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AutoNation (AN) Stock Sinks As Market Gains: What You Should Know

AutoNation (AN) closed the most recent trading day at $109.90, moving -1.53% from the previous trading session. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the auto retailer had lost 3.88% in the past month. In that same time, the Retail-Wholesale sector lost 3.94%, while the S&P 500 gained 0.22%.

Investors will be hoping for strength from AutoNation as it approaches its next earnings release. The company is expected to report EPS of $4.99, up 105.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.44 billion, up 11.26% from the year-ago period.

It is also important to note the recent changes to analyst estimates for AutoNation. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.21% higher. AutoNation currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, AutoNation is holding a Forward P/E ratio of 6.25. This valuation marks a discount compared to its industry's average Forward P/E of 7.66.

We can also see that AN currently has a PEG ratio of 0.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AN's industry had an average PEG ratio of 0.38 as of yesterday's close.

The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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AutoNation, Inc. (AN): Free Stock Analysis Report
 
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