Penske Automotive Group saw its IBD SmartSelect Composite Rating rise to 96 Wednesday, up from 94 the day before. Penske stock rose about 1% in afternoon trading as the market reversed from morning losses.
The revised score means Detroit area-based Penske stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. The market's biggest winners often have a 95 or higher grade in the early stages of a new price run, so that's a good item to have on your checklist when looking for the best stocks to buy and watch.
Penske Stock In Favor With Big Investors
The stock sports a 94 EPS Rating, which means its recent quarterly and longer-term annual earnings growth tops 94% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
On Dec. 14, Penske announced it bought a Detroit area BMW dealership, expanding its BMW dealerships to 48 nationwide. The prior month Penske bought McCoy Freightliner, an Oregon-based truck dealer chain. That purchase is expected to add $200 million to Penske's annual revenue, the company said.
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Penske Automotive reported a 58% rise in earnings for Q3, to a hefty $4.46 per share. That's still strong growth although it's cooled from the red-hot 240% and then 698% growth the prior two quarters. Revenue last quarter grew 9% to $6.5 billion. That mild growth came on the heels of a 91% surge in sales the prior quarter.
Penske stock is currently consolidating, with a 114.44 entry. See if the stock can break out in heavy trade at least 40% higher than normal. Keep in mind that it's a later-stage base, and those involve more risk.
Penske Automotive Group earns the No. 4 rank among its peers in the Retail/Wholesale-Auto Parts industry group. AutoNation is the No. 1-ranked stock in the group.
