Penske Automotive (PAG) closed at $152.32 in the latest trading session, marking a +0.62% move from the prior day. This move traded in line with S&P 500. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 5.66%.
Prior to today's trading, shares of the auto dealership chain had gained 7.52% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.32% and the S&P 500's gain of 3.44% in that time.
Wall Street will be looking for positivity from Penske Automotive as it approaches its next earnings report date. The company is expected to report EPS of $3.95, down 19.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.95 billion, up 0.56% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.58 per share and revenue of $28.08 billion. These totals would mark changes of -16.01% and +0.96%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Penske Automotive. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.99% lower within the past month. Penske Automotive currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Penske Automotive currently has a Forward P/E ratio of 9.72. This represents a premium compared to its industry's average Forward P/E of 7.3.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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