Asbury Automotive Group Inc Common Stock: Style Index Mid-cap Stock

Are you looking for a mid-cap stock that offers a blend of stability and growth potential? Look no further than Asbury Automotive Group Inc Common Stock (NASDAQ: ASBY). This article delves into the details of Asbury Automotive, its market position, and why it is considered a mid-cap stock within the style index.

Understanding Mid-cap Stocks

Before diving into Asbury Automotive, it's essential to understand what defines a mid-cap stock. Mid-cap stocks are companies with a market capitalization that falls between small-cap and large-cap stocks. Generally, mid-cap stocks are considered to be less risky than small-caps but offer more growth potential than large-caps.

Asbury Automotive Group Inc: An Overview

Asbury Automotive Group Inc is a leading automotive retailer in the United States. The company operates a network of more than 200 franchises across 15 states, specializing in new and used car sales, vehicle service, parts, and collision repair. Asbury Automotive has a diverse portfolio of brands, including Ford, General Motors, Chrysler, Honda, Toyota, and many others.

Market Position and Performance

Asbury Automotive Group Inc has consistently demonstrated strong financial performance, making it a popular choice among investors. The company's revenue has grown significantly over the years, driven by its expanding network and increasing customer base.

In the latest fiscal year, Asbury Automotive reported a revenue of 5.6 billion, a 3.4% increase from the previous year. The company's net income also saw a substantial rise, reaching 249.3 million. This impressive growth has positioned Asbury Automotive as a mid-cap stock within the style index.

Why Asbury Automotive is a Mid-cap Stock

Asbury Automotive's market capitalization is currently around $6.2 billion, placing it within the mid-cap category. The company's market capitalization is influenced by various factors, including its revenue, earnings, and growth prospects.

Asbury Automotive's consistent financial performance and expansion plans have contributed to its mid-cap status. The company's strategic focus on acquiring new franchises and enhancing its service offerings has further solidified its position within the style index.

Case Study: Asbury Automotive's Acquisition Strategy

One of the key factors contributing to Asbury Automotive's growth is its acquisition strategy. In 2019, the company acquired 12 dealerships from AutoNation, one of the largest automotive retailers in the United States. This acquisition helped Asbury Automotive expand its footprint and increase its market share.

The acquisition of these dealerships resulted in a 10% increase in the company's annual revenue. This case study highlights Asbury Automotive's commitment to growth and its ability to capitalize on strategic opportunities within the automotive industry.

Conclusion

In conclusion, Asbury Automotive Group Inc Common Stock is a compelling mid-cap stock within the style index. The company's strong financial performance, strategic focus, and acquisition strategy make it an attractive investment opportunity for investors seeking stability and growth potential. With a market capitalization of around $6.2 billion, Asbury Automotive is well-positioned to continue its upward trajectory in the coming years.