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Is Group 1 Automotive (GPI) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
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 8.81. This compares to its industry's average Forward P/E of 11.23. Over the past 52 weeks, GPI's Forward P/E has been as high as 9.75 and as low as 6.21, with a median of 7.90.
Investors should also note that GPI holds a PEG ratio of 1.19. 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 industry currently sports an average PEG of 1.83. Over the last 12 months, GPI's PEG has been as high as 2.09 and as low as 1.15, with a median of 1.55.
Another valuation metric that we should highlight is GPI's P/B ratio of 1.57. The P/B ratio pits a stock's market value against 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 1.84. Over the past 12 months, GPI's P/B has been as high as 1.71 and as low as 0.99, with a median of 1.28.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.16. This compares to its industry's average P/S of 0.26.
Finally, investors should note that GPI has a P/CF ratio of 7.83. 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 8.63. Within the past 12 months, GPI's P/CF has been as high as 8.52 and as low as 4.54, with a median of 6.14.
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, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
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 8.81. This compares to its industry's average Forward P/E of 11.23. Over the past 52 weeks, GPI's Forward P/E has been as high as 9.75 and as low as 6.21, with a median of 7.90.
Investors should also note that GPI holds a PEG ratio of 1.19. 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 industry currently sports an average PEG of 1.83. Over the last 12 months, GPI's PEG has been as high as 2.09 and as low as 1.15, with a median of 1.55.
Another valuation metric that we should highlight is GPI's P/B ratio of 1.57. The P/B ratio pits a stock's market value against 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 1.84. Over the past 12 months, GPI's P/B has been as high as 1.71 and as low as 0.99, with a median of 1.28.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.16. This compares to its industry's average P/S of 0.26.
Finally, investors should note that GPI has a P/CF ratio of 7.83. 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 8.63. Within the past 12 months, GPI's P/CF has been as high as 8.52 and as low as 4.54, with a median of 6.14.
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.