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Coming back to the topic— are Penske Automotive (PAG) automotive stocks a good choice to invest right now?
Penske Automotive (PAG) is one company that is grabbing the attention of investors who are interested in automotive stocks. PAG’s stocks, with a Price-to-Earning ratio of 8.85 and its industry Price-to-Earning ratio of 9.36, look like one of the most intriguing choices for those involved in automotive stocks. In addition, Penske Automotive Group in the automotive, retail, and wholesales spaces is witnessing the strongest growth.
Besides, out of over 250 industries, the automotive industry has got a Zacks Industry Rank of 9, which is a sign that it is functioning well. And knowing where to invest in automotive stocks would certainly make a difference. Penske Automotive is in a pretty strong position at this point. Over the past few months, the firm has seen solid earnings. The analysts are sure about a bullish market both in terms of short-term and long-term spending.
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Penske Automotive Group, Inc., based in Bloomfield Hills, Michigan, operates commercial truck and automotive dealerships in the United States, Canada, Western Europe, and the United Kingdom. Also, it distributes gas & diesel engines, commercial vehicles, and other related parts in New Zealand & Australia. The company has grown eightfold since it started earning. Penske has been one of the top Toyota dealers in the U.S since 1967. And, it’s pushing towards a brighter future— we predict Penske’s profit growth at a rapid rate, with EVs ready to take over the roads. PAG is currently a member of the Russell 3000 indexes, Russell 1000, and Fortune 500.
Why is Penske Automotive (PAG) a Strong Pick Right Now?
At the beginning of this month, the transportation services company entered the Charlotte, North Carolina market with a dealership acquisition of Mercedes-Benz. This acquisition of South Charlotte added over $150 million to the annual revenue. With this, Penske Automotive Group looks like moving toward its goal of earning $1 billion before taxes in 2023 and it could be a great pick for people who want to invest in Automotive stocks.
In a new development, Shell and Penske entered into a partnership to aid sustainability at the beginning of this month. The two companies collaborated to offer customers a solution to reduce carbon emission and aid sustainability at different touch points from warehouse facilities to fleet technologies and vehicles to provide sustainable transportation routes. This strategic collaboration is aimed at allowing customers integrated solutions for smoother transportation. This partnership has definitely added value to the Penske Automotive stocks.
You might also like to Read: Want to invest in the Automotive Industry? Read This First!
While the current year estimates for Penske Automotive stocks have risen to $8.77 per share from $8.41 per share, the current quarter estimates shot up to $2.04 per share from $1.94 per share. This rise has brought PAG to a Zacks Rank #2 (Buy). Thus, if you are looking out to invest in the automotive industry, then Penske Automotive is a great pick. And, the company is still bringing some lucrative developments that might indicate it is a bankable choice for someone planning to invest in the automotive industry.
With a Zacks Rank of #2 (Buy), Penske Automotive (PAG) is undoubtedly a stock that investors who want to invest in the automotive industry will keep an eye on. PAG currently holds a Value grade of A, a P/E ratio of 8.85, with its industry average P/E of 9.36. Besides, PAG has a P/B ratio of 1.81, which looks intriguing for investors. Also, PAG's highest P/B has been 2.15, the lowest 1.09, and the medium 1.51 over the past year. PAG has a P/S ratio of 0.3, with its industry P/S as 0.48.
We cannot forget to emphasize the company’s P/CF ratio, which happens to be at 7.94 at this moment, an encouraging sign for investors. For PAG, over a year, the lowest P/CF has been 5.92, the medium 8.42, and the highest 10.37. If you are a keen investor, you would understand these figures and how they would impact your investment decision. Penske Automotive is a company that can turn around the game. The earning potential for PAG Automotive stocks looks optimistic at the moment.
P/E Ratio (Price-to-Earnings Ratio): According to Investopedia, P/E measures its current share price. It’s the measure of a company’s stock price concerning its earnings. P/E Ratio compares a company’s stocks against its records, helping investors evaluate the future performance of the company’s stocks.
P/B Ratio (Price-To-Book): According to Wikipedia, the price-to-book ratio is used to compare a firm’s market capitalization to all its assets, which is called book value. P/B Ratio is calculated by dividing the stock price of the company per share by its book value.
P/CF (Price to Cash Flow Ratio): It is the ratio of a firm’s stock price to the number of its cash inflows subtracted by its total cash inflow over a given period. It reflects upon the cash inflow of the company, and the data can help find stocks that are undervalued.
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