Validea's Top Consumer Discretionary Stocks Based On Benjamin Graham - 7/23/2024
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 23 2024
0mins
Source: NASDAQ.COM
Top Rated Consumer Discretionary Stocks: The article highlights several top-rated Consumer Discretionary stocks based on Benjamin Graham's Value Investor model, including Standard Motor Products Inc (SMP) with a 100% rating, and Lithia Motors Inc (LAD), Signet Jewelers Ltd (SIG), Asbury Automotive Group Inc (ABG), and Skechers USA Inc (SKX), all rated at 71%.
Investment Philosophy: The analysis emphasizes Graham's deep value methodology, which focuses on low P/B and P/E ratios, low debt, and solid long-term earnings growth as key indicators for stock selection.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ABG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ABG
Wall Street analysts forecast ABG stock price to rise
4 Analyst Rating
0 Buy
3 Hold
1 Sell
Hold
Current: 234.060
Low
230.00
Averages
238.33
High
250.00
Current: 234.060
Low
230.00
Averages
238.33
High
250.00
About ABG
Asbury Automotive Group, Inc. is an automotive retailer. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, parts and services, which include vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation and prepaid maintenance plans. The Company operates approximately 175 new-vehicle dealerships, consisting of over 230 franchises and representing 36 domestic and foreign brands of vehicles. It also operates Total Care Auto, Powered by Landcar, a provider of service contracts and other vehicle protection products, and 39 collision repair centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Park Place Breaks Ground on New Porsche and Expanded Volvo Dealerships
- New Dealership Construction: Park Place Dealerships has broken ground on a new Porsche dealership and an expanded Volvo facility on Lemmon Avenue in Dallas, representing a significant investment in the future of luxury automotive retail in North Texas, expected to enhance client experience.
- Project Scale and Timeline: The project encompasses 15 acres of land, with the new Porsche dealership slated for completion in 2027, while the Volvo service center is expected to be finished in early 2027, improving client convenience and service efficiency.
- Enhanced Customer Experience: The renovated Volvo sales facility will feature a modern showroom and client lounge after eight months of renovations, aimed at providing a more comfortable environment and efficient service, further enhancing customer loyalty.
- Strategic Positioning and Market Impact: The new Park Place Porsche dealership is anticipated to become one of the premier dealerships in the country, enhancing its competitiveness in the luxury automotive market by delivering high-level customer service, aligning with Asbury Automotive Group's long-term growth strategy.
See More
Matt Bowers Automotive Group Acquires Bill Estes Chrysler Dodge Jeep Ram
- Transaction Completion: The Matt Bowers Automotive Group successfully acquired Bill Estes Chrysler Dodge Jeep Ram on February 2, 2026, marking its first dealership location in Indiana and expanding its footprint across five states, thereby enhancing its market competitiveness.
- Strategic Expansion: This acquisition adds a third franchise under the Chrysler Dodge Jeep Ram brand for Matt Bowers Automotive Group, signifying its ongoing growth and diversification in the U.S. automotive retail market.
- Advisory Role: Hacman Financial served as the exclusive buy-side advisor, assisting Matt Bowers Automotive Group in completing the transaction, showcasing its expertise and influence in the automotive dealership M&A sector.
- Legal Support: Becker & Hebert, LLC provided legal counsel to Matt Bowers Automotive Group, while Hill Ward Henderson represented Asbury Automotive Group, ensuring compliance and smooth execution of the transaction.
See More
Asbury Automotive Group Q4 2025 Earnings Call Insights
- Strong Financial Performance: Asbury Automotive Group reported a record $4.7 billion in revenue and $793 million in gross profit for Q4 2025, achieving a gross profit margin of 17%, indicating robust market performance and profitability.
- Strategic Divestitures: The company divested 4 stores in the quarter and plans to divest another 9 by the end of Q1, with these 13 transactions collectively representing $750 million in annualized revenue, aimed at accelerating leverage reduction and optimizing the asset portfolio.
- Technology Upgrade Progress: The rollout of the Tekion system expanded to 15 additional stores in Q4, bringing the total to 38, with a full deployment across all platforms expected by fall 2026, enhancing operational efficiency and customer experience.
- Cautious Future Outlook: Management anticipates challenges in the first half of 2026 due to weather and transitional impacts, yet remains optimistic about long-term benefits, emphasizing ongoing investments and cost control strategies.
