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

ClearBridge Investments, an expenditure management firm, posted its “Small Cap Benefit Strategy” initial quarter 2022 trader letter – a duplicate of which can be downloaded here. The ClearBridge Smaller Cap Price Strategy outperformed its Russell 2000 Worth Index benchmark for the duration of the to start with quarter. On an complete basis, the System had losses throughout 7 of the 11 sectors in which it was invested in the course of the quarter. The major detractors ended up the customer discretionary, IT, and well being care sectors, while the leading contributor was the vitality sector. Try out to expend some time taking a appear at the fund’s top 5 holdings to be knowledgeable about their most effective picks for 2022.

In its Q1 2022 trader letter, ClearBridge Investments Tiny Cap Price Approach outlined Group 1 Automotive, Inc. (NYSE:GPI) and described its insights for the enterprise. Started in 1997, Group 1 Automotive, Inc. (NYSE:GPI) is a Houston, Texas-primarily based car or truck dealership enterprise with a $3.1 billion market capitalization. Team 1 Automotive, Inc. (NYSE:GPI) shipped a -3.18% return considering the fact that the beginning of the calendar year, while its 12-month returns are up by 10.96%. The inventory closed at $189.01 for every share on May 04, 2022.

Right here is what ClearBridge Investments Little Cap Worth Method has to say about Group 1 Automotive, Inc. (NYSE:GPI) in its Q1 2022 investor letter:

“We also initiated a new place in Team 1 Automotive (NYSE:GPI), in the shopper discretionary sector. Team 1 Automotive is one particular of the primary automobile dealership teams in the U.S. and the U.K. Through our evaluation, we believe that the recent inventory price tag now bargains a considerable drop in income and gains thanks to considerations about elevated employed motor vehicle price ranges and superior gross margins for every device. On the other hand, we believe this does not replicate the underlying power of the company’s diversified enterprise line and versatile cost structure. Finally, we feel the organization will show much more strong than the current market expects and be a lengthy-expression benefit creator for the portfolio.”

Car Dealer, Car

Automobile Supplier, Vehicle

Picture by Dieny Portinanni on Unsplash

Our calculations display that Team 1 Automotive, Inc. (NYSE:GPI) fell shorter and didn’t make it on our record of the 30 Most Well known Shares Amid Hedge Funds. Group 1 Automotive, Inc. (NYSE:GPI) was in 19 hedge fund portfolios at the end of the fourth quarter of 2021, when compared to 24 funds in the former quarter. Group 1 Automotive, Inc. (NYSE:GPI) sent a 10.43% return in the previous 3 months.

In February 2022, we posted an posting that incorporates Group 1 Automotive, Inc. (NYSE:GPI) in 10 Shares to Devote in Now According to Anthony Bozza’s Lakewood Cash. You can uncover other trader letters from hedge funds and notable buyers on our hedge fund investor letters 2022 Q1 webpage.

Disclosure: None. This post is at first revealed at Insider Monkey.

Katherine T. Burrows

Next Post

BangShift.com Historic Trans Am Versus Pro-Touring Part 2: OPTIMA’s Search For The Ultimate Street Car Visits Sonoma Raceway

Sat May 14 , 2022
Here’s the next batch of photographs from Optima’s Lookup for the Best Street Vehicle. Use the hyperlink under to see the to start with gallery if you skipped it! (Terms by Jim McIlvaine) In a swift pivot, OPTIMA’s 2022 Look for for the Greatest Street Car or truck, offered by […]
Historic Trans Am Versus Pro-Touring Part 2: OPTIMA’s Search For The Ultimate Street Car Visits Sonoma Raceway