Asbury Automotive Group Inc Common Stock: Performance Benchmark & Cyclical Stock

In the world of finance, understanding the performance of a company's stock is crucial for investors. Today, we delve into the Asbury Automotive Group Inc Common Stock, analyzing its performance as a benchmark and its classification as a cyclical stock. Let's uncover the intricacies behind this automotive giant's stock performance.

Asbury Automotive Group Inc Overview

Based in Charlotte, North Carolina, Asbury Automotive Group Inc is one of the leading automotive retailers in the United States. The company operates through a network of more than 500 locations, specializing in new and used vehicle sales, automotive parts, and service.

Performance Benchmark

When it comes to Asbury Automotive Group Inc Common Stock, investors often compare its performance with other automotive companies in the industry. Here are some key benchmarks:

• Market Capitalization: As of the latest financial year, Asbury Automotive Group Inc's market capitalization stands at approximately $4 billion.
• Revenue: The company generated over $11 billion in revenue during the same period.
• Earnings Per Share (EPS): Asbury Automotive Group Inc reported an EPS of $2.75 for the past fiscal year.

Compared to its peers, Asbury Automotive Group Inc's performance has been commendable. Its market capitalization, revenue, and EPS are on par with the industry average, making it a solid investment choice for those seeking exposure to the automotive sector.

Cyclical Stock Characteristics

One of the key features of Asbury Automotive Group Inc Common Stock is its cyclical nature. Asbury Automotive Group Inc's stock performance is highly correlated with the overall automotive industry's cycle.

• Economic Factors: The automotive industry is sensitive to economic conditions. During economic downturns, consumer spending on new and used vehicles tends to decrease, impacting Asbury Automotive Group Inc's sales and profits.
• Interest Rates: Interest rates play a vital role in the automotive industry. Lower interest rates encourage consumers to borrow more easily, leading to increased vehicle sales.

Case Study: Asbury Automotive Group Inc Stock Performance in 2020

To illustrate the cyclical nature of Asbury Automotive Group Inc Common Stock, let's examine its performance in 2020, a year marked by the COVID-19 pandemic.

• First Quarter: The first quarter of 2020 witnessed a sharp decline in Asbury Automotive Group Inc's stock price, reflecting the uncertainty surrounding the pandemic's impact on the automotive industry.
• Second Quarter: By the second quarter, Asbury Automotive Group Inc's stock began to recover as the pandemic situation improved, and the economy started to stabilize.
• Third and Fourth Quarters: The third and fourth quarters saw Asbury Automotive Group Inc's stock price stabilize and even rise slightly, as the company adjusted to the "new normal" of the pandemic.

This case study highlights how Asbury Automotive Group Inc Common Stock responds to the broader economic and industry cycles.

Conclusion

Asbury Automotive Group Inc Common Stock presents an intriguing opportunity for investors looking to invest in the automotive sector. Its solid performance benchmark and cyclical nature make it a viable investment choice. However, investors should remain vigilant of economic and industry factors that may impact Asbury Automotive Group Inc's stock performance.