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Consider This Before Taking a Position in AutoNation (AN)

Shares of Mid-cap trade & services company AutoNation moved 11.36 this afternoon, and are now trading at $157.3 per share. On the other hand, the average analyst target price for the stock is $147.33.

AutoNation, Inc. is an automobile retailer in the United States. Based on its trailing earning per share of 26.96, AutoNation has a trailing 12 month Price to Earnings (P/E) ratio of 5.83, a forward P/E ratio of 5.63, and a Price to Book (P/B) ratio is 2.55.

The company has a price to earnings growth (PEG) ratio of 1.052, indicating that the company is fairly valued in terms of its expected earnings growth. However, such explosive growth rates are not often sustainable. Additionally, you will note that the company's share buybacks are a significant contributor to its EPS growth:

2022-12-31 2021-12-31 2020-12-31 2019-12-31 2018-12-31
EPS $28.94 $21.93 $4.57 $5.04 $4.40
EPS Growth 32.0% 380.0% -9.0% 15.0% n/a
Net Income (k) $1,377,400 $1,373,000 $381,600 $450,000 $396,000
Net Income Growth 0.3% 259.8% -15.2% 13.6% n/a
Shares Outstanding (k) 47,600 62,600 83,500 89,300 90,000
Shares Growth -24.0% -25.0% -6.0% -1.0% n/a
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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