AutoNation (AN) Outpaces Stock Market Gains: What You Should Know
AutoNation (AN) closed at $113.02 in the latest trading session, marking a +0.25% move from the prior day.
AutoNation (AN) closed the most recent trading day at $113.02, moving +0.25% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.34%.
Heading into today, shares of the auto retailer had lost 8.97% over the past month, lagging the Retail-Wholesale sector's loss of 2.19% and the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from AutoNation as it approaches its next earnings report date. In that report, analysts expect AutoNation to post earnings of $4.99 per share. This would mark year-over-year growth of 105.35%. Meanwhile, our latest consensus estimate is calling for revenue of $6.44 billion, up 11.26% from the prior-year quarter.
AN's full-year Zacks Consensus Estimates are calling for earnings of $17.51 per share and revenue of $25.69 billion. These results would represent year-over-year changes of +145.93% and +26.01%, respectively.
Investors might also notice recent changes to analyst estimates for AutoNation. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. AutoNation is currently a Zacks Rank #3 (Hold).
In terms of valuation, AutoNation is currently trading at a Forward P/E ratio of 6.44. For comparison, its industry has an average Forward P/E of 7.13, which means AutoNation is trading at a discount to the group.
Meanwhile, AN's PEG ratio is currently 0.26. 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. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.37 based on yesterday's closing prices.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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