GET DAILY SIGNALSABG vs AN: Comparing Two Leading Auto Retailers Amid Softening Demand
Key Takeaways
- Both ABG and AN are large U.S. automotive retailers navigating softer new-vehicle volumes, yet their recent results point in different directions.
- AN delivered its seventh consecutive quarter of year-over-year adjusted earnings per share (EPS) growth, while ABG posted an 8.1% revenue decline and an EPS miss in its latest quarter.
- ABG is leaning on its completed Tekion technology rollout as a long-term margin catalyst, whereas AN is driving per-share growth through recurring after-sales income, its captive finance arm, and aggressive buybacks.
- Tickeron AI Verdict: AN currently ranks as the favored ticker on the strength of more consistent earnings trends, lower leverage, and steadier recurring revenue streams.
- For more context, explore ABG Major News and ABG Today's Price Move, plus AN Major News and AN Today's Price Move.
- To see how automated strategies are positioning across the market, explore the Trending AI Robots.
Introduction
Investors comparing ABG (Asbury Automotive Group) and AN (AutoNation) are essentially weighing two of America's largest franchised auto dealership operators against a shared backdrop: cooling vehicle demand, normalized margins, and rising inventory. Both names sit in the consumer cyclical sector and are sensitive to the same affordability, financing, and tariff dynamics. Yet their scale, growth engines, and balance-sheet profiles differ meaningfully. This stock comparison is most relevant to value-oriented and income-focused traders tracking relative performance within automotive retail, as well as to investors seeking to understand how recurring service and finance income can offset cyclical vehicle sales. I also checked this using Tickeron’s AI Screener to see how the stocks compare to others in the industry.
A Closer Look at Asbury Automotive Group (ABG)
Asbury Automotive Group operates roughly 155 new-vehicle stores and 37 collision centers, with more than 70% of new-vehicle revenue tied to luxury and import brands. In recent weeks, the stock has been volatile around its third-quarter report. ABG posted revenue near $4.4 billion, down about 8.1% year over year, and adjusted EPS of $6.16 that missed consensus estimates. Despite the headline miss, shares rallied sharply as investors focused on two positives: a non-cash accounting charge that masked stronger underlying results, and the completed rollout of its Tekion dealer-management system across all stores.
Sentiment has been shaped by that technology transition. Management flagged early efficiency gains, including growth in customer-pay gross profit and technician productivity in stores that adopted the platform first. Offsetting this, ABG carries net leverage around 3.5x, above its larger peer, and selling, general, and administrative expenses remain elevated during the integration phase. Analysts generally hold a consensus "Buy" view, with price targets concentrated near the low-to-mid $200s.
A Closer Look at AutoNation (AN)
AutoNation is the second-largest U.S. auto retailer, generating roughly $27.6 billion in 2025 revenue across more than 245 dealerships in 20 states. Its latest quarter showed revenue of about $7.01 billion, essentially flat year over year, while adjusted EPS of $5.11 marked a seventh straight quarter of year-over-year growth. Unlike its peer, AN modestly beat consensus adjusted EPS and saw its shares rise following the report. From what I see, the company’s emphasis on after-sales and finance income stands out as a stabilizing factor.
Recent market activity has highlighted the company's shift toward recurring, higher-margin income. After-sales posted a ninth consecutive record quarter, with gross profit of roughly $617 million now contributing about half of total gross profit. AutoNation Finance, its captive lender, scaled its portfolio to roughly $2.9 billion and generated $15 million in quarterly operating profit, up from $2 million a year earlier. Management has also leaned heavily on capital returns, deploying about $620 million to share repurchases year to date and authorizing an additional $1 billion, helping reduce the share count by roughly 12% year over year.
Head-to-Head Comparison
The clearest contrast between these two stocks is their growth engine and financial positioning. AN is the larger, more diversified operator, with a broad Sunbelt footprint and a rapidly scaling captive finance business that converts vehicle sales into recurring interest and fee income. Its after-sales strength and heavy buyback program have kept per-share earnings rising even as unit volumes soften. ABG, by comparison, is a more concentrated, luxury-and-import-weighted regional operator whose near-term story depends on extracting cost efficiencies from a completed technology overhaul.
On momentum, both stocks rallied after their latest reports, but AN beat expectations while ABG missed, making the latter's move more dependent on narrative. On risk, ABG carries notably higher leverage near 3.5x net, versus AN's targeted 2x-to-3x EBITDA range. Sector exposure is similar, but AN's greater reliance on California and Florida adds geographic concentration risk, while ABG's luxury mix offers some insulation in downturns.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor AN in the current environment. AutoNation exhibits more consistent earnings trends, a steadier recurring-income base through after-sales and captive finance, and a comparatively stronger balance sheet with lower leverage. Its ability to grow adjusted EPS for seven consecutive quarters while beating consensus signals more stable relative positioning. Asbury's Tekion catalyst is credible, but it remains earlier-stage and is paired with higher debt and a recent earnings miss. Accordingly, the AI's preference for AN reflects a probabilistic edge in trend consistency and stability rather than a definitive forecast. I’m watching this closely as earnings trends continue to evolve.
Exploring AI Tools in My Analysis
In my research process, I often turn to Tickeron’s AI Trading Bots to test how automated strategies might respond to names like these. The platform helps surface patterns across thousands of tickers and lets me compare approaches that match my own risk parameters. It has become a regular part of how I cross-check fundamentals with quantitative signals before forming a final view.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ABG in upward trend: price rose above 50-day moving average on October 27, 2026
ABG moved above its 50-day moving average on October 27, 2026 date and that indicates a change from a downward trend to an upward trend. In 40 of 52 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on ABG as a result. In 71 of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 76%.
The Moving Average Convergence Divergence (MACD) for ABG just turned positive on October 15, 2026. Looking at past instances where ABG's MACD turned positive, the stock continued to rise in 29 of 45 cases over the following month. The odds of a continued upward trend are 64%.
Following a +12.94% 3-day Advance, the price is estimated to grow further. Considering data from situations where ABG advanced for three days, in 218 of 313 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ABG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
ABG broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ABG entered a downward trend on October 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 51 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.906) is normal, around the industry mean (1.454). P/E Ratio (7.356) is within average values for comparable stocks, (11.731). Projected Growth (PEG Ratio) (0.449) is also within normal values, averaging (0.695). Dividend Yield (0.005) settles around the average of (0.011) among similar stocks. P/S Ratio (0.207) is also within normal values, averaging (0.919).
The Tickeron Price Growth Rating for this company is 54 (best 1 - 100 worst), indicating steady price growth. ABG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 58 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 60 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ABG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
an operator of an automotive retailers
Industry AutomotiveAftermarket
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