Group 1 Automotive (GPI) Focuses On Expanding Footprint
Zacks Investment Research | Jul 01, 2019 07:51AM ET
On Jun 28, we issued an updated research report on Group 1 Automotive, Inc. (NYSE:GPI) .
The company is a leading automotive retailer in the world. As of Dec 31, 2018, the company operated 238 franchises, which includes 30 automobile brands through 183 dealerships and 47 collision service centers worldwide.
Group 1 Automotive is engaged in acquisitions and divestment on a regular basis to expand its business. The company has been able to expand footprint in the U.K. through buyouts. Also, it intends to fortify its presence in the United States. The company aims to acquire highly potential and attractive businesses as well as divest less profitable ones.
However, Group 1 Automotive’s financials are strained by softening retail automotive industry conditions. Additionally, the company’s supply chain is hurt by promulgation of the Harmonised Light Vehicles Test Procedure (WLTP) legislation. Moreover, rent and facility costs, advertising as well as employee salaries are primarily included in SG&A costs.
In the past three months, shares of Group 1 Automotive have outperformed the industry it belongs to. Shares of the company have rallied 23.1% compared with the industry’s rise of 11.4%.
Zacks Rank & Stocks to Consider
Group 1 Automotive currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Ford Motor Company (NYSE:F) , Fox Factory Holding Corp (NASDAQ:FOXF) and Cummins Inc (NYSE:CMI) , each currently carrying a Zacks Rank #2 (Buy). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.