Asbury Automotive Group (ABG) wins in market dips: What you should know


ASbury Automotive Group (ABG) closed the last trading day at $156.57, up 1.7% from the previous trading session. That move surpassed the S&P 500’s 0.27% intraday loss. Elsewhere, the Dow gained 0.4% while the tech-heavy Nasdaq lost 0.18%.

As of today, the dealership chain’s shares were down 17.03% over the past month. During the same period, the retail and wholesale sector gained 8.25%, while the S&P 500 gained 7.36%.

Investors will look to strength from Asbury Automotive Group as it nears its next earnings release. In this report, analysts expect Asbury Automotive Group to report earnings of $8.92 per share. This would mean annual growth of 90.6%. Our most recent consensus estimate is for quarterly sales of $3.86 billion, up 76.05% from the prior-year period.

ABG’s full-year Zacks Consensus estimates are for earnings per share of $34.34 on sales of $16.21 billion. These results would represent annual changes of +25.83% and +64.77%, respectively.

Any recent changes in analyst estimates for Asbury Automotive Group should also be noted by investors. Recent revisions tend to reflect the latest short-term business trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business prospects.

Our research shows that these estimate changes correlate directly with short-term stock prices. To take advantage of this, we developed the Zacks Rank, a proprietary model that accounts for these changes in estimates and provides an actionable scoring system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has an impressive, peer-reviewed track record of outperformance, with the #1 stocks posting average annual returns since 1988 +25% The Zacks Consensus EPS estimate is up 0.63% over the past month. Asbury Automotive Group currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Asbury Automotive Group holds a forward P/E of 4.48. This represents a discount compared to the industry average forward P/E of 6.12.

Also, we should mention that ABG has a PEG ratio of 0.24. This metric is used in a similar way to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The automotive sector – retail and wholesale held an average PEG ratio of 0.39 at 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 24, making it the top 10% of all 250+ industries.

The Zacks Industry Rank is listed in order of best to worst in terms of each company’s average Zacks Rank in each of those sectors. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Make sure to use to track all these stock movement metrics and more in the coming trading sessions.

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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.


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