Penske Revs Up Buy Point On 698% EPS Growth, AI-Driven Way For Users To Buy Cars Online
Penske Automotive (PAG) is revving up a potential new breakout as it debuts a new automated platform to help people buy cars online. That move comes as Penske already has its foot on the pedal, driving 698% earnings growth and a 91% spike in revenue last quarter.
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Like some of the high-performance cars Penske sells, PAG stock has motored its way onto a spot on the IBD Breakout Stocks Index.
Penske Automotive has a 95 Composite Rating, putting it within the top 5% of all companies based on the most important stock-picking traits.
In Stock Checkup, Penske ranks No. 4 within the automotive retailers industry. AutoNation (AN), Asbury Automotive (ABG) and Lazydays (LAZY) are also among the top car dealers in the group.
Penske Innovates How People Buy Cars Online
In July, Penske Automotive and Cox Automotive teamed up to debut a fully automated technology platform consumers can use to buy cars online.
The platform features Cox Automotive’s patent-pending artificial intelligence (AI) retail technology, Essential Commerce. Using this AI technology, Penske Automotive offers features including personalized monthly payments across all inventories, trade-in capabilities, application and approval for financing, digital contracting, and digital signatures.
Announcing the debut of this streamlined way to buy cars online, Penske Automotive Group Chair Roger Penske said “no one has delivered an automotive e-commerce solution that can scale to support the industry’s transformation for retailers and for consumers — until now.”
Headquartered in Michigan, Penske has 323 retail automotive locations across four continents and nine countries. It employs over 23,000 people, is a member of the Fortune 500 and ranks among the World’s Most Admired Companies by Fortune Magazine.
After driving 698% earnings growth in Q2, analysts expect Penske to tap the brakes and deliver a 19% EPS increase in Q3. For the full year, analysts see 94% earnings growth.
PAG Stock Steering Toward New Breakout
Penske is building a second-stage cup with handle showing a 92.06 buy point. The current chart pattern has formed after PAG stock soared off its pandemic lows in March 2020.
The relative strength line slumped while forming that base. It has rebounded somewhat but remains well shy of a new 52-week high.
PAG stock is up Wednesday, moving to within 4% of a breakout.
Penske sports a solid B Accumulation/Distribution Rating and four quarters of rising fund ownership. In another sign of institutional sponsorship, Penske made the latest list of new buys by the best mutual funds.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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