ABG Asbury stock Story

ABG -  USA Stock  

USD 158.27  11.62  6.84%

Asbury Automotive Long Term Debt to Equity is projected to increase slightly based on the last few years of reporting. The past year's Long Term Debt to Equity was at 1.40. The current year Calculated Tax Rate is expected to grow to 33.12, whereas Revenue Per Employee is forecasted to decline to about 755.4 K. In this article, we will digest Asbury Automotive as a potential position in addition to your existing holdings. We will discuss why it could be a game-changer for Asbury Automotive shareholders.
Published over six months ago
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Is Asbury Automotive (NYSE:ABG) outlook positive for November 2020?
On a scale of 0 to 100, Asbury Automotive holds a performance score of 5. The firm shows a Beta (market volatility) of -0.4501, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Asbury's beta means in this case. As returns on the market increase, returns on owning Asbury Automotive are expected to decrease at a much lower rate. During the bear market, Asbury Automotive is likely to outperform the market. Although it is extremely important to respect Asbury Automotive historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Asbury Automotive technical indicators, you can presently evaluate if the expected return of 0.22% will be sustainable into the future. Please makes use of Asbury Automotive mean deviation, standard deviation, treynor ratio, as well as the relationship between the downside deviation and information ratio to make a quick decision on whether Asbury Automotive price patterns will revert.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Asbury Automotive. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Asbury Automotive

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Asbury Automotive's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Asbury Automotive in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Asbury Automotive. Your research has to be compared to or analyzed against Asbury Automotive's peers to derive any actionable benefits. When done correctly, Asbury Automotive's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Asbury Automotive.

How important is Asbury Automotive's Liquidity

Asbury Automotive financial leverage refers to using borrowed capital as a funding source to finance Asbury Automotive Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Asbury Automotive financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Asbury Automotive's total debt and its cash.

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

Breaking down Asbury Automotive Further

Asbury Automotive Group currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.24. However, we do advice investors to further question Asbury Automotive Group expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Returns Breakdown

Return on Investment13.05
Return on Assets0.0649
Return on Equity0.34
Return Capital0.11
Return on Sales0.0486

Can Asbury Automotive build up on the latest surge?

Standard deviation is down to 2.73. It may indicate a possible volatility dip. Asbury Automotive Group currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.24. However, we do advice investors to further question Asbury Automotive Group expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Asbury Automotive

Although some other firms within the auto & truck dealerships industry are still a little expensive, even after the recent corrections, Asbury Automotive may offer a potential longer-term growth to shareholders. While some shareholders may not share our view, we believe that right now is not a good time to increase your holdings in Asbury. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Asbury Automotive.

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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