN): Free Stock Analysis Report
Sonic Automotive, Inc. (SAH): 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, Inc. ABG is set to release fourth-quarter 2021 results on Feb 15, before the opening bell. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The buyout strengthened Asbury’s foothold in Denver, which is one of the most economically vibrant regions in the United States and an ideal market for strong automotive brands. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Asbury Automotive Group, Inc. ABG is set to release fourth-quarter 2021 results on Feb 15, before the opening bell. The Zacks Consensus Estimate for Asbury’s New Vehicle segment revenues is pegged at $1,173 million for the period in discussion, suggesting a decline from the $1,226 million reported in the prior-year quarter. | Asbury Automotive Group, Inc. ABG is set to release fourth-quarter 2021 results on Feb 15, before the opening bell. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Precisely, revenues and gross profit from used vehicle sales came in at $879 million and $72.2 million, outpacing the Zacks Consensus Estimate of $731 million and 66 million, respectively. | Asbury Automotive Group, Inc. ABG is set to release fourth-quarter 2021 results on Feb 15, before the opening bell. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $5.86 and $2.43 billion, respectively. |
28689.0 | 2022-02-11 00:00:00 UTC | Should You Buy Asbury Automotive Group (ABG) Ahead of Earnings? | ABG | https://www.nasdaq.com/articles/should-you-buy-asbury-automotive-group-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 Group 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 yum in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $6.08 per share for ABG, compared to a broader Zacks Consensus Estimate of $5.86 per share. This suggests that analysts have very recently bumped up their estimates for ABG, giving the stock a Zacks Earnings ESP of +3.72% 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 #1 (Strong 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 stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Asbury Automotive Group and that a beat might be in the cards for the upcoming report.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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 are always looking for stocks that are poised to beat at earnings season and Asbury Automotive Group, Inc. ABG may be one such company. In fact, the Most Accurate Estimate for the current quarter is currently at $6.08 per share for ABG, compared to a broader Zacks Consensus Estimate of $5.86 per share. This suggests that analysts have very recently bumped up their estimates for ABG, giving the stock a Zacks Earnings ESP of +3.72% heading into earnings season. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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. In fact, the Most Accurate Estimate for the current quarter is currently at $6.08 per share for ABG, compared to a broader Zacks Consensus Estimate of $5.86 per share. | This suggests that analysts have very recently bumped up their estimates for ABG, giving the stock a Zacks Earnings ESP of +3.72% 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. In fact, the Most Accurate Estimate for the current quarter is currently at $6.08 per share for ABG, compared to a broader Zacks Consensus Estimate of $5.86 per share. | This suggests that analysts have very recently bumped up their estimates for ABG, giving the stock a Zacks Earnings ESP of +3.72% heading into earnings season. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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. |
28690.0 | 2022-02-10 00:00:00 UTC | 5 Top Stocks Likely to Beat Earnings Estimates | ABG | https://www.nasdaq.com/articles/5-top-stocks-likely-to-beat-earnings-estimates | nan | nan | It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectation. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature.
Thus, taking a step beyond the basic earnings growth metric and analysing the quarterly results from the earnings beat point of view seems to be an intriguing idea. Asbury Automotive Group ABG, Allscripts Healthcare Solutions MDRX, HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE are some stocks that fit this investment strategy.
Why Is a Positive Earnings Surprise So Important?
Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend.
Also, seasonal fluctuations come into play sometimes. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.
Meanwhile, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project earnings of companies. They in fact club their insights and a company’s guidance when deriving an earnings estimate.
Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.
How to Find Stocks That Can Beat?
Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream but not an easy job. One way to do this is to look at the earnings surprise history of the company.
An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earning beat in its next release.
The Winning Strategy
In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters.
Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again.
Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slight higher by setting the average earnings surprise for the last four quarters at 20%.
Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger.
In addition, we place a few other criteria that raise the chance of a positive surprise.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through.
Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat, per our proven model.
In order to zero in on those that have long-term growth potential and high trading liquidity we have added the following parameters too:
Next 3–5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects.
Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity.
A handful of criteria has narrowed down the universe from over 7,700 stocks to nine.
Here are five out of the nine stocks:
Asbury Automotive Group ABG:This Zacks Rank #1 company is one of the largest automotive retailers. Asbury offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise for ABG in the trailing four quarters is 24.33%.
Allscripts Healthcare Solutions MDRX: The company provides information technology solutions and services to healthcare organizations. It has a Zacks Rank #2.
The average earnings surprise for MDRX in the trailing four quarters is 34.07%.
HarleyDavidson HOG: The Zacks Rank #2 company is the parent entity of company groups doing business as Harley-Davidson Motor Company and Harley-Davidson Financial Services.
The average earnings surprise for HOG in the trailing four quarters is 77.59%.