See More
Asbury Automotive Group Reports Q4 Earnings Decline
- Earnings Decline: Asbury Automotive Group reported a fourth-quarter net income of $60 million, translating to $3.10 per share, which represents a significant drop from last year's $128.8 million and $6.54 per share, indicating a marked decline in profitability.
- Adjusted Earnings: Excluding certain items, the adjusted earnings stood at $129.3 million or $6.67 per share, showing a decrease compared to the previous year, yet reflecting the company's profitability under specific conditions.
- Revenue Growth: The company's revenue for the fourth quarter rose by 3.8% to $4.676 billion from $4.504 billion last year, suggesting a potential for sales growth despite the overall market challenges.
- Market Reaction: Although revenue increased, the decline in profitability may negatively impact investor confidence, particularly in the highly competitive automotive market, prompting Asbury to implement strategies to restore its profit levels.
See More
Asbury Automotive Reports Q4 Earnings Beat Expectations
- Earnings Beat: Asbury Automotive's Q4 non-GAAP EPS of $6.67 exceeded expectations by $0.01, demonstrating the company's robust profitability amidst challenging economic conditions.
- Revenue Miss: Although total revenue reached $4.7 billion, a 4.4% year-over-year increase, it fell short of expectations by $200 million, reflecting intensified market competition and fluctuations in consumer demand.
- Record Gross Profit: The company achieved a record gross profit of $793 million in Q4, up 6%, indicating effective execution in cost control and sales strategies, thereby enhancing overall profitability.
- Used Vehicle Growth: Same-store used retail gross profit per unit reached $1,749, an 18% increase, with total same-store used retail gross profit at $51 million, up 4%, showcasing strong demand in the used vehicle market and the company's competitive edge in this sector.
See More
Asbury Appoints New Board Member
- New Board Member: Asbury Automotive Group has announced the appointment of Christopher DiSantis to its Board of Directors effective March 1, 2026, increasing the total number of directors to eleven, with ten being independent, thereby enhancing the board's independence and expertise.
- Audit and HR Committees: DiSantis's appointment also makes him a member of the Audit Committee and the Compensation & Human Resources Committee, where he is expected to provide valuable insights into the company's strategic planning and operations, driving performance in the competitive automotive retail market.
- Long-time Board Member Departure: Long-serving board member Philip Maritz has notified the board that he will not seek re-election, with his term ending at the 2026 Annual Meeting, marking a significant transition in Asbury's history, as Maritz's nearly 24 years of service have had a profound impact on the company.
- Strategic Development: Asbury Automotive Group initiated a multi-year strategic plan in 2020 aimed at increasing revenue and profitability through organic growth, acquisitions, and innovative technologies, with DiSantis's addition seen as a key factor in advancing this strategy and further enhancing the company's competitive position.
See More
Park Place Breaks Ground on New Porsche and Expanded Volvo Dealerships
- New Dealership Construction: Park Place Dealerships has broken ground on a new Porsche dealership and an expanded Volvo facility on Lemmon Avenue in Dallas, representing a significant investment in the future of luxury automotive retail in North Texas, expected to enhance client experience.
- Project Scale and Timeline: The project encompasses 15 acres of land, with the new Porsche dealership slated for completion in 2027, while the Volvo service center is expected to be finished in early 2027, improving client convenience and service efficiency.
- Enhanced Customer Experience: The renovated Volvo sales facility will feature a modern showroom and client lounge after eight months of renovations, aimed at providing a more comfortable environment and efficient service, further enhancing customer loyalty.
- Strategic Positioning and Market Impact: The new Park Place Porsche dealership is anticipated to become one of the premier dealerships in the country, enhancing its competitiveness in the luxury automotive market by delivering high-level customer service, aligning with Asbury Automotive Group's long-term growth strategy.
See More
Matt Bowers Automotive Group Acquires Bill Estes Chrysler Dodge Jeep Ram
- Transaction Completion: The Matt Bowers Automotive Group successfully acquired Bill Estes Chrysler Dodge Jeep Ram on February 2, 2026, marking its first dealership location in Indiana and expanding its footprint across five states, thereby enhancing its market competitiveness.
