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Are Investors Undervaluing China Automotive Systems (CAAS) Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system’s “Value” category. Stocks with both “A” grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market

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Asbury Automotive Group, Inc. (NYSE:ABG) Doing What It Can To Lift Shares

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When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) above 17x, you may consider Asbury Automotive Group, Inc. (NYSE:ABG) as an attractive investment with its 11.6x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.

While the market has experienced earnings growth lately, Asbury Automotive Group’s earnings have gone into reverse gear, which is not great. It seems that many are expecting the dour earnings performance to persist, which has repressed the P/E. If you still like the company, you’d be hoping this isn’t the case so that you could potentially pick up some stock while it’s out of favour.

Check out our latest analysis for Asbury

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Is Sonic Automotive (SAH) Stock Outpacing Its Retail-Wholesale Peers This Year?

Investors focused on the Retail-Wholesale space have likely heard of Sonic Automotive (SAH), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock’s year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.

Sonic Automotive is a member of the Retail-Wholesale sector. This group includes 207 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. SAH is currently sporting a Zacks Rank of

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Chemical Specialty Industry Outlook Bleak on Muted Demand

The Zacks Chemicals Specialty industry consists of manufacturers of specialty chemical products for a host of end-use markets such as textile, paper, automotive, electronics, personal care, energy, construction and agriculture. These chemicals (including catalysts, surfactants, speciality polymers, coating additives, pesticides and oilfield chemicals) are used based on their performance and have a specific purpose. They have applications in the manufacturing process of a vast range of products, including paints and coatings, cosmetics, petroleum products, inks and plastics.

Some of the prominent industry players are Celanese Corporation (CE), W. R. Grace & Co. (GRA) and Ingevity Corporation (NGVT).

Here are the industry’s three major themes:

  • Companies in the chemical specialty space are facing the heat from a significant downturn in demand across certain major industries including construction and automotive in the wake of the coronavirus pandemic. The contagion brought industrial activities to a grinding halt globally, sapping demand for specialty chemicals.
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