NYSE:PAG   Penske Automotive Group, Inc
Shares of Penske Auto Group ( PAG ) seem to be basing and ready to move higher.

This thing is cheap with a TTM P/E of 6.2. Using consensus estimates for 2018 of $5.06 per share, it's trading at a forward P/E of 10.3.

The company offers a 3.1% dividend, and its 1 and 5 year dividend growth is 13% and 19%, respectively. With a payout ratio of 19%, there's still room to grow even more.

An important metric to watch when the company reports earnings on 4/25 will be growth... it's been on the decline the past few quarters, but I expect auto strength and transport strength bodes well.

I'm long the stock and May calls.
Trade active: As expected, PAG beat on the top and bottom lines. Unlike other names posting a beat, shares have not sold off intraday, which suggests some relative strength. To be fair, they haven't started the conference call yet... ;)

I expect an increase in the div (they explicitly noted how many consecutive quarters they've raised it) over the next week or two to be announced, albeit a slight one.

Valuation is still compelling, technicals look productive, and I'm staying with this name longer-term. Here's a link to their report...


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