Group 1 Automotive, Inc. (GPI), Sonic Automotive Inc (SAH): Don’t Forget About These Auto Dealers

In looking forward, what I really like about Penske Automotive is the scale of the company in the international market. The company has operations in the United Kingdom, Germany and Italy. Roger Penske says he is targeting revenue growth of more than 10% this year through a combination of increased sales and acquisitions. The company is looking at acquiring more dealerships in the U.S., Western Europe and is keeping an eye on Brazil and China. All of this is good news for shareholders in Penske Automotive.

Foolish assessment

The strengthening economy is good news for this automotive retailers. Since the average car on the road is over 10 years old, look for consumers to continue upgrading their vehicles. These three companies are well run and are good long-term bets on the automotive sector.

Mark Yagalla has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Don’t Forget About These Auto Dealers originally appeared on Fool.com and is written by Mark Yagalla.

Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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