David Abrams’ Hedge Fund Is Betting On These 5 Stocks

4. Asbury Automotive Group Inc (NYSE:ABG)

Abrams Capital Management Equity Stake: $501.22 Million

Number of Hedge Fund Holders: 28

Asbury Automotive Group Inc (NYSE:ABG) is one of billionaire David Abrams’ best stock picks. Wall Street has a consensus Hold rating on Asbury Automotive Group Inc (NYSE:ABG) stock, and the $239.20 price target suggests nearly 20% upside potential.

On April 8, Stephens cut its price target on Asbury Automotive Group Inc (NYSE:ABG) to $254 from $277 while reaffirming an Overweight rating on the stock. The firm expects Asbury’s Q1 2026 EBITDA to decline 12.4% YoY and EPS to drop 20.5% decline YoY. It lowered its price target to reflect its reduced Q1 earnings estimates for the automotive retailer.

In reducing the earnings estimates and lowering the price target, Stephens cited weather impact. It pointed out that around 40% of Asbury’s store locations were exposed to adverse weather conditions in Q1.

While Stephens sees pressures for Asbury in the short term, it remains bullish on the company’s long-term outlook. For instance, the firm sees Asbury’s EPS growing to more than $35 in 2028. The company posted adjusted EPS of $27.24 in 2025.

Asbury is in the process of optimizing its store portfolio. As part of this effort, the company announced in February that it had completed the sale of 10 dealership locations in Indiana, Missouri, and South Carolina. This transaction brought it $210 million in net proceeds.

Asbury CEO David Hult said the proceeds are expected to be used toward debt paydown and share repurchases. On debt, the company aims to cut its leverage ratio to below 3.0x. On share purchases, the company added $424 million to the buyback program, bringing the available buyback authorization to $500 million.

Asbury Automotive Group Inc (NYSE:ABG) is an American automotive retailer. It operates more than 160 dealership locations across the US, selling new and used vehicles. It also offers repair services, and provides car purchase financing and insurance solutions. The company is based in Duluth, Georgia.