Should Value Investors Buy Asbury Automotive Group (ABG) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Asbury Automotive Group (ABG) is a stock many investors are watching right now. ABG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We also note that ABG holds a PEG ratio of 0.49. 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. ABG's industry has an average PEG of 0.56 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, we should also recognize that ABG has a P/CF ratio of 7.64. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.07. Within the past 12 months, ABG's P/CF has been as high as 12.40 and as low as 6.78, with a median of 9.47.
These are only a few of the key metrics included in Asbury Automotive Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ABG looks like an impressive value stock at the moment.
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Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
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