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

ClearBridge Investments, an investment management business, posted its “Small Cap Price Strategy” 1st quarter 2022 trader letter – a duplicate of which can be downloaded here. The ClearBridge Little Cap Benefit System outperformed its Russell 2000 Value Index benchmark during the initial quarter. On an complete foundation, the Method had losses across seven of the 11 sectors in which it was invested all through the quarter. The top detractors ended up the purchaser discretionary, IT, and well being treatment sectors, while the leading contributor was the electrical power sector. Check out to devote some time taking a appear at the fund’s major 5 holdings to be educated about their most effective picks for 2022.

In its Q1 2022 investor letter, ClearBridge Investments Compact Cap Price Approach outlined Team 1 Automotive, Inc. (NYSE:GPI) and spelled out its insights for the business. Launched in 1997, Team 1 Automotive, Inc. (NYSE:GPI) is a Houston, Texas-centered car or truck dealership company with a $3.1 billion marketplace capitalization. Team 1 Automotive, Inc. (NYSE:GPI) sent a -3.18% return due to the fact the beginning of the calendar year, though its 12-month returns are up by 10.96%. The stock shut at $189.01 per share on May possibly 04, 2022.

Listed here is what ClearBridge Investments Little Cap Benefit Approach has to say about Team 1 Automotive, Inc. (NYSE:GPI) in its Q1 2022 investor letter:

“We also initiated a new place in Group 1 Automotive (NYSE:GPI), in the buyer discretionary sector. Group 1 Automotive is a person of the main car dealership groups in the U.S. and the U.K. Through our assessment, we consider the existing stock rate presently bargains a sizeable drop in revenue and earnings owing to concerns about elevated employed auto price ranges and large gross margins per unit. Having said that, we think this does not reflect the fundamental strength of the company’s diversified business enterprise line and adaptable charge structure. Eventually, we believe that the firm will verify more strong than the market expects and be a prolonged-term price creator for the portfolio.”

Car Dealer, Car

Motor vehicle Seller, Auto

Photograph by Dieny Portinanni on Unsplash

Our calculations show that Group 1 Automotive, Inc. (NYSE:GPI) fell shorter and didn’t make it on our list of the 30 Most Common Shares Among the Hedge Cash. Team 1 Automotive, Inc. (NYSE:GPI) was in 19 hedge fund portfolios at the conclude of the fourth quarter of 2021, in contrast to 24 resources in the preceding quarter. Team 1 Automotive, Inc. (NYSE:GPI) delivered a 10.43% return in the past 3 months.

In February 2022, we released an posting that incorporates Group 1 Automotive, Inc. (NYSE:GPI) in 10 Shares to Invest in Now In accordance to Anthony Bozza’s Lakewood Funds. You can come across other investor letters from hedge funds and notable investors on our hedge fund investor letters 2022 Q1 site.

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

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