GPI Price Prediction Next Week
Analysis and Insights
News Sentiment and Fundamental Analysis:
Used Vehicle Price Increase: The recent 2.2% rise in used vehicle prices from December to January has contributed to inflation remaining at 3%, raising concerns about potential interest rate cuts by the Federal Reserve. This could impact GPI's financial performance as higher interest rates may reduce consumer demand for automotive purchases.
BofA Price Target Adjustment: BofA raised the price target for Group 1 Automotive (GPI) from $500 to $550 while maintaining a Buy rating. This adjustment reflects optimism despite lowered North American auto production estimates due to plant downtime and increased imports from China.
Dealer Outlook: Dealers remain optimistic about 2025, anticipating solid growth characterized by rising volumes, stable pricing, and effective execution.
Technical Analysis:
Current Price and Indicators: GPI is currently trading at $429.14, with key technical indicators showing mixed signals. The RSI_14 is at 41.25, indicating the stock is in oversold territory, while the MACD is negative, suggesting bearish momentum.
Fibonacci Levels: The Fibonacci pivot point is at $448.28, with resistance levels at $464.41 and $474.37, and support levels at $432.15 and $422.18.
SMA Analysis: GPI is trading below its 20-day SMA ($460.74) but above its 50-day SMA ($443.52), indicating short-term weakness but medium-term support.
Bollinger Bands: The stock is currently near the lower Bollinger Band, suggesting potential undervaluation.
Price Prediction and Recommendation:
Based on the analysis, GPI is expected to trade between $432 and $464 in the next trading week. The stock is likely to face resistance at $464.41 and support at $432.15. Given the mixed technical indicators and the current market sentiment, the stock is expected to trend downward in the short term.
Recommendation: Sell GPI at the current price of $429.14, with a target price of $422.18 and a stop-loss at $432.15.
GPI Similar Chart Price Prediction
The price of GPI is predicted to go up 0.83%, based on the high correlation periods with BOE. The similarity of these two price pattern on the periods is 93.97%.
GPI
BOE
Up: 0.83%Similarity: 93.97%
GPI Revenue Forecast
GPI EPS Forecast
GPI FAQs
What is GPI revenue forecast for next quarter？
What is GPI eps forecast for next quarter？
GPI VS S&P500
Auto dealerships are profitable businesses with a diversified stream of earnings beyond selling new vehicles.
Parts and service revenue should continue to be lucrative over time because most manufacturers require warranty work to be done at the dealership, and large dealers can more easily afford the technology and training needed to service increasingly complex vehicles. Parts and service provide a large portion of gross profit, despite being a small part of overall revenue.
AcceleRide and Val-U-Line could prove good future sources of profit.
GPI Analyst's Forecast
Rajat Gupta
JP Morgan
Buy
2025-02-14
Price Target
$420 → $495
Upside
+2.84%
JPMorgan analyst Rajat Gupta raised the firm's price target on Group 1 Automotive to $495 from $420 and keeps an Overweight rating on the shares after meeting with management. The firm came away with increased conviction in its Overweight thesis. Given "consistent strong execution" on all aspects of the business coupled with disciplined capital allocation over the last three years, Group 1 has "earned the right to invest and grow the business further," the analyst tells investors in a research note. JPMorgan believes there is room for estimate revisions and further multiple expansion to support the stock.
Jeff Lick
Stephens & Co.
Hold
2025-01-30
Price Target
$460
Downside
-0.42%
Rajat Gupta
JP Morgan
Buy
2025-01-17
Price Target
$425 → $420
Downside
-6.18%
