Are the stocks of automobile dealers the ultimate contrarian play, with fears of recession, oil near its all time high, and many consumers cutting back on spending due to rising interest rates on their adjustable mortgages? Maybe now is the time to take a closer look at these stocks, especially since several of these companies deal in used cars, making them semi-recession proof. All of the following companies have market caps over $500 million.
Group 1 Automotive ( GPI ) is a Houston, Texas based company which sells new and used vehicles. The stock has a PE of 8.61 and a PEG of 0.66 .
Asbury Automotive Group ( ABG ) is a retailer of both new and used automobiles both directly to customers and by auction. The stock has a PE of 10.73 and a PEG of 0.76 .
Sonic Automotive Inc ( SAH ) is a Charlotte, North Carolina based company which operates over 170 automobile dealership franchises. The stock has a PE of 10.44 and a PEG of 0.83 .
Penske Automotive ( PAG ) is a Michigan based company which operates over 300 retail automotive franchises. The stock has a PE of 14.98 and a PEG of 1.11 .
Autonation Inc ( AN ) is a retailer of new vehicles, used vehicles, vehicle maintenance and repair services. The stock has a PE of 10.93 and a PEG of 1.15 .
Carmax Inc ( KMX ) is a Virginia based retailer of used vehicles The stock has a PE of 22.61 and a PEG of 1.34 .
Copart Inc ( CPRT ) is a remarketer of vehicles using the Internet. They primarily work with vehicle dismantlers for salvage. The stock has a PE of 26.32 and a PEG of 1.63 .
Rush Enterprises, Inc. (RUSHB) is a Texas based company which operates truck dealerships. The stock has a PE of 12.15 .
Author does not own any of the above.
By Fred Fuld at Stockerblog.com
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