Penske Automotive Group: Still Looking Good Heading Into Earnings

Summary

  • Penske Automotive Group's shares have significantly increased since January, driven by strong revenue growth, stock buybacks, and dividend increases. However, bottom line results have weakened.
  • Despite a 5.2% increase in sales to $7.34bn in Q1 2023, net profits declined by 18.9% to $298.3m due to rising costs of acquiring used vehicles and increased supply of certain premium new vehicle brands.
  • Penske is expected to announce Q2 2023 results on July 26th, and investors would be wise to pay special attention for what developments occur.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Couple picking up their new car at the dealership

Marko Geber

One of the better bullish calls that I have made in recent months involves none other than Penske Automotive Group (NYSE:PAG). Shares of the company have skyrocketed since January of this year, driven in part by

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This article was written by

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Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GPI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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