ABG Should I Buy
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Asbury Automotive Group Inc (ABG) is not a strong buy for a beginner investor with a long-term horizon at this time. The technical indicators are bearish, financial performance shows declining net income and EPS, and hedge funds are selling the stock. While the used vehicle market has some momentum, analyst ratings remain cautious with lowered price targets. Given the lack of strong positive catalysts and no Intellectia Proprietary Trading Signals, it is better to hold off on investing in ABG for now.
The technical indicators for ABG are bearish. The MACD histogram is negative and expanding downward, the RSI is neutral at 35.029, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below its pivot level of 228.57, with support at 220.743 and resistance at 236.398.
The used vehicle market shows good momentum, as noted by analysts.
Hedge funds are significantly selling the stock, with a 165.95% increase in selling activity over the last quarter. Analysts have lowered price targets multiple times, citing soft auto sales and declining financial performance. The company's Q4 financials show a sharp drop in net income (-53.42% YoY) and EPS (-52.75% YoY).
In Q4 2025, revenue increased by 3.82% YoY to $4.68 billion, but net income dropped by 53.42% YoY to $60 million. EPS also fell by 52.75% YoY to 3.09. Gross margin improved slightly to 16.47%, up 1.54% YoY.
Analysts maintain an Equal Weight rating on ABG, with recent price target reductions from $275 to $230. Analysts cite soft auto sales and a cautious outlook for the auto retail sector, though the used vehicle market shows some momentum.
