Penske Automotive Group is an American automotive retailer which operates 166 franchises in US and 169 abroad. With more than 40 partnerships with car manufacturer and repair centers, they offer new and second-hands vehicles, financial products, credits, insurance, spare parts and after-sales services. Earnings for first quarter published on April 25th showed a revenues'increase of 18% in spite of the uncertainty economics climate.
From fundamental viewpoint the company is trading at weak value. Ratio enterprise value / revenue is 0.24x the estimates for 2012. Earnings per share are expected at 2.01 dollars for this fiscal year.
Technically the stock is following a strong bullish trend since the beginning of the year a 40% increase. 20-days moving average come in support of the trend. The decline observed during the last few sessions is stopped by 20-days moving average and a new impulse could help the stock to test a second time its USD 27.13 resistance. The ongoing level formed an interesting entry point with a target fixed on Thomson-Reuters' consensus at USD 31.6.
Investors could take a buying position on Penske Automotive Group security with an objective at USD 31.6, representing a potential gain of 17%. A stop-loss will be engaged at USD 25.3, below the short-term support.
Penske Automotive Group, Inc. is a diversified international transportation services company. The Company is also engaged in automotive and commercial truck retailing. The Company operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, and Japan and retailers of commercial trucks in North America for freightliner. The Company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. The Retail Automotive segment consists of its retail automotive dealership operations. The Retail Commercial Truck segment consists of its retail commercial truck dealership operations in the United States and Canada. The Other segment consists of its commercial vehicle and power system distribution operations. The Non-Automotive Investments segment consists of its equity method investments in non-automotive operations, which includes its investment in Penske Transportation Solutions (PTS) and various other investments.