Analysts covering Asbury Automotive Group Inc (NYSE:ABG) are predicting double-digit earnings per share fall of -17.81% over the next 12 months. With the recent EPS being $7.747, expected contraction will pull down the upcoming EPS to $6.367. Today I will look at the latest data in order to investigate whether this negative future growth rate is plausible. See our latest analysis for ABG
How is ABG going to perform in the future?
There are dark clouds over Asbury Automotive Group’s potential over the next couple of years. This is based on 11 analysts who estimate earnings dropping to $6.367 from previous levels of around $7.747. This would be a drop of -17.81%, so it will be an interesting ride for any existing shareholders over the next year. In the same period revenue is predicted to increase from $6,533M $6,843M
Basis for the contraction
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is unwarranted or whether the negative outlook is too harsh. ABG is expected to face a substantial shift from a previous double-digit growth of 17.83%, over the past year, to a forecast double-digit decline by analysts. This is highly unencouraging and may be a sign of an investment period for ABG, incurring higher expense growth than revenue.
For ABG, I’ve put together three key aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is ABG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ABG is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ABG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.