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Penske Automotive Group, Inc.

  • Mismatch Between Valuation and Profitability Makes This Stock a Buy

    By Mark Lin - June 16, 2013 | Tickers: GPI, PAG, SAH

    Mean reversion is a powerful force that no one should ignore. The average length of ownership of new vehicles has jumped from 8.4 years in 1995 to 10.8 years in 2012. Add cheap financing to the equation and the outlook for U.S. auto sales looks bright.

    Sonic Automotive (NYSE: SAH), one of the largest domestic auto-dealership groups, is a proxy for that growth. In addition, its stable more »

  • 3 Auto Retail Stocks That Have Taken Advantage Of Industry Recovery

    By Damian Illia - June 14, 2013 | Tickers: AN, LAD, PAG

    In a recuperating vehicle retailing industry, some dealers have stood out for a particular feature that has made them more profitable than the average. Offering an unusual size, geographic base or customer target, Lithia Motors (NYSE: LAD), Penske Automotive Group (NYSE: PAG) and AutoNation (NYSE: AN) present compelling growth prospects. Let's take a closer look and try decide which one stands as the best investment opportunity.

    Sub-Urban Kings: Lithia more »

  • Buy the Best Company in the Industry

    By Ted Cooper - May 6, 2013 | Tickers: UHAL, CAR, PAG

    As an investor, I tend to favor companies that are the best at what they do; I would hate to own a company that is only second-best or third-best in its industry. That is why I like Amerco (NASDAQ: UHAL) -- owner of U-Haul, North America's largest do-it-yourself (DIY) equipment rental company. In addition to operating the lowest-cost truck rental company in the industry, Amerco also owns valuable real estate more »

  • Will Ricky Sandler’s Hot Streak Continue with This Automotive Stock?

    By Meena Krishnamsetty - May 6, 2013 | Tickers: ABG, AN, LAD, PAG, SAH

    Eminence Capital, managed by Ricky Sandler, is coming off a year of excellent returns; ValueWalk named it as one of the 30 best performing hedge funds out of those it tracks (and many of the funds that performed better were focused on mortgages or real estate). Now, the fund has reported a position of 1.7 million shares in Asbury Automotive (NYSE: ABG), a $1.2 billion market cap auto more »

  • Another Way to Profit From Higher Car Sales

    By Austin Higgins - April 22, 2013 | Tickers: AN, KMX, PAG

    As car buying is expected to increase this year, investors can profit from the increased profits of vehicle manufacturers. Another ancillary industry that will see growth in earnings this year is automotive retailers and dealers. Here are just a few to consider.

    CarMax (NYSE: KMX)

    CarMax is a retailer of used vehicles in the United States. It operates 119 used car retail locations across the country. It also offers financing more »

  • Another Way to Profit from Higher Car Sales

    By Austin Higgins - April 17, 2013 | Tickers: AN, KMX, PAG

    As car buying is expected to increase this year, investors can profit from the increased profits of vehicle manufacturers. Another ancillary industry that will see growth in earnings this year is automotive retailers and dealers. Here are just a few to consider.

    CarMax Inc. (NYSE: KMX)

    CarMax is a retailer of used vehicles in the United States. It operates 119 used car retail locations across the country. It also offers more »

  • 3 Reasons to Buy This Auto Retailer

    By Piyush Arora - April 15, 2013 | Tickers: AN, KMX, PAG

    Auto sales in the U.S. are approaching their six year highs, and automobile manufacturers are finally breathing a sigh of relief. Thanks to the low interest rate environment and increasing personal disposable income in the economy, auto recovery seems genuine with robust growth prospects for 2013. To play the recovery, investors can invest in automobile or tire manufacturers, but both the industries involve significant operational risks.

    But, auto retailers more »

  • Buy AutoNation on Continued Strength in Consumer Spending and Pent-Up Demand

    By Brendan O'Boyle - April 2, 2013 | Tickers: AAP, AN, AZO, KMX, PAG

    As the economic recovery continues to chug along it seems likely that pent-up demand will benefit certain sectors of the economy. Specifically, consumers may be ready to consider buying larger items that they postponed purchasing due to economic concerns. With the current rebound in the stock and housing markets, many consumers are feeling wealthier and more secure, which may translate into increased consumer spending.

    While the U.S. auto market more »

  • Value at the End of the Supply Chain

    By Ted Cooper - March 27, 2013 | Tickers: GPI, PAG, SAH

    While Ford and General Motors are getting a lot of attention due to a recovering auto industry, investors would be wise to look a little further down the line at the auto dealerships.

    Publicly-traded auto dealerships invariably use a roll-up strategy, in which they acquire individual dealerships and improve profitability through economies of scale. Although most revenues come from selling vehicles, the most lucrative part of an auto dealership more »

  • Don’t Be Fooled by Sonic Automotive’s Delayed SEC Filing

    By Jacob Wolinsky - March 22, 2013 | Tickers: AN, PAG, SAH

    In a surprising move, Sonic Automotive (NYSE: SAH) filed an application with the Securities and Exchange Commission seeking more time for filing its annual report. Usually, companies follow this route in the event of material impact of an acquisition or other similar development on the finances. It was thus natural for the market to get unnerved by the notice of late filing and the stock lost as much as 8 more »

  • Watch These Stocks at J.P. Morgan's High Yield & Leveraged Finance Conference

    By John Macris - February 22, 2013 | Tickers: LNG, PAG, SEE

    Hello and welcome, Motley Fool readers. The cold winter months in New York are a great time to attract the Wall Street community to warm and sunny South Florida, and we’ve had an excess of institutional events and conferences in recent months.