AGCO AGCO: AGCO Corporation is a leading manufacturer and distributor of agricultural equipment and related replacement parts. It has a Zacks Rank #2.
The average earnings surprise for AGCO in the trailing four quarters is 56.65%.
CBRE Group CBRE: This Zacks Rank #2 company is a commercial real estate services and investment firm, offering a wide range of services to tenants, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estates in all major metropolitan areas across the globe.
The average earnings surprise for CBRE in the trailing four quarters is 41.02%.
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.
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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: http://www.zacks.com/performance.
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HarleyDavidson, Inc. (HOG): Free Stock Analysis Report
Allscripts Healthcare Solutions, Inc. (MDRX): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
CBRE Group, Inc. (CBRE): 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, Allscripts Healthcare Solutions MDRX, HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE are some stocks that fit this investment strategy. Here are five out of the nine stocks: Asbury Automotive Group ABG:This Zacks Rank #1 company is one of the largest automotive retailers. The average earnings surprise for ABG in the trailing four quarters is 24.33%. | Asbury Automotive Group ABG, Allscripts Healthcare Solutions MDRX, HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE are some stocks that fit this investment strategy. Here are five out of the nine stocks: Asbury Automotive Group ABG:This Zacks Rank #1 company is one of the largest automotive retailers. The average earnings surprise for ABG in the trailing four quarters is 24.33%. | Asbury Automotive Group ABG, Allscripts Healthcare Solutions MDRX, HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE are some stocks that fit this investment strategy. Here are five out of the nine stocks: Asbury Automotive Group ABG:This Zacks Rank #1 company is one of the largest automotive retailers. The average earnings surprise for ABG in the trailing four quarters is 24.33%. | Asbury Automotive Group ABG, Allscripts Healthcare Solutions MDRX, HarleyDavidson HOG, AGCO AGCO and CBRE Group CBRE are some stocks that fit this investment strategy. Here are five out of the nine stocks: Asbury Automotive Group ABG:This Zacks Rank #1 company is one of the largest automotive retailers. The average earnings surprise for ABG in the trailing four quarters is 24.33%. |
28691.0 | 2022-02-09 00:00:00 UTC | Penske Automotive (PAG) Beats Q4 Earnings and Revenue Estimates | ABG | https://www.nasdaq.com/articles/penske-automotive-pag-beats-q4-earnings-and-revenue-estimates | nan | nan | Penske Automotive (PAG) came out with quarterly earnings of $4.10 per share, beating the Zacks Consensus Estimate of $3.67 per share. This compares to earnings of $2.49 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 11.72%. A quarter ago, it was expected that this auto dealership chain would post earnings of $3.53 per share when it actually produced earnings of $4.46, delivering a surprise of 26.35%.
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 $6.3 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 1.10%. This compares to year-ago revenues of $5.81 billion. The company has topped consensus revenue estimates four 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 4.1% since the beginning of the year versus the S&P 500's decline of -5.1%.
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: 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 $3.55 on $6.21 billion in revenues for the coming quarter and $13.70 on $27.4 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 4% 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.
One other stock from the same industry, Asbury Automotive Group (ABG), is yet to report results for the quarter ended December 2021. The results are expected to be released on February 15.
This auto dealership chain is expected to post quarterly earnings of $5.86 per share in its upcoming report, which represents a year-over-year change of +32%. The consensus EPS estimate for the quarter has been revised 23.6% higher over the last 30 days to the current level.
Asbury Automotive Group's revenues are expected to be $2.43 billion, up 8.7% from the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
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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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One other stock from the same industry, Asbury Automotive Group (ABG), is yet to report results for the quarter ended December 2021. 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 One other stock from the same industry, Asbury Automotive Group (ABG), is yet to report results for the quarter ended December 2021. Penske, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $6.3 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 1.10%. | One other stock from the same industry, Asbury Automotive Group (ABG), is yet to report results for the quarter ended December 2021. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Penske Automotive (PAG) came out with quarterly earnings of $4.10 per share, beating the Zacks Consensus Estimate of $3.67 per share. | One other stock from the same industry, Asbury Automotive Group (ABG), is yet to report results for the quarter ended December 2021. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Penske Automotive (PAG) came out with quarterly earnings of $4.10 per share, beating the Zacks Consensus Estimate of $3.67 per share. |
28692.0 | 2022-02-08 00:00:00 UTC | A Peek Into Key Predictions Ahead of Magna (MGA) Q4 Earnings | ABG | https://www.nasdaq.com/articles/a-peek-into-key-predictions-ahead-of-magna-mga-q4-earnings | nan | nan | Magna International MGA is scheduled to report fourth-quarter 2021 results on May 6, before the bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 83 cents per share and $8.94 billion, respectively.
