Latest news with #PenskeAutomotive
Yahoo
3 days ago
- Automotive
- Yahoo
Zacks Industry Outlook Highlights Penske Automotive, Lithia Motors, AutoNation and Group 1 Automotive
For Immediate Release Chicago, IL – July 18, 2025 – Today, Zacks Equity Research discusses Penske Automotive PAG, Lithia Motors LAD, AutoNation AN and Group 1 Automotive GPI. Industry: Autos - Retail & Wholesale Link: The Zacks Auto Retail and Wholesale industry is undergoing major changes, driven by shifting consumer habits, policy shifts, and strategic moves by key players. EV sales are likely to see a near-term boost as buyers rush to take advantage of expiring federal incentives. At the same time, affordability remains a challenge. Though rising incomes and dealer incentives have provided slight relief, tariffs on imported vehicles continue to limit options for budget-conscious buyers. In response to these pressures, auto retailers like Penske Automotive, Lithia Motors, AutoNation and Group 1 Automotive are ramping up strategic acquisitions to expand market share and diversify offerings. Parallelly, the push toward digitization is gaining momentum, as dealers invest in online platforms to meet evolving customer expectations and improve profitability. Industry Overview The auto retail and wholesale industry plays a key role in how cars, trucks, and auto parts reach consumers. Companies in this space operate through dealership networks and retail chains, selling both new and used vehicles, offering repair and maintenance services, and helping customers with financing. Since this is a consumer-driven industry, its performance often depends on how strong the economy is. When people have more disposable income, they're more likely to spend on vehicles. But during tougher times, like economic slowdowns, big purchases are often put on hold. The COVID-19 pandemic changed the way the industry works, pushing dealers to focus more on online tools and e-commerce. That digital shift is expected to continue, shaping how vehicles are bought and sold in the future. Factors to Shape the Industry Dynamics : Car affordability saw a modest improvement last month, not because vehicles got cheaper, but because consumer incomes edged up and dealers increased incentives to attract hesitant buyers. However, this relief may be short-lived. Industry experts warn that any further gains in affordability are unlikely, especially with tariffs casting a long shadow over the market. Tariffs on imported vehicles and parts can add as much as $5,700 to the cost of a new car, particularly affecting lower-priced models that appeal to cost-conscious consumers. With limited trade relief in sight, these added costs might weaken sales volumes. : The EV market is heading into a transitional phase. While first-half 2025 U.S. EV sales hit a record 607,089 units—up 1.5% year over year—the story is more nuanced. According to Cox Automotive's Kelley Blue Book, second-quarter EV sales dropped 6.3% year over year but climbed 4.9% sequentially, hinting at short-term momentum. That boost likely reflects consumers pulling purchases forward to capitalize on expiring federal incentives, which are set to end in September. As a result, third-quarter sales could be strong, possibly breaking more records. But the outlook beyond that is murkier. Without the cushion of government subsidies, demand is expected to take a hit in the fourth quarter. : Auto retailers are making strategic acquisitions to strengthen their competitive positioning and expand into new geographic territories. These deals not only boost market share but also allow dealers to diversify their brand mix, customer base, and service capabilities. : The industry is embracing a digital-first approach. As more car buyers gravitate toward online vehicle purchases, dealers are investing in technology platforms to meet evolving expectations. This digital shift is broadening customer reach and is leading to more seamless buying experiences, ultimately translating into improved margins and operational efficiency. Zacks Industry Rank Is Encouraging The Zacks Auto Retail & Wholesale industry is part of the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #91, which places it in the top 37% of 245 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry's position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. We will present a few stocks that you might consider adding to your watchlist. Before that, let's discuss the industry's recent stock market performance and valuation picture. Industry Tops Sector & S&P 500 The Zacks Auto Retail & Wholesale industry has outperformed the Zacks S&P 500 composite as well as the Auto, Tires and Truck sector over the past year. The industry has returned 16.3% over this period compared with the S&P 500's growth of 12.6% and the sector's decline of 5.1%. Industry's Current Valuation Since automotive companies are debt-laden, it makes sense to value them based on the enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio. On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 8.95X compared with the S&P 500's 17.64X and the sector's trailing 12-month EV/EBITDA of 20.66X. Over the past five