Penske Automotive (PAG) Gains But Lags Market: What You Should Know
Penske Automotive (PAG) closed at $165.97 in the latest trading session, marking a +0.27% move from the prior day. The stock lagged the S&P 500's daily gain of 0.45%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.99%.
Coming into today, shares of the auto dealership chain had gained 19.76% in the past month. In that same time, the Retail-Wholesale sector gained 5%, while the S&P 500 gained 4.25%.
Investors will be hoping for strength from Penske Automotive as it approaches its next earnings release. In that report, analysts expect Penske Automotive to post earnings of $3.95 per share. This would mark a year-over-year decline of 19.88%. Meanwhile, our latest consensus estimate is calling for revenue of $6.98 billion, up 1% from the prior-year quarter.
PAG's full-year Zacks Consensus Estimates are calling for earnings of $15.64 per share and revenue of $28.25 billion. These results would represent year-over-year changes of -15.69% and +1.56%, respectively.
Any recent changes to analyst estimates for Penske Automotive should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. Penske Automotive is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Penske Automotive is currently trading at a Forward P/E ratio of 10.59. This represents a premium compared to its industry's average Forward P/E of 7.65.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 45% 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.
To follow PAG in the coming trading sessions, be sure to utilize Zacks.com.
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Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