This automotive equipment supplier’s third-quarter 2021 earnings lagged the Zacks Consensus Estimate and witnessed a year-over-year decline. Over the trailing four quarters, Magna surpassed the Zacks Consensus Estimate on two occasions for as many misses, with the average surprise being 8.3%.
Magna International Inc. Price and EPS Surprise
Magna International Inc. price-eps-surprise | Magna International Inc. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Magna’s fourth-quarter earnings per share has witnessed an upward revision of 2 cents in the past 30 days. The bottom-line projection calls for a year-over-year deterioration of 70.6%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 15.4%.
Factors at Play
Magna has been battling chip crunch-related headwinds, which are expected to weigh on fourth-quarter 2021 results. As a result of semiconductor chip shortages, production schedules of Magna’s customers’ have been unpredictable, resulting in labor and other operational inefficiencies at its facilities. Global light vehicle production for the fourth quarter declined 13% year over year. This is anticipated to have reduced the demand for Magna's products during the quarter to be reported, thereby resulting in lower year-over-year revenues across all segments.
The Zacks Consensus Estimate for fourth-quarter revenues and adjusted EBIT from the Body Exteriors & Structures segment is pegged at $3,624 million and $140 million, implying a year-over-year decline of 17.5% and 74.2%, respectively.
The consensus estimate for quarterly revenues and pretax profit from the Complete Vehicles segment stands at $1,504 million and $73 million, indicating a drop of 15% and 38.2%, respectively, on a year-over-year basis.
The Zacks Consensus Estimate for quarterly revenues and adjusted EBIT from the Seating Systems unit is pegged at $1,147 million and $19 million, indicating a decrease of 17.5% and 77.6%, respectively, from a year ago.
The consensus mark for revenues and adjusted EBIT from the Power & Vision unit is pegged at $2,782 million and $112 million, pointing to a year-over-year deterioration of 12.5% and 69%, respectively.
Magna’s upcoming results are likely to be negatively impacted by inflationary cost increases in production inputs including freight, labor and commodities. Elevated capital spending to evolve its business profile for incorporating technologically-advanced new products might have further impaired Magna’s quarterly performance.
Earnings Whispers
Our proven Zacks model does not conclusively predict an earnings beat for Magna 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. That is not the case here as elaborated below.
Earnings ESP: The company has an Earnings ESP of +3.03%. This is because the Most Accurate Estimate is pegged 2 cents above the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Magna currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for Magna, below we highlight three stocks from the auto space, which, according to our model, have the right combination of elements to surpass earnings estimates for the quarter to be reported:
Advance Auto Parts AAP has an Earnings ESP of +1.84% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 14.
The Zacks Consensus Estimate for Advance Auto’s to-be-reported quarter’s earnings and revenues is pegged at $1.95 per share and $2.36 billion, respectively. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%.
Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for Asbury’s to-be-reported quarter’s earnings and revenues is pegged at $5.86 per share and $2.45 billion, respectively. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%.
Sonic Automotive SAH has an Earnings ESP of +8.11% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.85 per share and $3.20 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Magna International Inc. (MGA): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Sonic Automotive, Inc. (SAH): 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 ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28693.0 | 2022-02-08 00:00:00 UTC | Asbury Automotive Group (NYSE:ABG) Might Become A Compounding Machine | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-nyse%3Aabg-might-become-a-compounding-machine | nan | nan | Did you know there are some financial metrics that can provide clues of a potential multi-bagger? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So, when we ran our eye over Asbury Automotive Group's (NYSE:ABG) trend of ROCE, we really liked what we saw.
Return On Capital Employed (ROCE): What is it?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Asbury Automotive Group is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.24 = US$687m ÷ (US$3.6b - US$659m) (Based on the trailing twelve months to September 2021).
So, Asbury Automotive Group has an ROCE of 24%. In absolute terms that's a very respectable return and compared to the Specialty Retail industry average of 21% it's pretty much on par.
NYSE:ABG Return on Capital Employed February 8th 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'd like, you can check out the forecasts from the analysts covering Asbury Automotive Group here for free.
So How Is Asbury Automotive Group's ROCE Trending?
Asbury Automotive Group deserves to be commended in regards to it's returns. The company has consistently earned 24% for the last five years, and the capital employed within the business has risen 137% in that time. With returns that high, it's great that the business can continually reinvest its money at such appealing rates of return. If these trends can continue, it wouldn't surprise us if the company became a multi-bagger.
On a side note, Asbury Automotive Group has done well to reduce current liabilities to 18% of total assets over the last five years. This can eliminate some of the risks inherent in the operations because the business has less outstanding obligations to their suppliers and or short-term creditors than they did previously.
In Conclusion...
