Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

AutoNation (AN)

Incorporated in Delaware in 1991, AutoNation, Inc. is the largest automotive retailer in the United States. The company offers vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products. In addition, it arranges financing for vehicle purchases through third-party sources.

AN sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Automotive - Retail and Whole Sales industry's P/E of 5.9X, shares of AutoNation are trading at a forward P/E of 5X. AN also has a PEG Ratio of 0.2, a Price/Cash Flow ratio of 4.8X, and a Price/Sales ratio of 0.3X.

Many value investors pay close attention to a company's earnings as well. For AN, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.07 to $23.20 per share for 2022. Per share AN boasts an average earnings surprise of 27.4%.

Investors should take the time to consider AN for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.


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