AutoNation (AN) closed at $111.70 in the latest trading session, marking a -0.67% move from the prior day. This move lagged the S&P 500’s daily gain of 0.95%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.23%.
Coming into today, shares of the auto retailer had lost 2.08% in the past month. In that same time, the Retail-Wholesale sector gained 2.16%, while the S&P 500 lost 3.49%.
Wall Street will be looking for positivity from AutoNation as it approaches its next earnings report date. The company is expected to report EPS of $5.95, up 23.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.87 billion, down 1.59% from the year-ago period.
AN’s full-year Zacks Consensus Estimates are calling for earnings of $23.20 per share and revenue of $27.58 billion. These results would represent year-over-year changes of +27.89% and +6.71%, respectively.
It is also important to note the recent changes to analyst estimates for AutoNation. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. AutoNation is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that AutoNation has a Forward P/E ratio of 4.85 right now. This represents a discount compared to its industry’s average Forward P/E of 5.67.
It is also worth noting that AN currently has a PEG ratio of 0.2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Automotive – Retail and Whole Sales industry currently had an average PEG ratio of 0.41 as of yesterday’s close.
The Automotive – Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.