In short, we'd argue Asbury Automotive Group has the makings of a multi-bagger since its been able to compound its capital at very profitable rates of return. On top of that, the stock has rewarded shareholders with a remarkable 128% return to those who've held over the last five years. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research.
One more thing, we've spotted 3 warning signs facing Asbury Automotive Group that you might find interesting.
If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets 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. | So, when we ran our eye over Asbury Automotive Group's (NYSE:ABG) trend of ROCE, we really liked what we saw. NYSE:ABG Return on Capital Employed February 8th 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. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. | So, when we ran our eye over Asbury Automotive Group's (NYSE:ABG) trend of ROCE, we really liked what we saw. NYSE:ABG Return on Capital Employed February 8th 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. The formula for this calculation on Asbury Automotive Group is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.24 = US$687m ÷ (US$3.6b - US$659m) (Based on the trailing twelve months to September 2021). | NYSE:ABG Return on Capital Employed February 8th 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. So, when we ran our eye over Asbury Automotive Group's (NYSE:ABG) trend of ROCE, we really liked what we saw. The formula for this calculation on Asbury Automotive Group is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.24 = US$687m ÷ (US$3.6b - US$659m) (Based on the trailing twelve months to September 2021). | NYSE:ABG Return on Capital Employed February 8th 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. So, when we ran our eye over Asbury Automotive Group's (NYSE:ABG) trend of ROCE, we really liked what we saw. So How Is Asbury Automotive Group's ROCE Trending? |
28694.0 | 2022-02-08 00:00:00 UTC | What Should Investors Expect From Group 1 (GPI) Q4 Earnings? | ABG | https://www.nasdaq.com/articles/what-should-investors-expect-from-group-1-gpi-q4-earnings | nan | nan | Group 1 Automotive GPI is slated to release fourth-quarter 2021 results on Feb 10, before market open. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $9.06 per share and $3.48 billion, respectively.
This automotive retailer came out with stellar earnings in the last reported quarter on higher-than-anticipated gross profit from New-vehicle retail, Used-vehicle retail, Parts & Service and Finance & Insurance units. The company surpassed estimates in three of the preceding four quarters and missed once, with the average surprise being 7.96%. This is depicted in the graph below:
Group 1 Automotive, Inc. Price and EPS Surprise
Group 1 Automotive, Inc. price-eps-surprise | Group 1 Automotive, Inc. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Group1’s fourth-quarter earnings per share has moved north by 14 cents in the past 30 days. The bottom-line projection implies year-on-year growth of 60%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 16.4%.
Earnings Whispers
Our proven model predicts an earnings beat for Group 1 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. This has been elaborated below.
Earnings ESP: Group 1 has an Earnings ESP of +0.63%. This is because the Most Accurate Estimate is pegged 6 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Group 1 currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors
Courtesy of economic recovery from the pandemic lows and preference for personal mobility, demand for vehicles has been on the rise, which is likely to have aided sales of Lithia. Encouragingly, the auto retailer is expected to post a year-over-year increase in fourth-quarter revenues across all units.
Here’s a sneak peek into the Zacks Consensus Estimate for the firm’s revenues and gross profits from major units.
For the quarter in discussion, the Zacks Consensus Estimate for revenues from New Vehicle Retail, which has the highest contribution to the company’s revenues, is pegged at $1,680 million, indicating an increase from the $1,595.3 million reported in the year-ago period. The consensus mark for gross profit from the segment is pegged at $155 million, suggesting an improvement from the $105 million recorded in the prior-year quarter.
The consensus estimate for revenues from Used-Vehicle Retail for the September-December period is pegged at $917 million, suggesting a rise from the $818.2 million recorded in fourth-quarter 2020. The consensus mark for gross profit from the segment is pinned at $80 million, calling for a surge from the $49.2 million recorded in the prior-year period.
The consensus mark for revenues from Used-Vehicle Wholesale for the December-end quarter is pinned at $97 million, suggesting a rise from the $86.2 million recorded in fourth-quarter 2020. The consensus mark for quarterly gross profit from the segment is pinned at $8.7 million, calling for a jump from $2 million recorded in the year-earlier quarter.
The Zacks Consensus Estimate for quarterly revenues and profit from the Parts and Service segment is pinned at $437 million and $240 million, implying growth from the $316.2 million and $197 million reported in the prior-year period, respectively.
The Zacks Consensus Estimate for quarterly revenues from the Finance and Insurance business is pegged at $132 million, suggesting a rise from the $129.3 million recorded in fourth-quarter 2020.
During the quarter to be reported, Group 1 diversified its U.S. foothold by acquiring 27 Prime Automotive Group dealerships. This optimized its portfolio and is likely to boost the upcoming results. Also, the AcceleRide platform — Group 1’s online retailing initiative that is active at most of the firm’s U.S. dealerships — is likely to have buoyed the top line in the fourth quarter. The company’s continued cost discipline is anticipated to have driven margins.
