The USD 66.75 support, currently tested, should allow Asbury Automotive to rally again.
From a fundamental viewpoint, Asbury Automotive seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.4 times its revenues.
This valuation is only 11.4 and 10.75 times the two next years earnings.
Furthermore, EPS estimates have been revised upward in the last few months by analysts.
Moreover, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors.
The return on the USD 66.75 daily support and the trendline gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 71.85 resistance and then the pivot point at USD 76.8.
In consequence, we could buy the stock at current prices in order to aim the main target at USD 76.8. The stop loss will be set at USD 65.8.
Asbury Automotive Group, Inc. is an automotive retailer company. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. The Company operates approximately 160 new vehicle dealerships, consisting of 208 franchises, representing 31 domestic and foreign brands of vehicles. Its TCA, powered by Landcar, is a provider of service contracts and other vehicle protection products, and 37 collision repair centers.
ASBURY AUTOMOTIVE GROUP, INC. 
