Is Asbury Automotive Group (ABG) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Asbury Automotive Group (ABG). ABG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors should also note that ABG holds a PEG ratio of 0.45. 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 0.50 right now. Within the past year, ABG's PEG has been as high as 0.78 and as low as 0.41, with a median of 0.57.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ABG has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.44.
Finally, investors will want to recognize that ABG has a P/CF ratio of 7.35. 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 current P/CF looks attractive when compared to its industry's average P/CF of 9.65. ABG's P/CF has been as high as 12.40 and as low as 6.78, with a median of 9.41, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group is likely undervalued currently. And when considering the strength of its earnings outlook, ABG sticks out at as one of the market's strongest value stocks.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
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