Other Stocks With Favorable Combinations
Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Advance Auto Parts AAP has an Earnings ESP of +1.84% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 14.
The Zacks Consensus Estimate for Advance Auto’s to-be-reported quarter’s earnings and revenues is pegged at $1.95 per share and $2.36 billion, respectively. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%.
Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for Asbury’s to-be-reported quarter’s earnings and revenues is pegged at $5.86 per share and $2.45 billion, respectively. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%.
Sonic Automotive SAH has an Earnings ESP of +8.11% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.85 per share and $3.20 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI): Free Stock Analysis Report
Sonic Automotive, Inc. (SAH): 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 ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28695.0 | 2022-02-07 00:00:00 UTC | Asbury Automotive Group (ABG) Dips More Than Broader Markets: What You Should Know | ABG | https://www.nasdaq.com/articles/asbury-automotive-group-abg-dips-more-than-broader-markets%3A-what-you-should-know-1 | nan | nan | Asbury Automotive Group (ABG) closed the most recent trading day at $151.49, moving -0.81% from the previous trading session. This move lagged the S&P 500's daily loss of 0.37%.
Heading into today, shares of the auto dealership chain had lost 12.82% over the past month, lagging the Retail-Wholesale sector's loss of 6.95% and the S&P 500's loss of 6.01% in that time.
Wall Street will be looking for positivity from Asbury Automotive Group as it approaches its next earnings report date. This is expected to be February 15, 2022. The company is expected to report EPS of $5.86, up 31.98% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.45 billion, up 9.49% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Asbury Automotive Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 25.13% higher within the past month. Asbury Automotive Group is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Asbury Automotive Group is holding a Forward P/E ratio of 5.12. This represents a discount compared to its industry's average Forward P/E of 7.17.
Meanwhile, ABG's PEG ratio is currently 0.28. 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 had an average PEG ratio of 0.36 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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. | Asbury Automotive Group (ABG) closed the most recent trading day at $151.49, moving -0.81% from the previous trading session. Meanwhile, ABG's PEG ratio is currently 0.28. ABG's industry had an average PEG ratio of 0.36 as of yesterday's close. | Asbury Automotive Group (ABG) closed the most recent trading day at $151.49, moving -0.81% from the previous trading session. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Meanwhile, ABG's PEG ratio is currently 0.28. | Asbury Automotive Group (ABG) closed the most recent trading day at $151.49, moving -0.81% from the previous trading session. Meanwhile, ABG's PEG ratio is currently 0.28. ABG's industry had an average PEG ratio of 0.36 as of yesterday's close. | Asbury Automotive Group (ABG) closed the most recent trading day at $151.49, moving -0.81% from the previous trading session. Meanwhile, ABG's PEG ratio is currently 0.28. ABG's industry had an average PEG ratio of 0.36 as of yesterday's close. |
28696.0 | 2022-02-07 00:00:00 UTC | The Zacks Analyst Blog Highlights: STMicroelectronics, BP and Asbury Automotive Group | ABG | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-stmicroelectronics-bp-and-asbury-automotive-group | nan | nan | For Immediate Release
Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: STMicroelectronics STM, BP BP and Asbury Automotive Group ABG.
Here are highlights from Friday’s Analyst Blog:
What's the S&P 500's "Fair Value"? Zacks February Market Strategy
The following is an excerpt from Zacks Chief Strategist John Blank’s full Feb Market Strategy reportTo access the full PDF, click here.
In brief, Zacks “fair value”earnings callis based on a 2022 forward look ($223); 2023 (another ~10% added to $246.52); and an 18 F12M P/E ratio, a five-year average.
Zacks has 4,900 at year-end (YE) 2022 as our initial, conservative ‘fair value’ target.
Add on a dollop of Fed and G10 central bank-driven valuation upside to that.
The latest 2022 “bottoms-up call is for the S&P 500 to reach 5,318.2 in 12 months.
Without money printing, Zacks has the S&P 500 index 4,900 at YE 2022. Add 320 points of money printing effects to get the S&P 500 index to 5,220 at YE 2022.
Zacks had 4,350 as a YE 2021 call for “fair value” without money printing. The year ended with the S&P500 at 4,770. A difference of ~320 points.
Very bullish top-down Wall Street strategists called for the S&P 500 to end 2020 trading at 3,450. It ended at 3,756. A difference of ~300 points.
In conclusion, to actively compute “fair value” valuations, factor in earnings growth ahead, like the stock market does, 6 to 12 to 18 months.
Always keep up-to-date. Time moves on faster than your last calculation may recognize.
Looking for S&P 500 or Small-Cap Sector and Industry Ideas?
Apply a 12M forward-looking (endemic) COVID earnings landscape.
