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Penske Automotive (PAG) Gains As Market Dips: What You Should Know

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Penske Automotive (PAG - Free Report) closed the most recent trading day at $101.50, moving +0.53% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.72%, and the Nasdaq, a tech-heavy index, added 0.39%.

Coming into today, shares of the auto dealership chain had lost 3.42% in the past month. In that same time, the Retail-Wholesale sector lost 1.67%, while the S&P 500 gained 0.17%.

Wall Street will be looking for positivity from Penske Automotive as it approaches its next earnings report date. This is expected to be April 27, 2022. The company is expected to report EPS of $3.94, up 74.34% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.26 billion, up 8.37% from the year-ago period.

PAG's full-year Zacks Consensus Estimates are calling for earnings of $15.06 per share and revenue of $26.71 billion. These results would represent year-over-year changes of -1.44% and +4.5%, respectively.

It is also important to note the recent changes to analyst estimates for Penske Automotive. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 0.22% higher. Penske Automotive is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Penske Automotive is currently trading at a Forward P/E ratio of 6.7. For comparison, its industry has an average Forward P/E of 6.7, which means Penske Automotive is trading at a no noticeable deviation to the group.

Investors should also note that PAG has a PEG ratio of 3.46 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. PAG's industry 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 group has a Zacks Industry Rank of 29, putting it in the top 12% 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.


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