Is Asbury Automotive Group (ABG) Stock Undervalued Right Now?

Core Viewpoint - The article emphasizes the importance of value investing and highlights Asbury Automotive Group (ABG) and Group 1 Automotive (GPI) as strong value stocks based on their financial metrics and rankings [2][8]. Company Analysis: Asbury Automotive Group (ABG) - ABG has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [3]. - The company's price-to-book (P/B) ratio is 1.39, which is lower than the industry average of 2.29, suggesting it may be undervalued [4]. - ABG's P/CF ratio stands at 9.88, which is attractive compared to the industry's average of 10.07, further indicating potential undervaluation [5]. - Over the past year, ABG's P/B has fluctuated between 1.26 and 1.63, with a median of 1.38 [4]. - The P/CF ratio has ranged from 5.88 to 11.08, with a median of 8.71 [5]. Company Analysis: Group 1 Automotive (GPI) - GPI also holds a Zacks Rank of 2 (Buy) and has a Value score of A, making it another attractive option for value investors [6]. - The Forward P/E ratio for GPI is 10.40, while the PEG ratio is 2.05, compared to industry averages of 8.27 and 1.38 respectively [6]. - GPI's price-to-earnings (P/E) ratio has varied from 6.51 to 10.99, with a median of 7.99 over the past year [7]. - The P/B ratio for GPI is 1.88, which is also below the industry average of 2.29, indicating potential undervaluation [7]. Conclusion - Both Asbury Automotive Group and Group 1 Automotive are highlighted as likely undervalued stocks based on their financial metrics and earnings outlook, making them appealing options for value investors [8].