Stock Analysis

Is Analyst Optimism on Value and Profitability Shifting Long-Term Perceptions of Asbury Automotive Group (ABG)?

  • Asbury Automotive Group announced it will release its third quarter financial results before the market opens on Tuesday, October 28, 2025, followed by a live conference call the same day.
  • Recent analyst coverage underscores Asbury’s strong earnings outlook and attractive valuation, with institutional investors citing disciplined operations and a focus on high-margin segments as key strengths.
  • We will examine how the bullish analyst assessments of value and profitability may influence Asbury Automotive Group’s investment outlook.

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Asbury Automotive Group Investment Narrative Recap

To be a shareholder in Asbury Automotive Group, you must believe in the company's strategy of scaling through acquisitions while pursuing operational gains in high-value segments like parts and service. The recent Q3 earnings announcement represents a near-term catalyst for the stock, yet the main risk, rising leverage from acquisition activity and exposure to shifting digital retail trends, remains unchanged by this news, and the latest update does not materially alter the risk-reward calculus.

The highlighted upcoming Q3 2025 financial release is particularly relevant, as analyst sentiment already points to attractive valuation levels and robust earnings expectations. Investors will be closely watching management's commentary for confirmation that integration of recent acquisitions and continued digital investment are supporting both margin expansion and sustained revenue growth.

By contrast, investors should not overlook the potential constraints on future financial flexibility if leverage remains elevated beyond targeted levels and...

Read the full narrative on Asbury Automotive Group (it's free!)

Asbury Automotive Group's narrative projects $21.6 billion revenue and $676.4 million earnings by 2028. This requires 7.7% yearly revenue growth and a $136.4 million earnings increase from $540.0 million today.

Uncover how Asbury Automotive Group's forecasts yield a $261.75 fair value, a 6% upside to its current price.

Exploring Other Perspectives

ABG Community Fair Values as at Oct 2025
ABG Community Fair Values as at Oct 2025

You will find three unique fair value views from the Simply Wall St Community, ranging from US$223.65 to US$865.83 per share. Amid these broad estimates, the company’s acquisition-driven growth and higher debt load continue to influence sentiment and could shape future performance for those exploring different perspectives.

Explore 3 other fair value estimates on Asbury Automotive Group - why the stock might be worth over 3x more than the current price!

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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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