Should Value Investors Buy Asbury Automotive Group (ABG) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Asbury Automotive Group (ABG). ABG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that ABG holds a PEG ratio of 0.57. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABG's industry has an average PEG of 0.60 right now. Over the last 12 months, ABG's PEG has been as high as 0.78 and as low as 0.41, with a median of 0.58.
Finally, our model also underscores that ABG has a P/CF ratio of 9.21. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ABG's P/CF compares to its industry's average P/CF of 9.37. ABG's P/CF has been as high as 12.40 and as low as 7.03, with a median of 9.51, all within the past year.
These are just a handful of the figures considered in Asbury Automotive Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ABG is an impressive value stock right now.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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