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

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [3][4] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [4] Growth Score - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes, catering to momentum traders [6] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, growth potential, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - There are over 800 stocks rated 1 or 2, which can be overwhelming for investors [10] Stock Example: AutoNation - AutoNation, Inc. is a leading automotive retailer in the U.S., offering vehicle sales, maintenance, and financing services [12] - Currently rated 3 (Hold) with a VGM Score of A and a Value Style Score of A, AutoNation has a forward P/E ratio of 10.48, indicating attractive valuation [12][13] - Recent upward revisions in earnings estimates have increased the Zacks Consensus Estimate to $18.75 per share, with an average earnings surprise of 1.6%, making it a noteworthy consideration for investors [13]