Bull of the Day: Penske Automotive (PAG)
The car business is red hot with no signs of slowing down.
I understand that the market’s nasty volatility has most of us bewildered. Where can we hide? Where is the easy money? The real deal remains the same. Over the long run, stocks with the strongest earnings trends will benefit investors. One way to uncover these stocks, is to lean on the Zacks Rank. Stocks in the good graces of our Zacks Rank have the strongest earnings trends. That means that we give you cheat codes of how to beat the market.
Today’s Bull of the Day is one of these stocks. It’s Zacks Rank #1 (Strong Buy) Penke Automotive Group PAG. Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors. The company engages in the sale of new and used motor vehicles, and related products and services comprise vehicle and collision repair services, as well as placement of finance and lease contracts, third-party insurance products, and other aftermarket products; and wholesale of parts.
The reason for the favorable ranks lies in the recent earnings estimate revisions coming from analysts. Over the last sixty days, six analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimates from $12.58 to $14.71 for the current year while next year’s numbers are up from $11.04 to $13.50.
That means, the company expects a contraction in earnings next year. That is likely a function of the company believing this year’s supply shortage will come to an end.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research