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TravelCenters of America Ranks the Highest in Terms of Earnings Yield in the Automotive Retail Industry (TA, ABG, GPI)

Published on Tue, 03/26/2013 - 10:23
By Mallory Stone

Below are the three companies in the Automotive Retail industry with the highest earnings yields. Earnings yield is useful to compare the relative benefit of owning a stock vs. owning other yield assets such as bonds. If the earnings yield is higher, stocks may be considered undervalued.

TravelCenters of America (AMEX:TA) is highest with an earnings yield of 12.0%. TravelCenters of America LLC operates a network of hospitality and fuel service areas primarily along the US Interstate Highway System. The Company provides products and services to professional drivers as well as business and leisure travelers.

TravelCenters of America (AMEX:TA) has potential upside of 36.1% based on a current price of $9.55 and analysts' consensus price target of $13.00. The stock should discover initial support at its 50-day moving average (MA) of $7.35 and subsequent support at its 200-day MA of $5.58.

Following is Asbury Automotive (NYSE:ABG) with an earnings yield of 8.0%.

Finishing up the top three is Group 1 Automotive (NYSE:GPI), with an earnings yield of 7.6%.

By Mallory Stone