Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Penske Automotive (PAG)
Established in 1990, Penske Automotive Group, Inc., based in Bloomfield Hills, MI, engages in the operation of automotive and commercial truck dealerships in the United States, the United Kingdom, Canada, Germany, Italy, and Japan. The company also distributes and retails commercial vehicles, diesel engines, gas engines, power systems and related parts and services, principally in Australia and New Zealand. It employs more than 28,900 people across the globe.
PAG is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 11.4X for the current fiscal year compared to the Automotive - Retail and Whole Sales industry's P/E of 10.7X. Additionally, PAG has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 9.9X. Value investors should also note PAG's Price/Sales ratio of 0.4X.
Many value investors pay close attention to a company's earnings as well. For PAG, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $13.99 per share for 2025. Per share PAG boasts an average earnings surprise of 2.6%.
PAG should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).