    This week, J.P. Morgan is hosting its annual High Yield & Leveraged Finance Conference at the Loews Miami Beach Hotel from February 25 - 27.

    Readers may ask more »

  • 3 Retail Stocks to Buy on Bottom-Line Expansion

    By Masam Abbas - February 20, 2013 | Tickers: DKS, LAD, PAG

    Recently, I have been writing on a few well known names in the hard-line retail industry. My focus has been especially on players in the retail-automobile industry. This article also briefly discussed two retail-automobile players. However, this time the focus is not only on rising sales due to a rising US SAAR (which is the car sales in the US), but also on bottom-line improvement due to efficiency. Taking advantage more »

  • This Used Car Dealer Had a Board Member Buy In

    By Meena Krishnamsetty - February 12, 2013 | Tickers: AN, KMX, GPI, PAG, SAH

    According to a filing with the SEC, Rakesh Gangwal, who sits on the Board of Directors at CarMax (NYSE: KMX), purchased 30,000 shares of the company’s stock on February 7 at an average price of $39.43 per share. CarMax is a used car retailer operating in the United States with a market capitalization of just over $9 billion. Insider activity is one of the factors we track more »

  • New, Used or Just Cruising, Copart Looks Good

    By Mark Walker - January 17, 2013 | Tickers: AN, KMX, CPRT, PAG

    Buckle Up and Hit the Gas
    Investors like companies that are poised to perform regardless of the economic environment.  While performance is certainly not guaranteed, Copart, Inc.'s (NASDAQ: CPRT) business model and vision, coupled with its aggressive share repurchase program, presents an attractive investment opportunity for investors.  As a best in class company in its sector, investors may consider this stock a core holding.

    Successful Model Puts Pedal to more »

  • This Stock Shows Steady Returns

    By Anupriya Maheshwari - December 29, 2012 | Tickers: AN, KMX, PAG

    CarMax (NYSE: KMX) the largest used car dealership chain announced its phenomenal third quarter ended results with soaring revenue. This was the second straight quarter of growth in revenue for the company and thus share prices reached a record high bringing good news for investors this Christmas. With reduced purchasing power and an economic slowdown in full swing, sale of used cars have an upper hand over brand new vehicles more »

  • CarMax Earnings Preview

    By Robby Greengold - December 17, 2012 | Tickers: AN, KMX, PAG

    Coming up on December 20 are third-quarter results from CarMax (NYSE: KMX). Wall Street is expecting earnings of $0.38 per share – an unchanged EPS during the same period the previous year. The last time CarMax reported quarterly earnings, investors were disappointed by a negative earnings surprise of over 7%; analysts were expecting $0.52 and the company delivered $0.48. Shares of CarMax dropped in the following few days more »

  • Where Will These Car Dealerships Take You?

    By Chris Hodge - November 19, 2012 | Tickers: ABG, GPI, LAD, PAG

    The auto industry hasn't gotten much good press lately. The big three American car companies have taken flak for receiving government handouts, individually taking private jets to go beg for these handouts, for consistently losing money by crafting designs that insult the tastes of their intended customers. But at a more grassroots level, there's another group of capitalists in the world of cars and trucks -- the auto dealership more »

  • 5 Reasons to Buy AutoNation

    By Piyush Arora - September 3, 2012 | Tickers: ABG, AN, PAG, SAH

    I’m sure that everybody has heard this from a lot of portfolio managers and consultants: “diversifying your portfolio is important.” The reason primarily to do so is to spread the risks by not betting on one single company. Companies are similarly advised to do so with their business decisions and approach. When we invest in a company that hasn’t diversified its operations, the risk exists that a technology more »

  • Who Really Sold You That New Car?

    By Jonathan Lim - August 15, 2012 | Tickers: ABG, AN, LAD, PAG, SAH

    Cars have caught the American imagination for almost one hundred years, and the auto industry has come a long way from the time Henry Ford quipped that his customers could have the Model T in any color, as long as it was black. Yet in the eye of the buying public, the network of dealerships remains a patchwork quilt of mom-and-pop retailers, even though in many metropolitan areas this is more »

  • AutoNation an Idea for Speculators

    By Steve Van - July 10, 2012 | Tickers: AN, KMX, PAG, SAH

    The domestic automotive dealership industry is characterized by intense competition, low returns on invested capital, and low cash flow generation per dollar of revenue. Additionally, the companies in the industry, including AutoNation (NYSE: AN), CarMax (NYSE: KMX), Penske Automotive Group (NYSE: PAG), and Sonic Automotive (NYSE: SAH), are cyclical and very sensitive to job and housing markets, which have been the laggards in the domestic economy. However, when the economic more »

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