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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 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 sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.77, while its industry has an average P/E of 11.17. GPI's Forward P/E has been as high as 9.75 and as low as 6.21, with a median of 8.03, all within the past year.
We should also highlight that GPI has a P/B ratio of 1.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.84. GPI's P/B has been as high as 1.71 and as low as 0.99, with a median of 1.30, over the past year.
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 0.15. This compares to its industry's average P/S of 0.26.
Finally, our model also underscores that GPI has a P/CF ratio of 7.92. 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. GPI's current P/CF looks attractive 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 6.45.
These are only a few of the key metrics included in Group 1 Automotive's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GPI looks like an impressive 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 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 sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.77, while its industry has an average P/E of 11.17. GPI's Forward P/E has been as high as 9.75 and as low as 6.21, with a median of 8.03, all within the past year.
We should also highlight that GPI has a P/B ratio of 1.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.84. GPI's P/B has been as high as 1.71 and as low as 0.99, with a median of 1.30, over the past year.
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 0.15. This compares to its industry's average P/S of 0.26.
Finally, our model also underscores that GPI has a P/CF ratio of 7.92. 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. GPI's current P/CF looks attractive 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 6.45.
These are only a few of the key metrics included in Group 1 Automotive's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GPI looks like an impressive value stock at the moment.