Study 2022 and the first half of 2023!
Focus on cyclical Zacks S&P 500 sectors.
The top-most large-cap sectors come to life in 2022, as broader and deeper U.S. and global vaccination and booster rates raise mobility, even more.
Consumer Discretionary (+66.0)
Aerospace (+19.1%)
Autos (+16.6%)
Construction (+16.0%)
Industrial Products (+15.4%)
Conglomerates (+12.5%)
Retail/Wholesale (+11.9%)
Medical (+8.7%)
Technology (+7.8%)
Utilities (+6.7%)
Consumer Staples (+5.1%)
Basic Materials (+3.6%)
Finance (-7.3%)
Oil/Energy (na)
An idea? Play sold-off cyclicals on a 2022 EPS/revenue build. That’s a forward bull play.
Zacks S&P 600 (Small Cap) Annual Earnings consensus shows a nifty rise going out to 2023. The small-cap Russell 2000 has sold off, more than the large cap growth indices.
2011 $29.1 Billion
2012 $32.2
2013 $36.5
2014 $39.1
2015 $36.8
2016 $37.5
2017 $40.4
2018 $50.0
2019 $48.0
2020 $33.8
2021 $65.5
2022 $72.7
2023 $79.7
Still: realize this pandemic is not over.
Far from it.
To Jan. 31st, there were 10.08B vaccine doses given, 375.1M world-wide cases and 5.67M deaths worldwide.
In that, there were 74.3M USA cases and 884K USA deaths.
The FEB Zacks Rank system showed only 2 Very Attractive sectors; Energy and Info Tech. Both are global, and both are driven by supply shortages at the moment.
It was sparse one notch beneath that too: Consumer Discretionary got an upgrade to Attractive. The setting is one where Omicron played out. All may bounce a quarter later.
Materials and Industrials came in at Market Weight. Steel and Metal Fabricating looked good. Communication Services and Utilities stayed at Market Weight. Telco Equipment looked great.
Health Care was a bare Market Weight. Why? Omicron raised the Drug Industry and lowered the Medical Products industry at the same time.
Consumer Staples fell all the way back to Very Unattractive this month. Agri-business was the exception. Omicron took down Misc. Staples, Tobacco, Food, & Beverages.
(1) Info Tech stayed at Very Attractive. Computer-Office Equipment, Semis (with a global supply shortage), and Misc. Tech were at the top, and in that order.
Zacks #1 Rank (STRONG BUY): STMicroelectronics
(2) Energyremained a Very Attractive sector. Coal, Oil & Gas Integrated, Oil-Misc. and the Energy-Alternates stood out.
Zacks #1 Rank (STRONG BUY): BP
(3) Consumer Discretionaryrose to Attractive. Publishing, Apparel and Autos/Tires/Trucks, were strong and show wealth effects and strong overall consumer spending.
Zacks # Rank (STRONG BUY): Asbury Automotive Group
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Zacks Investment Research
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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.
Just Released: Zacks Top 10 Stocks for 2022
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Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
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STMicroelectronics N.V. (STM): Free Stock Analysis Report
BP p.l.c. (BP): 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. | Stocks recently featured in the blog include: STMicroelectronics STM, BP BP and Asbury Automotive Group ABG. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. | Stocks recently featured in the blog include: STMicroelectronics STM, BP BP and Asbury Automotive Group ABG. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Zacks # Rank (STRONG BUY): Asbury Automotive Group Media Contact Zacks Investment Research 800-767-3771 ext. | Stocks recently featured in the blog include: STMicroelectronics STM, BP BP and Asbury Automotive Group ABG. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Zacks February Market Strategy The following is an excerpt from Zacks Chief Strategist John Blank’s full Feb Market Strategy reportTo access the full PDF, click here. | Stocks recently featured in the blog include: STMicroelectronics STM, BP BP and Asbury Automotive Group ABG. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Add 320 points of money printing effects to get the S&P 500 index to 5,220 at YE 2022. |
28697.0 | 2022-02-07 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 | 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.
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 30.19%.
For the most recent quarter, Asbury Automotive was expected to post earnings of $6.48 per share, but it reported $7.36 per share instead, representing a surprise of 13.58%. For the previous quarter, the consensus estimate was $5.30 per share, while it actually produced $7.78 per share, a surprise of 46.79%.
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 +3.38%, 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 February 15, 2022.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
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.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
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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. | Asbury Automotive Group (ABG), which belongs to the Zacks Automotive - Retail and Whole Sales industry, could be a great candidate to consider. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Price and EPS Surprise With this earnings history in mind, recent estimates have been moving higher for Asbury Automotive. | Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report 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. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report For the most recent quarter, Asbury Automotive was expected to post earnings of $6.48 per share, but it reported $7.36 per share instead, representing a surprise of 13.58%. |
28698.0 | 2022-02-07 00:00:00 UTC | What's in the Cards for Penske (PAG) This Earnings Season? | ABG | https://www.nasdaq.com/articles/whats-in-the-cards-for-penske-pag-this-earnings-season | nan | nan | Penske Automotive Group PAG is slated to release fourth-quarter 2021 results on Feb 9, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $3.67 and $6.31 billion, respectively.
