Is Group 1 Automotive (GPI) a Great Long-Term Investment Choice?

Melissa M. Taylor

ClearBridge Investments, an investment decision administration agency, published its “Small Cap Price Strategy” first quarter 2022 investor letter – a duplicate of which can be downloaded in this article. The ClearBridge Compact Cap Worth Technique outperformed its Russell 2000 Price Index benchmark all through the very first quarter. On an complete foundation, the Technique experienced losses across 7 of the 11 sectors in which it was invested throughout the quarter. The primary detractors have been the customer discretionary, IT, and well being treatment sectors, although the foremost contributor was the power sector. Try to invest some time having a search at the fund’s leading 5 holdings to be educated about their finest picks for 2022.

In its Q1 2022 investor letter, ClearBridge Investments Modest Cap Worth Approach pointed out Group 1 Automotive, Inc. (NYSE:GPI) and explained its insights for the firm. Established in 1997, Group 1 Automotive, Inc. (NYSE:GPI) is a Houston, Texas-primarily based auto dealership organization with a $3.1 billion current market capitalization. Team 1 Automotive, Inc. (NYSE:GPI) sent a -3.18% return since the starting of the 12 months, even though its 12-thirty day period returns are up by 10.96%. The inventory shut at $189.01 for every share on Might 04, 2022.

Listed here is what ClearBridge Investments Modest Cap Price System has to say about Team 1 Automotive, Inc. (NYSE:GPI) in its Q1 2022 trader letter:

“We also initiated a new position in Group 1 Automotive (NYSE:GPI), in the buyer discretionary sector. Group 1 Automotive is one particular of the main vehicle dealership groups in the U.S. and the U.K. By means of our investigation, we think the recent inventory selling price presently reductions a appreciable drop in income and revenue because of to issues about elevated utilised car rates and higher gross margins per device. Having said that, we believe this does not reflect the fundamental strength of the company’s diversified business line and adaptable price composition. In the long run, we think the business will prove a lot more sturdy than the current market expects and be a prolonged-time period benefit creator for the portfolio.”

Car Dealer, Car

Auto Seller, Vehicle

Photo by Dieny Portinanni on Unsplash

Our calculations display that Team 1 Automotive, Inc. (NYSE:GPI) fell brief and did not make it on our record of the 30 Most Preferred Shares Amid Hedge Funds. Team 1 Automotive, Inc. (NYSE:GPI) was in 19 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 24 funds in the former quarter. Group 1 Automotive, Inc. (NYSE:GPI) delivered a 10.43% return in the previous 3 months.

In February 2022, we posted an report that features Team 1 Automotive, Inc. (NYSE:GPI) in 10 Stocks to Make investments in Now According to Anthony Bozza’s Lakewood Cash. You can come across other investor letters from hedge funds and popular traders on our hedge fund trader letters 2022 Q1 web page.

Disclosure: None. This posting is at first posted at Insider Monkey.

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