Core Viewpoint - The article emphasizes the cyclical nature of stock performance and suggests that investors should focus on undervalued stocks that may benefit from a market reversal, particularly in the context of the S&P 500 nearing all-time highs [1][2]. Group 1: American Airlines Group Inc. (AAL) - American Airlines reported a net earnings per share (EPS) of 95 cents, exceeding market expectations of 79 cents by 20% [4]. - The stock is currently trading at $13.00, which is 72% of its 52-week high of $19.10, indicating potential for recovery as market sentiment shifts [3][4]. - The strengthening dollar is expected to enhance consumer purchasing power, potentially boosting discretionary spending on travel [3]. Group 2: First Solar Inc. (FSLR) - First Solar reported an EPS of $3.18, surpassing the expected $2.18, indicating strong earnings performance [6]. - The company is positioned to benefit from recent trade tariffs against China, which have created a supply gap in the solar market [7]. - Analysts forecast an EPS of $5.69 for Q4 2025, which is not yet reflected in the stock price, suggesting upside potential [7][8]. - The price-to-earnings-growth (PEG) ratio of 0.2x indicates that the stock is undervalued relative to its growth prospects, with a target price of $287 per share from Guggenheim analyst Joseph Osha [8]. Group 3: CarGurus Inc. (CARG) - CarGurus is currently priced at $34.11, with a price-to-book (P/B) ratio of 7.8x, significantly higher than the auto sector average of 2.9x, indicating strong market confidence in its future [11][12]. - The company is benefiting from consumer shifts towards used vehicles due to tariffs affecting new car prices, positioning it favorably in the market [11]. - A notable decrease of 11.8% in short interest over the past month suggests a positive sentiment shift among investors [13].

takasuu Auto Dealers: Asbury Group & AutoNation (ABG/AN) Asbury Group (ABG) and AutoNation (AN) operate auto dealerships across the United States. The strength The following segment was excerpted from the Black Bear Value Partners Q2 2025 Letter. ...

Investment Rating - The report assigns an "Overweight" (OW) rating to General Motors (GM) and Ford, while Tesla and Rivian are rated "Underweight" (UW) [6][7]. Core Insights - The automotive industry is experiencing varied performance metrics across different companies, with GM and Ford showing potential upside in their stock prices, while Tesla and Rivian face significant downside risks [6][7]. - The report highlights the importance of valuation metrics such as EV/EBITDA, P/E ratios, and sales growth projections for assessing investment opportunities within the automotive sector [6][22]. Global Auto OEMs Investment Comparables - General Motors (GM) has a current price of $44.57 with a market cap of $43.067 billion and a target price of $53.00, indicating a 19% upside potential [6]. - Ford (F) is priced at $9.63 with a market cap of $38.294 billion and a target price of $11.00, representing a 14% upside [6]. - Ferrari (RACE) is valued at $439.97 with a target price of $460.00, showing a 5% upside [6]. - Tesla (TSLA) is currently priced at $241.37 with a target price of $120.00, indicating a -50% downside [6]. - Rivian (RIVN) has a price of $11.60 with a target price of $11.00, reflecting a -5% downside [6]. Global Auto Parts Suppliers Valuation Metrics - The average EV/EBITDA for US auto parts suppliers is projected at 1.8x for 2024, with a corresponding EBITDA margin of 12% [22]. - Aptiv (APTV) is rated "Overweight" with a current price of $51.71 and a target price of $102, indicating a 97% upside [22]. - Borg Warner (BWA) is rated "Overweight" with a price of $26.45 and a target price of $46, representing a 74% upside [22]. - Lear Corp (LEA) is rated "Overweight" with a price of $79.42 and a target price of $140, indicating a 76% upside [22]. Performance Metrics - The report indicates that the average revenue CAGR for US auto parts suppliers is projected to be 2% from 2023 to 2025 [74]. - The EBITDA margin for US auto parts suppliers is expected to be around 12% in 2025, with some companies showing higher margins [74][83]. - The report also highlights the financial returns of various suppliers, with some companies achieving significant returns on invested capital (ROIC) [54][56].

Company Performance - Sportsman's Warehouse reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of a loss of $0.08 per share, and showing improvement from a loss of $0.20 per share a year ago, representing an earnings surprise of 150% [1] - The company posted revenues of $340.4 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 2.87%, although this is a decline from year-ago revenues of $370.39 million [2] - Over the last four quarters, Sportsman's Warehouse has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Sportsman's Warehouse shares have declined approximately 62.8% since the beginning of the year, in contrast to the S&P 500's decline of 4.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.46 on revenues of $236.9 million, and for the current fiscal year, it is -$0.39 on revenues of $1.19 billion [7] Industry Outlook - The Retail - Apparel and Shoes industry, to which Sportsman's Warehouse belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Sportsman's Warehouse stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]