After buying a company’s stock (assuming no leverage), the worst possible outcome is losing all your invested money.long term Asbury Automotive Group Inc. (NYSE:ABG) stockholders will know this well, as the stock has risen 152% in five years. What’s more, the stock is up 13% in about a quarter.
It’s been a good week for Asbury Automotive Group stockholders, so let’s take a look at the long-term fundamental trends.
Read the latest analysis from Asbury Automotive Group.
To paraphrase Benjamin Graham, the market is a voting machine in the short term, but a weighing machine in the long term. By comparing earnings per share (EPS) and stock price over time, you can get a sense of how investor attitudes toward companies have changed over time.
Asbury Automotive Group has successfully grown earnings per share by 35% annually for over five years. This EPS growth outpaces the 20% average annual increase in stock prices. Therefore, we can conclude that the market as a whole is becoming more cautious on equities. The fairly low P/E ratio of 5.06 also suggests concerns for the market.
Here’s how the EPS changed over time (click the image to see the exact values).
We know that Asbury Automotive Group has improved its earnings over the past three years, but what about the future? freedom Detailed report on the balance sheet.
another point of view
Shareholders of Asbury Automotive Group are pleased to see a total shareholder return of 1.2% last year. However, his 5-year TSR of 20% per annum is even more impressive. Potential buyers may understandably feel they have missed an opportunity, but there is always the possibility that the business is still firing on all cylinders. I think it will be very interesting to see. But for true insight, other information must also be considered. for example, One warning sign from Asbury Automotive Group What you should know.
of course Asbury Automotive Group may not be the best stock to buySo you might want to watch this freedom Collection of growing strains.
Please note that the market returns quoted in this article reflect market-weighted average returns for stocks currently traded on US exchanges.
Valuation is complicated, but we’re here to help make it simple.
find out if Asbury Automotive Group You may be overestimated or underestimated by checking out our comprehensive analysis including: Fair value estimates, risks and warnings, dividends, insider trading and financial health.
View Free Analysis
Do you have feedback on this article? What interests you? contact directly with us. Or send an email to our editorial team (at) Simplywallst.com.
This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …