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AutoNation (AN) is a Top-Ranked Value Stock: Should You Buy?

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

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

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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AutoNation (AN)

Incorporated in Delaware in 1991, AutoNation, Inc. is the largest automotive retailer in the United States. Apart from retailing new and used vehicles, the company offers vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products. In addition, it arranges financing for vehicle purchases through third-party sources.

AN 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 4.5X for the current fiscal year compared to the Automotive - Retail and Whole Sales industry's P/E of 5.1X. Additionally, AN has a PEG Ratio of 0.6 and a Price/Cash Flow ratio of 4.7X. Value investors should also note AN's Price/Sales ratio of 0.2X.

Many value investors pay close attention to a company's earnings as well. For AN, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.57 to $24.74 per share for 2022. Per share AN boasts an average earnings surprise of 12.2%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding AN to their portfolios.


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