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Group 1 Automotive (GPI) Sees Bullish Sentiment From Analysts

We recently published 12 Best Consumer Cyclical Stocks to Buy According to Analysts.  Group 1 Automotive, Inc. (NYSE:GPI) is one of the best consumer cyclical stocks

Group 1 Automotive, Inc. (NYSE:GPI) is an automotive retailer with a presence in the US and UK. The firm has 259 dealerships across the US and UK, out of which 146 are in the US.

As of November 28th, out of the 10 analyst recommendations covering Group 1 Automotive, Inc. (NYSE:GPI), two were a Strong Buy, while four were a Buy and four were Hold. The average share price target was $469.11. One such rating for Group 1 Automotive, Inc. (NYSE:GPI) came on November 12th from Barclays.

It set an Overweight rating on the stock and a $510 share price target. The coverage came as part of the bank’s broader coverage of automotive firms, which saw the bank set Overweight ratings for firms including AutoNation and Lithia Motors. In its note, Barclays noted that Group 1 Automotive, Inc. (NYSE:GPI) was trading at a P/E ratio below its historical average and that of its peers in the dealership industry.

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Group 1 Automotive, Inc. (NYSE:GPI)’s fiscal third-quarter earnings saw it report $10.45 in EPS, which fell short of analyst estimates of $10.81. During the earnings call, analysts questioned the firm about the softening of US luxury car sales, its decision to exit its UK Jaguar Land Rover dealerships, and the potential of partnering up with Chinese brands in the UK.

In response, management outlined that while there was some inventory buildup for luxury US cars in Q3, the situation will become clearer in Q4. As for working with Chinese brands, Group 1 Automotive, Inc. (NYSE:GPI)’s management stressed that it was holding discussions and would decide based on whether the retail model suited shareholder interests.

While we acknowledge the risk and potential of GPI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GPI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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