Here's Why Group 1 Automotive (GPI) is a Strong Momentum Stock

Zacks
17 Feb

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

Group 1 Automotive (GPI)

Group 1 Automotive, Inc. is one of the leading automotive retailers in the world, with operations primarily located in the United States and the U.K. The company's retail network consisted of 150 and 55 dealerships in the United States and the U.K., respectively. Through these dealerships, the firm sells new and used cars and light trucks. Apart from selling new and used vehicles, the company offers vehicle financing, insurance and service contracts. It also provides maintenance and repair services, along with the sale of replacement parts and aftermarket automotive products.

GPI boasts a Momentum Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Group 1 Automotive has seen some interesting price action recently; the stock is up 2.5% over the past one week and up 7.5% over the past four weeks. And in the last one-year period, GPI has gained 78.9%. As for the stock's trading volume, 140,435.20 shares on average were traded over the last 20 days.

A company's earnings performance is important for momentum investors as well. For fiscal 2025, four analysts revised their earnings estimate higher in the last 60 days for GPI, while the Zacks Consensus Estimate has increased $0.56 to $40.94 per share. GPI also boasts an average earnings surprise of 3%.

Investors should take the time to consider GPI for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.

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