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In a challenging economic climate, Penske Automotive Group Inc . (NYSE:PAG) stock has recorded a 52-week low, dipping to $141.73. The automotive retailer, known for its diversified international business model and consistent dividend payments for 15 consecutive years, has not been immune to the pressures facing the industry, including supply chain disruptions and shifting consumer demand. With a market capitalization of $9.7 billion and a P/E ratio of 10.9x, InvestingPro analysis suggests the stock is currently fairly valued. Over the past year, PAG’s stock has declined 4.89%, reflecting broader market trends and investor concerns about the automotive sector’s near-term prospects. Despite the downturn, the company maintains strong fundamentals with $30.5 billion in revenue and a healthy dividend yield of 3.25%. The company continues to adapt its strategies in an effort to navigate the current headwinds and position itself for future growth. For deeper insights into PAG’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Penske Automotive Group reported robust financial results for the fourth quarter of 2024, with earnings per share (EPS) of $3.54, surpassing the consensus estimate of $3.30. The company’s revenue also exceeded expectations, reaching $7.72 billion, driven largely by a 9% increase in the Automotive Retail segment. This growth was fueled by a 13% rise in both Service and Parts and New Vehicle Sales. Despite these positive results, CFRA analyst Garrett Nelson maintained a Sell rating on Penske Automotive, though he did raise the price target to $140 from $130. Nelson cited the stock’s premium trading compared to its peers and a slowdown in share repurchase activity as reasons for caution. Penske Automotive’s net income rose by 24% to $236 million, with a consistent gross margin of 16.3% for the sixth consecutive quarter. The company anticipates continued growth through acquisitions, targeting a 5% increase while focusing on cost control and efficiency.
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