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Is Group 1 Automotive (GPI) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One company to watch right now is Group 1 Automotive (GPI - Free Report) . GPI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.92. This compares to its industry's average Forward P/E of 10.45. Over the past 52 weeks, GPI's Forward P/E has been as high as 9.75 and as low as 5.56, with a median of 7.58.
Investors will also notice that GPI has a PEG ratio of 1.21. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GPI's PEG compares to its industry's average PEG of 1.64. GPI's PEG has been as high as 4.12 and as low as 1.15, with a median of 1.60, all within the past year.
Investors should also recognize that GPI has a P/B ratio of 1.56. The P/B ratio pits a stock's market value against 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 1.83. Within the past 52 weeks, GPI's P/B has been as high as 1.67 and as low as 0.82, with a median of 1.25.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.16. This compares to its industry's average P/S of 0.28.
Finally, investors will want to recognize that GPI has a P/CF ratio of 7.79. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.55. GPI's P/CF has been as high as 8.30 and as low as 3.11, with a median of 5.94, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Group 1 Automotive is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GPI feels like a great value stock at the moment.
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Is Group 1 Automotive (GPI) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One company to watch right now is Group 1 Automotive (GPI - Free Report) . GPI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.92. This compares to its industry's average Forward P/E of 10.45. Over the past 52 weeks, GPI's Forward P/E has been as high as 9.75 and as low as 5.56, with a median of 7.58.
Investors will also notice that GPI has a PEG ratio of 1.21. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GPI's PEG compares to its industry's average PEG of 1.64. GPI's PEG has been as high as 4.12 and as low as 1.15, with a median of 1.60, all within the past year.
Investors should also recognize that GPI has a P/B ratio of 1.56. The P/B ratio pits a stock's market value against 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 1.83. Within the past 52 weeks, GPI's P/B has been as high as 1.67 and as low as 0.82, with a median of 1.25.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.16. This compares to its industry's average P/S of 0.28.
Finally, investors will want to recognize that GPI has a P/CF ratio of 7.79. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.55. GPI's P/CF has been as high as 8.30 and as low as 3.11, with a median of 5.94, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Group 1 Automotive is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GPI feels like a great value stock at the moment.