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Are Investors Undervaluing Group 1 Automotive (GPI) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Group 1 Automotive (GPI - Free Report) is a stock many investors are watching right now. GPI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.59, which compares to its industry's average of 5.59. Over the past 52 weeks, GPI's Forward P/E has been as high as 9.44 and as low as 4.11, with a median of 6.11.
Investors will also notice that GPI has a PEG ratio of 0.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GPI's industry has an average PEG of 0.46 right now. Over the last 12 months, GPI's PEG has been as high as 4.58 and as low as 0.34, with a median of 0.48.
Another valuation metric that we should highlight is GPI's P/B ratio of 1.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. GPI's current P/B looks attractive when compared to its industry's average P/B of 2.05. Over the past year, GPI's P/B has been as high as 2.11 and as low as 1.41, with a median of 1.79.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPI has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.34.
Finally, our model also underscores that GPI has a P/CF ratio of 4.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.06. Over the past 52 weeks, GPI's P/CF has been as high as 7.11 and as low as 4.28, with a median of 5.30.
Another great Automotive - Retail and Whole Sales stock you could consider is Penske Automotive Group (PAG - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Penske Automotive Group are currently trading at a forward earnings multiple of 6.67 and a PEG ratio of 3.44 compared to its industry's P/E and PEG ratios of 5.59 and 0.46, respectively.
PAG's price-to-earnings ratio has been as high as 11.62 and as low as 6.33, with a median of 7.94, while its PEG ratio has been as high as 3.60 and as low as 0.31, with a median of 0.60, all within the past year.
Additionally, Penske Automotive Group has a P/B ratio of 1.82 while its industry's price-to-book ratio sits at 2.05. For PAG, this valuation metric has been as high as 2.31, as low as 1.61, with a median of 1.95 over the past year.
These are only a few of the key metrics included in Group 1 Automotive and Penske Automotive Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GPI and PAG look like an impressive value stock at the moment.
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Are Investors Undervaluing Group 1 Automotive (GPI) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Group 1 Automotive (GPI - Free Report) is a stock many investors are watching right now. GPI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.59, which compares to its industry's average of 5.59. Over the past 52 weeks, GPI's Forward P/E has been as high as 9.44 and as low as 4.11, with a median of 6.11.
Investors will also notice that GPI has a PEG ratio of 0.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GPI's industry has an average PEG of 0.46 right now. Over the last 12 months, GPI's PEG has been as high as 4.58 and as low as 0.34, with a median of 0.48.
Another valuation metric that we should highlight is GPI's P/B ratio of 1.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. GPI's current P/B looks attractive when compared to its industry's average P/B of 2.05. Over the past year, GPI's P/B has been as high as 2.11 and as low as 1.41, with a median of 1.79.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPI has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.34.
Finally, our model also underscores that GPI has a P/CF ratio of 4.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.06. Over the past 52 weeks, GPI's P/CF has been as high as 7.11 and as low as 4.28, with a median of 5.30.
Another great Automotive - Retail and Whole Sales stock you could consider is Penske Automotive Group (PAG - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Penske Automotive Group are currently trading at a forward earnings multiple of 6.67 and a PEG ratio of 3.44 compared to its industry's P/E and PEG ratios of 5.59 and 0.46, respectively.
PAG's price-to-earnings ratio has been as high as 11.62 and as low as 6.33, with a median of 7.94, while its PEG ratio has been as high as 3.60 and as low as 0.31, with a median of 0.60, all within the past year.
Additionally, Penske Automotive Group has a P/B ratio of 1.82 while its industry's price-to-book ratio sits at 2.05. For PAG, this valuation metric has been as high as 2.31, as low as 1.61, with a median of 1.95 over the past year.
These are only a few of the key metrics included in Group 1 Automotive and Penske Automotive Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GPI and PAG look like an impressive value stock at the moment.