years, the industry has traded as high as 10.79X, as low as 4.78X and at a median of 7.21X. 4 Stocks to Watch Now Penske Automotive: It is a global player in the auto and commercial truck dealership business, operating across the United States, the United Kingdom, Canada, Germany, Italy and Japan. The company is making bold moves to grow its footprint, having completed acquisitions in 2024 that represent nearly $2.1 billion in annualized revenues. Its Premier Truck Group, with 45 locations across North America, continues to support diversification and revenue growth. A strong order backlog adds to the company's positive outlook, while investments in digital tools are enhancing customer experience and operational efficiency. Penske Automotive also stands out for its solid financial position, with a low long-term debt-to-capitalization ratio of 15.5%. In a show of financial strength and shareholder confidence, PAG raised its quarterly dividend by 3.3% to $1.26 per share in May, marking its 18th straight quarterly increase. Penske Automotive currently carries a Zacks Rank #3 (Hold) and has a Value Score of A. The Zacks Consensus Estimate for 2025 sales and EPS implies year-over-year growth of 1.5% and 0.5%, respectively. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Lithia Motors: It is one of the top automotive retailers in the United States, offering new and used vehicles along with related services. The company is aggressively expanding its footprint through strategic acquisitions and store growth. In 2023 and 2024, Lithia Motors added $3.8 billion and $5.9 billion, respectively, in annualized revenues from acquisitions. In 2025 so far, it has already secured $400 million more. This M&A strategy is helping the company grow its market share and diversify its portfolio. On the digital front, platforms like Driveway and GreenCars are helping LAD expand its reach and improve profitability through convenient, tech-driven customer experiences. Lithia continues to return value to shareholders, with a 4% dividend hike announced alongside its first-quarter results and a five-year annualized dividend growth rate of 15%. Lithia Motors currently carries a Zacks Rank #3 and has a Value Score of A. The Zacks Consensus Estimate for 2025 sales and EPS implies year-over-year growth of 6.8% and 11.4%, respectively. AutoNation: This is one of the largest automotive retailers in the nation, backed by a wide geographical footprint and a growing dealer network. Its ongoing store expansion strategy is helping AutoNation reach a broader customer base across key markets. Strategic acquisitions continue to fuel growth, including the recent purchase of two dealerships in the Greater Denver area. These are expected to add $200 million in annual revenues. AutoNation is also leaning into digital transformation with its AutoNation Express platform, which streamlines online vehicle buying and selling. The company's Finance division is also gaining traction, with higher in-store penetration and rising profitability. AN remains committed to shareholder returns. In 2024 alone, it repurchased 2.9 million shares worth $460 million. AutoNation currently carries a Zacks Rank #3 and has a Value Score of A. The Zacks Consensus Estimate for 2025 sales and EPS implies year-over-year growth of 1.8% and 7.7%, respectively. Group 1 Automotive: It is a major global automotive retailer with a strong presence in the United States and the United Kingdom. The company is steadily expanding through acquisitions, adding over $1 billion in revenues in 2023, $3.9 billion in 2024 and another $430 million so far in 2025. This M&A momentum is fueling its top-line growth and helping it gain scale in key markets. GPI's omnichannel strategy, anchored by its AcceleRide digital platform, is enhancing customer engagement. On the international front, its restructuring efforts have boosted operational efficiency and performance in the United Kingdom. Group 1 Automotive also stands out for its shareholder-focused approach. Over the past five years, the company has raised its dividend 11 times, with an impressive annualized dividend growth rate of 12%. Group 1 Automotive currently carries a Zacks Rank #3 and has a Value Score of A. The Zacks Consensus Estimate for 2025 sales and EPS implies year-over-year growth of 11.6% and 4.3%, respectively. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Automotive
- Yahoo
PENSKE AUTOMOTIVE GROUP SCHEDULES SECOND QUARTER AND SIX MONTHS 2025 FINANCIAL RESULTS CONFERENCE CALL
