Asbury Story

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ABG -- USA Stock  

USD 93.14  0.71  0.76%

In general, we focus on analyzing Asbury (NYSE:ABG) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Asbury Automotive Group daily price indicators and compare them against related drivers. Today's article will digest Asbury Automotive. We will analyze why it could be a much better year for Asbury Automotive shareholders.
Published over two months ago
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Is Asbury Automotive (NYSE:ABG) gaining more confidence from shareholders?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Asbury Automotive has an asset utilization ratio of 310.07 percent. This indicates that the company is making $3.1 for each dollar of assets. An increasing asset utilization means that Asbury Automotive Group is more efficient with each dollar of assets it utilizes for everyday operations. The company has Net Profit Margin of 2.28 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of 5.01 %, which entails that for every 100 dollars of revenue, it generated 0.05 of operating income.
The successful prediction of Asbury Automotive stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Asbury Automotive Group, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Asbury Automotive based on Asbury Automotive hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Asbury Automotive's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Asbury Automotive's related companies.

Use Technical Analysis to project Asbury expected Price

Asbury Automotive technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Asbury Automotive technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Asbury Automotive trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Asbury Automotive, but it might be worth checking our own buy vs. sell analysis

A Deeper Perspective

Asbury Automotive reported the last year's revenue of 7.15 B. Total Income to common stockholders was 163 M with profit before taxes, overhead, and interest of 1.17 B.

Cost of Revenue Breakdown

Asbury Automotive Cost of Revenue is increasing over the years with slightly volatile fluctuation. Cost of Revenue is expected to dwindle to about 5.9 B. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Asbury Automotive Cost of Revenue is projected to increase significantly based on the last few years of reporting. The past year's Cost of Revenue was at 6.04 Billion
2013
2014
2015
2016
2017
2018
2019
2020
20134.46 Billion
20144.9 Billion
20155.53 Billion
20165.47 Billion
20175.4 Billion
20185.77 Billion
20196.04 Billion
20205.85 Billion

Will Asbury Automotive growth be feasible after the surge?

Coefficient of variation is down to 369.5. It may indicate a possible volatility dip. Asbury Automotive Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect Asbury Automotive Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Asbury Automotive future alpha.

The Current Takeaway on Asbury Automotive Investment

Although some firms under the auto & truck dealerships industry are still a bit expensive, Asbury Automotive may offer a potential longer-term growth to shareholders. All things considered, as of the 27th of July 2020, we believe that Asbury Automotive is currently overvalued with low odds of financial distress in the next two years. However, our actual 30 days recommendation on the firm is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Asbury Automotive Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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