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In the latest trading session, AutoNation (AN) closed at $121.34, marking a -0.87% move from the previous day. This change was narrower than the S&P 500's 1.08% loss on the day. At the same time, the Dow lost 0.81%, and the tech-heavy Nasdaq gained 0.22%.
Prior to today's trading, shares of the auto retailer had gained 4.24% over the past month. This has outpaced the Retail-Wholesale sector's loss of 26.61% and the S&P 500's gain of 1.03% in that time.
AutoNation will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $5.95, up 23.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.87 billion, down 1.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.20 per share and revenue of $27.58 billion. These totals would mark changes of +27.89% and +6.71%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AutoNation. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 4.87% higher within the past month. AutoNation is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, AutoNation is currently trading at a Forward P/E ratio of 5.28. For comparison, its industry has an average Forward P/E of 6.44, which means AutoNation is trading at a discount to the group.
Meanwhile, AN's PEG ratio is currently 0.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AN's industry had an average PEG ratio of 0.43 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 18, which puts it in the top 8% 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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AutoNation, Inc. (AN) : Free Stock Analysis Report
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