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

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Penske Automotive (PAG)

Established in 1990, Penske Automotive Group, Inc., based in Bloomfield Hills, MI, engages in the operation of automotive and commercial truck dealerships in the United States, the United Kingdom, Canada, Germany, Italy, and Japan. The company also distributes and retails commercial vehicles, diesel engines, gas engines, power systems and related parts and services, principally in Australia and New Zealand. It employs more than 28,900 people across the globe.

PAG sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Automotive - Retail and Whole Sales industry's P/E of 10.7X, shares of Penske Automotive are trading at a forward P/E of 11.7X. PAG also has a PEG Ratio of 1.6, a Price/Cash Flow ratio of 10.2X, and a Price/Sales ratio of 0.4X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.15 to $13.97 per share. PAG has an average earnings surprise of 2.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding PAG to their portfolios.

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Penske Automotive Group, Inc. (PAG):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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