Why Asbury Automotive Group (ABG) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][9] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's future earnings and financial health [4] - Momentum Score capitalizes on price trends and earnings outlook changes [5] - VGM Score combines all three styles for a comprehensive evaluation [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to aid in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.93% since 1988 [8] - There are over 800 top-rated stocks available, making the selection process potentially overwhelming [9] Stock Analysis: Asbury Automotive Group (ABG) - Asbury Automotive Group is a major automotive retailer in the U.S., operating 152 new vehicle dealerships and 37 collision repair centers [12] - ABG holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A and a Value Style Score of A, indicating strong valuation metrics [13] - The forward P/E ratio for ABG is 8.08, making it attractive for value investors [13] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate increasing by $0.37 to $27.57 per share [13] - ABG's average earnings surprise stands at +8.4%, reinforcing its potential as a solid investment choice [13][14]