Top Rated Consumer Discretionary Stocks: Validea's Patient Investor model highlights Tractor Supply Co (TSCO) and Penske Automotive Group Inc (PAG) as top-rated stocks based on Warren Buffett's investment strategy, focusing on long-term profitability and reasonable valuations.
Tractor Supply Company Overview: TSCO is a large-cap growth stock that serves recreational farmers and ranchers in the U.S., offering a wide range of products through retail stores and online platforms, achieving a strong rating of 93%.
Penske Automotive Group Overview: PAG operates internationally in the transportation services sector, with a diverse portfolio including automotive dealerships and commercial vehicle distribution, receiving a rating of 72% under Buffett's strategy.
About Warren Buffett and Validea: Warren Buffett is recognized as a leading investor, known for his modest lifestyle and consistent market outperformance. Validea provides investment research based on strategies from renowned investors like Buffett.
PAG
$167.92+Infinity%1D
Analyst Views on PAG
Wall Street analysts forecast PAG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAG is 191.20 USD with a low forecast of 175.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
Wall Street analysts forecast PAG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAG is 191.20 USD with a low forecast of 175.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 167.620
Low
175.00
Averages
191.20
High
206.00
Current: 167.620
Low
175.00
Averages
191.20
High
206.00
BofA
NULL
to
Buy
initiated
$195
2025-12-09
Reason
BofA
Price Target
$195
2025-12-09
initiated
NULL
to
Buy
Reason
BofA reinstated coverage of Penske Automotive with a Buy rating and $195 price target. The global dealership group that sells premium and luxury passenger vehicles and trucks has market diversification and higher exposure to a more resilient demographic of higher income consumers, which supports Penske's parts and service business, the analyst tells investors.
Morgan Stanley
Andrew Percoco
Overweight
initiated
$180
2025-12-08
Reason
Morgan Stanley
Andrew Percoco
Price Target
$180
2025-12-08
initiated
Overweight
Reason
Morgan Stanley analyst Andrew Percoco assumed coverage of Penske Automotive with an Overweight rating and $180 price target. The firm adjusted ratings in the autos and shared mobility group as part of its 2026 outlook following a change in analysts. Morgan Stanley is "leaning more cautious" into next year, saying the electric vehicle "winter" will sustain through 2026. This is counterbalanced by a "moderately more positive" outlook on internal combustion engines and hybrids, the analyst tells investors.
Deutsche Bank
Buy
maintain
2025-12-08
Reason
Deutsche Bank
Price Target
2025-12-08
maintain
Buy
Reason
Deutsche Bank raised the firm's price target on Penske Automotive to 1,100 GBp from 1,050 GBp and keeps a Buy rating on the shares.
Barclays
Overweight
initiated
$195
2025-11-11
Reason
Barclays
Price Target
$195
2025-11-11
initiated
Overweight
Reason
Barclays initiated coverage of Penske Automotive with an Overweight rating and $195 price target. The firm rolled out coverage on the auto retail sector with a neutral view. Sector fundamentals are mixed, but the dealers offer "resiliency and strong shareholder returns," the analyst tells investors in a research note. Barclays is constructive on the growth outlook for the digital auction marketplaces as it sees the companies gaining shared from physical auctions.
About PAG
Penske Automotive Group, Inc. is a diversified international transportation services company. The Company operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan and Australia. It also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. Additionally, it owns 28.9% of Penske Transportation Solutions (PTS). Its segments include Retail Automotive, Retail Commercial Truck, Other and Non-Automotive Investments. Retail Automotive segment consists of its retail automotive dealership operations. Retail Commercial Truck consists of its retail commercial truck dealership operations in the United States and Canada. Other segment consists of its commercial vehicle and power systems distribution operations. Non-Automotive Investments segment consists of its equity method investments in non-automotive operations which includes its investment in PTS and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
