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Is Group 1 Automotive (GPI) Stock Undervalued Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Group 1 Automotive (GPI - Free Report) . GPI is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Another notable valuation metric for GPI is its P/B ratio of 1.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.47. Within the past 52 weeks, GPI's P/B has been as high as 2.17 and as low as 1.31, with a median of 1.82.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GPI has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.3.
Finally, our model also underscores that GPI has a P/CF ratio of 9.99. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GPI's P/CF compares to its industry's average P/CF of 11.34. Within the past 12 months, GPI's P/CF has been as high as 10.31 and as low as 5.66, with a median of 8.90.
These are only a few of the key metrics included in Group 1 Automotive's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GPI looks like an impressive value stock at the moment.
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Is Group 1 Automotive (GPI) Stock Undervalued 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. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Group 1 Automotive (GPI - Free Report) . GPI is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Another notable valuation metric for GPI is its P/B ratio of 1.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.47. Within the past 52 weeks, GPI's P/B has been as high as 2.17 and as low as 1.31, with a median of 1.82.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GPI has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.3.
Finally, our model also underscores that GPI has a P/CF ratio of 9.99. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GPI's P/CF compares to its industry's average P/CF of 11.34. Within the past 12 months, GPI's P/CF has been as high as 10.31 and as low as 5.66, with a median of 8.90.
These are only a few of the key metrics included in Group 1 Automotive's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GPI looks like an impressive value stock at the moment.