We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Group 1 Automotive's Investment Plans to Hamper Q1 Results
Read MoreHide Full Article
Group 1 Automotive, Inc. (GPI - Free Report) announced that its first-quarter 2018 earnings results will be negatively impacted by long-term strategic investments and weak market conditions that include pressurized used car margins. In fourth-quarter 2017, the company reported a year-over-year increase in both earnings per share and revenues.
A recent increase of nearly-new and off-lease used vehicles in the market has put significant pressure on the company margins. This has forced Group 1 Automotive to widen its services and remain competitive by making upfront investments.
Per management, while reviewing its operations, the company realized that used vehicle and aftersales segments are the key elements of their business model, which requires being strengthened in order to stay ahead in the competitive environment.
The strategic investments, undertaken by Group 1 Automotive to toughen its used vehicle, parts, and service components, including the introduction of Val-U-Line, a brand for high mileage pre-owned vehicles. This new brand will help it to focus on customer demand and lower cost unit that otherwise would have been sent to an auction.
Additionally, to support growth, the company is also investing in aftersales and retention programs to improve dealership employees. Further, it is also making improvements in its service personnel compensation, which includes the rise in fixed component and flexible work schedule to attract and retain service advisors and technicians.
Price Performance
In the last six months, shares of Group 1 Automotive outperformed the industry it belongs to. During the period, the company’s stock gained 9.8% in comparison with the industry’s rise of 4.9%.
LKQ Corp has an expected long-term growth rate of 14%. Over a year, shares of the company gained 32.3%.
Volvo has an expected long-term growth rate of 15%. Shares of the company gained 29.6% in the last one year.
Toyota has an expected long-term growth rate of 6.1%. Over a year, shares of the company gained 14.8%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7% and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Group 1 Automotive's Investment Plans to Hamper Q1 Results
Group 1 Automotive, Inc. (GPI - Free Report) announced that its first-quarter 2018 earnings results will be negatively impacted by long-term strategic investments and weak market conditions that include pressurized used car margins. In fourth-quarter 2017, the company reported a year-over-year increase in both earnings per share and revenues.
A recent increase of nearly-new and off-lease used vehicles in the market has put significant pressure on the company margins. This has forced Group 1 Automotive to widen its services and remain competitive by making upfront investments.
Per management, while reviewing its operations, the company realized that used vehicle and aftersales segments are the key elements of their business model, which requires being strengthened in order to stay ahead in the competitive environment.
Group 1 Automotive, Inc. Price and Consensus
Group 1 Automotive, Inc. Price and Consensus | Group 1 Automotive, Inc. Quote
The strategic investments, undertaken by Group 1 Automotive to toughen its used vehicle, parts, and service components, including the introduction of Val-U-Line, a brand for high mileage pre-owned vehicles. This new brand will help it to focus on customer demand and lower cost unit that otherwise would have been sent to an auction.
Additionally, to support growth, the company is also investing in aftersales and retention programs to improve dealership employees. Further, it is also making improvements in its service personnel compensation, which includes the rise in fixed component and flexible work schedule to attract and retain service advisors and technicians.
Price Performance
In the last six months, shares of Group 1 Automotive outperformed the industry it belongs to. During the period, the company’s stock gained 9.8% in comparison with the industry’s rise of 4.9%.
Zacks Rank & Other Key Picks
Group 1 Automotive holds a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space are LKQ Corporation (LKQ - Free Report) , AB Volvo (VLVLY - Free Report) and Toyota Motor Corporation (TM - Free Report) . LKQ Corp and Volvo carry a Zacks Rank of 2, while Toyota sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LKQ Corp has an expected long-term growth rate of 14%. Over a year, shares of the company gained 32.3%.
Volvo has an expected long-term growth rate of 15%. Shares of the company gained 29.6% in the last one year.
Toyota has an expected long-term growth rate of 6.1%. Over a year, shares of the company gained 14.8%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7% and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>