This auto and truck dealer reported third-quarter 2021 adjusted earnings of $4.47 per share, up 54% from last year and beating analysts’ earnings estimates of $3.54.
Penske Automotive Group, Inc. (PAG)
From FMA Trader Alert
We can take a fast money ride along with the genius of Roger Penske via the outstanding share price of Penske Automotive Group.
Now, PAG isn’t about Team Penske the racing group. That’s more of the high-profile sports company. Rather, Penske Automotive Group is an auto and truck dealer juggernaut in 22 states and overseas.
The company has 43 light-vehicle franchises in the United States (including in Puerto Rico), as well as 161 franchises overseas, primarily in the United Kingdom. The company is the second-largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with 93% of retail automotive revenue coming from luxury and import names.
Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm’s Premier Truck Group owns 35 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 19 CarShop used-vehicle stores in the United States and Great Britain. The company is based in Michigan and was called United Auto Group before changing its name in 2007.
In its most recent quarter, PAG reported earnings per share (EPS) growth of an amazing 698%! That’s fast, as is the company’s 12-month price surge of 105%. That earnings growth last quarter, as well as its three-year annual growth rate of 18%, puts PAG in the top 5% of all stocks in terms of EPS growth. And that share price performance puts the stock in the top 6% in terms of relative price strength versus all publicly traded stocks.
Technically speaking, PAG is now on the verge of a bullish cup-with-handle breakout at $113.00.
The best part of this fast-money move is that PAG is slated to report earnings on Wednesday, Oct. 27. And we think those earnings will be very impressive again. That means that taking a position today could place you just before the next big post-earnings spike.
So, let’s buy Penske Automotive Group (NYSE: PAG) at market, with a protective stop set at $90.00.
Mark Skousen & Jim Woods, FMA Trader Alert, markskousen.com, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, October 25, 2021