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

ByApril D. Pitzer

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ClearBridge Investments, an financial commitment administration business, printed its “Small Cap Value Strategy” initially quarter 2022 trader letter – a duplicate of which can be downloaded in this article. The ClearBridge Smaller Cap Benefit Tactic outperformed its Russell 2000 Value Index benchmark for the duration of the initially quarter. On an absolute basis, the Strategy had losses throughout 7 of the 11 sectors in which it was invested during the quarter. The leading detractors had been the consumer discretionary, IT, and wellbeing care sectors, even though the major contributor was the strength sector. Check out to invest some time using a search at the fund’s major 5 holdings to be informed about their greatest picks for 2022.

In its Q1 2022 investor letter, ClearBridge Investments Tiny Cap Benefit Technique pointed out Group 1 Automotive, Inc. (NYSE:GPI) and explained its insights for the organization. Established in 1997, Group 1 Automotive, Inc. (NYSE:GPI) is a Houston, Texas-centered car dealership business with a $3.1 billion current market capitalization. Team 1 Automotive, Inc. (NYSE:GPI) delivered a -3.18% return considering that the commencing of the year, while its 12-month returns are up by 10.96%. The inventory shut at $189.01 for each share on Could 04, 2022.

Listed here is what ClearBridge Investments Small Cap Value System has to say about Group 1 Automotive, Inc. (NYSE:GPI) in its Q1 2022 investor letter:

“We also initiated a new position in Team 1 Automotive (NYSE:GPI), in the purchaser discretionary sector. Team 1 Automotive is just one of the primary car dealership groups in the U.S. and the U.K. By means of our investigation, we think the current stock cost now savings a substantial decline in profits and earnings due to concerns about elevated employed car or truck price ranges and superior gross margins for each device. Even so, we think this does not replicate the fundamental toughness of the firm’s diversified enterprise line and versatile price framework. Ultimately, we believe that the firm will show a lot more durable than the market expects and be a lengthy-phrase value creator for the portfolio.”

Car Dealer, Car

Car or truck Vendor, Motor vehicle

Photograph by Dieny Portinanni on Unsplash

Our calculations clearly show that Group 1 Automotive, Inc. (NYSE:GPI) fell quick and did not make it on our list of the 30 Most Well-liked Stocks Between Hedge Money. Team 1 Automotive, Inc. (NYSE:GPI) was in 19 hedge fund portfolios at the conclude of the fourth quarter of 2021, when compared to 24 money in the past quarter. Team 1 Automotive, Inc. (NYSE:GPI) sent a 10.43% return in the earlier 3 months.

In February 2022, we released an short article that incorporates Group 1 Automotive, Inc. (NYSE:GPI) in 10 Stocks to Make investments in Now In accordance to Anthony Bozza’s Lakewood Funds. You can uncover other trader letters from hedge money and notable investors on our hedge fund investor letters 2022 Q1 site.

Disclosure: None. This report is at first published at Insider Monkey.

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