In the latest trading session, Penske Automotive (PAG) closed at $101.02, marking a -1.37% move from the previous day. This change lagged the S&P 500’s daily gain of 0.3%.
Prior to today’s trading, shares of the auto dealership chain had gained 13.9% over the past month. This has outpaced the Retail-Wholesale sector’s loss of 4.97% and the S&P 500’s loss of 2.37% in that time.
Wall Street will be looking for positivity from PAG as it approaches its next earnings report date. In that report, analysts expect PAG to post earnings of $3.50 per share. This would mark year-over-year growth of 21.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.56 billion, up 9.87% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.30 per share and revenue of $25.46 billion, which would represent changes of +100.3% and +24.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PAG. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.59% higher. PAG is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PAG has a Forward P/E ratio of 7.7 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 8.68.
Investors should also note that PAG has a PEG ratio of 0.52 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Automotive – Retail and Whole Sales was holding an average PEG ratio of 0.47 at yesterday’s closing price.
The Automotive – Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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