BLOOMFIELD HILLS, Mich., July 16, 2025 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers today announced it will release financial results for the three and six months ended June 30, 2025, on the morning of Wednesday, July 30, 2025. An investor presentation and earnings press release will be accessible beginning the morning of July 30, 2025 in the Investors section of the Penske Automotive Group website at A conference call and audio webcast to discuss these results will be held later that day as follows: WHEN: Wednesday, July 30, 2025 TIME: 2:00 PM Eastern Daylight Time PHONE: United States, please dial (800) 715-9871 (Conf. ID: 9658297)International, please dial (646) 307-1963 (Conf. ID: 9658297)Note: Callers should dial-in approximately 10-15 minutes before the call begins WEBCAST: To access the live webcast of the conference call, please visithttps:// Listeners should access the webcast 10-15 minutes before the call begins REPLAY: A webcast replay of the conference call will be available for 7 days beginning at approximately 5:00 PM on the day of the call. To access the webcast replay, please visit About Penske Automotive Penske Automotive Group, Inc., (NYSE: PAG) headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. PAG operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia and is one of the largest retailers of commercial trucks in North America for Freightliner. PAG also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. PAG employs over 28,700 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions ("PTS"), a business that employs over 44,500 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 428,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts and provides innovative transportation, supply chain, and technology solutions to its customers. PAG is a member of the S&P Mid Cap 400, Fortune 500, Russell 1000, and Russell 3000 indexes. For additional information, visit the Company's website at Inquiries should contact: Shelley Hulgrave Executive Vice President and Chief Financial Officer 248-648-2812 shulgrave@ Anthony PordonExecutive Vice President - Investor Relations and Corporate Development248-648-2540tpordon@ View original content to download multimedia: SOURCE Penske Automotive Group, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
03-07-2025
- Automotive
- Associated Press
PENSKE AUTOMOTIVE GROUP COMPLETES ACQUISITION OF FERRARI DEALERSHIP IN NORTHERN ITALY
Ferrari Modena Complements Existing Luxury Brand Presence in Italy Strengthens Worldwide Penske/Ferrari Relationship BLOOMFIELD HILLS, Mich., July 3, 2025 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers with operations across four continents and eight countries, has completed the acquisition of a Ferrari dealership in Modena, Italy. Located in Emilia Romagna, the heart of the Italian Motor Valley, this Ferrari dealership expands the Company's existing luxury presence in Italy to 29 automotive retail locations. Penske Automotive Group now represents nine Ferrari locations worldwide, including Maranello Classic Parts, the only official Ferrari classic parts distributor in the world. The expected estimated annualized revenue of the Modena location is $40 million. Commenting on the acquisition, Penske Automotive Group Head of International Operations Randall Seymore said, 'We are honored to represent the Ferrari brand at such an iconic location in Italy. Our luxury brand presence in northern Italy, strong reputation and experienced leadership team will help us provide exceptional service to Ferrari customers. We welcome the Ferrari brand in Italy, its customers and its existing employees to our team.' About Penske Automotive Penske Automotive Group, Inc., (NYSE: PAG) headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. PAG operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia and is one of the largest retailers of commercial trucks in North America for Freightliner. PAG also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. PAG employs over 28,700 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions ('PTS'), a business that employs over 44,500 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 428,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts and provides innovative transportation, supply chain, and technology solutions to its customers. PAG is a member of the S&P Mid Cap 400, Fortune 500, Russell 1000, and Russell 3000 indexes. For additional information, visit the Company's website at Caution Concerning Forward Looking Statements Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s financial performance, expectations and anticipated revenues. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, those related to macro-economic, geo-political and industry conditions and events, including their impact on sales of new and used vehicles, service and parts, and repair and maintenance services, the availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, demand for trucks to move freight with respect to Penske Transportation Solutions (PTS) and Premier Truck Group and other freight metrics such as spot rates or miles driven, personal discretionary spending levels, interest rates, foreign currency exchange rates, and unemployment rates; our ability to obtain vehicles and parts from our manufacturers, especially in light of supply chain disruptions due to natural disasters, tariffs and non-tariff trade barriers, any shortages of vehicle components, international conflicts, challenges in sourcing labor, or labor strikes or work stoppages, or other disruptions; the control our manufacturer partners can exert over our operations and our reliance on them for various aspects of our business; risks to our reputation and those of our manufacturer partners; changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of EVs; disruptions to