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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Group 1 Automotive (GPI - Free Report) is a stock many investors are watching right now. GPI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.27. This compares to its industry's average Forward P/E of 9.26. GPI's Forward P/E has been as high as 9.13 and as low as 5.56, with a median of 7.21, all within the past year.
We also note that GPI holds a PEG ratio of 1.22. 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 currently sports an average PEG of 1.32. Within the past year, GPI's PEG has been as high as 4.48 and as low as 1.22, with a median of 1.74.
Another notable valuation metric for GPI is its P/B ratio of 1.23. 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. This stock's P/B looks attractive against its industry's average P/B of 1.58. Over the past year, GPI's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.12.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GPI has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.24.
Finally, investors should note that GPI has a P/CF ratio of 6.11. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.16. Over the past 52 weeks, GPI's P/CF has been as high as 7.03 and as low as 3.11, with a median of 4.97.
These are just a handful of the figures considered in Group 1 Automotive's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPI is an impressive value stock right now.
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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Group 1 Automotive (GPI - Free Report) is a stock many investors are watching right now. GPI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.27. This compares to its industry's average Forward P/E of 9.26. GPI's Forward P/E has been as high as 9.13 and as low as 5.56, with a median of 7.21, all within the past year.
We also note that GPI holds a PEG ratio of 1.22. 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 currently sports an average PEG of 1.32. Within the past year, GPI's PEG has been as high as 4.48 and as low as 1.22, with a median of 1.74.
Another notable valuation metric for GPI is its P/B ratio of 1.23. 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. This stock's P/B looks attractive against its industry's average P/B of 1.58. Over the past year, GPI's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.12.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GPI has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.24.
Finally, investors should note that GPI has a P/CF ratio of 6.11. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.16. Over the past 52 weeks, GPI's P/CF has been as high as 7.03 and as low as 3.11, with a median of 4.97.
These are just a handful of the figures considered in Group 1 Automotive's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPI is an impressive value stock right now.