What Makes Asbury Automotive Group (ABG) an Attractive Investment?

LRT Money Management, an expense administration agency, released its Oct 2022 trader letter. A duplicate of the similar can be downloaded in this article. The outcomes in October ended up excellent, and its LRT Economic Moat method returned 7.38%. In addition, you can verify the top rated 5 holdings of the fund to know its best picks in 2022.

LRT Money discussed stocks like Asbury Automotive Group, Inc. (NYSE:ABG) in the trader letter. Headquartered in Duluth, Georgia, Asbury Automotive Group, Inc. (NYSE:ABG) is a US-primarily based automotive retailer. On November 16, 2022, Asbury Automotive Group, Inc. (NYSE:ABG) inventory shut at $176.19 for each share. One particular-month return of Asbury Automotive Team, Inc. (NYSE:ABG) was 24.90% and its shares received 4.11% of their worth in excess of the very last 52 weeks.  Asbury Automotive Team, Inc. (NYSE:ABG) has a market capitalization of $3.9 billion.

LRT Funds created the pursuing comment about Asbury Automotive Team, Inc. (NYSE:ABG) in its Oct trader letter:

“Asbury Automotive Group, Inc. (NYSE:ABG) is a single of the largest automotive shops in the United States. It operates 90 dealerships consisting of 112 franchises and 25 collision mend centers. The company’s outlets provide new and utilized vehicles, components, and provider, as very well as finance and insurance coverage (F&I) merchandise. Franchise agreements managed by automotive manufactures and condition regulations produce an environment of tightly managed current market entry and restricted levels of competition.

The dealership industry is highly fragmented with 93.5% of dealers having only between 1-5 places in accordance to data from 202027. In reality, dealers with over 50 areas account for only .1% of the field – a testomony to the large chance for consolidation that lies forward. Field dynamics, together with the rising complexity of automobiles and the will need for omnichannel distribution are favoring better capitalized and bigger supplier teams. We imagine Asbury Automotive Group has many unique pros, notably its extremely rewarding pieces and services enterprise, its overexposure to the luxury car or truck organization, which carriers the most effective margins, and its Clicklane omnichannel strategy. Asbury’s administration has also been acting in the ideal passions of its shareholders by allocating cash in the direction of acquiring dealerships to aggressively develop its organization, and often repurchasing stock when eye-catching acquisitions targets could not be found…” (Click here to examine the total text)

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Asbury Automotive Group, Inc. (NYSE:ABG) is not on our listing of 30 Most Preferred Shares Between Hedge Funds. As per our databases, 34 hedge fund portfolios held Asbury Automotive Team, Inc. (NYSE:ABG) at the finish of the 3rd quarter which was 27 in the prior quarter.

We talked over Asbury Automotive Group, Inc. (NYSE:ABG) in a different post and shared the leading stocks to purchase according to David Abrams’ Abrams Cash Management. In addition, you should verify out our hedge fund investor letters Q3 2022 page for a lot more investor letters from hedge resources and other main traders.


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Disclosure: None. This post is initially posted at Insider Monkey.