Evaluating Asbury Automotive Group (ABG) Valuation as Earnings Momentum Faces Sector Credit Concerns

Asbury Automotive Group (NYSE:ABG) has been in the spotlight as investors look ahead to its next earnings announcement. Wall Street is eyeing continued growth after stronger-than-expected results last quarter.

See our latest analysis for Asbury Automotive Group.

Asbury Automotive Group’s share price has edged higher in recent months, rising nearly 7% over the past quarter as investors cheer strong earnings momentum, even while broader macro risks swirl around the auto sector. The stock’s 1-year total shareholder return of 8.3% trails its remarkable three-year TSR of nearly 61%. This shows that while long-term holders have seen substantial gains, near-term sentiment is more cautiously optimistic in light of industry challenges.

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With share price momentum continuing while broad industry headwinds remain a factor, the key question is whether Asbury’s current valuation reflects genuine upside or if the market has already accounted for future growth, leaving limited opportunity for buyers.

Most Popular Narrative: 4.9% Undervalued

The consensus narrative pins fair value at $261.75, modestly above the last close of $248.82. This highlights a slight upside that has investors watching closely for fundamental shifts.

The acquisition of Herb Chambers expands Asbury's presence in a stable, affluent market (New England) with a high mix of luxury brands. This is expected to further boost average transaction values and provide earnings resilience, supporting future revenue and margin growth.

Read the complete narrative.

What’s driving this price target? Unpack the bold assumptions behind the future profit multiple and the digital ambitions that could set Asbury apart. Ready to see what’s surprising analysts and fueling the narrative valuation? Dive in for all the crucial forecasts behind the consensus fair value.

Result: Fair Value of $261.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution risks from large acquisitions and slower digital rollout could still prevent Asbury from realizing its full valuation potential in the near term.

Find out about the key risks to this Asbury Automotive Group narrative.

Build Your Own Asbury Automotive Group Narrative

If you have a different perspective or want to reach your own conclusions, you can build a fresh narrative using the latest data in just minutes. Do it your way

A great starting point for your Asbury Automotive Group research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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