Rating Change #8
Asbury Automotive Group Inc (ABG) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 7.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 278.57% and other important driving factors, this stock has surged by 35.27% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ABG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ASBURY AUTOMOTIVE GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ASBURY AUTOMOTIVE GROUP INC increased its bottom line by earning $1.48 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($2.06 versus $1.48).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 298.1% when compared to the same quarter one year prior, rising from $5.40 million to $21.50 million.
Asbury Automotive Group, Inc. operates as an automotive retailer in the United States. The company has a P/E ratio of 22.8, above the average specialty retail industry P/E ratio of 14.9 and above the S&P 500 P/E ratio of 17.7. Asbury Automotive Group has a market cap of $733.7 million and is part of the services sector and specialty retail industry. Shares are up 22.9% year to date as of the close of trading on Wednesday.You can view the full Asbury Automotive Group Ratings Report or get investment ideas from our investment research center.