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In the latest trading session, Penske Automotive (PAG) closed at $101.31, marking a -0.76% move from the previous day. This change lagged the S&P 500’s daily gain of 0.41%.
Coming into today, shares of the auto dealership chain had gained 18.05% in the past month. In that same time, the Retail-Wholesale sector lost 7.3%, while the S&P 500 lost 4.08%.
PAG will be looking to display strength as it nears its next earnings release. On that day, PAG is projected to report earnings of $3.58 per share, which would represent year-over-year growth of 24.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.92 billion, up 15.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.37 per share and revenue of $25.9 billion. These totals would mark changes of +101.36% and +26.7%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PAG. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.06% higher within the past month. PAG is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, PAG is holding a Forward P/E ratio of 7.64. This represents a discount compared to its industry’s average Forward P/E of 8.27.
We can also see that PAG currently has a PEG ratio of 0.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Automotive – Retail and Whole Sales industry currently had an average PEG ratio of 0.45 as of yesterday’s close.
The Automotive – Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 2, which puts it in the top 1% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report
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