The auto retailer came up with better-than-anticipated results in the last reported quarter on higher-than-expected gross profit across all segments. Over the preceding four quarters, the company topped estimates on all occasions, with the average being 20.3%. This is depicted in the graph below:
Penske Automotive Group, Inc. Price and EPS Surprise
Penske Automotive Group, Inc. price-eps-surprise | Penske Automotive Group, Inc. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Penske’s fourth-quarter earnings per share has been revised upward by 5 cents in the past seven days. The bottom-line projection implies year-on-year growth of 47.4%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 8.5%.
Earnings Whispers
Our proven model predicts an earnings beat for Penske this time around as well. 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. This has been elaborated below.
Earnings ESP: Penske has an Earnings ESP of +6.39%. This is because the Most Accurate Estimate comes in 24 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Penske currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
Courtesy of economic recovery from the pandemic lows and preference for personal mobility, demand for vehicles has been on the rise, which is likely to have aided sales of Penske. Robust volume, product margins and the expanding Class 8 commercial truck market are likely to buoy its fourth-quarter 2021 results.
The buyout of Kansas City Freightliner, completed during second-quarter 2021, is expected to have boosted Penske’s fourth-quarter revenues. In October, Penske acquired the remaining 51% of its Japan-based joint venture of premium luxury automotive brands, which is also likely to have enhanced PAG’s performance.
Encouragingly, the auto retailer is expected to post a year-over-year increase in fourth-quarter revenues and gross margins across all units.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues from the Retail Automotive segment — which accounts for the bulk of Penske’s overall top line — is pegged at $5,791 million, indicating a rise from the $5,101 million recorded in the year-ago quarter. Also, gross profit for the segment is pinned at $1,035 million, calling for a surge from $787 million reported in the prior-year period.
For the December-end quarter, the consensus mark for revenues in the Retail Commercial Truck segment stands at $701 million, suggesting growth of $579 million from the year-ago level. In addition, gross profit for the segment is pinned at $112 million, calling for an increase from the year-earlier level of $79 million.
The consensus mark for revenues in the Commercial Vehicles Australia/Power Systems and Other for fourth-quarter 2021 is pegged at $144 million, suggesting growth from the $132 million recorded in fourth-quarter 2020. The same for gross profit for the segment is $36.7 million, implying an uptick of 13.2% year over year.
Other Stocks With Favorable Combinations
Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Lithia Motors LAD has an Earnings ESP of +5.18% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 9.
The Zacks Consensus Estimate for Lithia’s to-be-reported quarter’s earnings and revenues is pegged at $9.99 per share and $6.32 billion, respectively. Encouragingly, LAD surpassed earnings estimates in the last four quarters, with an average surprise of 29.1%.
Group 1 Automotive GPI has an Earnings ESP of +0.63% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 10.
The Zacks Consensus Estimate for Group 1’s to-be-reported quarter’s earnings and revenues is pegged at $9.06 per share and $3.48 billion, respectively. GPI surpassed earnings estimates in three of the last four quarters and missed once, with an average of 7.96%.
Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for Asbury’s to-be-reported quarter’s earnings and revenues is pegged at $5.86 per share and $2.45 billion, respectively. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
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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.
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 ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | Asbury Automotive ABG has an Earnings ESP of +3.38% and a Zacks Rank #1. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
28699.0 | 2022-02-04 00:00:00 UTC | Zacks.com featured highlights include: Atlas Air Worldwide Holdings, ArcBest Corp., Archer Daniels, Cross Country Healthcare and Asbury Automotive Group | ABG | https://www.nasdaq.com/articles/zacks.com-featured-highlights-include%3A-atlas-air-worldwide-holdings-arcbest-corp.-archer | nan | nan | For Immediate Release
Chicago, IL – February 4, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, ArcBest Corp. ARCB, Archer Daniels ADM, Cross Country Healthcare CCRN and Asbury Automotive Group ABG.
5 Stocks to Buy Following Recent Broker Upgrades
It is not rare to see someone falter in life due to lack of proper guidance. The same is true for the investing world. The world of investment is full of uncertainties and unless one is well-prepared before entering the space, more often than not the person will have to suffer huge losses.
Choice of unsuitable stocks can adversely impact his/her returns, thereby ruining the very objective of investing the hard-earned money in the highly unpredictable stock market. Moreover, with time at a premium these days, it is next to impossible for investors to keep track of the market movements to identify opportune moment(s) for buying or offloading a particular stock to maximize returns. Therefore, guidance from precise channels is a must.
