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Penske Automotive (PAG) Stock Moves -1.86%: What You Should Know

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In the latest trading session, Penske Automotive (PAG - Free Report) closed at $96.20, marking a -1.86% move from the previous day. 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 0.33%.

Prior to today's trading, shares of the auto dealership chain had lost 1.38% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 6.17% and the S&P 500's loss of 3.75% in that time.

Penske Automotive will be looking to display strength as it nears its next earnings release. On that day, Penske Automotive is projected to report earnings of $3.85 per share, which would represent year-over-year growth of 70.35%. Our most recent consensus estimate is calling for quarterly revenue of $6.36 billion, up 10.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.26 per share and revenue of $27.47 billion, which would represent changes of -6.68% and +7.5%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Penske Automotive. 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.

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 4.36% higher. Penske Automotive is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Penske Automotive is currently trading at a Forward P/E ratio of 6.87. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 6.87.

Investors should also note that PAG has a PEG ratio of 0.33 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 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 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.


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