Asbury Automotive Group (ABG) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Asbury Automotive Group (ABG) closed at $118.94, marking a -0.84% move from the previous day. This change lagged the S&P 500's daily gain of 0.35%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.37%.
Coming into today, shares of the auto dealership chain had gained 27.81% in the past month. In that same time, the Retail-Wholesale sector gained 4.89%, while the S&P 500 gained 4.32%.
ABG will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2020. In that report, analysts expect ABG to post earnings of $4.02 per share. This would mark year-over-year growth of 72.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.94 billion, up 5.52% from the year-ago period.
ABG's full-year Zacks Consensus Estimates are calling for earnings of $11.92 per share and revenue of $7.22 billion. These results would represent year-over-year changes of +26% and +0.15%, respectively.
Any recent changes to analyst estimates for ABG should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 13.61% higher. ABG is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, ABG is currently trading at a Forward P/E ratio of 10.06. This valuation marks a discount compared to its industry's average Forward P/E of 11.73.
It is also worth noting that ABG currently has a PEG ratio of 0.54. 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 1.17 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 21, which puts it in the top 9% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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