Time for Some Broker Advice
The experts in the investing world are brokers. Generally, three types of brokers (sell-side, buy-side and independent) are present in the investment world, with sell-side analysts being the most common. Various brokerage firms employ them to provide an unbiased opinion to investors on the stocks under their coverage after a thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
All types of brokers indulge in in-depth research of the stocks under their coverage. They have access to much detailed information on a company. To this end, they attend company conference calls/presentations and scrutinize every detail available publicly before advising investors. Naturally, broker advice acts as an invaluable guide for investors in their bid to garner the maximum from their portfolios.
Direction of Earnings Estimates: An Invaluable Guide
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. The estimate revisions serve as an important pointer regarding the price of a stock.
For example, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often lead to a stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.
Making the Most of Broker Guidance
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions in earnings estimates over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is also included. The price/sales ratio takes care of the company’s top line, making the strategy effective.
Here are five of the 10 stocks that passed the screen:
Atlas Air Worldwide Holdings is the parent company of Atlas Air and Polar Air Cargo, which together operate a fleet of freighter aircraft. AAWW is primarily involved in the airport-to-airport air transportation of heavy freight. AAWW is being supported by strong demand for air freight amid the coronavirus pandemic. The boom in e-commerce trends amid the current scenario is a catalyst.
Over the past 60 days, this presently Zacks #1 Ranked player has seen the Zacks Consensus Estimate for 2022 earnings being revised 8.1% upward. The stock has appreciated 52.2% in a year’s time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ArcBest Corp. currently carries a Zacks Rank #2 (Buy). ARCB’s earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 31.4%. The Zacks Consensus Estimate for ARCB’s 2022 earnings has been revised 2% upward in the past 60 days.
Shares of ArcBest have skyrocketed 88.2% in a year’s time. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting ARCB.
Archer Daniels: This Chicago, IL-based leading agricultural products company’s leadership in key global trends like flexitarian diets, nutrition and sustainable materials has been a steady contributor to its momentum for a while. ADM’s focus on making investments in assets and technological capabilities to serve customers efficiently is likely to be a key driver.
Archer Daniels’ Readiness program, positive cash flow and a solid performance at the Nutrition unit are constantly aiding results. ADM, currently sporting a Zacks Rank #1, continues to progress well on its three strategic pillars: optimize, drive and grow. The Zacks Consensus Estimate for 2022 earnings has been revised 12% upward over the past 60 days. Shares of ADM have soared 46% over the past year.
Cross Country Healthcare is currently benefiting from the pandemic-induced increase in demand for healthcare staffing, investments in headcount and technology, and higher operational effectiveness. Digital transformation and operational efficiency are enabling CCRN to cater to the continuously increasing demand in specialties, such as emergency room, operating room, labor, pediatrics, and delivery and medical-surgical services.
The Zacks Consensus Estimate for Cross Country Healthcare’s 2022 earnings has been revised 27.94% upward in the past 60 days. Shares of CCRN have skyrocketed more than 100% in a year’s time. CCRN currently sports a Zacks Rank of 1.
Asbury Automotive Group is one of the largest automotive retailers in the United States. The auto dealer is currently a #1 Ranked player. With the sustained recovery of the economy from the pandemic blues, auto sales are rebounding, underlined by strong new vehicle sales. Evidently, demand for automotive products and services is solid, aiding Asbury in turn.
Asbury Automotive has an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 24.3%. Shares of ABG have increased 12.6% in a year’s time.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1862268/5-stocks-to-buy-following-recent-upgrade-by-brokers
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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Archer Daniels Midland Company (ADM): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report
ArcBest Corporation (ARCB): 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 – February 4, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, ArcBest Corp. ARCB, Archer Daniels ADM, Cross Country Healthcare CCRN and Asbury Automotive Group ABG. Shares of ABG have increased 12.6% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | For Immediate Release Chicago, IL – February 4, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, ArcBest Corp. ARCB, Archer Daniels ADM, Cross Country Healthcare CCRN and Asbury Automotive Group ABG. Shares of ABG have increased 12.6% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | For Immediate Release Chicago, IL – February 4, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, ArcBest Corp. ARCB, Archer Daniels ADM, Cross Country Healthcare CCRN and Asbury Automotive Group ABG. Shares of ABG have increased 12.6% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report | For Immediate Release Chicago, IL – February 4, 2022 – Stocks in this week’s article are Atlas Air Worldwide Holdings AAWW, ArcBest Corp. ARCB, Archer Daniels ADM, Cross Country Healthcare CCRN and Asbury Automotive Group ABG. Shares of ABG have increased 12.6% in a year’s time. Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report |
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