Top 5 Stock Picks of Value Investor David Abrams

4. Asbury Automotive Group, Inc. (NYSE:ABG)

Abrams Capital Management’s stake value: $365 million

Percentage of Abrams Capital Management’s portfolio: 8.02%

Number of hedge fund holders: 32

Holding a long-term stake in Asbury Automotive Group, Inc. (NYSE:ABG) has paid off for Abrams Capital Management. This is because the company’s stock price soared 155% in the past five years and most of the price appreciation occurred in the past two years. Its stock price has further upside considering high price targets from analysts. The median target price for Asbury is $249, which is significantly higher than the current price of around $160. Together with its subsidiaries, Asbury Automotive Group operates in the United States as an automotive retailer. It provides new and used vehicles, as well as car repair and replacement parts, maintenance services, and collision repair services.

The number of bullish bets increased substantially in Asbury during the fourth quarter of 2021. It was in 32 hedge funds’ portfolios as of December compared to 22 positions in the previous quarter.