Here's Why Asbury Automotive Group (ABG) is a Strong Value Stock

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional stock ratings based on value, growth, and momentum [2][7] Zacks Style Scores - Each stock is rated from A to F based on value, growth, and momentum, with A being the highest score indicating better chances of outperforming the market [3] - The Value Score identifies attractive stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings and cash flow [4] - The Momentum Score capitalizes on price trends and earnings outlook changes, helping investors identify favorable times to invest [5] - The VGM Score combines value, growth, and momentum scores, aiding in the selection of stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 and 2, making it essential for investors to use Style Scores to narrow down choices [9] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [10] - A stock with a 4 (Sell) or 5 (Strong Sell) rating, even with high Style Scores, is likely to face declining earnings forecasts [11] Company Spotlight: Asbury Automotive Group - Asbury Automotive Group is a major automotive retailer in the U.S., operating 152 new vehicle dealerships and 37 collision repair centers [12] - Asbury holds a 3 (Hold) Zacks Rank and a VGM Score of A, with a Value Style Score of A due to a forward P/E ratio of 8.37 [13] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.39 to $28.03 per share, with an average earnings surprise of +8.4% [13] - With a solid Zacks Rank and strong Value and VGM Style Scores, Asbury Automotive Group is recommended for investors' consideration [14]