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AutoNation (AN) closed at $112.66 in the latest trading session, marking a -1% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.15%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Prior to today's trading, shares of the auto retailer had lost 5.26% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.17% and the S&P 500's loss of 5.08% in that time.
Investors will be hoping for strength from AutoNation as it approaches its next earnings release, which is expected to be July 21, 2022. In that report, analysts expect AutoNation to post earnings of $5.95 per share. This would mark year-over-year growth of 23.19%. 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. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AutoNation is currently a Zacks Rank #2 (Buy).
Investors should also note AutoNation's current valuation metrics, including its Forward P/E ratio of 4.9. Its industry sports an average Forward P/E of 5.88, so we one might conclude that AutoNation is trading at a discount comparatively.
Also, we should mention that AN has a PEG ratio of 0.2. 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 industry currently had an average PEG ratio of 0.4 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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