Strength Seen in Group 1 Automotive (GPI): Can Its 3.9% Jump Turn into More Strength?
Group 1 Automotive (GPI) shares ended the last trading session 3.9% higher at $297.49. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.5% loss over the past four weeks.
Investors are optimistic about Group 1’s acquisitions of dealerships and franchises. The company has acquired revenues of more than $1 billion this year. GPI’s diversified product mix and omnichannel efforts also bode well. The AcceleRide platform, its online retailing initiative, active at most of the firm’s U.S. dealerships, allows the company to enjoy higher productivity.
This auto dealer is expected to post quarterly earnings of $10.46 per share in its upcoming report, which represents a year-over-year change of -3.7%. Revenues are expected to be $4.38 billion, up 7.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Group 1 Automotive, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GPI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Group 1 Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Asbury Automotive Group (ABG), another stock in the same industry, closed the last trading session 5.7% higher at $234.34. ABG has returned -0.4% in the past month.
Asbury Automotive's consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $7.64. Compared to the company's year-ago EPS, this represents a change of -16.2%. Asbury Automotive currently boasts a Zacks Rank of #3 (Hold).
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Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
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