Penske Automotive (PAG) Set To Acquire U.K.'s The Car People

Penske Automotive Group, Inc. (NYSE:PAG) has inked a deal to acquire The Car People Ltd., one of the leading sellers of used vehicles in the United Kingdom. The acquisition will allow Penske Automotive to bolster its presence in its second largest market i.e. United Kingdom.

Set up in 2000, The Car People is a retailer of top-quality used vehicles sold at fixed prices. The company has its retail location across four cities namely, Wakefield, Sheffield, Manchester and Warrington.

Per management, the buyout of The Car People will help Penske Automotive significantly expand its U.K.-based used car supermarket business, support its diversification approach in the transportation industry as well as nurture its used car business.

Penske Automotive Group, Inc. Price and Consensus

Notably, in January and February, the company had acquired two used vehicle sellers, CarSense and CarShop, in the United States and the United Kingdom, respectively.

Price Performance

In the last three months, shares of Penske Automotive have underperformed the industry it belongs to. The stock has gained 8.8% compared with the industry’s rally of 15.9% during the period.

Zacks Rank & Key Picks

Penske Automotive carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are American Axle & Manufacturing Holdings (NYSE:AXL) , Oshkosh Corporation (NYSE:OSK) and AB Volvo (OTC:VLVLY) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

American Axle has an expected long-term growth rate of 8.1%. In the last three months, shares of the company have been up 8.3%.

Oshkosh has an expected long-term growth rate of 16.5%. In the last three months, shares of the company have been up 16.4%.

Volvo has an expected long-term growth rate of 15%. Year to date, shares of the company have been up 63%.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>