The IBD SmartSelect Composite Rating for Group 1 Automotive rose from 94 to 96 Thursday.
The new rating shows the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The best stocks tend to have a 95 or better grade as they kick off a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
Group 1 Automotive is currently extended beyond a proper buy zone after clearing the 440.32 buy point in a flat base.
Lean How — And When — To Sell Stocks
One weak spot is the company's 75 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
In Q4, the company reported 5% EPS growth. Sales growth rose 24%, up from 11% in the prior quarter. That marks two quarters of increasing revenue gains.
Group 1 Automotive holds the No. 2 rank among its peers in the Retail/Wholesale-Auto Parts industry group. ACV Auctions is the top-ranked stock within the group.
