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Penske Automotive (PAG) Stock Moves -0.87%: What You Should Know

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Penske Automotive (PAG - Free Report) closed the most recent trading day at $96.84, moving -0.87% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.77%. At the same time, the Dow lost 2.82%, and the tech-heavy Nasdaq lost 0.83%.

Heading into today, shares of the auto dealership chain had lost 4.24% over the past month, lagging the Retail-Wholesale sector's loss of 3.37% and the S&P 500's loss of 1.35% in that time.

Penske Automotive will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2022. On that day, Penske Automotive is projected to report earnings of $3.94 per share, which would represent year-over-year growth of 74.34%. 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.

Any recent changes to analyst estimates for Penske Automotive should also be noted by investors. Recent revisions tend to reflect the latest 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. 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 0.22% higher. Penske Automotive is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Penske Automotive currently has a Forward P/E ratio of 6.49. Its industry sports an average Forward P/E of 6.49, so we one might conclude that Penske Automotive is trading at a no noticeable deviation comparatively.

Meanwhile, PAG's PEG ratio is currently 3.34. 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 industry currently had an average PEG ratio of 0.42 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 39, which puts it in the top 16% 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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