- Strategic Expansion: This acquisition adds a third franchise under the Chrysler Dodge Jeep Ram brand for Matt Bowers Automotive Group, signifying its ongoing growth and diversification in the U.S. automotive retail market.
- Advisory Role: Hacman Financial served as the exclusive buy-side advisor, assisting Matt Bowers Automotive Group in completing the transaction, showcasing its expertise and influence in the automotive dealership M&A sector.
- Legal Support: Becker & Hebert, LLC provided legal counsel to Matt Bowers Automotive Group, while Hill Ward Henderson represented Asbury Automotive Group, ensuring compliance and smooth execution of the transaction.
See More
Asbury Automotive Group Q4 2025 Earnings Call Insights
- Strong Financial Performance: Asbury Automotive Group reported a record $4.7 billion in revenue and $793 million in gross profit for Q4 2025, achieving a gross profit margin of 17%, indicating robust market performance and profitability.
- Strategic Divestitures: The company divested 4 stores in the quarter and plans to divest another 9 by the end of Q1, with these 13 transactions collectively representing $750 million in annualized revenue, aimed at accelerating leverage reduction and optimizing the asset portfolio.
- Technology Upgrade Progress: The rollout of the Tekion system expanded to 15 additional stores in Q4, bringing the total to 38, with a full deployment across all platforms expected by fall 2026, enhancing operational efficiency and customer experience.
- Cautious Future Outlook: Management anticipates challenges in the first half of 2026 due to weather and transitional impacts, yet remains optimistic about long-term benefits, emphasizing ongoing investments and cost control strategies.
See More
Asbury Automotive Group Reports Q4 Earnings Decline
- Earnings Decline: Asbury Automotive Group reported a fourth-quarter net income of $60 million, translating to $3.10 per share, which represents a significant drop from last year's $128.8 million and $6.54 per share, indicating a marked decline in profitability.
- Adjusted Earnings: Excluding certain items, the adjusted earnings stood at $129.3 million or $6.67 per share, showing a decrease compared to the previous year, yet reflecting the company's profitability under specific conditions.
- Revenue Growth: The company's revenue for the fourth quarter rose by 3.8% to $4.676 billion from $4.504 billion last year, suggesting a potential for sales growth despite the overall market challenges.
- Market Reaction: Although revenue increased, the decline in profitability may negatively impact investor confidence, particularly in the highly competitive automotive market, prompting Asbury to implement strategies to restore its profit levels.
See More
Asbury Automotive Reports Q4 Earnings Beat Expectations
- Earnings Beat: Asbury Automotive's Q4 non-GAAP EPS of $6.67 exceeded expectations by $0.01, demonstrating the company's robust profitability amidst challenging economic conditions.
- Revenue Miss: Although total revenue reached $4.7 billion, a 4.4% year-over-year increase, it fell short of expectations by $200 million, reflecting intensified market competition and fluctuations in consumer demand.
- Record Gross Profit: The company achieved a record gross profit of $793 million in Q4, up 6%, indicating effective execution in cost control and sales strategies, thereby enhancing overall profitability.
- Used Vehicle Growth: Same-store used retail gross profit per unit reached $1,749, an 18% increase, with total same-store used retail gross profit at $51 million, up 4%, showcasing strong demand in the used vehicle market and the company's competitive edge in this sector.
See More
Asbury Appoints New Board Member
- New Board Member: Asbury Automotive Group has announced the appointment of Christopher DiSantis to its Board of Directors effective March 1, 2026, increasing the total number of directors to eleven, with ten being independent, thereby enhancing the board's independence and expertise.
- Audit and HR Committees: DiSantis's appointment also makes him a member of the Audit Committee and the Compensation & Human Resources Committee, where he is expected to provide valuable insights into the company's strategic planning and operations, driving performance in the competitive automotive retail market.
- Long-time Board Member Departure: Long-serving board member Philip Maritz has notified the board that he will not seek re-election, with his term ending at the 2026 Annual Meeting, marking a significant transition in Asbury's history, as Maritz's nearly 24 years of service have had a profound impact on the company.
- Strategic Development: Asbury Automotive Group initiated a multi-year strategic plan in 2020 aimed at increasing revenue and profitability through organic growth, acquisitions, and innovative technologies, with DiSantis's addition seen as a key factor in advancing this strategy and further enhancing the company's competitive position.
See More