the security and availability of our information technology systems and those of our third party providers, which systems are increasingly threatened by ransomware and other cyber-attacks; the effects of a pandemic on the global economy, including our ability to react effectively to changing business conditions in light of any pandemic; the impact of tariffs targeting imported vehicles and parts, as well as changes or increases in tariffs, trade restrictions, trade disputes or non-tariff trade barriers; the rate of inflation, including its impact on vehicle affordability; changes in interest rates and foreign currency exchange rates; our ability to consummate, integrate, and realize returns on our acquisitions; with respect to PTS, changes in the financial health of its customers, labor strikes or work stoppages by its employees, a reduction in PTS' asset utilization rates, continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, including with respect to the effect of various government mandates concerning the electrification of its vehicle fleet, changes in values of used trucks which affects PTS' profitability on truck sales and regulatory risks and related compliance costs, our ability to realize returns on our significant capital investments in new and upgraded dealership facilities; our ability to navigate a rapidly changing automotive and truck landscape; our ability to respond to new or enhanced regulations in both our domestic and international markets relating to dealerships and vehicles sales, including those related to the sales process, emissions standards or electrification, as well as changes in consumer sentiment relating to commercial truck sales that may hinder our or PTS' ability to maintain, acquire, sell, or operate trucks; the success of our distribution of commercial vehicles, engines, and power systems; natural disasters; recall initiatives or other disruptions that interrupt the supply of vehicles or parts to us; the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group's business, markets, conditions, risks, and other uncertainties, which could affect Penske Automotive Group's future performance. The risks and uncertainties discussed above are not exhaustive and additional risk and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2024, its Form 10-Q for the quarterly period ended March 31, 2025, and its other filings with the Securities and Exchange Commission. This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein. Inquiries should contact: View original content to download multimedia: SOURCE Penske Automotive Group, Inc.
Yahoo
30-06-2025
- Automotive
- Yahoo
Why Penske Automotive (PAG) is a Top Momentum Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum. For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates. Established in 1990, Penske Automotive Group, Inc., based in Bloomfield Hills, MI, engages in the operation of automotive and commercial truck dealerships in the United States, the United Kingdom, Canada, Germany, Italy, and Japan. The company also distributes and retails commercial vehicles, diesel engines, gas engines, power systems and related parts and services, principally in Australia and New Zealand. It employs more than 28,900 people across the globe. PAG sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of B, and has a VGM Score of A. The stock is up 1.7% and up 6.8% over the past one-week and four-week period, respectively, and Penske Automotive has gained 17% in the last one-year period as well. Additionally, an average of 279,981 shares were traded over the last 20 trading sessions. A company's earnings performance is important for momentum investors as well. For fiscal 2025, four analysts revised their earnings estimate higher in the last 60 days for PAG, while the Zacks Consensus Estimate has increased $0.14 to $13.94 per share. PAG also boasts an average earnings surprise of 2.6%. PAG should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Automotive
- Yahoo
Penske Automotive (PAG) Could Be a Great Choice
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. Penske Automotive (PAG) is headquartered in Bloomfield Hills, and is in the Retail-Wholesale sector. The stock has seen a price change of 8.1% since the start of the year. The auto dealership chain is currently shelling out a dividend of $1.26 per share, with a dividend yield of 3.06%. This compares to the Automotive - Retail and Whole Sales industry's yield of 0.24% and the S&P 500's yield of 1.53%. In terms of dividend growth, the company's current annualized dividend of $5.04 is up 23.2% from last year. Over the last 5 years, Penske Automotive has increased its dividend 5 times on a year-over-year basis for an average annual increase of 30.89%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Penske's payout ratio is 35%, which means it paid out 35% of its trailing 12-month EPS as dividend. Looking at this fiscal year, PAG expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $13.99 per share, representing a year-over-year earnings growth rate of 1.82%. From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PAG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
